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Highlights From New Constructs Investment Research

Fox Interview: Street Fight and Market Outlook

Fox Interview: Street Fight and Market Outlook

In my recent interview, Fox Business’ David Asman digs into the details of what makes a good stock in the current market environment.

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The Danger Zone Pick: 9/24/12

The Danger Zone Pick: 9/24/12

Life Time fitness CEO predicts 15% growth at best.
In my weekly Danger Zone interview, I explain how that expectation,… Read more >>

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Don’t Trust This Utility’s Dividend

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Smart investors consider more than just the dividend of a stock. They also consider the principal risk. If the principal risk is greater than the dividend yield then the dividend is of no real value. I see the principal risk of this stock at more than 15% with a fair value closer to $50 – after adjusting for the pension accounting shenanigans.

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Less Than 1% of Managers Deliver Alpha: Here Are Details

Less Than 1% of Managers Deliver Alpha: Here Are Details

“New research on the performance of institutional portfolios shows that after risk adjustment, 24% of funds fall significantly short of their chosen market benchmark and have negative alpha, 75% of funds roughly match the market and have zero alpha, and well under 1% achieve superior results after costs—a number not statistically significantly different from zero.”

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The Danger Zone Pick: 9/17/12

The Danger Zone Pick: 9/17/12

The impact on valuation: instead of a fair value in the mid $50s, I now see it in the low $40s – about 30% lower than where the stock is today. 30% dwarfs the 4% dividend yield.

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The Danger Zone Pick: 9/11/12

The Danger Zone Pick: 9/11/12

Check you the latest Danger Zone interview on a company employing misleading merger accounting.

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September’s Most Dangerous Stocks Report Released to Public Today

September’s Most Dangerous Stocks Report Released to Public Today

September’s Most Dangerous Stocks report is now available to the public. 6 new stocks were added this month.

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September’s Most Attractive Stocks Released to the public today

September’s Most Attractive Stocks Released to the public today

September’s Most Attractive Stocks list is now available to the public. 13 new stocks were added this month.

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“Earnings Accretion” Is a Mirage: Sell HOLX

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Sometimes when I analyze a stock, I am reminded of the marvels that investment bankers can do for their valuations, especially if the company is a good client. With its recent $3.7 billion acquisition of Gen-Probe, I would bet that Hologic (HOLX) made its investment bankers quite happy. Investors, on the contrary, should sell the stock and not be happy with that deal.

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The Danger Zone Pick: 9/4/12

The Danger Zone Pick: 9/4/12

My Danger Zone pick this week is also my Stock Pick of the Week. Listen to all the details in my weekly interview with MarketWatch’s Chuck Jaffe.

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