August 19, 2010 – 2:10 pm
Here is our free report on Sandridge Energy for Ask Matt readers. Our analysis of the Financial Footnotes reveals a major RED FLAG: the company has written off over $3.4bn in assets in just the last two years.
August 17, 2010 – 8:42 am
HIDDEN GEM: Our detailed valuation model shows that IBM grew its “economic” profits more than it accounting profits during its last fiscal year. Economic profits rose by $1.15bn while accounting profits rose by $1.09bn.
By David Trainer
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Tagged accounting, buy, cash flow, corporate profits, downside risk, dynamic discounted cash flow model, earnings, economic earnings, free cash flow, GAP, Invested Capital, Invested Capital Turns, NOPAT, NOPAT MARGIN, ROIC, stocks, upside potential, valuation
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Overall, the Risk/Reward of investing in Yahoo’s stock looks Very Dangerous to me. There is lots of downside risk given the Misleading Earnings and there is little upside reward given the already-rich expectations embedded in the stock price.
By David Trainer
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Tagged cash flow, corporate profits, downside risk, dynamic discounted cash flow model, earnings, expecations, GAAP, Invested Capital, investing, investment decision, investment strategy, risk, upside potential, valuation
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New Constructs stock-picking consistently ranks among the best of the nationally-recognized research firms.
HIDDEN GEM: Our detailed valuation model shows that XLNX grew its “economic” profits by nearly $14mm during its last fiscal year while it reported an $18mm decline in accounting profits.
The United States Patent and Trademark Office awarded us patent #7,752,090, titled: System and Method For Reversing Accounting Distortions and Calculating A True Value of a Business.
By David Trainer
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Tagged 10-K filing, cash flow, corporate profits, diligence, Financial Footnotes, footnotes, Invested Capital, NOPAT, Notes to the Financial Statements, parse, Proof Is In Performance, ROIC, Wall Street
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One of the Most Dangerous Stocks for July, Whole Foods has misleading earnings and a sky-high valuation, in our opinion. The same is true for all of our Most Dangerous Stocks.
By David Trainer
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Tagged Competitive Advantage Period, discounted cash flow model, earnings, EVA, free cash flow, Growth Appreciation Period, Invested Capital, Invested Capital Turns, NOPAT, NOPAT MARGIN, return on invested capital, ROIC, WACC, Weighted Average Cost of Capital
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New Constructs has a strong reputation on Wall Street and with individual investors. We have been recognized for our analytical rigor (options, hidden debt, write-offs, red flags) as well as the stock-picking benefits of our hard work and analysis.
By David Trainer
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Also posted in Proof Is In Performance
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Tagged Barron's, CNBC, corporate profits, diligence, finance, financials, footnotes, Forbes, investing, investment strategy, MarketWatch, red flags, risk, stocks, valuation
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The takeaway: the TED Spread indicates the financial system is relatively safe these days with no imminent danger. It has recently fallen from recent highs related to the debt issues in Europe and it is no where near where it was during the sub-prime crisis which led to the Lehman crisis when the TED Spread hit historic highs.
Over the years, New Constructs’ stock picking prowess has garnered recognition from multiple independent sources.