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Top Ranking for Stock Picking for New Constructs

Saturday, July 31st, 2010

Performance of our Most Attrac­tive Stocks consistently ranks as among the best of all the major firms according to Barron’s. Our top-ranked stock research drives our Predictive Ratings for 7400+ ETFs and mutual funds.

  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

For a more complete list of media highlights, click here for the Greatest Hits collection. See stock-picking accolades for media coverage specific to our stock-picking.

Click here for details on stock rating methodology.

Even if you think the Financial Footnotes do not matter, you have to appreciate the consistency of our stock-picking success.

Why do our stock picks work? Our success comes from the unrivaled analytical rigor enabled by our Paradigm-shifting research platform and the fact that we are the only firm to have completely analyzed over 100,000 annual reports, 10-Ks, 10-K/As, 20-Fs, 40-Fs, 8-Ks, etc.

Historically, high levels of analytical rigor could be applied to only a handful of companies because manually reading and analyzing the Financial Footnotes takes an enormous amount of time and expertise. Analyzing the Notes requires reading hundred of pages for details on items like off-balance sheet debt, hidden charges, false revenues, option liabilities, pension liabilities and asset disposals. And every company reports differently, which makes analyzing the Notes even harder. Our patented research system coupled with our expertise enables us to read, analyze and model the impact of data from the Financial Footnotes for 3000+ companies.

As detailed in Decoding Wall Street Propaganda, Wall Street firms are in the business of selling stock not good research. In fact, good research is in conflict with their investment banking business, which makes all the profits of the bank while research departments are pure cost centers. This helps explain why New Constructs consistently outperforms the big Wall Street firms, all of which have many multiples of the resources we employ. Better to be efficient and have shared interests with our clients…better for clients…at least. :)

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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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