Sign Up For The Next
New Constructs Webinar






Navigation

What We’re Reading This Morning — October 17, 2014

Friday, October 17th, 2014 9509225579_333168e5d5_z

Is this the end of the selloff?

Read More

Cutting Through Valeant’s Story

Monday, June 30th, 2014 stockvault-chemistry138427

Valeant has been guilty of some dubious assertions in its attempts to defend itself from claims that its business model is nothing more than a rollup scheme and that its stock is overvalued.

Read More

Best & Worst ETFs and Mutual Funds: Large Cap Blend Style

Friday, October 25th, 2013 Screen shot 2013-10-25 at 4.25.12 PM

The Large Cap Blend style ranks first out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 33 ETFs and 908 mutual funds in the Large Cap Blend style as of October 17, 2013. Prior reports on the best & worst ETFs and mutual funds in every sector and style are here.

Read More

Minority Interests – Valuation Adjustment

Wednesday, August 14th, 2013 MinorityInterests

We subtract the fair value of the minority interest liability from shareholder value in our DCF model as the minority interest shareholders have the rights to that portion of the cash flows. Without careful research, investors would never know that these minority interest liabilities distort GAAP numbers.

Read More

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

Tuesday, June 11th, 2013 Danger Zone 6/10/13: “Passive” Investors

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

Read More

“Index” Label Myths

Friday, May 31st, 2013 “Index” Label Myths

The word “index” in an ETF label does not always mean that investors are getting the specific exposure they seek. Diligence on ETF holdings is necessary despite what the providers might have you believe. Below I dispel the following myths concerning index ETFs.

Read More

See How Diligence Paid In 2011

Monday, April 30th, 2012 dreamstimefree_6271799_handHoldingLightBulb

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

Read More

Get Off the SBUX Bandwagon Before It Crashes

Monday, March 12th, 2012 Get Off the SBUX Bandwagon Before It Crashes

Be wary of advice from the bandwagon riders. They care more about getting more people in the bandwagon than anything else.
The Starbucks (SBUX) bandwagon is a big one. I am not on it.

Read More

footnoted.org vs New Constructs = Hype vs Substance

Thursday, March 1st, 2012 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.

Read More

The Real Earnings Season Begins Now

Friday, February 17th, 2012 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.

Read More

The Fed’s Bazooka: Revealed As Final Policy Firepower in Jackson Hole

Tuesday, August 23rd, 2011 BenBernanke

No more Mr. Nice Guy. It is time for Mr. Bernanke to break out the big guns in Jackson Hole this Friday.

Read More

Don’t Gamble In Financial Sector ETFs

Tuesday, August 16th, 2011 figure1

The financial sector is one of four sectors to earn our “dangerous” rating and is the worst-ranked sector in the our 3Q11 Sector Roadmap report according to my methodology at New Constructs.

Read More

Sell Morgan Stanley Before It Sells You Down the River

Tuesday, May 3rd, 2011 SellMorganStanleyFigure1

When Morgan Stanley (MS) started in 1935, there were around fifteen employees. For 2010, the company reported 62,542 employees. Bigger is not always better. And for big, publicly-traded companies, big tends to be worse especially when it comes to financial reporting.

Read More