Earnings Season Reality Check: Are You Stocks Built To Last? March 2025 Training

Before I get started here, I want to take a minute to talk to you guys about the current market environment. Look, nobody loves seeing the stock market go down, and nobody loves it when we've got to see our portfolios declining. It makes things harder. And it really brings to bear on kind of everybody a burden around trying to survive in what is an increasingly, increasingly difficult market and makes everybody's life harder. Unfortunately, we think that is probably going to be more of what to expect in the future than what we've had in the past. The easy money market days, I think, are mostly behind us. And easy money is when Momo and FOMO They take over and they make it seem like it's easy to make money when in reality it's not supposed to be easy. Investing is a tough business, and I want you to know that in New Constructs we've always known that. We've never tried to hoodwink you or swindle you or get you pumped up over some easy money get-rich-quick scheme. It's not what we're about because we don't believe in that. We believe in making money the old-fashioned way. Hard work, incremental insight, truth, busting our gut to make sure that we give you better information. And we've also done it in the modern way by creating a technology that can systematically provide superior information. And what I'm going to show you today is how you take advantage of that. And I'm hoping that we give you guys some comfort, comfort in that you don't have to rely on the next guru selling you some, something that's too good to be true. We hope that you can find comfort in knowing that there is a place where you can trust that you're going to get reliable information. That New Constructs can give you something that you can be comfortable with at night to understand you're making smart decisions. And yeah, the market's going to go up and it's going to go down. Newsflash, it is not always going to go up despite what Wall Street wants you to believe. It is going to go down. You need to have a plan for a rainy day. Just like what we're seeing this year. Because if you don't, things could be ugly. And that's, that's a bummer. We don't want that to happen to anyone, but unfortunately, that is the way the world works. So if you don't have a plan for a rainy day, you're in trouble. We can't fix what's happened to you in the past. We can make sure that you're in better shape going forward. Let me go into the deck here and explain to you a little bit more about exactly what I mean. Remember, please make sure you put your questions. In the Q&A, and we're going to be taking requests later in the in the presentation as well. And so we want you to get those tickers in if you want us to talk about them. We need to know that they're on your list. So welcome everybody. So again, we believe our research can help you now more than ever for several reasons. The market is obviously volatile. People are are uncomfortable. These are tough times. Indices are, are not doing well. We've seen a lot of loss in value, and it's been a rough year. We can't turn back the clock, but we can help you going forward, as I mentioned before. And I want you to know that our research has always been focused on serving you, the investor, first and foremost. We're not just getting honest now because the markets are getting tough. We have always been giving you real diligence that you can trust. We were early to warn about some of these really popular stocks that are really having a big comeback. And some of these stocks have basically fueled gains for so many portfolios for a long, long time. And we've warned about those being false hopes. I would have, I would have loved for this to never have happened. I would love to just sort of put my head on the pillow or my head in the sand and say, yes, Tesla will go up forever. Nvidia will go up forever. But they can't. It's not that easy. And it helps when everybody crowds into these stocks and makes them go up and makes you think it's going to keep going up, and they tell you to hodl and it's going to keep going. But unfortunately, those, those games don't work for long. It's a game of musical chairs. At some point, the music's going to stop. And if you don't have somebody on your side like us, you're relying on these other research firms, you're never going to see it coming. It's going to crush you. It's going to sideswipe you like a bad car wreck. But in new constructs, you're going to see that we're performing— our performances in good and bad markets. Here's a picture of the New Constructs Very Attractive Stocks Index. This is an index created by Bloomberg to track our very attractive stocks. Those of you follow us know that very few of the 3,000+ stocks we cover get a very attractive rating. Attractive rating. It's like less than 5%. You want to know how those stocks have done year to date? This was as of yesterday. They're up over 3% while the market is down more than 4%. That's extremely strong performance, folks. That's 7% in less than a quarter. When the market gets tough, the