Beat the Pros with The Only Proven AI: Introducing Alpha Stocks 2.0

Thanks everybody for being with us today. We're very excited about today's training. We are going to be putting some AI to work for you to provide real-world results that generate real-world market-beating returns. We're one of the only firms with a technology that's proven to beat the market. Vetted by Harvard Business School and MIT Sloan and Journal of Financial Economics, has a real AI built on their research and data. There's a lot of accolades we've got at New Constructs and a lot that you cannot replicate anywhere else. So we're really excited to share with you what we have today. I'm going to go ahead and share my screen, and we're going to jump into it. All right. We're going to show you today how to beat the pros with the only AI that's proven to work. Most people don't realize this, but like over 90% of professional money managers underperform their benchmarks. These folks get paid to lose you money. Why pay fees to these folks when there's a better way? And I'm going to show you a better way. I'm going to show you research that actually does work and picks that you can put into the market to generate yourself nice returns based on research that has an edge, that is information that these other folks do not have. First, let me cover a couple of disclosures and disclaimers. We are not investment advisors. We do not give out investment advice. Please consult other people for that. We are an information provider. We are a research provider. We help you make smarter decisions, but we do not make any decisions for you, or nor do we recommend particular decisions. I want to hear from you. Let us know where you're from, what kind of investor you are, and don't forget, start voting now for those stocks you want me to cover at the end, because we only got time for a few at the end. Those that get voted on the most and the first will be the ones that get chosen. So we're excited today for a reason. About a year ago, we launched a special project called the Alpha Stock Bundle. This was a brand new concept based on a new discovery that our analyst team made. We identified stocks with a very specific set of criteria that went beyond our proven superior rating system. These stocks were remarkably undervalued relative to their current price. And had the potential for abnormal returns in a relatively short amount of time. Today, just past the 1-year anniversary, we are officially releasing a new bundle of Alpha Stocks. This is a fresh list of stocks that meet our most strict criteria. Why is this such a big deal? Because the results from last year are in and they are proven. The Alpha Stock Bundle 1.0 results— huge winners, including gains of 28% plus. A healthcare company was up 38%. Consumer discretionary company up 122%. If you're new here and are unaware of what I'm talking about, do not worry. I'm going to still be going into detail on this trading to give you the full context on what an alpha stock is and how we have validated it. So for now, sit tight and let's dive in. Here's what we're going to be covering today. The elephant in the room, the cold hard reality of the performance of professional money managers. What an alpha stock is and the proprietary metrics we use to find these special stocks that beat the market. And how you can grab these latest alpha stock picks for your own use. Free bonus. Bring us your tickers. I'm going to get to maybe three at the end. Get those requests in now so we know which ones to use. If you don't know me, David Trainer, founder and CEO of New Constructs. I've been doing this work for over 25 years. I'm a thought leader with respect to all things fundamental analysis, accounting, finance, artificial intelligence, machine learning. Pretty much you name it when it comes to fundamental. Research. Now, let's talk about the elephant in the room. It's a big reason why we're all here today. Stock picking is hard, and it's not just hard for regular investors. It's hard for professional money managers too. It's hard for people whose entire career is dedicated to picking stocks, hard for teams of PhDs and MBAs at major institutions. The data on this is irrefutable. And I'm about to show it to you. Warning, this data could make you angry, especially when you consider how the legacy regime has been laughing all the way to the bank. Think about the billions of dollars in fees that have been paid into the mutual fund and actively managed money industry— billions over decades. They don't want you to know this truth that I'm about to share. And it's not just us making it up. It's been quoted in a major market research firm, S&P Global. The SPIVA Institutional Scorecard released in March of 2025. Data doesn't come out very often, and it's often very hard to find. I remember when I started in the business, it was pretty easy to find. People knew this pretty well. They've been sweeping this under the rug for a good reason. 69% of institutional large-cap managers underperformed the S&P 500 in 2024. 69%, 7 out of 10 professional money managers failed to beat their benchmark. And this wasn't a down market year. It was a good year. The stats and the results. There's the source. 69%, 7 out of 10 underperformed. These are professionals. This is their job. They get one job, beat the market, and they're still failing en masse. And guess what? They're still getting paid. They're losing you money relative to the index, and they're still getting paid. Here's where it gets worse. The underperformance numbers I just showed you, those are before fees. After fees, the underperformance is even worse. Keep in mind, fees are like on average around 2% a year. Some firms way higher than that. We have a database. We look at fees. We do a calculation for all of our mutual fund and ETF ratings, the all-in cost that includes management costs, front load, back-end load, and transaction costs, all the fees, all in. We call it the total annual cost. Some of those are still 4%, 5%, 6%, 7%. It's ridiculous. So when you factor in fees, the underperformance becomes even more severe. And there's a lot of fees, all kinds of them. It's like Ticketmaster. You're just going to buy a ticket, but all of a sudden they throw in all these kind of crazy fees. So you're not just losing to the market, you're paying high fees to lose to the market. Let's check the math here. If your fund underperforms by 2% and charges 1.5% in fees, You're down 3.5% relative to an index fund in 1 year. That only compounds over time. So if you're holding it for 10 years and it underperforms by 