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.

dtrainer / Tag: BFOCX, BOGSX, PXQ, RCKSX, VWM / 0 Comments

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.

dtrainer / Tag: AIG, AVB, BAC, C, CME, COF, COP, CVX, DVN, EP, EQR, GE, JPM, NLY, PXD, T, VNO, WFC, XOM / 0 Comments

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.

dtrainer / Tag: BAC, C, JPM, KBE, KBWP, VFH, XLF / 0 Comments

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.

dtrainer / Tag: LRCX, QTEC, USD / 0 Comments

david trainerOf course not.

The issue is not what directors ignore. You cannot ignore something about which you are unaware.

The real issue is that most directors and investors are simply unaware of the many one-time items because they are buried deep in the annals of footnotes in annual reports or 10-K filings.

dtrainer / Tag: AIG, American, BAC, Bank of America, international Paper, IP / 0 Comments

david trainerI take great pleasure in recommending investors buy Clorox (CLX) – an attractive-rated stock, not just because of its strong profitability and cheap valuation but also because of the unusually high quality and integrity of its financial reporting.

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