CEO of New Constructs, LLC.

Mr. Trainer is a Wall Street veteran and corporate finance expert. He specializes in reversing accounting distortions on the underlying economics of business performance and stock valuation. He is author of more

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Featured Stocks In April’s Most Attractive/Most Dangerous Model Portfolios
Over the past decade, WINA has grown revenue 8% compounded annually while after-tax profit (NOPAT) has grown 21% compounded annually.
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Position Close Update: Oclaro (OCLR)
We stated in our long thesis that an Oclaro acquisition by Finisar or Lumentum (LITE) could be an immediate upside catalyst. Sure enough, LITE made an acquisition offer on March 12 at a 27% premium to OCLR’s stock price at the time.
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ISS Buying EVA Dimensions Signals More Focus On Fundamental Research
Institutional Shareholder Services (ISS​), the largest proxy advisory firm in the U.S., acquired research firm EVA Dimensions last month to improve the quality of its fundamental research, signaling an increase in institutional investor demand.
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American Express - A Featured Stock In Dividend Growth Model Portfolio
AXP was first featured in our case study on how return on invested capital (ROIC) impacts stock valuation. Since then, the stock is up 52% while the S&P 500 is up 27%. Despite this outperformance, AXP remains undervalued.
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How Much Should Investors Pay For Spotify?
Spotify (SPOT) will begin trading publicly on April 3, but it will not have an IPO. The Swedish streaming service instead plans to do a direct listing of its stock.
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Featured Stocks In March’s Safest Dividend Yields Model Portfolio
Since 2014, NRCIB’s quarterly dividend has increased from $0.36/share to $0.60/share, or 19% compounded annually. The consistent dividend payment and growth has been supported by NRCIB’s strong free cash flow.
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Latest Comments
Netflix’s Price Increase Signals Original Content Isn’t Enough
6 months 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
6 months 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
6 months 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
3 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
3 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)
3 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
3 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
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