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David Trainer
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Follow me on Twitter: @NewConstructs David is CEO of New Constructs (www.newconstructs.com), an independent research that specializes in unearthing key insights from the Financial Footnotes of Annual Reports. Having analyzed over 50,000 annual reports and their Financial Footnotes, New... More
My company:
New Constructs
My blog:
The Diligence Institute
My book:
The Valuation Handbook
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  • Best And Worst ETFs And Mutual Funds: Materials Sector

    The Materials sector ranks seventh out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Dangerous rating, which is based on aggregation of ratings of 11 ETFs and 15 mutual funds in the Materials sector as of July 16, 2014. Prior reports on the best & worst ETFs and mutual funds in every sector arehere.

    Figure 1 ranks from best to worst the eight Materials ETFs that meet our liquidity standards and Figure 2 shows the five best and worst-rated Materials mutual funds. Not all Materials sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 30 to 148). This variation creates drastically different investment implications and, therefore, ratings. The best ETFs and mutual funds allocate more value to Attractive-or-better-rated stocks than the worst ETFs and mutual funds, which allocate too much value to Neutral-or-worse-rated stocks.

    To identify the best and avoid the worstETFs and mutual funds within the Materials sector, investors need a predictive ratingbased on (1) the stocks ratings of the holdings, (2) the all-in expenses of each ETF and mutual fund, and (3) the fund's rank compared to all other ETFs and mutual funds. As a result, only the cheapest funds with the best holdings receive Attractive or better ratings. Investors need not rely on backward-looking ratings. My fund rating methodology is detailed here.

    Investors should not buy any Materials ETFs or mutual funds because none get an Attractive-or-better rating. If you must have exposure to this sector, you should buy a basket of Attractive-or-better rated stocks and avoid paying undeserved fund fees. Active management has a long historyof not paying off.Here's the list of our top-rated Materials stocks.

    Get my ratings on all ETFs and mutual funds in this sector on my free mutual fund and ETF screener.

    End of Preview Subscribers: login and access the report here.

    social-media-profile-logo-185x150

    Dear readers,

    We hope you've enjoyed free access to our excellent content over the past 4+ years.

    We are no longer offering all of our reports for free. You may have noticed that many of the top experts in the financial sector value our reports quite highly. Barron's has featured our best-in-market research seven times this year already as have USA Today, CNBC, MarketWatch.com, The Motley Fool, The Wall Street Journal, Abnormal Returns, Fox Business and the list goes on.

    For a limited time, you can get access to all our reports along with Most Attractive, Most Dangerous Stocks or Best & Worst ETFs & Mutual Funds newsletters for as little as $9.99/month.

    And you get access immediately, which can be a lot sooner than our syndication partners.

    To learn more about New Constructs offerings, take a Virtual Tour of our Site.

    Thank you for reading our blog,

    David Trainer, CEO of New Constructs, LLC

    Aug 21 11:15 AM | Link | Comment!
  • 3 Reasons Why Amazon's “Cash Flow” Is A Trap

    As a follow up to our Danger Zone article on May 20th, 2013, we review the "cash flow" thesis proffered by Jeff Bezos and Amazon (NASDAQ:AMZN) bulls. They point to the cash flow statement as evidence that the company can make money for investors, but they ignore the numerous distortions that elevate the reported cash flows. We reveal all the distortions and oversights in their numbers and provide the real cash flow number.

    Subscribers can log in and access the article here.

    Dear readers,

    We hope you've enjoyed free access to our excellent content over the past 4+ years.

    We are no longer offering all of our reports for free. You may have noticed that many of the top experts in the financial sector value our reports quite highly. Barron's has featured our best-in-market research seven times this year already as have USA Today, CNBC, MarketWatch.com, The Motley Fool, The Wall Street Journal, Abnormal Returns, Fox Business and the list goes on. Chuck Jaffe of MarketWatch.com wrote that when he picks an ETF or mutual fund, he consults Morningstar, Lipper, and New Constructs.

    For a limited time, you can get access to all our reports along with Most Attractive, Most Dangerous Stocks or Best & Worst ETFs & Mutual Funds newsletters for as little as $9.99/month.

    And you get access immediately, which can be a lot sooner than our syndication partners.

    To learn more about New Constructs offerings, take a Virtual Tour of our Site.

    Thank you for reading our blog,

    David Trainer, CEO of New Constructs, LLC

    Aug 20 10:20 AM | Link | Comment!
  • Best & Worst ETFs & Mutual Funds: Information Technology Sector

    The Information Technology sector ranks third out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 27 ETFs and 144 mutual funds in the Information Technology sector as of July 15, 2014. Prior reports on the best & worst ETFs and mutual funds in every sector arehere.

    Figures 1 and 2 show the five best and worst-rated ETFs and mutual funds in the sector. Not all Information Technology sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 24 to 425). This variation creates drastically different investment implications and, therefore, ratings. The best ETFs and mutual funds allocate more value to Attractive-or-better-rated stocks than the worst ETFs and mutual funds, which allocate too much value to Neutral-or-worse-rated stocks.

    To identify the best and avoid the worstETFs and mutual funds within the Information Technology sector, investors need a predictive ratingbased on (1) the stocks ratings of the holdings, (2) the all-in expenses of each ETF and mutual fund, and (3) the fund's rank compared to all other ETFs and mutual funds. As a result, only the cheapest funds with the best holdings receive Attractive or better ratings. Investors need not rely on backward-looking ratings. My fund rating methodology is detailed here.

    Investors seeking exposure to the Information Technology sector should buy one of the Attractive-or-better rated ETFs or mutual funds from Figures 1 and 2.

    Get my ratings on all ETFs and mutual funds in this sector on my free mutual fund and ETF screener.

    End of Preview Subscribers: login and access the report here.

    social-media-profile-logo-185x150

    Dear readers,

    We hope you've enjoyed free access to our excellent content over the past 4+ years.

    We are no longer offering all of our reports for free. You may have noticed that many of the top experts in the financial sector value our reports quite highly. Barron's has featured our best-in-market research seven times this year already as have USA Today, CNBC, MarketWatch.com, The Motley Fool, The Wall Street Journal, Abnormal Returns, Fox Business and the list goes on.

    For a limited time, you can get access to all our reports along with Most Attractive, Most Dangerous Stocks or Best & Worst ETFs & Mutual Funds newsletters for as little as $9.99/month.

    And you get access immediately, which can be a lot sooner than our syndication partners.

    To learn more about New Constructs offerings, take a Virtual Tour of our Site.

    Thank you for reading our blog,

    David Trainer, CEO of New Constructs, LLC

    Aug 14 5:07 PM | Link | Comment!
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