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

ALL CONTRIBUTIONS

Don’t Forgo Diligence: This Fund’s Strategy Doesn’t Hold Up
Investors that rely solely on past performance may miss the true risk of investing in this fund.
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This Firm Will Meet Tomorrow’s Healthcare Needs
Investors who can see past the temporary disruption to Universal Health Services, Inc. operations can find great value in this Long Idea.
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Go Nuts For This Leading Packaged Foods Provider
Despite seeing increased demand as the COVID-19 pandemic caused many consumers to load up on home goods, this vertically integrated consumer packaged foods firm trades as if profits will permanently decline moving forward.
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Don’t Fret 2Q Earnings: This S&P 500 Will Continue To Rise
Most investors know that GAAP earnings are prone to distortion because they include unknown amounts of unusual gains/losses.
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Don’t Chase Growth With This Overvalued Tech Stock
Investors love a growth story, especially one that ties into common buzzwords such as “cloud” or the numerous different iterations of “as-a-service.”
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“See Through The Dip” Stocks Remain Attractive
Simon Property Group, JPMorgan Chase & Company, and Caterpillar Inc. remain particularly undervalued. These three stocks are this week’s Long Ideas.
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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
5 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
5 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)
6 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
6 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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