CFIRR is Better Signal Than ROE or ROIC

Back-testing of CFIRR over the past six years, period ending April 7, 2022 showed companies with the highest CFIRR produced the highest stock market returns, with the lowest volatility, and the lowest churn as expected. CFIRR was a better indicator than ROE and ROIC. This was a very interesting period to examine as it included … Continue reading CFIRR is Better Signal Than ROE or ROIC

Why You Should Add Back Accumulated Depreciation

why-you-should-add-back-accumulated-depreciation-1Download We made an extraordinary claim that Wall Street has been using a flawed ROA metric for over a century. The ROA metric which includes the accumulated depreciation distorts the true return on capital and economics of the business because it does not use the original amount money invested in the business.  Investors recognize that … Continue reading Why You Should Add Back Accumulated Depreciation

Semiconductor Equipment Makers Rise

Semiconductor equipment makers rise on a tough NASDAQ tape, thanks to the continuing shortage of chips and increased CAPEX in the industry. In our model portfolios we own Ultra Clean – UCTT.NAS and Kla Corporation – KLAC. NAS and we recommend all of the stock below. From Investors Business Daily Taiwan Semi Tops Q4 Targets … Continue reading Semiconductor Equipment Makers Rise

Moderna is Up 20% on Variant News But There is More to the Story

https://youtu.be/hbFJoEx4uV4 Moderna – MRNA.NAS was up 27% at the time of writing this thanks to concerns that a new variant originating in South Africa could cause more havoc.Before today’s news Moderna’s shares were down significantly since they released Q3 when concerns about the sustainability of revenue from covid19 vaccines waned.  Although not without issues, wealthy … Continue reading Moderna is Up 20% on Variant News But There is More to the Story

Buy Best Buy on 15% Drop

https://www.youtube.com/watch?v=yVa-JNKfFRo&t=1s Best Buy dropped over 15% after releasing Q3 earnings. We are more inclined to buy more than use move as a sell signal. The quarter was good but let us talk about the bad news first. Firstly, same store sales were only up 2% which was a little light in our opinion. While Best … Continue reading Buy Best Buy on 15% Drop