March 17, 20140Comments

Danger Zone: Tuesday Morning (TUES)

Any brick and mortar retailer carries some risk in this environment, but investors who really want exposure to this sector should look for higher quality companies than TUES. Other retailers have superior profitability metrics, better branding and e-commerce capabilities, and a cheaper valuation. The only reason to touch TUES is to short it.

by David Trainer, Founder & CEO

September 16, 20130Comments

Danger Zone 9/16/13: E*Trade Babies

Online trading firms aim to exploit the gullibility of many retail investors by encouraging the myth that they can outperform professional money managers armed with vastly greater resources, experience and expertise. The E*Trade babies are the most glaring symbol of this myth. The symbol also reinforces the notion that investing is an easy task that takes no special effort or aptitude to succeed.

by David Trainer, Founder & CEO

August 26, 20130Comments

Danger Zone 8/26/13: First Trust Value Line 100 ETF (FVL)

First Trust Value Line 100 ETF (FVL) is in the Danger Zone this week. FVL is another example of a supposedly “passive” ETF that purportedly tracks an index but actually resembles an actively managed portfolio. FVL’s methodology tracks an index, but it is an index in name only.

by David Trainer, Founder & CEO

July 15, 20130Comments

Danger Zone 7/15/13: Stein Mart (SMRT)

Stein Mart (SMRT) is in the Danger Zone this week and earns my Very Dangerous rating. Hidden items in its filings artificially boost earnings growth and mask significant liabilities.

by David Trainer, Founder & CEO