tough get going. I think this is demonstration to you that our ratings are reliable and good and bark. Bad markets. Those of you— this— those of you that have been following us for a long time, you know that our stock market picks have been doing great all along as well. But doing great when it matters most, that's what you need. Here's another index, our Core Earnings Leaders Index. It's up over 1% while the market is down over 4%. Again, another example. And this is just about focusing on core earnings. Our Superior Profit measure of profitability. I say it's superior all the time. What does superior mean? It means you pick better stocks with it. When I say superior research throughout the rest of this presentation, it means you pick better stocks. You get better research with our research. Here's another index. This actually one is my favorite. It's outperforming as well. Not as much as the others, but you know what this is? This just takes the Traditional or legacy S&P 500, and instead of market weighting everything, it market weights based on core earnings. How's that for a novel idea? 60-plus years, S&P's worked— S&P 500's worked the same way: market weight, market weight. How many indexes out there are market weighted? So we tweaked that same index. We didn't change the stocks. Tweak it. Say, you know what, instead of market weight, why don't we weight based on Core earnings, and we're already seeing over a percentage point of outperformance in less than one quarter. In less than one quarter. If you look over one five-year time periods, you're going to see the same outperformance. So I want you to know we are on your side. Unlike many other research firms, we can prove it. And and look as an example, how about all these free earnings watch parties? If you missed those over the last month. I don't know how many I did, 10, 20, a dozen or so. We would break down all the biggest stocks, tell you what's good and what's bad, help you see beyond the headlines. You know, and we called the top in Nvidia. We called the top in a lot of stocks. We called bottoms in other stocks. And we're here to give it to you for free. Again, because at the end of the day, our goal is for a more efficient market. We know that if the market's more efficient, I mean, our business is going to do great. Our research is going to do great. We provide danger zone updates. We warn you about the bad stocks. If you've been following us for a long time, you know about our zombie stock list. You want to talk about a portfolio that's outperformed? Zombie stock list has crushed it. We have warned people about some of the biggest declines in the market. Some of them we warned about at the IPO, before the IPO. And you know why we can do warnings that no one else can? Because we're not biased. We're here to help you. We really want to help people. I believe in putting out good research and putting good things out into the world. That's the one thing I can control. I can't control what, if anything good happens to me for that. I gotta, I gotta release that. If you're not doing it for the sake of doing it because it's what makes you feel good, it's what makes you feel good about getting out of bed every day, makes you feel good about having a good job, that you're doing something to make the world a better place, then you're not doing it for the right reasons. If I'm only doing it just to make money, I can't honestly put out danger zone reports on stocks like Tesla and Nvidia when they're doing nothing but going up. I do it because we believe it is right. And we are in a market today where I believe right is starting to matter. Fundamentals are mattering. Fundamentals always matter. But I would say most of the last 10 years, 20 years, fundamentals have been in the backseat. FOMO, MOMO have been driving the car, driving the bus. Well, fundamentals are in the front seat now. Another great example of our free research, IPO research. We've done 12 IPO research updates this year so far. Venture Global. I don't know how much it's down, like 50%, 60% since the IPO. Guess what? We told you before the IPO, avoid this stock. It was unattractive. If you had access to our system, could have looked it up and could have seen. You would have known. We're warning about these things. And you know, I mean, we've done this forever. I mean, who remembers when we covered WeWork? All right, anybody who can remember that, put a link into the chat that shows me that you aren't just making it up, and I will definitely give you— we will definitely cover the stock that you request. WeWork, we were the first to point out, among the very first, to say this is one of the worst IPOs of all time. They tried to sell you that company at $40 billion. Wall Street tried to sell you that company at $40 billion. You know what it's worth now? I think it's under $100 million. Might be zero. Might be zero. One of the most obvious examples of Wall Street trying to rip you off of all time because you had a very condensed timeframe. You had— I don't know what the timeframe was like. At one point, early on, they wanted, I think at