CEO of New Constructs, LLC.

New Constructs leverages reliable fundamental data to provide unconflicted insights into the fundamentals and valuation of private and public businesses. Combining human expertise with cutting-edge machine learning (ML) technologies (more

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D.R. Horton Is Loaded With Upside
Our latest long idea, D.R. Horton is worth a closer look. Our analysis predicts DHI could reach each $181 or higher.
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ROIC Improved In Each Of The All Cap Index Sectors Through 3Q21
The Technology sector performed best over the past year, as measured by change in ROIC.
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Overstated Operating Earnings Increase Downside Risk For The S&P 500
The Operating Earnings from S&P Global for the S&P 500 overstate Core Earnings[1],[2] through 3Q21, which continue a trend from last quarter.
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Sysco: Industry Leading Scale Drives Continued Profit Growth
Sysco’s TTM net operating profit after tax (NOPAT) margin grew from 1% in fiscal 3Q21 to 3% in fiscal 1Q22, while its invested capital turns improved from 2.8 to 3.6 over the same time.
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This Meme-Stock Is Still Not Worth Buying At Any Price
AMC Entertainment is currently priced as if it will improve profitability above historical averages and generate revenue equal to 35% of the projected global box office in 2030 (up from 13% in 2019).
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Sweetgreen: Healthy Product But Unhealthy IPO
Sweetgreen (SG) is expected to go public on November 18, 2021 with a midpoint valuation of $24/share, which would earn the stock our Unattractive rating.
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Comments

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

@[Michele Grant](user:4854) - excellent point!

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

Thanks @[Harry Goldstein](user:15520).

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
4 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
4 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
7 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
7 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)
7 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
7 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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