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David Trainer

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  • Best And Worst ETFs, Mutual Funds, And Key Holdings: Small Cap Blend Style [View article]
    Thanks for the comment. My ratings of the stocks are based on five criteria: Economic Earnings, ROIC, Free Cash Flow Yield, Price to Economic Book Value, and Market Implied Growth Appreciation Period. You can see how my ratings on stocks are derived here:

    http://seekingalpha.co...

    We don't do specific buy or sell ratings, but if a fund does not earn an Attractive-or-better rating then we usually think investors are better off buying a portfolio of individual stocks instead.
    Feb 27 05:29 PM | Likes Like |Link to Comment
  • Inventory Risks Loom For Apple [View article]
    Michael:
    Great work. Objectively presented.

    Truly, the value of Seeking Alpha declines every time people make wacko comments, esp those that make personal attacks on authors who make fact-based arguments.
    The obvious bias and refusal to recognize fair logic...how do they imagine anyone takes them seriously.
    Feb 22 09:15 AM | 5 Likes Like |Link to Comment
  • New Stocks Make Most Attractive/Dangerous Lists For February [View article]
    Doug Miller:

    Thanks. Too much focus had been put on the BRACAnalysis decisions in the past year, and not enough value had been given to all the new products in MYGN's pipeline. Markets love to overreact to negative news, and MYGN is a textbook example.
    Feb 21 12:31 PM | Likes Like |Link to Comment
  • Best And Worst ETFs, Mutual Funds And Key Holdings: Mid Cap Blend Style [View article]
    rms21:

    Sorry about that, we just made the change from the free screener to requiring a subscription.
    Feb 21 10:07 AM | Likes Like |Link to Comment
  • Danger Zone: Market Vectors Wide Moat ETF [View article]
    Fred Swartz:
    Thanks for your comment.
    My approach is available in numerous places on my blog, website and articles on Seeking Alpha.

    I do not think there is a more transparent research firm than New Constructs. I provide clients direct access to my DCF models as well as all details on correcting accounting distortion in reported or pro-form earnings.

    We include pictures, showing all calcs, of our DCF/MOAT analysis in numerous, publicly-available articles as well.
    Feb 21 09:41 AM | Likes Like |Link to Comment
  • Danger Zone: Market Vectors Wide Moat ETF [View article]
    findrichard:
    Nice fine find.
    yes, the folks at Southeastern have an excellent reputation for being value investors. Their support for Dorsey is impressive.

    I would like to know more about how, exactly, Mr. Dorsey performs his MOAT analysis.

    My approach is available in numerous places on my blog, website and articles on Seeking Alpha.
    Feb 21 09:39 AM | Likes Like |Link to Comment
  • Best And Worst ETFs, Mutual Funds, And Key Holdings: Large Cap Value Style [View article]
    civ-e:

    Both VWNEX and VWNAX earn my Neutral rating. I prefer ETFs in the Large Cap Value style, with iShares High Dividend ETF (HDV) as my top rated ETF or mutual fund. HDV allocates over 36% of its assets to stocks that earn my Attractive-or-better rating while only 15% of VWNAX's assets are in Attractive-or-better stocks.

    If you're dead set on a mutual fund, Vanguard Dividend Growth Fund (VDIGX) is my top-rated Large Cap Value mutual fund and earns a Neutral rating, while Manning & Napier Fund, Inc: Dividend Focus Series (MDFSX) is an Attractive rated Large Cap Blend fund with a reasonable initial minimum. SunAmerica Series, Inc: Focused Dividend Strategy Portfolio (FDSWX) is my favorite All Cap Value fund and also earns an Attractive rating.