2% every year, 3.5% compounded over 10 years, what's the numbers on that? 15%, 20%. That's a lot. You might be thinking, okay, that study was over the span of just 1 year. Surely over a longer time horizon, more money managers outperform. Wrong. It gets worse. According to the study, only 8.3% of funds that beat their benchmark in 2022 repeated that outperformance over the next 2 years. In other words, 92% failed to maintain their edge. So they might get it right one year, but the likelihood that they get it right for the next 2 years is super, super low. In other words, they're more lucky than they are good. And even if you're lucky enough to pick one of the few outperforming funds in any given year, your odds of that manager continuing to outperform are less than 10%. And on a longer timeframe, say 10 years, it gets even uglier. Nearly 100% net of fees are underperforming. Why pay fees, especially when they don't have the research that you can have? Why pay fees to people who are losing you money? So let me break this back down for everybody. What this means: one-year outperformance is more luck than skill because they can't repeat it. These winners can't keep winning. They still charge you fees to fail. The odds are against you if you're putting your money in any actively managed fund. Here's the good news. There is another way. We built something different in New Constructs, and we're happy to say the performance speaks for itself. Our stock picking has beaten 16,000+ professionals to claim the number one spot in multiple categories for 54 straight months. Here I am, number one on some 54 straight months versus professional buy-side investors. Not to mention the fact that our work has been vetted and validated by prestigious institutions such as the MIT Sloan School of Business, Harvard Business School, Ernst Young, the Journal of Financial Economics. You don't get more prestigious than that. You don't get more rigorous than that. Then here's the best part. Our actively traded indices managed by Bloomberg are also outperforming. So let's talk about the Very Attractive Stocks Index beating the S&P 500 Year to date. If you go over a longer period of time, it's beating the S&P 500 by 46 percentage points in 5 years. Now, this is an index of just the stocks in our system that get a very attractive rating. So anybody wants to know if our ratings work in the short term, works in the long term. Very attractive stocks outperform. Bloomberg created an index. You can go look it up on Bloomberg. You can look it up for free on the website. Any— you just go type this in, type that into the internet, and you'll get an answer on what that looks like. You can check. We outperform. Stock ratings work. How about the core earnings weighted S&P 500 index? This is an enhanced version of the S&P 500. It's also outperforming year to date. And by enhanced, what I mean is that we just take the S&P 500 stocks and instead of weighting them based on market cap, We weight them based on core earnings. So the only difference between this fund or this index and the S&P 500 is that the stocks are weighted according to core earnings as opposed to market cap. And by the way, the outperformance over 5 years, 24%, 24 percentage points over the last 5 years. Core earnings makes a difference. How about we build an index Based entirely on core earnings. We go out, we say we're going to take the top 3 stocks in every sector based on their core earnings power, and we're going to hold 100 stocks, not 500. And we're only going to hold those stocks that have the best core earnings power. We're going to build an index around that. How well does that outperform? Beating the S&P 500 by 11 percentage points year to date, beating it by 32 percentage points over 5 years. Core earnings matters, folks. Listen, good news and bad news about the stock market. Bad news, super hard to beat the market. As we saw, nearly 100% of institutional money managers can't do it over any significant period of time. Good news, we've got the data that does outperform. And it's black and white. Either you're beating the market or you're not. And we're significantly beating the market with our research. Today I'm going to show you how to get my latest Alpha stock picks, which are based on all the same research and could rival the performance of any of our previous picks. These picks are based on a combination of 2 factors. Alpha stocks have a golden metric in place that we've been backtesting and have validated, and a very specific market implied growth appreciation period rating. This pick should not be taken lightly because our track record speaks for itself. As I mentioned before, number 1 on SumZero. And as much as I'd like to give myself credit for these number 1 rankings, it's really all based on the proprietary robo-analyst technology and stock rating system. Folks, I'm not some magical wizard. I've been working and, and our company has been working For about 25 years to build a technology and a dataset and an ontology, a way to give meaning to data that generates alpha. Been my singular professional purpose for over 20 years, and the same singular professional purpose of a lot of other people over that 20 years as well. And that's why we've been able to produce something that nothing else in the world can match. Today's training, I'm not only going to test some of your favorite tickers against our rating system, I'm gonna be showing you how to grab my new number one alpha stock pick. We believe it's especially important to hear our message today as well. My team and I are always searching for new ways to find an edge in the market and spot the best upcoming stocks based on our superior data. This is the fun part. You build a system, you prove that it works, and you can constantly find new and better ways to optimize. And take advantage of the data. And because at the end of the day, we have superior data. We have data that no one else has. And we have identified some very clear and obvious ways to generate alpha. And we've identified some very particular and focused ways to generate alpha. Last year, our team unveiled a brand new set of alpha stocks based on 2 key metrics we found in our database, and our community loved what we found. We backtested this criteria to validate the discovery and saw massive gains in previous Alpha Stocks such as Penn Entertainment. Over the next year after we noticed that it had these criteria in place, had a 341% gain. Resideo Technologies, 150% gain. So then we created a special Alpha Stocks bundle and saw incredible results such as This consumer discretionary