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McDonald’s Corporation (MCD) — Very Attractive Rating for Ask Matt Readers

Wednesday, July 27th, 2011 McDonald’s Corporation (MCD) — Very Attractive Rating for Ask Matt Readers

The val­u­a­tion of MCD’’s stock implies the com­pany will grow its after-tax cash flow (NOPAT) by less than 10% over its remaining life. I think market expectations are too low, espe­cially when the company’s return on invested cap­i­tal (ROIC) is so high at 14.5%.

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Five Utility Sector ETFs To Sell

Tuesday, July 26th, 2011 Figure1Utilities

We recommend investors avoid all utility sector ETFs. There are no ETFs in the utility sector with an attractive-or-better rating. None of the ETFs rank better than the S&P500.
Investors should sell the following dangerous-rated utility sector ETFs:

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Tech Sector ETF Rankings for 3Q11

Tuesday, July 19th, 2011 Figure2_tech

ProShares Ultra Semiconductors (USD) is our top pick among the 25 ETFs we analyzed for our 3Q11 update on the “Best & Worst Tech Sector ETFs”.

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3Q11 Sector ETF Rankings: Chips and Dips Rise To The Top

Friday, July 15th, 2011 dreamstimefree_310726_upGraph

The consumer staples and information technology sectors are tops among the ten major sectors. Both get our “attractive” rating. Our Sector Roadmap report ranks and rates all of the 10 sectors. It also benchmarks all sectors against the S&P 500, which gets our “neutral” rating and the Russell 2000, which gets our “dangerous” rating.

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Sell Starwood Before FASB Closes Loophole That Boosts EPS

Tuesday, July 12th, 2011 HOT_Figure1

Accounting rules provide the biggest loopholes to asset intensive businesses. And the off-balance sheet operating lease loophole is one of the biggest.
By exploiting this loophole, Starwood is able to omit nearly $1 billion in debt from its balance sheet in 2010, $200 million (20% of the total) was added in 2010.

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Nucor Corporation (NUE) — Dangerous Risk/Reward Rating for Ask Matt Readers

Thursday, July 7th, 2011 Nucor Corporation (NUE) — Dangerous Risk/Reward Rating for Ask Matt Readers

The valuation of NUE’s stock implies the company will grow its after-tax cash flow (NOPAT) by nearly 20% compounded annually for 20 years.

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