You have to read this to believe it: “SEC Porn Problem: Officials Surfing Sites During Financial Crisis, Report Finds”. And we wonder why Wall Street stays a several steps ahead of the regulators.
Most of the time when I meet with investors (large and small) and explain what I do and New Constructs does, they are astonished about what I explain as the reality of the investing world. They always ask: “What are regulators doing?”…”How can they allow these things to go on?”
The answers to that question are:
“Close the revolving door between the S.E.C. and Wall Street. At every turn we keep coming back to an enormous barrier to reform: Wall Street’s political influence. Its influence over the S.E.C. is further compromised by its ability to enrich the people who work for it. Realistically, there is only so much that can be done to fix the problem, but one measure is obvious: forbid regulators, for some meaningful amount of time after they have left the S.E.C., from accepting high-paying jobs with Wall Street firms.”
This report shows how the big Wall Street banks and large hedge funds exploit their access to more information to front-run unsuspecting investors.
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.
Unlike the typical research firm, New Constructs aims to help our customers not exploit them. New Constructs only makes money by selling reports, no investment banking or trading fees pollute our research.
To see how I apply my analytical techniques, look no farther than the New Constructs website. Indeed, we have a large and generous Free Archive of research reports that show you exactly what we do and how we do it. We are not afraid to be transparent because we have nothing to hide.
Even if you think my analytical methods are bunk, you will still appreciate the performance of New Constructs stock picking. To see how we’ve done…
Watch this video. “The Warning”. The description of the video from the website: “In the midst of the 1990s bull market, one lone regulator warned about the derivatives dangers — and overnight became the enemy of some of the most powerful people in Washington…”
The best long-term strategy for making money in the stock market is: “Buy low expectations and sell high expectations.”
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