the very beginning, $70 billion. That got marked down to $40 billion. And then within a few weeks, the IPO failed and SoftBank, the private owner, marked it down in their own books to $4 billion. You don't hear about this in the headlines, but if that's not an example of a company saying, you know, we really think it's worth $4 billion, but we'll sell it to you for $40 billion. That's not an example that you need reliable research. I don't know what is. Our reverse DCF case studies. These are like getting a Harvard, Wharton, Columbia MBA in an hour for free. You will learn more about how to understand the economics of a business and do valuation than what you would get in 3 years of all those schools combined. How do I know? Because I've guest lectured at all those schools. I've been there. I've taught. I've worked with those professors. Some of those professors have written papers on new constructs. Some of those professors had me guest lecture. On a regular basis. So I can tell you, they want to charge a lot of money for this stuff. Of course, they're going to make it seem special. And by the way, the value of the network might be worth the price of admission. But when it comes to finance, I can tell you, you're not going to get anything better than what we do. When it comes to valuation and modeling, you're not going to get anything better than what we do. I've also got, you know, ex-analysts from New Constructs who've left us and gone to some of the top business schools in the country. You know what they tell me? They say, David, I could have taught the financial statements analysis class based on what I learned in New Constructs. They crush it. Our long ideas, these are some of the best ideas out there. Now, these are delivered to pro members only. These are not always free. Sometimes we do make them free several weeks after, a couple months after, but these are tremendous reports that are written with a level of detail and diligence that you're not going to get anywhere else. And of course, examples of how much we care— free training just like this one here. Lots of those. So let's get started. The, the title of our presentation today is the Earnings Season Reality Check: Are Your Stocks Built to Last? We are going to show you proven strategies— proven— for navigating market volatility based on our superior ratings. Now, disclosures as always. We are not an RIA. We're not an advice-giving firm. We are not here to tell you what's going to happen in the future. We're here to give you more reliable information to make smarter decisions. And I submit that we can do that better than anybody in the world. Again, I want to hear from you. Tell me your favorite investor. Give me your stock pick and let us know what kind of investor you are. All right. So here's the agenda. I'm going to show you how media and Wall Street manipulate numbers to trick you into buying more stocks. I'm going to give you the secret to smart investing with proprietary data gleaned from 10-Ks, 10-Qs, everything. How to perform real due diligence and find the best stocks, ETFs, and mutual funds, even in a volatile market. I'm going to talk about some of the hottest sectors. And then I'm going to, as a free bonus, I'm going to, I've actually got 2 free bonuses, something special just added just now, hot off the press, because I couldn't believe it when Lee, our head of operations, told me what they're seeing in some filings recently. I couldn't believe it. I'm like, we've got to write this up. And I said, you know, I got to put this in the slide deck today. So I'm going to analyze 3 tickers, and then I got something extra special for you too here at the end. If you don't know me, I'm David Trainer. I founded New Constructs many years ago. I've been looking at financial statements and footnotes and building models for over 25 years. I was on Wall Street during the tech bubble. I know how the sausage is made. And the reason I started New Constructs, the reason I left a rich and illustrious career on Wall Street to do something to make the world a better place is because I really believed if we didn't do it, no one else would. And it's a long story, but I was one of the last people to be doing real work on Wall Street. And I knew that there weren't other people that wanted to do it because I was on Wall Street. I was talking to these people. They were the only people that know how to do this stuff. And they had no interest because there was too much money to be made in the, in the moment. And, and I thought there was a huge opportunity that if we created a technology to do this, that we would have a, a, a great and awesome and amazing audience and community. And we have. And we're excited to extend it to you, the retail investor, after working with institutional investors for so many years. All right. So let's, let's talk about some real stuff right now. We're living in a time when the markets are tough, when research really is mattering. You can't just go and call Roaring Kitty. You can't go to Reddit. This is the exact kind of market for us to best help you. All