April 17, 20190Comments

Traditional Research Misses This Long Idea

Despite positives, such as profit growth and execs incentivized to create shareholder value, this stock is priced as if profits will permanently decline.

by Kyle Guske II, Senior Investment Analyst, MBA

January 31, 20190Comments

The Fed Is Irrelevant: Low Interest Rates Are the New Normal

We believe Jerome Powell's announcement that the Fed is not planning to raise rates in the immediate future validates the key points we made over two years ago.

by Sam McBride

January 28, 20192Comments

Reality Is Closing in on Netflix

Investors are losing patience with Netflix’s extraordinary cash flow burn. Time is running out for Netflix’s current business model to work.

by Kyle Guske II, Senior Investment Analyst, MBA

April 25, 20180Comments

Rising from the Ashes to Lead a New Retail Paradigm

The market has recognized some of the turnaround (shares are up 40% in the past year), but investors are missing the critical role the firm could play in the next chapter of retail as well as the balance sheet story.

by Kyle Guske II, Senior Investment Analyst, MBA

April 2, 20181Comments

How Much Should Investors Pay for Spotify?

To help investors sort through the confusion, we present three different proposed valuations for Spotify based on three different scenarios of growth and profitability.

by Sam McBride

August 2, 20170Comments

See Us On CNBC Discussing Apple @ 3ET Today

Tune into CNBC on Wednesday, August 2 at 3pm EST. New Constructs CEO, David Trainer, will discuss Apple’s business and its current valuation.

by Kyle Guske II, Senior Investment Analyst, MBA

September 26, 20162Comments

The Fed Is Irrelevant: Low Interest Rates Are the New Normal

It’s time to consider a new paradigm for interest rates – a paradigm where treasury rates remain ultra low and riskier investments are priced by a decentralized market instead of a central bank.

by Sam McBride

January 6, 20160Comments

4 Reasons ROE Is Not A Useful Metric For Investors

For the best financial analysis ratios, look no further. Harvard Business School and MIT Sloan empirically demonstrate the superiority of the data that drives our models and calculations. This paper

by Sam McBride

December 16, 20150Comments

The Market Values High ROIC Companies

Last month, Fortune released its list of the top 50 businesspeople of the year. The recognition these CEO’s are receiving shows that the market cares about ROIC, even if many investors aren’t explicitly talking about it.

by Sam McBride

August 4, 20150Comments

What’s Behind Apple’s Recent Selloff?

New Constructs CEO David Trainer appeared on CNBC's Closing Bell this afternoon to talk about the future potential of Apple.

by Kyle Guske II, Senior Investment Analyst, MBA

June 6, 20140Comments

Amazon’s New Smartphone Spells Trouble for Apple (AAPL)

A high quality smartphone from Amazon that undercuts higher-priced competitors could mean more serious trouble for Apple’s iPhone and the company's declining profit margins.

by David Trainer, Founder & CEO

January 22, 20140Comments

Apple’s Declining Advantage is Undeniable

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.

by David Trainer, Founder & CEO

September 19, 20133Comments

Apple Stays Rotten

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.

by David Trainer, Founder & CEO

August 7, 20132Comments

Excess Cash – Invested Capital Adjustment

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.

by David Trainer, Founder & CEO

June 17, 20131Comments

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

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.

by David Trainer, Founder & CEO

June 11, 20130Comments

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

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

by David Trainer, Founder & CEO

May 14, 201375Comments

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

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.

by David Trainer, Founder & CEO

March 26, 20130Comments

How To Avoid the Worst Style ETFs

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

by David Trainer, Founder & CEO

January 29, 20130Comments

Best & Worst ETFs & Mutual Funds: Energy Sector

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.

by David Trainer, Founder & CEO

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