company up 28%. This one up 38%, healthcare company. Another discretionary company up 122%. To be transparent, not every stock we recommend in our stock bundles turn out to be massive winners. However, we can factually say the bundle as a whole significantly outperformed the S&P 500. To us, alpha stocks are those that are clearly undervalued in the market and have a high probability to correct and explode even faster than most stocks that are considered cheap in the market. Now let's get into the background behind how we discovered the first set of criteria for these new stocks. It comes down to a concept called expectations investing. Along with a secret weapon developed at New Constructs. The concept behind expectations investing is simple. Instead of making your own prediction about the future, you can analyze the market's expectations for future cash flows baked into the stock price. I love to joke with all my analysts, like, would you rather be a fortune teller or a critic of a fortune teller? Mr. Market is a fortune teller every single day as he's giving us a stock price. Based on the core principle that the stock price is equal to the present value of future cash flows, you can figure out what the cash flows have to be to justify that stock price. And we use our very powerful weapon, which is a reverse discounted cash flow technology, to identify expensive stocks with lots of downside risk. And that's something we do a lot in our Danger Zone. But we can also utilize this weapon to identify the cheap but still very valuable stocks. By analyzing the market implied growth appreciation period metric. Fortunately for you, we've been running these models for a couple decades and doing this work, so we know where it works well and where it works extremely well. So specifically, the market implied growth appreciation period, that's the number of years that a company is expected to earn a return on capital greater than the cost of capital on new investments. The key difference between our discounted cash flow model and others is that we calculate the value attributable to equity shareholders over multiple timeframes, not just like a 5-year or 10-year period. Our dynamic discounted cash flow model looks at the implied values every year over 100 years. We're not forecasting 100 years. We're seeing what the company would have to do in terms of cash flows to justify its valuation over 100 different scenarios, 100 different timeframes. Every company's dynamic. Not every company is going to lose its competitive advantage or its ability to earn returns on capital higher than the cost of capital at the same time, in the same number of years. It's very dynamic. It's perhaps the most dynamic element of valuation. Because we've got Growth, profitability, and duration of profit growth. That's what the growth appreciation period focuses on. That's different for every company because businesses are competitive. Changes as new companies come along, new companies die, new technologies come along, new companies move into your industry, customer habits change, the world changes, and all these things affect companies and their competitive advantage and their competitive position. The market implied growth appreciation period quantifies How much of a competitive advantage the stock market is giving stock. And that's a beautiful metric and a super powerful metric. It's a part of our rating system. And it always has been because I believe this is a very important part of understanding valuation. My GAP, or Market Applied Growth Appreciation Period, has helped us flag danger zone stocks with unrealistic valuations for decades. Our team decided to run backtested data for stocks that had this metric and one other key metric in place. The results shocked our team. Why? Because these stocks tended to be able to reach their true valuation much faster than nearly every other stock we analyzed. This criteria led us to finding cheap and valuable stocks that eventually caught up to their true market price due to valuation distortions. Often leading to triple-digit gains in a relatively short period of time, such as Travel Zoo up 337% when these criteria came into place, Global Ship Lease up 321% when these criteria came into place, Corn Ferry 125% when these criteria came into place. The major takeaway. Around key criteria number 1, companies that have a market implied growth appreciation period of less than 10 years were more attractive as stock picks. The market's giving them only 10 years of profit growth baked into their stock price. Now, having a market implied growth appreciation period of less than 10 years is only half the battle. And here's where the alpha stocks get really special. When you take this sort of cheap, low-expectation stock and you marry it with a secret metric, then you've got something super special. And if you've been a part of our community for a while, you know what I'm talking about. The secret metric is the second set of our criteria. And I think a lot of you probably know this is when economic earnings are greater than the GAAP earnings. GAAP earnings being the reported earnings, the net income, the numbers that all the companies are required to disclose in their filings. When the economic earnings are higher than GAAP earnings, that's super special and super rare as well. Here's how you calculate economic earnings. Keep in mind, this is a proprietary adjusted number that only we have. A lot of other people talk about EVA, economic profit, whatever. No one does it as well as we do. Core earnings are a component of this. Core earnings are like the numerator or the net operating profit. The NOPAT. So our NOPAT is very similar to core earnings, except NOPAT excludes financing charges. Otherwise, it's the same as core earnings. Minus WACC times invested capital. Weighted average cost of capital times invested capital. This is how you calculate EVA, economic profit, economic earnings. No one does it as well as we do. Why are economic earnings better? Respected investors from the beginning of time. have told us to focus on economic earnings. They're better because they take into account the complete financial picture, not just the income statement, which is GAAP earnings, is income statement only. What about the balance sheet? What about the cash flow statement? What about the footnotes? Economic earnings, the way we do it, takes into account the full financial picture. Looking at just the income statement, like going to the doctor and he's diagnosing you just based on looking in your ears. That's not the full picture. It's