investors, professionals, retail, everybody. You know, it's the funny thing. Good research tends to matter less when everything's going up. Everything's easy, everybody's happy. But in times like this, it is vital to find companies that have real earnings based on real economic data and value creation. Look, this is not the time to just be gambling. This is the time when real research matters. So whether your goal right now is to be more conservative or aggressive with your investments, we're here to help you with the best research to steer you through the froth, the fog in the markets. We're in a special time of year as well. We've just come out of 4Q earnings season. We're about to enter 1Q earnings season. Ratings are changing all the time. I'm gonna go over some sector ratings. You know, they may change tomorrow. I'm gonna show you some, a bunch of ratings today. They may change tomorrow. We're getting in new 10-Qs, a ton of great data. We've analyzed probably 3,000+ quarterly and annual reports, 500,000+ pages of information. You know what you call that? You call that diligence. You call that honesty. You call that hard work. You call that— that's the price you pay to get to the truth. And it means we've updated tons of stock ratings data and tons of research in our screening data. And this gives you a sharp advantage to navigate today's volatile and unpredictable market. Based on our own historical analysis, we know earnings season has a huge impact on market movement and stocks. And it's not just us, it's Harvard Business School, it's Ernst Young, it's a lot of people. We're the only firm that have the technology to identify stocks that have opportunity or overrun based on real fundamental data. In 2024, there were on average 800+ stock rating changes during each earnings season. 24 new stocks were added to the most attractive, most various Most to the Most Attractive Stocks model portfolio in the last month. 21 new stocks were added to the Most Dangerous Stocks model portfolio. 5 new stocks were added to the Exact Comp. That's 30% of all the stocks. It's over a third. We turned it over one-third in just the last month. Safest Dividend Yields model portfolio, we added 8. I think that's about a third of the total number of stocks on that list. So again, a lot of turnover, a lot of turnover in the dividend growth stocks model portfolio. The point is, we don't just do a bunch of work and go, go to sleep for a year or a quarter. We are constantly analyzing filings. It is a perpetual effort. Any one of you who know that if you want to be committed to excellence, you want to be committed to greatness, it's not a one-time thing. It's an everyday thing. It's an every-minute thing. And for us to put together these model portfolios, for us to put together great recommendations, You have to know the answers honestly for the whole market. You can't just go and do a bunch of work on one stock and be like, oh yes, this is a great idea, because then you have no idea how good it is relative to every other stock. And investing success is all about actually picking the best stocks in the market at any given time, because that's the only way to survive in good and bad stock— good and bad markets. Because if you could pick a great stock in a really good market, well, it might go up because everything else is going up, but when things go down Bam, it's going to be crushed. It's a relative game, and our ratings scan the entire market. We scan the entire market. Now we're covering like 3,400 stocks, and you might say, well, that's not the entire market. It is like 99.9% of the market cap. We don't cover penny stocks. We don't cover a bunch of stocks you probably shouldn't be in anyway. We cover everything that matters way beyond the Magnificent 7. And it has helped us spot some real hidden gems. We have the perfect database to read the field and understand how both earnings season and elections and tariffs are affecting stocks. And if you're new here and wondering why you should listen to our new stock releases and rating changes during this pivotal time of year, you should know that our stock picking has beaten 16,000 buy-side professionals to claim the number one ranking in multiple categories from SumZero, which is a buy-side only competition. These aren't sell-side investors. These are buy-side people. These are people that are professionals, right? So it's real competition. It's not Wall Street. Wall Street is a low hurdle. If I bragged about how I could beat Wall Street analysts in stock picking, you should laugh me out of the room. Buy-side professionals, that's another thing. Here's a picture straight from the site. Number one, sum zero. We've been doing this for something like 44, 45, 46 straight months. Kyle, what's the number? Are we up to 48 yet? We're at 45. 45. 