    If you're interested in my full reports on any of those funds, you can check out my ETF and mutual fund screener here:

    http://bit.ly/1gOO9O0

    If you're interested in our premium fund screener, which gives you access to all our fund ratings and reports, go to this link:

    http://bit.ly/1gmKe8F
    Feb 20 09:55 PM | Likes Like |Link to Comment
  • Best And Worst ETFs, Mutual Funds, And Key Holdings: Large Cap Value Style [View article]
    civ-e:

    My ratings on ETFs and mutual funds are based on my ratings of their holdings. My company, New Constructs, performs due diligence on over 3,000 corporate filings each year, and we leverage this diligence into our ratings of ETFs and mutual funds. The analysis of MO and SNH in this article is a summary of the techniques we use to evaluate stocks.

    These ratings are forward looking and do not depend on past performance. The only things we take into account are holdings and costs. Many Large Cap Value Funds have holdings that are significantly overvalued, which is not unusual in the market today.

    Which funds in particular are you interested in?
    Feb 20 08:54 PM | Likes Like |Link to Comment
  • Best And Worst ETFs, Mutual Funds, And Key Holdings: Large Cap Value Style [View article]
    SeekingTruth:

    Absolutely, RPV's holdings are not true value stocks anymore. Their holdings have an overall price to economic book value ratio of 3.4, well above the S&P 500's PEBV of 2.7.

    As for VZ, it definitely hasn't performed very well recently. The telecom sector is undergoing some major shakeups right now, but I still think VZ is one of the better values in the sector. It just depends on your view of the industry as a whole.
    Feb 20 12:45 AM | 1 Like Like |Link to Comment
  • AutoZone: The Best Bet In Automotive Retail [View article]
    Borrowing money to buy back shares is usually a very good sign for shareholders. Replacing higher cost equity capital with lower cost debt creates shareholder value while buying back shares returns cash to investors.

    IN my opinion, accounting book values are largely irrelevant for non-financial firms. I see nothing not to like on that issue.
    Feb 19 12:05 PM | Likes Like |Link to Comment
  • AutoZone: The Best Bet In Automotive Retail [View article]
    Brad:
    With such a high ROIC, I think AZO's capital stock is quite efficient.
    As for whether they should have more debt vs equity, if that is what you are asking, they are pretty well levered and have a good cost of capital.

    I am more focused on the amount of capital in the business than the form of financing behind it.
    Feb 19 12:03 PM | Likes Like |Link to Comment
  • Best And Worst ETFs, Mutual Funds, And Key Holdings: Large Cap Growth Style [View article]
    whjackson:

    My ratings for mutual funds are not based on past results, as those don't offer much in the way of predictive value. Instead, I base my ratings off of the quality of the holdings in a fund.

    In the case of POLIX, over 83% of its assets are allocated to stocks that earn my Neutral-or-better rating. QUAGX, on the other hand, allocates only 41% to Neutral-or-better stocks. It also charges significantly higher costs than POLIX.

    Just looking at past returns and buying the fund with the best performance last year is not a good way to generate alpha. The performance of a fund comes from the quality of its holdings, and POLIX has higher quality holdings than QUAGX.
    Feb 19 10:02 AM | 1 Like Like |Link to Comment
  • New Stocks Make Most Attractive/Dangerous Lists For February [View article]
    Mr. Miller,

    Myriad does certainly contain an element of risk (as does almost any biotech stock), but at its current valuation the potential upside outweighs the risk. The scenario you describe, with MYGN becoming an overall low growth company, is already priced in by the market. Unless MYGN suffers a major decline in profitability, the potential downside is fairly low.
    Feb 14 10:39 AM | Likes Like |Link to Comment
  • Danger Zone: Move, Inc. [View article]
    The traffic stats in this article are for Realtor.com
    Feb 13 09:10 AM | Likes Like |Link to Comment
  • No Progress From Amazon In 2013 [View article]
    investingInvestor:

    It takes more than revenue growth to create value for shareholders, and Amazon took a step back last year in terms of margins and ROIC. In addition, the revenue growth has slowed down. Amazon has absolutely been a disruptive company, but the growth expectations embedded in its stock price are simply too high.
    Feb 10 12:14 PM | 5 Likes Like |Link to Comment
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