not going to show you much. That's like investing in stocks based on the income statement only. The other benefit of economic earnings, they're standard across all companies, apples to apples. So we can really rank which companies are best and worst. They are a more accurate reflection of the true underlying cash flows of the business. Many books have been written on this. The Valuation Book from McKinsey, Expectations Investing Book, Says the same thing. So does Creating Shareholder Value, the book on EVA. They all tell you, as will all of the great investors— Charlie Munger, Ben Graham, Adam Smith, Warren Buffett— all tell you economic earnings are superior to accounting earnings. And lastly, they're helpful because they're way better for finding hidden gems in the stock market. So here's how we calculate economic earnings to be specific. You would take your NOPAT minus WACC times invested capital. In this situation, Groupon, We found back in 2015 the economic earnings were negative $22 million. The GAAP earnings, by the way, were $21 million. Guess what happened? Stock got crushed. How about Bumble? We showed economic earnings of negative $383 million. The company showed positive earnings of $318 million. Guess what happened there? Stock got crushed. Bottom line, if a company is not generating positive economic earnings, is not creating shareholder value and could go to zero. So let's show how this worked in the past and have a look at the stocks we mentioned before to see the hidden metric in place. Domino's Pizza. It's one of the first ones because a friend of mine told me to take a look at this. He said, I think maybe the economic earnings can be positive higher than the accounting earnings. I was like, yeah, that pretty much almost never happens. He's like, David, you got a database of 6,000 stocks over the last 20 years. Maybe it happens more often than you think. He was right. And when we found stocks that had this in place by itself, economic earnings greater than GAAP earnings, we saw tremendous returns. Here's what we saw. Domino's Pizza back in 2005, after going through the 2004 10-K, we saw economic earnings greater than GAAP earnings, was up 2,000% since then while the S&P is up about 370%. That's a big spread. Accenture, similar situation. If we went through the 10-K, we saw that economic earnings exceeded accounting earnings, up 1,719% versus the S&P at just 493%. That's a pretty big spread. AutoZone, same situation. More recently, 2012, we saw that the company's economic earnings were greater than accounting earnings, up 732% versus the S&P up 293% over the same time. So it's really important to realize how rare this metric is and how large the true difference between economic earnings and GAAP earnings can be. Numbers can be legally manipulated to make earnings and profitability appear more impressive than they truly are. Thankfully, over the past 20 years, we've trained our system, our technology to identify and close the accounting loopholes and uncover true distortions between economic and GAAP earnings. This is what our technology does. These stock picks closely align with Warren Buffett's philosophy, where he highlights the difference between a good company and a good investment. Makes a great point here. Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of even an outstanding company to catch up with the price they paid. Here's the point. It's about expectations. There's a difference between a good company and a good stock. If that good company in an overheated market is already super expensive, the value of even an outstanding company may take a long time to go up because the cash flows have got to catch up to what the value is predicting. Remember I said Mr. Market is giving us a prediction every day? If the stock price is implying outrageous profit growth, and we see that a lot of companies— any of you guys have seen any of my webinars or trainings on the reverse DCF case studies, check a look at those. We break down exactly what the cash flow lifecycle of certain companies has to be to justify their price. Love doing this for the Mag 7 because you see some outrageous expectations, like companies that are going to be bigger than the entire country of Japan. Their revenue's got to exceed the GDP of Japan. That's a big ask. That's what's already priced in. It may take a while for that stock to ever move, Because even if it does become as big as Japan in terms of revenue and profits become bigger than a European country, well, that's already priced in. The stock's got nowhere to go until the cash flows catch up. Right? That's the key point here. So it's an investor superpower to find companies that are earning more than what the market perceives and are cheap. Because that's what gets you an edge like the greats. But you can only do that if you have the right research and data to see where economic earnings are greater than GAAP earnings and to understand market implied growth appreciation periods. Heads up, try to enter this into Google Gemini or ChatGPT, you're not going to get a good list of economic earnings versus GAAP earnings. You're not going to get a list of companies that actually— I don't even know if you can even calculate that number because their numbers are based on faulty data. They will not give you a good read on what's actually happening. How do we know that? Because no one else has our data, and our indices and portfolios outperform. They wouldn't outperform if we didn't have something that no one else had. So they can't give you the truth, but we can. Here's what it looks like using our research platform. Economic earnings greater than accounting earnings. Right there we got charts. We track this stuff. Another example, when this metric is in place, Eventually those profits catch up and boost the stock. So the opposite of what happens when you buy a really expensive stock where the profits are already more than baked in or overstated. The stock is implying very low cash flows and profits are higher than what the market thinks. The stock's going to rise to meet that. What better strategy than companies that are understating profits? The beauty of these criteria Is that we're looking at stocks that have both of these in place. It's economic earnings greater than GAAP earnings. They're more profitable than they appear to the market. And a high valuations distortion, meaning they are trading at a substantial discount. You put both of these rare items together and you get alpha stocks. The key, as always with something like this, is getting your money in ahead of the crowd. Alpha