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Stock-Picking Accolades

Monday, July 19th, 2010

Over the years, New Constructs’ stock picking prowess has garnered recognition from multiple independent sources. Proof Is In Performance. For a more complete list of media highlights, click here for the Greatest Hits collection.

Barron’s has consistently highlighted New Constructs’ Most Attractive Stocks as among the very best of all the major firms. Copies of articles:

  1. 2nd Half of 2011 Sur­vey: “Focus Lists Were Out of Focus in 2011’s Tur­moil”, ranked #4 over 3 years
  2. 1st Half of 2011 Sur­vey: “Stum­bling To the Halfway Mark”, ranked #2 over 3 years
  3. Full-year 2010 Survey: “Market Beaters“, ranked #2 over the prior 12 months and #3 over the prior 3 years.
  4. 1st Half of 2010 Survey: “Finding Good Stocks in Bad Markets“, ranked #1 over the prior 12 months
  5. Full-Year 2009 Survey: “How the Brokers Stack Up“, ranked #2 over the prior 12 months
  6. 1st Half of 2009 Survey: “The Bull Resurfaces Just In Time“, ranked #2 over the prior 12 months

As you can see on our “News” page, we get lots of very positive media coverage of our stock-picking ability.

  1. MarketWatch, Chuck Jaffe: “Stock Sleuth Exposes Market Winner and Traps
  2. CNBC’s Erin Burnett called me “One of the greatest stock pickers on the planet“. The prior link is just one of many interview on CNBC highlighting our stock-picking prowess. I had a great run on their show until I highlighted AT&T as one of our Most Dangerous Stocks. I was too naive to avoid negative comments on one of their major advertising customers. Despite my excellent track record on their show, the invites to appear stopped rather suddenly after telling their audience to short AT&T.
  3. Back in 2005, Institutional Investor ranked New Constructs #1 amongst all independent research firms: “Black-Box Research“. We are not a black box, but I will take the ranking they give us especially against the competition they chose for the study.

Our success comes from doing research the right way. It is very hard, time-consuming work to read the Notes to the Financial Statements for over 3000 companies. It is just as hard to organize and model all the data we glean from reading the entire annual reports into a model that comprehensively measures the true economic profits and value of a business. But we do it because we know it is valuable and, in the long run, the best way to pick stocks. We are also pleased that in the fairly short run (as measured by the article and accolades above) that our stock-picking has done well.

For details on our stock picks over the years, go to where we provide free copies of all Most Attractive and Most Dangerous Stocks reports that are more than 90 days old. So you can check our performance for yourself.

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  1. varadha says:

    Terrific, yet simple analysis. I’ve always been a fan of ROIC as a measure of capital efficiency and believe that no size/growth outperformance can replace the quest for efficiency.

    Sort of like a big gas guzzling v8 that needs ever increasing gallons of fuel to keep its engine running

  2. David says:

    But Angie’s $90 per user acquisition cost is going to go away. That’s what their approach probably is. How would their outlook be if that $90 cost dropped down to a total cost of $3 per user?

  3. David:

    That would be great, but cost per user acquisition is not something that’s very easy for a company to fix. ANGI can slash their marketing budget to the bone, but then they would stop acquiring new members. They would probably lose members in fact, as their membership renewal rate is at ~75% and declining. If they cut marketing expense by ~95% as you seem to be suggesting, ANGI might be able to eke out 1 year of slight profits, but they would start shedding members and losing money very quickly. ANGI’s only hope is to keep its marketing budget high and hope it can reach the scale and brand awareness to be able to sustain its business while scaling back marketing costs enough to turn a profit. The fact that ANGI’s revenue growth is slowing down even as its marketing costs keep increasing makes it very unlikely it will achieve that goal.

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