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Western Digital Corp (WDC) – free report for Ask Matt, Very Attractive Rating

Friday, November 19th, 2010 Western Digital Corp (WDC) – free report for Ask Matt, Very Attractive Rating

HIDDEN GEM: Our detailed val­u­a­tion model shows that WDC grew its “eco­nomic” prof­its by 226% while account­ing prof­its grew 194% dur­ing its last fis­cal year. Eco­nomic prof­its rose by $769mm while account­ing prof­its rose by $912mm.

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Wall Street’s Secret Plans To Continue Raiding the Capital Markets

Wednesday, October 27th, 2010 Wall Street’s Secret Plans To Continue Raiding the Capital Markets

In another excellent expose “Wall Street Proprietary Trading Under Cover”, Michael Lewis exposes Wall Street’s plan to exploit loopholes in the laws and regs to continue proprietary trading, the activity that was the primary downfall of Bear Stearns and Lehman Brothers.

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Stock Pick of the Week: Sell/Short FedEx Corp (FDX)

Tuesday, August 24th, 2010 Stock Pick of the Week: Sell/Short FedEx Corp (FDX)

RED FLAG: The main driver of the difference between Economic and Accounting earnings is FDX’s $11.9bn of off-balance sheet debt, a big number compared to $19.7bn in Net Assets and $25.6bn of market value.

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Sandridge Energy (SD) – Free Report, for Ask Matt Readers, Highlighting a Major Red Flag in the Footnotes

Thursday, August 19th, 2010 Sandridge Energy (SD) – Free Report, for Ask Matt Readers, Highlighting a Major Red Flag in the Footnotes

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.

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Stock Pick of the Week: Buy International Business Machines (IBM)

Tuesday, August 17th, 2010 Stock Pick of the Week: Buy International Business Machines (IBM)

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.

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Economic Versus Accounting Earnings

Thursday, August 5th, 2010 dreamstimefree_966040_thornBranch

Accounting data was not designed for equity investors, but for debt investors. “Earnings, earnings per share and earnings growth are misleading measures of corporate performance.”(from page 66 in The Quest For Value by Bennett Stewart, Harper Collins 1991.)

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Stock Pick of the Week: Sell/Short Yahoo (YHOO)

Tuesday, August 3rd, 2010 Stock Pick of the Week: Sell/Short Yahoo (YHOO)

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.

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Stock Pick of the Week: Buy Xilinx (XLNX)

Tuesday, July 27th, 2010 Stock Pick of the Week: Buy Xilinx (XLNX)

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.

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New Constructs Receives Patent on Research System

Thursday, July 22nd, 2010 dreamstimefree_73564_sculptor

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.

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Greatest Hits: New Constructs media highlights

Monday, July 19th, 2010 Greatest Hits: New Constructs media highlights

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.

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No Double-Dip Recession In Sight, Just Slow(er) Growth

Tuesday, July 13th, 2010 No Double-Dip Recession In Sight, Just Slow(er) Growth

As highlighted in LPL Group excellent “Mid-Year Outlook for 2010″, the economy is moving from ‘recovery’ mode to ‘expansion’ mode, which is very different from moving from ‘recovery’ back to ‘recession’ – a prediction made by many attention-seeking alarmists these days. We are still growing, just not as fast.

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Charles Schwab Corp (SCHW) Neutral Risk/Reward Rating for Ask Matt Readers

Wednesday, July 7th, 2010 dreamstimefree_966040_thornBranch

Here is a free copy of our report on SCHW for Ask Matt readers. This report provides details behind Matt’s… Read more >>

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GAP is Stock Pick of the Week – Hidden Gem

Friday, June 4th, 2010 GAP is Stock Pick of the Week – Hidden Gem

Hidden Gem – GPS: economic earnings are rising faster than reported accounting earnings b/c the company lowered the capital employed to run the business. GAAP earnings do not capture increase capital efficiency of the business.

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Sirius Satellite – A Dangerous Stock

Tuesday, June 1st, 2010 Sirius Satellite – A Dangerous Stock

TheStreet.com recently published three articles quoting me on SIRI. Andrea Tse called and, after reviewing our models on SIRI, I told her that the stock was Dangerous because:

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Why I Created This Blog

Friday, April 2nd, 2010 Why I Created This Blog

This blog will show how to:

1. Uncover the unadulterated facts about corporate profitability and valuation.
2. Avoid falling prey to misinformation about stocks that inundates the airwaves, papers and most research channels.
3. Develop intelligent investment strategies.

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