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Highlights From New Constructs Investment Research

Danger Zone 9/30/13: Zynga (ZNGA)

Danger Zone 9/30/13: Zynga (ZNGA)

The stock has been beat up since its much-hyped IPO in 2011, but even after losing 61% of its value the stock is still too expensive. ZNGA is competing in an immature market where the barriers to entry are almost nonexistent and brand loyalty is a foreign concept.

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Rating Breakdown: Best & Worst ETFs & Mutual Funds by Style

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This report identifies the “best” ETFs and mutual funds based on the quality of their holdings and their costs. As detailed in “Low-Cost Funds Dupe Investors”, there are few funds that have both good holdings and low costs. While there are lots of cheap funds, there are very few with high-quality holdings.

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How To Find the Best Style ETFs

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Finding the best ETFs is an increasingly difficult task in a world with so many to choose from.

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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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Fox TV Interview: How To Make Money In This Market

Fox TV Interview: How To Make Money In This Market

Yesterday, on Fox Business’s After The Bell, I shared my market outlook and strategy for making money in the current market. Here is the interview.

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Best & Worst Style ETFs & Mutual Funds

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The best ETFs and mutual funds have high-quality holdings and low costs. As detailed in “A cheap fund is not always a good fund”, there are few funds that have both good holdings and low costs. While there are lots of cheap funds, there are very few with high-quality holdings.

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Roadmap to the Best & Worst ETF and Mutual Fund Styles

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None of the fund styles earn a rating better than Neutral. The primary driver behind the Neutral-or-worse ratings is poor… Read more >>

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Microsoft (MSFT): Very Attractive Rating — for Ask Matt Readers

Microsoft (MSFT): Very Attractive Rating — for Ask Matt Readers

MSFT gets my best rating because the company’s ROIC, at 72%, ranks 8th in the S&P 500 while its stock price (~$31.52/share) implies the company’s profits will permanently decline by about 20%. High profitability and low valuation create excellent risk/reward in a stock. Here is my free report on MSFT.

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Flaws In Traditional Fund Research Should Not Be Tolerated

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Investors deserve truly independent research on funds. I show they are not getting it from Morningstar.

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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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Lorillard’s Profits Require No Smoke and Mirrors

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I am not a smoker or tobacco user, and I do not like to be around smokers. However, that prejudice does not blind me from the fact that Lorillard, Inc. (LO) is a “very attractive” stock. I recommend investors buy it as well as the following ETFs because of their large allocations to LO and their attractive-or-better investment ratings…

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