stocks don't stay alpha forever. In order to find these specific types of stocks, you need to have the right research at the right time to give you companies that both have strong economic earnings and valuation distortions in your favor. And that's where we come in using our RoboAnalyst system. This is so good that Harvard Business School published a 50-page paper proving that our ratings were better than Human ratings. We're the only research system or company that I know of that actually has a US patent behind us. And our roboanalyst has been trained and structured and designed on over 200,000 perfectly marked up, expertly marked up filings. And that number's growing all the time. 20 years of optimizing AI for financial statement analysis, and we've analyzed, again, hundreds of thousands of filings. This is a slide I showed to all our clients, investors, et cetera. We have a special technology to get data. We have a better ontology to give meaning to that data, better models, and we get data that no one else has. Those 3 things give us an advantage. It also means that we've looked at over twice as many financial statements as Mr. Buffett, right? The Wall Street Journal read a nice story on Mr. Buffett saying over his life, they think maybe he's looked at 100,000. financial statements, we're at least at 200,000, not to mention what the AI has tested itself against. If you count every AI scenario where we said, hey, AI, roboanalyst, go see how you can parse this filing compared to what a human analyst has done, we count those iterations, we're in the millions of financial statements analyzed. Our AI is built on proprietary technology to standardize complex financial disclosures into accurate measures of economic earnings and core earnings. These metrics are proven vital for assessing a company's true financial health. It's how we identify the crucial valuation metric, market implied gap of less than 10 years, that we discussed earlier. If you don't understand what the profits are today, you have no basis for figuring out what the profits for the future have to be. If you don't understand the starting point, then you can't build the model to say, here's where they got to go from. They got to go from here to justify the current stock price. Especially if you think profits are way up here and they're really much lower. Even better if they're understated, then the gap between where the company is today and where it has to go in the future is even smaller. If you don't have the data right to begin with, you don't have a good analytical leg to stand on. It's the old saying about every model: garbage in, garbage out. No surprise that some of the top executive investors from some of the biggest name firms in the world have been clients of ours for years. Our AI has an ability that nothing else has ever had before. That is to comb through thousands of government filings with precision, analyzing every line and footnote. See, RoboAnalyst technology delivers alpha from the footnotes, which Harvard Business School has proven the market is missing. Most investors and professionals, they don't have time to find and read footnotes. They don't do it. I know, I was on Wall Street. I was at a firm that was embracing footnotes analysis. Then the tech bubble came and they threw that stuff out the window faster than you know what. And they don't want to do this work because it's hard. Footnotes are buried in 200-plus page filings, but that's what's required to do proper diligence. This process costs millions of dollars per quarter for firms to To get proper calculations if they wanted to do it on their own, and this is why nobody does it. It's so much easier for firms just to blast out buy buy buy buy now. That's what they do all the time, right? This is what on TV in the media everything's great. Market's going up forever. Always a new reason to be bullish, right? And that's why we sad truth is 96% of all Wall Street ratings are buy or hold. There's no sell ratings out there. That's because their paychecks depend on you buying stocks. It's how they make their money. The same thing goes for professional money managers. They primarily make their money from annual fees while they underperform. They don't get paid based on performance. They just get paid based on assets under management. So they make money pretty much either way, whether they outperform the benchmark or not, especially if they got billions of assets under management or trillions. Huge money for them, not for you. While Wall Street wants you to buy or hold 96% of stocks, you should know that less than 13% get an attractive rating from us. Less than 4% get our top rating or very attractive stock rating. All right. That's called discernment. That's also called honesty. Not all stocks are great stocks. In fact, a precious few. Are good stocks. Now, we already mentioned that Wall Street wants you to believe that buy or hold should apply to over 96% of the entire stock market. According to recent data, 50% of all Wall Street ratings are actually buy compared to just the 13% of ours. It's buying over 57%, over half the stock market. Over half. Everything's a buy. It's all a buy. Of course it is, because that's how they make their money. Selling you stock. Our robo-analyst superpower is finding these earnings and valuation distortions across thousands of publicly traded companies so you can get the best of the best. There's no other way to do it. You can't get the best looking at a small number of companies. You have to have the technology to apply this super rigorous analysis to the entire market so you can pick out the best. And this is something that no one else can do, because when you find the a stock has both a market implied growth appreciation period of 10 years or less and economic earnings greater than GAAP earnings, you're going to be able to find stock plays that could potentially crush the S&P 500 in the near future, such as Penn Entertainment. When those criteria came into place, it went on to gain 341% over the next year. Resideo Technologies went up 150% Over the next year when these criteria came into place. Huntsman Corp up 135% in the next year when these criteria came into place. So this is the reason I invited you here today. We've just uncovered a new stock with a very attractive market implied growth appreciation period rating. It's a stock we believe could perform exceptionally well in the near future. Based on the key criteria we've been discussing today. The companies that earn our best valuation ratings and have an economic earnings greater than GAAP earnings