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Highlights From New Constructs Investment Research

Apple’s Declining Advantage is Undeniable

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Apple cannot have pricing power and market share at the same time. No one can for an extended period of time. The problem with AAPL is that it is priced for the company to achieve market share penetration and growth at high prices. The reality is that the quality of Apple products versus competitors is declining. Prices will have to come down just to maintain market share.

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Apple Stays Rotten

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The “value” in Apple is an illusion. Astute investors need to look at Apple through the lens of what is a reasonable ROIC in the future.

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Excess Cash – Invested Capital Adjustment

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Most companies hold some cash—or cash equivalents in the form of investments—above this required amount. Companies hold excess cash in order to cushion against economic downturns, prepare for acquisitions, or any number of other reasons. Sometimes, past profits pile up on balance sheets and are a form of excess cash. Excess cash is not needed for the operations of a company. It is removed from our calculation of invested capital.

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Danger Zone 6/17/13: Citigroup (C)

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As the market bulls continue to look to rising interest rates as a sign of future strength for Citi, they ignore the fundamentals of the market and of Citi’s weak profit history.

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Danger Zone 6/10/13: “Passive” Investors

Danger Zone 6/10/13: “Passive” Investors

Passive investors are in the Danger Zone for not recognizing that they are actually active investors.

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Danger Zone 5/13/2013: Apple Inc. (AAPL)

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Too many investors are looking at AAPL through the rear view mirror and assume that its sky-high profits and return on invested capital (ROIC) are sustainable. As I detail in my CNBC interview, Apple is not cheap and investors should not underestimate the impact of losing Steve Jobs.

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How To Avoid the Worst Style ETFs

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Picking from the multitude of style ETFs is a daunting task. We are here to make it simpler and smarter.

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Best & Worst ETFs & Mutual Funds: Energy Sector

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The Energy sector ranks fifth out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 20 ETFs and 73 mutual funds in the Energy sector as of January 25th, 2013.

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The Danger Zone Pick: 11/12/12

The Danger Zone Pick: 11/12/12

JPMorgan Trust II: JPMorgan Large Cap Growth Fund (OLGAX) is in the Danger Zone this week.

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How To Avoid The Worst ETFs

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The focus of this article is investing risk or the relative investment potential of the ETF. This risk is much more difficult to asses because it requires researching the investment potential of the ETFs holdings.

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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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Buy CSCO: A Treat For Value Investors

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Seldom do value investors get a chance to have their cake and eat it too. And that is exactly what we have with Cisco (CSCO) stock.

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How To Survive the Euro Crisis

How To Survive the Euro Crisis

As I wrote in “Don’t Be Fooled: Get Short Now”, the euro is not that different from Enron, WorldCom or the Madoff fund. All of these organizations were able to pretend they were profitable or solvent long after they were insolvent.
Now markets are finally acknowledging the intractability of the Euro debacle.

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ETF Pair Trade To Navigate Shifty Tech Stocks

ETF Pair Trade To Navigate Shifty Tech Stocks

I have a pair trade (i.e. long/short) ETF strategy for investors who want to maximize upside potential and minimize downside risk in Technology stocks.

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Fox Business TV Interview: Market Outlook and Top Stock Picks

Fox Business TV Interview: Market Outlook and Top Stock Picks

I discuss my market outlook and top stock picks in this interview today.
In general, I think most of the… Read more >>

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Buy Apple, Naysayers Are Missing the Point

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With so much written about Apple (AAPL), I am amazed that so few have focused on the most important driver of its stock price: the company 270% return on invested capital (ROIC).

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Wall $treet Week Returns: New Constructs’ Unique Research and Very Attractive Rating for AAPL

Wall $treet Week Returns: New Constructs’ Unique Research and Very Attractive Rating for AAPL

My interview with Wall $treet Week focuses on the uniquely rigorous research of New Constructs and three of our top stock picks.

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Low Fund Fees Snare Investors

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Investors are good at picking funds with low costs. They are not good at picking funds with good stocks. Both are required to maximize opportunity for success.

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Best and Worst Funds: Large Cap Blend Style

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The Large Cap Blend investment style ranks first out of the twelve investment styles as detailed in my style roadmap. It gets my Neutral rating, which is based on aggregation of fund ratings of all 1222 funds in the style.

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Don’t Fall For the Market Head-fake Today

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The market decline experienced thus far is closer to its beginning rather then its end. Today’s refreshing market rise is likely just a flash in the pan.
The market needs to go down again before it can sustain any future rise.

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