David Trainer | TalkMarkets | Page 29
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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Danger Zone: Price To Earnings Ratios
Its pleasing simplicity and ease of application make the P/E ratio one of the most commonly used valuation metrics in the world. Almost every financial website, from Bloomberg to Google Finance, puts the P/E near the top of the page, right near the stock price and market cap.
How To Find The Best Sector Mutual Funds
Finding the best mutual funds is an increasingly difficult task in a world with so many from which to choose. There are at least 231 different Financials mutual funds and at least 630 mutual funds across all sectors. Do investors need that many choices?
How To Find The Best Style ETFs
Finding the best ETFs is an increasingly difficult task in a world with so many from which to choose.
Danger Zone: Newell Rubbermaid (NWL)
Newell Rubbermaid (NWL: $33/share) is in the Danger Zone this week. NWL’s stock has doubled over the past two years as reported earnings have climbed, but after-tax profits (NOPAT) have remained flat.
New Stocks Make Most Attractive/Dangerous Lists For August
Our Most Attractive and Most Dangerous stocks for August were made available to the public at midnight on Monday. July saw some strong performances from our picks. Most Attractive Large Cap stock PetSmart(PETM) gained 14%, and last month’s feature Neustar (NSR) was up 6%.
Danger Zone: Small Cap Blend Investors
We argued at the beginning of the year that small caps were overvalued compared to large caps and would underperform this year. That prediction has been right so far as the Russell 2000 is down 4% while the S&P 500 is up 4% in 2014. We don’t see this divergence ending any time soon.
How To Find The Best Sector ETFs
There are at least 27 different Information Technology ETFs and at least 186 ETFs across all sectors. Do investors need that many choices? How different can the ETFs be? Finding the best ETFs is an increasingly difficult task in a world with so many to choose from.
Cheap Funds Dupe Investors – 3Q2014
Fund holdings affect fund performance more than fees or past performance. A cheap fund is not necessarily a good fund.
Mid Cap Growth Style
The Mid Cap Growth style ranks seventh out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report. It gets my Dangerous rating, which is based on aggregation of ratings of 10 ETFs and 389 mutual funds in the Mid Cap Growth style as of July 29, 2014.
Do Microsoft Bulls Have A Convincing Case?
MSFT currently earns our Neutral rating, but if new CEO Satya Nadella can halt the company’s declining return on invested capital (ROIC), the stock’s valuation is cheap enough to make it intriguing.
The Long Overdue Crash In Whole Foods
Whole Foods Market (WFM: $37/share) dropped 4% on Thursday morning after reporting disappointing sales growth, the most recent hit in a rough 2014 for the stock. Slowing growth, margin concerns, and increased competition have helped send shares down 35% so far this year.
Large Cap Growth Style
The Large Cap Growth style ranks fourth 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 24 ETFs and 655 mutual funds in the Large Cap Growth style as of July 24, 2014.
Zillow’s Offer For Trulia Is A Hail Mary
Zillow (Z) agreed on Monday to acquire fellow real estate listing site Trulia (TRLA) for $3.5 billion in an all stock deal. TRLA shareholders will receive 0.444 shares of Z for each share they hold, which should increase Z’s outstanding shares by about 41%.
Closing Out My Dunkin Donuts Position
I’ve decided to close out my Dunkin Donuts (DNKN) short recommendation for a 14% gain in four months. When the company reported lower than expected revenues and decreased its guidance last week, the market reacted strongly, sending the stock down 5%.
What’s More Profitable: Death Or Taxes?
Our latest long idea comes to you from a business with consistent demand. Investors love certainty, so investing in the only two certain businesses makes a certain amount of sense.
Danger Zone: First Trust Utilities AlphaDEX Fund ETF (FXU)
In a recent article, Chuck Jaffe wrote that when he considers a mutual fund or ETF, he looks at the ratings of three research firms: Morningstar, Lipper, and New Constructs.
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