are not based on hype. It's not a stock you're gonna hear about on CNBC. In fact, if everyone has heard of them, it would likely not fit our criteria of having a cheap valuation. By definition, we're not looking at popular stocks. However, these stocks have the right criteria in place for now to thrive in the months and year ahead. This is how you get in early. With this stock pick, we found a company with economic earnings greater than GAAP earnings. Here's the distortion we saw between economic and GAAP earnings. Doesn't always take place. Wasn't in this year, wasn't in this year, just barely a little bit this year, not this year. And now it's really taken off. Here's the market implied growth appreciation period rating. This is a very attractive market implied growth appreciation period, different from a very attractive overall rating, which is great too. Again, we're stacking on a lot of really good things together to find a very precious set of stocks. In our eyes, it's only a matter of time before these special stocks jump. to reflect their superior valuation. Now, I want to emphasize how rare an opportunity like this is. Based on our current data, only 0.2% of the 3,350 companies we cover have these special criteria in place, right? I told you 13% get an attractive or better rating, 3.5% A very attractive rating. 0.2% qualify for Alpha Stocks 2.0. Again, these are stocks that have a market implied growth appreciation period of 10 years or less and economic earnings greater than GAAP earnings. These are the select few stocks that are most misunderstood in terms of valuation and profitability, which means they have a far greater chance to correct even faster than most would anticipate, like the Shift Group. When the— when these key criteria came into place, the stock was up 330% over the next year. Copper Holdings, when these proprietary criteria came into place, the stock was up over 161% in the next year. Encore Capital Group, up 93% over the next year when these proprietary criteria came into place. So I suggest signing up ASAP. Don't let this stuff sit on the shelf because it's uncommon for companies like this to remain unnoticed for long. Look, everybody's always searching for the best stock picks. Everybody's screening. We have a better tool for screening. We have better data for screening. But that doesn't mean the window stays open forever. Of course, we can't promise a triple-digit return on this pick or for any other pick for that matter. But I can say the same 2 criteria apply to these special alpha stocks as those successful picks that I've shown you earlier today. We believe it's entirely possible for this stock to achieve returns comparable to those we've seen from stocks with this specific criteria in the past, including Tapestry— economic earnings greater than GAAP earnings and a market-applied GAAP of less than 10 years was up over 187% in the next year. Revolve Group was up over 175% in the next year when these criteria came into play. Eagle Materials up 120% in the next year when these criteria came into play. Based on our research, we believe our new alpha stock pick is on the brink of exploding in the near future. It's important to note these specific stocks go above and beyond our rating system. Our rating system is already excellent. You've seen the very attractive stocks. Those significantly outperform the market all on their own based on that one criteria. These alpha stocks are outliers even amongst attractive rated stocks. That's why we've not placed them in a monthly model portfolio. There's not enough of them. Right. Hey, once a quarter we could add 1 or 2, right? This is a super rare set of picks because the criteria are so stringent. These new Alpha stock picks are so rare and few, we're still learning how to get the most out of our proprietary data. I said before, less than 0.2% of all the stocks we cover meet these proprietary criteria. We don't know how long They'll remain Alpha stocks. They are special picks that warrant our unique Alpha rating. We've been building and refining our data for over 2 decades, constantly getting smarter, better. It's updated daily with new stock prices and any new filings from the SEC. At least once a quarter, we're updating our models with new filings, new Ks and Qs for all stocks we cover. That means there are always new ideas coming out of our research. However, we still get very few stock picks with the alpha criteria in place. And when we do find these special stock picks, we pay extra close attention. Inside the report, my Top Alpha Stock 2.0 pick, you'll get the institutional-grade stock report. This is a report that's available only to professional And institutional subscribers. And you'll get the economic earnings breakdown, you'll get return on invested capital breakdown, you get free cash flow breakdown, price to economic book value breakdown, and growth appreciation period breakdown. One of these reports, in my opinion, is worth like $25,000 just by itself, at least. It's a full model with history that would take a professional expert at least 3 to 4 weeks to build on their own, and they're going to charge you at least that much. You probably can't find anybody to do it, to be honest with you. It's invaluable. There is no one else except for what you get from New Constructs. Also, to ensure you guys get off to a good start, I'm going to throw in a bonus, a special members-only training that you buy the stock bundle today, you buy my top stock pick today, you're going to get a special one-on-one training with me. We'll do this members-only group call and you can ask me anything. How these alpha stocks work, how this model works. We'll probably take a look at some other criteria, some other stocks as well. It's a great opportunity to get a deep dive, an inside view on exactly how our technology produces superior alpha. With this type of potential on the table, it's easy to see why some of our clients pay us $12,000 a year. Some of us pay them $12,000 a month to get our stock ratings and research, and for good reason. The comprehensive nature of our research entails countless pages of data documentation, including information from balance sheets, income statements, cash flow statements, footnotes, dozens of other disclosures. We are doing the proper diligence. Producing and maintaining this level of detailed research would set you back millions of dollars each quarter if you could put together the team of people that actually know how to do this work. And our higher-level memberships give you access to a level of depth of financial research that's