45 months in a row. It's not a fluke. Not a fluke. And it's important to note that when ratings change, that's a strong indicator for identifying winners and losers. Winners and losers. Post-earnings season. You can see this, the percent return 28 days after a ratings change. If the ratings go up by 3 slots within 28 days, you're seeing 10 to 12% improvement. If it drops by 3 slots, if it goes from attractive to unattractive or very unattractive, look at that. I mean, it's going to go down a bunch. This is consistent. This is consistent. It makes sense. Now, you hear me talking about what we think about new constructs. What about what some other people think? How about MIT Sloan School of Business? How about Harvard Business School? How about Ernst Young? How about the Journal of Financial Economics, one of the top peer-reviewed journals in the world? What do they say? They've all written papers proving that our research is superior. Get them from our website. We'll share them with you if you need it right now. Kyle can drop a link into the chat that gives you access to all the papers quickly that have proven that our data, our analytics, our financial metrics, and our stock ratings are superior to everything else that's out there. You want more evidence about the fact that we've been amongst the first— we've been the first to recommend many of the most valuable stocks Including Microsoft at $42, Apple at $1,950, Eli Lilly at $36, Nvidia $0.57 a share. We've also been able to recommend many lesser-known hidden gem stocks. Williams-Sonoma up 494% over the last 8 years. Jabil up 266% since we recommended. Sprouts Farmers Market up 428% since we recommended. We've also been able to pinpoint excellent long and short picks, and our results over the years speak for themselves. So here's our focus list long. See how well it's outperformed 2021 through 2024. Focus list short. See how it's outperformed since 2021 to 2024. These are real model portfolio performances, folks. Not only that, but the Very Attractive Stocks Index trumps the S&P in 2025. Here it is again. The Very Attractive Stocks Index beats the S&P 500 by 7% already year to date, up 3.5% while the market is down 3.3.5%. 7% outperformance. Our Very Attractive Stocks Index is managed by Bloomberg and is not available to the public for purchase. However, it contains stocks rated as very attractive and is up 3% while the S&P is down 3.5% in 2025 as of yesterday. How about the Core Earnings Leaders Index? This index is managed by Bloomberg and is not available for the public to purchase either. There is an ETF that licenses it, but that's a different story. Point is, it contains stocks with the best core earnings, and it is up 1% while the market is down 3.5%. That's outperforming by a lot as well. Lastly, again, my favorite, and I really want to emphasize this, this is just an enhanced version of the S&P 500, a core, core earnings weighted version. We're not saying you got to pick the stocks. that we say you should pick. If you still want to pick whatever stocks you want, fine. But at least weight those stocks based on core earnings, because guess what? That will give you an advantage. The market is a weighing machine in the long term, voting machine in the short term. You've all heard it, and it's been a voting machine for most of the last 20 years. Today it's a weighing machine. Year to date, it's a weighing machine. I think the rest of this year it's going to be a weighing machine. And if you don't know the weight of your stock, if you don't know the real core earnings of your stock, you're in trouble. You don't know the true fundamentals, you're in trouble. So the Enhanced S&P 500 ETF or index managed by Bloomberg, that's not available for purchase. It's based on core earnings, I just said, and it is outperforming by over 1% this— so far this year as well. Now, before we get into the training, I have to be transparent with you. If you're looking for the next meme stock, the next hot stock, the next NFT meme coin, this is not the place for you. I'm not your guy. On the other hand, if you care to be an investor who doesn't have to worry about their portfolio day to day, week to week, month to month, or even year to year, Who can know that you have a process, a discipline, a rule of life, a rule for investing, that you want to be diligent, you want to be disciplined, you want to be focused, you want to invest based on things you can measure, you want to build wealth, retire, you know, and retire comfortably. These are the things we can help you with. You're a financial advisor and you want to provide your clients with unsurpassed due diligence. We can help you with that. You want steady income and growth from stocks that have great fundamentals? We can help you with that. You want a plan of action as we head into the new year, deal with all kinds of uncertainty? You're in the right place. We're different. New Constructs. Hear about slow and steady gains. If you see by the performance this year, not so slow all the time. But we're not here on the right trying to pretend we're going to help you get rich quick. Rather than go with what's hot right now, we want to give you the truth. And that truth is— part of that truth is you're being misguided by Wall Street and the media most of the time. We see so much fake news these days that it's hard to know what is real in anything. I mean, AI is like taking, taking over. The