David Trainer

david trainerThe Euro crisis is an excellent demonstration of how long insolvent organizations can perpetuate the poor capital allocation and spending decisions that created their insolvency. Predicting exactly when the euro finally breaks down is a challenge, to say the least.

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david trainerFor U.S. equities, ETFs offer a higher percentage (10%) of attractive investment options than mutual funds (1%) at a lower cost. The radically higher number of US equity mutual funds (4,700+) versus ETFs (380+) is not indicative of better stock selection from active management. On the contrary, the vast majority of actively-managed funds do not justify the higher fees they charge. Read more about ETF vs Mutual Funds: The Winner Is…

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david trainerAs one financial scandal follows another, it seems the good guys are having a tougher time catching the bad guys. Recent revelations about MF Global’s ponzi scheme are another reminder of how our regulatory and oversight systems seem to let whales pass through their nets.

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david trainerHigh dividend yields are not enough to warrant investing in the utilities sector.

Too many investors put their hard-earned money in utility stocks with the assumption that relatively high-yielding dividends from stable business make a good investment.

The real question that investors in any equity security must ask is: does my expected return from a stock justify the risk of investing in it? Read more about Utility Sector: Check The Ingredients Before Buying

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david trainerBefore I delve into the accounting loopholes used to prop 3rd-quarter earnings, I will start with pointing out the intimidating amount of ETF choices in the financial sector.

There are 25 financial sector ETFs.  These 25 ETFs have drastically different stock holdings and, therefore, allocations. The lowest number of holdings is 24 while the highest is 496, per figure 1.

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david trainerThere are 36 “large cap value” ETFs.  Per Figure 1, these 36 ETFs have drastically different stock holdings and, therefore, allocations. The lowest number of holdings is 30 while the highest is 1178.

How do investors pick the ETF that will deliver the best performance?

Figure 1: Holdings Count of Large Cap Value ETFs

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david trainerHaving too many choices can be intimidating. And there are definitely lots of choices when it comes to ETFs. For example, in the equity market alone, there 30+ technology sector ETFs, 35 "large cap value," and 20 financial ETFs. A very healthy selection abounds for every category of ETF. Read more about Picking The Diamonds Out of The ETF Rough

dtrainer / Tag: AAPL, acn, FTQ, FXL, GOOG, IGM, IGN, IGV, iyw, MSFT, MTK, ORCL, PNQI, RYT, SKYY, SOXL, SOXX, TYH, USD, VGT, XLK, XSD / 0 Comments

david trainerWhen CNBC asked me to take the bear case in a “Stock Brawl” on Starbucks (SBUX — neutral rating) last Thursday (9/28/11), I said sure — I can do that again.

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david trainerMost of my research and publishing tends to focus on companies manipulating accounting rules to make their reported earnings look better than the real economic cash flows of their business.

It is unfortunately rare that I find a company whose economic earnings are outpacing the reported accounting results and whose stock is cheap.

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