S&P admits its ratings were never supposed to be reliable. How’s that for proof you need to do your own diligence?Read More
Picking from the multitude of style ETFs is a daunting task. We are here to make it simpler and smarter.Read More
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.Read More
Yesterday, Goldman Sach’s initiated on Delta Airlines (DAL) with a Sell Rating. This stock call comes two months after my note to clients recommending shorting DAL.Read More
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.
Listen in on my 15 minute interview describing the rigorous diligence New Constructs applies to every rating on the stocks, ETFs and mutual funds we cover.Read More
After S&P’s recent upgrade to its outlook on Delta Airlines [s: DAL], I cannot help but to wonder how they do their analysis.Read More
In his weekly column, The Trader, Vito Racanelli features my in-depth work on the funky accounting Delta Airlines’ (DAL) uses… Read more >>Read More
I do not think S&P’s analysts are aware of Delta’s staggering $22.3 billion in off-balance sheet liabilities, which include $14.1 billion in underfunded pensions and $8.2 in operating leases.Read More
I recommend investors avoid Delta Airlines (DAL). I think the stock could see significant downward pressure as more investors realize how the company is propping up its earnings with relatively aggressive accounting for its pension and postretirement plan (“pensions”), which are already seriously underfunded.Read More