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Diligence Institute

Highlights From New Constructs Investment Research

Don’t Trust This Utility’s Dividend

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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.

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US Steel (X) At Risk Of Pension Pressure

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Some stocks are more dangerous than others. In an anemic economic environment, the most dangerous stocks are those with issues that are lurking behind the scenes or in footnotes.

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Pensions Weigh On Goodyear (GT) Stock Potential

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Goodyear Tire & Rubber (GT) must overcome $3.7 billion in underfunded pensions plus $6.3 billion in debt ($1.1 billion of which is off balance sheet) before investors could see any upside.

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See How Diligence Paid In 2011

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Everyone wants diligence. Few will ever turn it down. The problem is that diligence is expensive. New Constructs makes diligence cost-effective.

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footnoted.org vs New Constructs = Hype vs Substance

footnoted.org vs New Constructs = Hype vs Substance

When I ran across the recent article “270,033 pages later, a chance to catch our breath…”, I could not help but admire footnoted.org’s marketing moxy.
The article provides a count of the number of pages of 10-K filings that have poured in during the real earnings season. It also highlight a couple of the largest filings. At first glance, it is easy for one to assume that all of the 270,033 pages were also analyzed.

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The Real Earnings Season Begins Now

The Real Earnings Season Begins Now

Nearly all of the invest­ing world ignores 10-K sea­son. 10-Ks contain the most important financial information that companies provide all year.

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Buy Clorox: Management Focused On Shareholder Value

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I take great pleasure in recommending investors buy Clorox (CLX) – an attractive-rated stock, not just because of its strong profitability and cheap valuation but also because of the unusually high quality and integrity of its financial reporting.

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