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David Trainer  

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  • After Looking At Its 10-K, We Think Aetna Is Cheap [View article]
    Thank you Paul. I wish you the best of luck with your investments — here's hoping that our research will be able to help you out.
    Apr 21, 2015. 05:07 PM | Likes Like |Link to Comment
  • After Looking At Its 10-K, We Think Aetna Is Cheap [View article]
    Eric,
    Aetna is certainly more highly leveraged than we usually like to see, with debt making up around 25% of the company's market value. However, Aetna has strong and predictable free cash flow when it's not scooping up competitors like Coventry — last year's free cash flow was over $1.6 billion by our calculation. This cash flow should allow the company to comfortably manage its debt.
    Thanks for reading and commenting.
    Apr 21, 2015. 05:05 PM | Likes Like |Link to Comment
  • Wayfair Is Another Sign We're In A Tech Bubble [View article]
    tex085,
    Just another reason that we think consumers will stick with companies with impeccable customer service like Amazon — or just continue to purchase their furniture in person.
    Thanks for reading and commenting.
    Apr 21, 2015. 04:58 PM | Likes Like |Link to Comment
  • The Ugly Truth About Netflix [View article]
    We help our clients understand the true risk of investments. We do no think betting that the stock will go higher b/c the chart looks good is a viable long-term investment strategy.

    These days, people seems to look at risk differently for stocks. When the stock goes up, they see less risk not more risk when the reverse is actually true.

    The higher NFLX goes, the more risk in the stock. That is common sense, though it is not part of the popular dialogue on NFLX or any of the most popular media outlets.
    Apr 20, 2015. 02:02 PM | Likes Like |Link to Comment
  • Beware Of These 3 Letters [View article]
    Thank you, barretblake!
    Apr 20, 2015. 01:58 PM | 1 Like Like |Link to Comment
  • Does Turnover Ratio Influence Mutual Funds? [View article]
    Have you looked st the cost implications of higher turnover?
    That seems to be the key question - how much does turnover and all the trading it implies take out of performance?
    Apr 20, 2015. 01:58 PM | Likes Like |Link to Comment
  • Does Turnover Ratio Influence Mutual Funds? [View article]
    Have you looked st the cost implications of higher turnover?
    That seems to be the key question - how much does turnover and all the trading it implies take out of performance?
    Apr 20, 2015. 01:58 PM | Likes Like |Link to Comment
  • Why Now Is The Time To Pick Up 117-Year-Old Goodyear Tire [View article]
    Jan,
    Thanks for the comment. The fact that Goodyear is operating at its highest efficiency in the past 16 years does not imply that operational efficiency will decline or remain level next year. It would be a logical error to assume this.

    In fact, in the most recent earnings call, Goodyears's CEO indicated that the company expects further benefits to the bottom line from operational efficiencies in 2015. In addition, with auto sales picking up and with more cars on the road, the likelihood increases that Goodyear will see revenue stabilization or growth in the coming years.

    By our measures of profitability (ROIC) and valuation (economic book value), GT is the best stock in the tire/rubber industry from a risk-reward perspective in the U.S. equity market.

    Goodyear is introducing its AMT system and Michelin has its "Tweel" but these developments are relatively recent and likely have more specialized applications like in heavy machinery and in commercial trucking. We'll see how these things play out.
    Apr 1, 2015. 11:03 AM | Likes Like |Link to Comment
  • The Ugly Truth About Netflix [View article]
    Brad,
    We agree and also really like Netflix. We think they have a great product which is obviously in demand. We're just worried about 1) the company's ability to pay for such high quality content at such a low price, and 2) the stock's valuation.

    The company's history of price increases isn't encouraging in terms of consumer retention, so it remains to be seen if the company can raise prices without hemorrhaging subscribers.
    Mar 30, 2015. 12:12 PM | Likes Like |Link to Comment
  • Should You Place An Egg In Cal-Maine's Basket? [View article]
    L.,
    The dividend yield in the article is rounded up, but you are correct otherwise.

    We also do not look at EPS as an indicator of profitability. Our research actually strips away many of the distortions inherent to EPS to calculate net operating profit after tax, or NOPAT, which we find to be a much more reliable indicator of recurring profitability.

    Thanks for reading and commenting.
    Mar 4, 2015. 02:45 PM | Likes Like |Link to Comment
  • Danger Zone: VeriFone [View article]
    jb7049:
    While VeriFone focuses more on consumer-facing POS hardware and NCR focuses more on enterprise hardware, management and services, the two companies operating in the same industry and there is enough similarity to compare the two businesses in terms of ROIC and margins.

    VeriFone's increased focus on systems and services when coupled with NCR's new Silver mobile payment system only heightens the similarity between these two businesses.

    Thanks for reading and commenting.
    Jan 13, 2015. 03:16 PM | 1 Like Like |Link to Comment
  • How To Find The Best Sector ETFs [View article]
    wakeuphicks:
    While XLU is the best fund offered in the Utilities sector, it is the worst fund discussed in this article. There are enough good Utilities stocks, such as OKE, OTTR, and ED, to comprise a good fund, especially if the fund has low costs.

    Thanks for reading and commenting.
    Jan 9, 2015. 11:46 AM | Likes Like |Link to Comment
  • Danger Zone: Salesforce.com [View article]
    why accounting is not boring:
    We agree. And the percentage of shares short is just over 5.4% — I've submitted a correction.

    Excellent username, and thanks for reading and commenting.
    Dec 19, 2014. 10:33 AM | 1 Like Like |Link to Comment
  • Danger Zone: The Advisory Board Company [View article]
    I agree Stan. I think investors don't ask this question nearly often enough.

    Thanks for reading and commenting.
    Dec 17, 2014. 09:07 AM | Likes Like |Link to Comment
  • True Fund Costs: All Cap Value Style [View article]
    Theokheart:
    Our stock ratings and models are updated every day to reflect closing stock prices, new forecasts, and new filings. As our ETF and mutual fund ratings are based on the funds' holdings, these ratings are also updated each day.

    Thanks for reading and commenting.
    Nov 13, 2014. 12:26 PM | Likes Like |Link to Comment
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