August 1, 20161Comments

Danger Zone: Shutterstock (SSTK)

Redistributing others’ content is not only undifferentiated, but also not a winning business strategy. This firm’s content redistribution platform, coupled with declining profits and overvalued stock price land Shutterstock in the Danger Zone.

by Kyle Guske II, Senior Investment Analyst, MBA

September 21, 20150Comments

Finding Safe Harbors In Market Storms

CEO David Trainer, a Wall Street veteran, will discuss the state of the market, what makes a safe investment, and how New Constructs finds such safe harbors for our clients. The webinar will be held live on September 24th at 4pm EST.

by Kyle Guske II, Senior Investment Analyst, MBA

October 16, 20140Comments

The “New Normal” Equals More Downside For Netflix

Slower growth and increasing pressure on margins look to be the new normal for Netflix.

by David Trainer, Founder & CEO

July 16, 20140Comments

AOL Just Lost Its Yahoo Bailout

Yahoo's (YHOO) CEO Marissa Mayer and its M&A chief Jackie Reses have both crushed speculation that Yahoo would buy AOL (AOL: ~$39/share) with its cash from the Alibaba IPO. Mayer reportedly told Re/code that an AOL acquisition would be "small, unexciting, uninspiring, and backward-looking."

by David Trainer, Founder & CEO

December 5, 20130Comments

Danger Zone: Move, Inc (MOVE)

I don’t see any real upside for MOVE. The company is growing revenue, but extraordinary revenue growth is already baked into its price. Competitors like Zillow are already attracting more traffic, and the threat of entry by a larger company looms over the industry. MOVE is overpriced and falling behind in a competitive industry.

by David Trainer, Founder & CEO

September 3, 20136Comments

Reported Net Non-Operating Items – NOPAT Adjustment

Income statement adjustments include financing items like interest expense/income, preferred dividends and minority interest income. These items are related to the financing of a company’s operations, not the operations themselves. We always calculate NOPAT on an unlevered basis.

by David Trainer, Founder & CEO

June 28, 20131Comments

Employee Stock Option Costs and Goodwill Amortization – NOPAT Adjustment

Converting GAAP data into economic earnings should be part of every investor’s diligence process. Performing detailed analysis of footnotes and the MD&A is part of fulfilling fiduciary responsibilities.

by David Trainer, Founder & CEO

June 25, 20134Comments

Non-Operating Tax Adjustment – NOPAT Adjustment

Without removing the tax impact of non-operating items, one still gets distorted picture of a company’s operating profitability.

by David Trainer, Founder & CEO