same is true of stock research. Look, we see a lot of false narratives all, all across the world and everything. We've seen a ton of it in politics. Isn't it naive to think that there are no false narratives in the stock market? In fact, I would submit there are probably more in the stock market because the people that are good at spreading false narratives, extremely good at it, like they're professionals, lots of resources, billions of dollars to spread false narratives. How can you make money fast? Fastest? How about a false narrative in a stock? Pump and dump. It's a great way, the fastest, maybe easiest way. And Wall Street is designed to do that in so many ways. You know, I've been on the inside. The whole internet bubble, that was a big false narrative. I think parts of AI are a big false narrative. Meme coins, false narrative. NFTs, false narrative. Lots of false narrative folks out there. How do I know this? Well, I think we can see it all demonstrated in the market today, but I want you to know what I saw firsthand when I was on Wall Street in the late '90s. As I mentioned before, I was there. I was an analyst at Credit Suisse First Boston, and I had meetings with the co-heads of their technology equity research group because I was running a special, special project that focused on economic earnings and quantifying the expectations based on the stock prices. I was super fortunate, super lucky. I'm so Grateful to have had a chance to work with some of the smartest minds in the business at Credit Suisse, a guy named Michael Mauboussin, who pioneered a lot of this kind of research on Wall Street, the concept. And I was implementing it there at Credit Suisse. And these tech guys all of a sudden came over during the tech bubble. The size of the research department doubled. And I learned in meeting with them and saying, hey, you should use my model just like all the other research analysts at the firm were using before you guys got here. And what I found was that these guys were intentionally duplicitous. They had 2 sets of earnings estimates that they used, 2 sets of numbers. One was the number they gave to institutional clients and used internally for building out their price targets. This was a higher number. The other number was the one they displayed to the public. A lower number. Why? Why did I learn this? Well, I was trying to get them to use my model like all the other analysts were. It was called the Value Dynamics Framework. And at first they gave me all these kinds of excuses. Oh, I can't use this model. And I refuted them politely because I, you know, I had a million times across these other analysts around the firm. Most of the reasons they didn't want to do it is because they, you know, their models, nobody's got a better model than them. Well, you know what? I've actually built a really good model. And eventually, after they exhausted their excuses, they gave me the real reason they could not use my model. And they said, David, if we use your model, then people will realize our estimates are way too low and the stock will look too expensive. This is the public estimates. I was like, well, what are you talking about? Then why would you have a buy rating on companies that you think have such low earnings? Oh, you don't understand. You know how it works. Stocks go up when they beat the numbers. So for the stocks we like, we publish extra low estimates. So the companies can more easily beat the number. Ever noticed how estimates for Tesla go down after the quarter? A few months after the— a few weeks after the quarter, everything's all happy and good. Oh, they beat the number, got a high number, and then Wall Street's bringing it down in the background. Nobody's hearing about this. The estimates, expectations are going down, down, down, down to finally it's a number so low that they easily beat it. Everyone's like, oh, they beat the number. No one noticed it had been managed down all that time. So I responded and said, when they said, oh, I got too low, you know, I got low numbers out there, I said, well, then how do you publish extra high estimates for the stocks that you, you don't have a buy rating on? So it's harder for them to beat, right? If you want the stocks you don't like to go down, make you look like a good stock picker. They said, yes, we do. Then I asked, how do you come up with target prices for your buy-rated stocks with such low earnings estimates? And they said, oh, we have a different set of estimates for the stocks we like that we use for our target prices and talking with our institutional clients. And so then I said, so you want to keep the higher estimates that you use to value the stock a secret while using the lower estimates to help the stock go up by keeping the consensus estimates lower, correct? Yes, correct. True story. And that's when I saw firsthand Wall Street's earnings manipulation. That's when I understood that Wall Street research isn't about helping you. It's about making the bank big money. And when I'm talking about big money, I'm talking billions. And I'm talking billions over weeks. So