CEO of New Constructs, LLC.

New Constructs provides unrivaled insights into the fundamentals and valuation of private & public businesses. Combining human expertise with NLP/ML/AI technology (more

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Position Close Update: Host Hotels & Resorts
The company’s improved fundamentals, combined with its lower valuation, means the risk in this stock has decreased.
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Earnings Data Is Wrong & Why It Can Cost You Money
Unusual gains/losses distorted earnings per share by an average of $1.16/share (22%) for firms in the S&P 500 in 2018.
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WeWork’s Failed IPO Is A Win For Main Street
It’s official: the WeWork IPO is dead. After a month and a half of bad press, the office leasing company officially pulled its IPO filing on September 30.
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Doomsday Valuation Makes This Retailer A Buy
The Michael’s Companies is this week’s Long Idea. This retailer’s stock gained over 20% in one day in early September after the company beat top and bottom-line expectations and reported positive comparable store sales.
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Featured Stock In August’s Exec Comp & ROIC Model Portfolio
AutoZone Inc. is the featured stock.
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Featured Stocks In August’s Most Attractive/Most Dangerous Model Portfolios
Most Attractive stocks have high and rising returns on invested capital (ROIC) and low price to economic book value ratios.
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Comments

Latest Comments
Netflix’s Price Increase Signals Original Content Isn’t Enough
2 years ago

Thanks Harry Goldstein.

Understanding how far off they are from profitability today helps investors see the real risk in the stock.

In this article: NFLX
Netflix’s Price Increase Signals Original Content Isn’t Enough
2 years ago

Good points - and the back and forth here illustrated the challenges Netflix has to making money. Not sure how they will ever make the kind of money they need to make to support original content creation.

Understanding how far off they are from profitability today helps investors see the real risk in the stock.

In this article: NFLX
Netflix’s Price Increase Signals Original Content Isn’t Enough
2 years ago

They lost $2.8 billion in 2016.

Over the trailing twelve months - free cash flow is -$3.1 billion.

Wall Street loves the stock and the firm's strategy b/c it will generate lots of underwriting fees for all the debt and stock NFLX can sell to the suckers willing to fund a business model that has not made money 2010 when free cash flow was $29 million.

Since 2002, free cash flows is -$9.4 billion, cumulatively.

In this article: NFLX
Why We Downgraded Disney
4 years ago

Mr. Kaplan,

We think Disney is a great company — a truly great one — that has tremendous brand assets and has delivered great value for shareholders for many years. We simply believe that all of these brand assets and future "home run" movies, including Frozen 2, are priced into the stock at its current level.

Thanks for reading and commenting.

In this video: DIS
Top Stock Picks: 2014 In Review
4 years ago

You can learn more by signing up for our free membership at www.newconstructs.com.

In this article: AMGN, ED, ALL, CB, MDT, INTC
Danger Zone: Glu Mobile (GLUU)
5 years ago
Joel: Thanks for your comment. Would you mind sharing what you think GLUU's strengths are and how they do/don't position the company to meet or exceed the expectations for future cash flows embedded in the stock price?
In this article: GLUU, DWA, NFLX, ZNGA
Why Footnotes Matter
5 years ago
Sebright: Good point. The catch is that few investors have the time or expertise to read an annual report. Did you know that 2013 annual reports averaged over 200+ pages?
In this article: AA, ABC, CTL, DVN, ED, HAS, HES, MUR, MWV, RF, SYK, VZ, ZION
1 to 8 of 8 comments

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