considered a goldmine to financial advisors and hedge fund managers. And many consider our platform an entire research department at your disposal. That's a big part of this, especially for RIAs and investment advisors. Don't have to pay for Wall Street research, which is conflicted and covers about a third as many companies as we do or less. With us, you get coverage of way more companies with way more depth, way more transparency, and way more accuracy. And our high-level research consists of unbiased ratings on 10,000+ stocks, ETFs, and mutual funds. You can see all the details you get on economic earnings versus accounting earnings. You can see here for Apple, economic earnings are actually lower than accounting earnings. You can see the return on invested capital, 76%. All kinds of great data that comes with our ratings. You get portfolio tracking, so you can put in all your portfolio tickers and track those, get alerts anytime there's a new model update or anytime there's a major corporate event or anytime there's a change in the equity rating, change in the credit rating. We're giving you updates on all this every day. You get stock screening with precision. Imagine being able to screen our entire universe of stocks based on our ratings, dividend yield, return on capital, Growth depreciation period. Super powerful tools that we give our clients. Also deep screening and database downloads. We go far beyond the competition with the quality of our research. When you stack us up to everybody else, nobody else can check all these boxes. See how we get to the far right? This is the really hard stuff, right? Empirical proof of superior data. 100% auditability. Guess what I don't even have on here? Live traded indices and securities based on our research that outperform the market. None of these guys have that either. Duke Cosworks is so much better than everyone else, it's really not even funny. Today though, we're talking about something different where you don't necessarily need all this research. In our professional memberships or institutional memberships, you could say this deal's even better because we've done the screening for you. To find the stock picks that pass these special strict criteria, and we're delivering it to you on a silver platter. Done all the work, done all the incredible research, backtested the data, figured out what's the best of the best. This is also a new offering coming from us. You won't find it on our website. These stock picks closely align with Warren Buffett's philosophy. I'll bring him another quote. Most people get interested when everyone else is. The time to be interested is when no one else is. You can't buy what is popular and do well. How do you figure out what's not popular? Market implied growth appreciation period. The best tool ever based on the best data ever. Now, we've also noticed like this is a tough time for investors. It's a tough time for everybody because trust has been eroding across all institutions, whether it's the media, whether it's Congress, whether it's Supreme Court, or newspapers. But New Constructs, we have something you can trust because of the transparency and authenticity, the third-party proof, the third-party live-traded indices. We can give you stock picks that are truly valuable based on proven superior data. We're not compensated to promote for a paycheck. We are motivated to provide the truth because Guess what? When it is the real truth, it works. Every stock pick that we give you in this bundle is going to include an institutional-grade stock report, which has tons of data. It's a full 8-page report with a ton of data. Like I said before, it's like a full financial model. Remember, you'll be getting stock picks from the same research that has earned number 1 ranking on SumZero for 54 straight months. versus 16,000 other professional investors. Here are a few notes from our clients so you can hear what other people think. Simply and instantly, you can see how your stocks or funds are rated and where they are trading compared to economic book value. I highly endorse New Constructs. The New Constructs system is one must-have tool in any stock or fund selection system. I sincerely appreciate all the work that has gone into creating New Constructs in the database. Going from marked-up footnotes and filings to reliable, easy-to-understand indicators of a company's performance is a huge undertaking, and you deserve my utmost respect. I find New Constructs information to be reliable, relevant, and trustworthy. As a business owner, I know how financials can be manipulated. I found your analysis superior. Your research digs that manipulation out. I rarely buy something that does not have solid ratings from New Constructs. All right, so let's take a couple questions. Will there be any overlap in the stocks? And no, this is an entirely brand new bundle. There will be no overlap with our previous Alpha Stock Bundles or any previous bundles for that matter. You're gonna be receiving brand new stock picks based on these strict criteria that are in place right now. Common question number 4, are the alpha stocks released in the new bundle guaranteed to have a double or triple-digit gain in the next year? No, nothing is guaranteed. Nothing about future performance is guaranteed. The one thing that I will guarantee to you is that we will do our best to provide— continue to provide the best research in the world. We will do work that no one else is doing. We will be able to provide alpha that no one else can provide. Maybe not forever. But for the foreseeable future. But we cannot guarantee that any particular stock or alpha stocks will explode in the near future. Can't guarantee when this will happen. Common question number 5, how do we know New Constructs stock picks outperform? How about seeing our live traded indices provided by Bloomberg? Don't have to ask us. Go to Bloomberg. They've been putting together portfolios and tracking them for years now. And you can see here, the Very Attractive Stocks Index beats the S&P 500 by 46% over the last 5 years. The Core Earnings Weighted S&P 500 Index beats the regular S&P 500 by 24% for 5 years. The Core Earnings Leaders Index beats the S&P 500 by 32% over the last 5 years. Folks, the research has proven, like no other research, That I know of in the history of the world. Probably something else out there. I've never seen it. Certainly, there's nothing like what we have out there today. Can't beat proof better than what we've seen. You can't beat beating the market. That's the ultimate proof. The Core Earnings Leaders