November 22, 20100Comments

Buy The Travelers Co (TRV) – Very Attractive Rating

HIDDEN GEMS: 1. About $29 million in non-operating expenses (after-tax) cause reported earnings to be understated. 2. Our dis¬counted cash flow analy¬sis shows that TRV’s cur¬rent val¬u¬a¬tion (stock price of $55.49) implies that the company’s profits will decline by 30% and never grow again. 3. The company grew its economic earn¬ings by $827mm during its last fiscal year.

by David Trainer, Founder & CEO

August 31, 20101Comments

Stock Pick of the Week: Buy Medtronic Inc. (MDT) – Very Attractive Rating

HIDDEN GEM: Our detailed discounted cash flow analysis shows that MDT's current valuation (stock price of $31.95) implies that the company's profits will decline by 50% and never grow again. Our economic earnings model shows profits are growing, not declining, which makes the Risk/Reward for MDT Very Attractive.

by David Trainer, Founder & CEO

August 17, 20101Comments

Stock Pick of the Week: Buy International Business Machines (IBM)

HIDDEN GEM: Our detailed valuation model shows that IBM grew its "economic" profits more than it accounting profits during its last fiscal year. Economic profits rose by $1.15bn while accounting profits rose by $1.09bn.

by David Trainer, Founder & CEO

August 3, 20101Comments

Stock Pick of the Week: Sell/Short Yahoo (YHOO)

Overall, the Risk/Reward of investing in Yahoo's stock looks Very Dangerous to me. There is lots of downside risk given the Misleading Earnings and there is little upside reward given the already-rich expectations embedded in the stock price.

by David Trainer, Founder & CEO

July 27, 20100Comments

Stock Pick of the Week: Buy Xilinx (XLNX)

HIDDEN GEM: Our detailed valuation model shows that XLNX grew its "economic" profits by nearly $14mm during its last fiscal year while it reported an $18mm decline in accounting profits.

by David Trainer, Founder & CEO

July 14, 20100Comments

Stock Pick of the week: Buy Myriad Genetics (MYGN)

A newcomer to our Most Attractive Stocks for July, this small cap stock has an excellent risk/reward profile, which earns it our highest Rating: Very Attractive.

by David Trainer, Founder & CEO

July 13, 20100Comments

No Double-Dip Recession In Sight, Just Slow(er) Growth

As highlighted in LPL Group excellent "Mid-Year Outlook for 2010", the economy is moving from 'recovery' mode to 'expansion' mode, which is very different from moving from 'recovery' back to 'recession' - a prediction made by many attention-seeking alarmists these days. We are still growing, just not as fast.

by David Trainer, Founder & CEO

June 7, 20100Comments

Investing vs Speculating

The difference between Investing and Speculating is much larger than Wall Street would have you believe. In fact, they could not be too more different activities. Speculating is gambling. Investing is intelligent decision-making.

by David Trainer, Founder & CEO

June 4, 20100Comments

GAP is Stock Pick of the Week – Hidden Gem

Hidden Gem - GPS: economic earnings are rising faster than reported accounting earnings b/c the company lowered the capital employed to run the business. GAAP earnings do not capture increase capital efficiency of the business.

by David Trainer, Founder & CEO

May 28, 20100Comments

NYSE – Why it’s on the Most Dangerous List

There are two primary reasons a stock gets on our Most Dangerous List: 1. Misleading earnings: reported GAAP earnings are positive and rising while economic earnings are negative and declining 2. Expensive valuation: future cash flow expectations embedded in the current price are unusually high especially compared to historical performance. Free copy of our report on NYX is in the Free Archive on www.newconstructs.com. Or just click here: NYX Company Valuation Report.

by David Trainer, Founder & CEO

May 19, 20105Comments

Investment Strategy 101

The key to successful investing is maximizing upside potential and minimizing downside potential for every investment decision.

by David Trainer, Founder & CEO