Just when we think the market is becoming more rational and beginning to focus on fundamentals again we find a stock that proves that idea wrong. Once again, we’ve identified a business that fails to generate profits, uses “adjusted” metrics as “better representations of business”, and who’s stock price is up over 200% since late 2012. ServiceNow (NOW) is in the Danger Zone this week.
The All Cap Growth style ranks sixth out of the twelve fund styles as detailed in our 4Q15 Style Ratings for ETFs and Mutual Funds report. Last quarter, the All Cap Growth style ranked sixth as well. It gets our Neutral rating
This week we’ve identified another highflying cloud company that exhibits many of the problematic traits we saw in DWRE and SPLK. Revenue growth can only support a stock for so long and this week’s Danger Zone stock, Marketo (MKTO) has plenty of room to fall.
The All Cap Value style ranks fifth out of the twelve fund styles as detailed in our 3Q15 Style Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
In early 2012, Splunk Inc. burst onto the scene with one of the biggest IPOs of the year. Since then, the stock price has ridden the hype and is up more than 320%. This price increase should raise serious concerns for astute investors.
Demandware IPO’d in 2012 based on plans to create shareholder value by providing e-commerce platforms for retailers and brands worldwide. So far, the plan is not working as the company’s profits have declined. Paradoxically, the stock price has climbed over 140% since its IPO. The stock is dangerously overvalued and earns a place in the Danger Zone this week.
This report shows how well style ETFs and mutual fund managers pick stocks.
The Large Cap Growth style ranks fourth out of the 12 fund styles as detailed in our 2Q15 Style Ratings report. It gets our Neutral rating.
The following is a list of our top 10 ETFs that have over $100 million in assets under management (AUM), and that are not leveraged.
What a year for the market in 2014! It was so good that it seems there is general consensus that 2015 cannot be very good. No longer does the market wonder “if” the Federal Reserve will raise rate.
This company specializes in IT management software to help manage mainframe, cloud, and mobile environments. At its current price, this company is attractive even if it fails to grow, and it makes our Most Attractive stocks list for March.
We’ve compiled a “top 10” list of the companies with the largest adjustments to their valuations. Some adjustments represent senior claims to equity holders that reduce economic book value and shareholder value while others are assets that we expect to be accretive to shareholder value.
Oracle Corporation (ORCL) is our hot stock this week and earns an Attractive rating.
The All Cap Blend style ranks third out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report.
Picking from the multitude of sector ETFs is a daunting task.
Sometimes, a great company can actually be a risky stock when it gets significantly overvalued.
Momentum was the only thing supporting WDAY’s stock, and now that the momentum is gone, look out below.
Compared to its competitors, CALD has less scale, inferior profitability metrics, and fishy accounting to boot. The stock’s valuation is so high that our DCF model can hardly make sense of it. The stock seems to be trading largely on the hopes of an acquisition.
There are too many competitors out there for CRM to grow revenue and expand margins simultaneously to the extent that the market valuation already implies. Too much downside risk is in this stock.
Without careful footnotes research, investors would never know the amount of employee stock options that decrease the amount of future cash flow available to shareholders by diluting the value of existing shares.
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