Index, it's up. It's beating the S&P 500 by 11% year to date. All right, so here we are at the end. I am happy to answer any questions. As well as give you a free promo or a free demonstration of how things work on our site. I do have one question here about when can you start? No, these alpha stocks don't stay alpha for very long. So we're gonna recommend you buy within the next few days because the offer will close before then. Yes, we cannot delay later. Sorry about that. That's just the nature of these things. Like alpha is special because it doesn't last for long. All right, so Kyle, let's see what kind of stock pick requests have we seen so far today, and let's give people a few free picks. Yeah, the first one up was ABBV. All right, neutral rating. Part of the benefit here, I'm showing you guys our pro and institutional type service. You can see the stock rating is neutral, credit rating is attractive. You can see the actual numbers behind each element of the rating. Same is true here for quality of earnings. You can see at V, economic earnings are greater than accounting earnings. Guess what though? Market implied growth appreciation period is not also very attractive. Not an alpha stock pick. Can't do it. Rating breakdown details on how economic earnings and accounting earnings have looked over time. You can see economic earnings have been higher for this company for a long time. You can see return on invested capital, return on tangible invested capital. Weird, really big peak right there. Return on invested capital drivers, NOPAT margin versus capital turns, free cash flow yield over time. You can see we've got all kinds of great data. Here's the 2-year average free cash flow. Here's actual annual free cash flow. Tons of data in our models. The other thing we have here also that I think is super cool is a reconciliation, income statement adjustments, all the things we're doing to adjust GAAP net income to get to NOPAT. We show you all the adjustments. Balance sheet adjustments, same thing. Valuation adjustments. Look here, got minority interest, you got outstanding option liabilities. This is $67 billion in debt. Maybe that's why the stock gets a neutral rating, even though it has economic earnings greater than accounting earnings. And for those who really want to see something magical, check out our marked-up filings where we actually show you where we find these adjustments. Here in the Q3, A restructuring charge of $36 million buried in the restructuring plan's notes. You won't see that on the income statement. Nothing about restructuring charges on here. Nope. And same is true for all of our data in our systems. You can see a bunch of unusual charges. Bam! All through the— look at all crazy stuff. That's on page 66, on page 71, on page 65, on page 64. You get the idea. Takes a lot of work. All right, Kyle, what's our next pick? LRCX, Lam Research. We liked this stock a long time ago. I think this was one of the pick and shovel stocks that we— like, 5 or 6 years ago, we saw this coming. Again, you guys are doing a good job picking stocks today, but expensive, right? This goes back to what Warren Buffett said. You can buy this great company, may take years for you to see much stock appreciation because The market is already pricing in huge amounts of future profit growth. So that's why alpha stocks are so special. You're going to have cheap valuation, low expectations, plus superior earnings. You got to find alpha stocks in general. You got to find them before people realize they're alpha, because once people realize it, it's too late. But you do see strong, high-quality business. Here, an expensive valuation. Good company, bad stock. All right, last ticker. Last one, EOG. Attractive rating, suspended because they just did a big acquisition. We do— it's actually on our focus list. Attractive rating, decent economics, cheap valuation. We like a lot of the energy businesses, especially if they are not super oil price or commodity price dependent toll takers, only really affected by demand for energy. And we think demand for energy, we're bullish on that, that's going to keep going forward. But that's our rating on EOG. I'll take a couple of questions here before we finish up. Do the number of alpha stock picks according to market conditions? Yes. In expensive markets like this, it is extremely difficult to find. There in markets with them where stocks are getting crushed, if we were to have a major correction There would be a lot more alpha stocks, but there are very few now, right? Again, 0.2% of everything we cover makes the alpha stock list for this bundle. Address the liquidity of small caps or moats of the company. So that's 2 very different questions. I'm going to take that as 2 very different questions, Wally. Liquidity of small caps, we don't cover like super small-cap companies in general. We don't put ratings out on them. We look for companies that have got enough liquidity for our institutional clients to trade them. And that's been a knock on new constructs. Like when you got big clients like Goldman Sachs Asset Management or some of these super huge funds, it's very super sophisticated funds. They can't make investment decisions less than a couple billion dollars usually, certainly hundreds of millions. So, if the liquidity of the stock is only like a million dollars a day, And they would need to put at least $100 million. They got to own all the liquidity for 100 days to get in that stock. That doesn't work, right? We cover stocks that matter. We don't cover super small stocks, and we don't really recommend trading these super small cap stocks in general. Mostly, I think they can be a little bit sketchy. Moats of the company. I've been talking about the moat, like the moat that matters most. Not what I think about the moat; it's what Mr. Market thinks about the moat. And when you see that the moat here is Mr. Market saying the moat is. next to nothing. In this situation, it's less than 1 year at a price-to-economic book value showing that the profits are implied to decline by 30%. This is a negative moat. This is Mr. Market saying EOG's profits are going to permanently decline by 30%. So if you believe the company's going to do anything better than that, then it's got upside potential. And that's where this metric is a great metric. It's identifying companies with a super Low mode. Okay, that's all we got for today. If there are no more questions, I'm going to rock on. Yes, Wally, Mr. Market is our helper. Absolutely. Okay, thanks very much for being with us. Thank you. Have a great rest of the day.