again, they had 2 sets of numbers they used for stock ratings, the ones they gave to institutional clients and used internally, and the ones they displayed to the public. The reason was simply because that's how Wall Street works, because that's how Wall Street makes money. At New Constructs, we do things differently. Our rating systems often differ from the mainstream. And after seeing the inner workings behind how Wall Street actually makes their money, I hope you think that's a good thing. Because they manipulate, manipulate their earnings and stock ratings to make them money, not you. And since then, I have felt compelled and committed to give investors the truth when it comes to stock ratings and research. Because if we don't, our markets are going to become inefficient and our economy and our country will suffer. It all comes down to our mission at New Constructs to improve the integrity of the capital markets. And that means providing the best fundamental analysis of stocks in the world and to make it affordable for all investors so that it's not just Wall Street insiders who know what to do. It's everybody. No one advertises these facts. Right? The average investor has no access to transparent, accurate information or any unconflicted due diligence. You don't have it. Show me where you can get it. You know, anybody put into the chat, show me a place where you know you can get reliable fundamental research. Put it in there. And when I mean reliable, show me someone who actually has papers from Harvard Business School or Ernst Young or MIT Sloan or the Journal of Financial Economics, any one of those. Show me another research firm that's got backing that's been vetted by one of these top-tier institutions. I'd love to know. By the way, all 4 of them have backed us. The other thing is that the media is littered with analyst recommendations of buys and sells that are actually paid blogs, ads, or subsidized by companies. The research is Completely conflicted. Completely conflicted. Okay, I got somebody in here. Benzinga and IBD? No. Tell me where Benzinga gets their fundamental research, and where do you get fundamental research from Investors Business Daily? Are they giving you return on invested capital? Are they doing valuation? Not even close. Benzinga is more a news source, and I'll get into that in more detail, but I very much appreciate Appreciate, Chandra, you giving me some recommendations, because guess what? No one else has. And I've been doing this promos for over a year, and almost every single one I say, show me somebody who's doing the same thing New Constructs is. I'd love to see it. So investors face a real problem: incomplete or biased research. That's what you're having to deal with, especially if you're relying on Wall Street stock ratings. Now I'll discuss how our stock ratings compare to Wall Street ratings. With examples. Here's a case study from Harvard Business Review, The Bias of Wall Street Analysts. So this isn't on us. This is just on Wall Street in general. According to the study by Harvard Business School, Wall Street analyst recommendations are often influenced by business relationships with the companies they cover. This bias can lead to overly optimistic ratings. We've been writing about this for years ourselves. So the sad— here's a sad truth. 96% of the stocks covered by Wall Street are either buy or hold. Buy or hold. Why? Because they're trying to get investment banking business from all these people. They're making friends, not enemies, because they're trying to sell all these firms. The proportion of sell-side analysts maintaining buy-and-hold ratings on industry stocks in December was about 96%, up from 92% in November. The percentage of the recommended sell went down equivalently. That's because their paychecks Wall Street paychecks depend on you buying stocks. It's how they make their money. That's why Wall Street wants you to buy or hold 96% of stocks. Guess what we like? Less than 13% of our stocks get a buy rating or attractive rating. Less than 4% get the very attractive rating. And you know how well those very attractive stocks do. Now, we've already mentioned that Wall Street wants you to either buy or hold over 96% of stocks. And according to recent data, 50% of Wall Street ratings for stocks are listed as buy compared to 13%. Look at that, 50%, 57% buy ratings. Here's a quick sample of how our stock ratings compare to some other firms like Morningstar. Great example. I would consider Morningstar a Wall Street firm. They get paid by their clients, mutual funds, ETFs, They pay to use that Morningstar rating. You think Morningstar is going to sell more ratings if the fund ratings are positive or negative? There's a conflict there. There's a conflict. You can't trust it. There are no conflicts at New Constructs. Here's some more examples of how misleading Wall Street buy ratings and how they compare to our honest ratings. Some specific stocks. According to Wall Street, Shake Shack is a buy or hold this year. We've been calling it unattractive. It's been featured in the danger zone. Guess what? Down 32% year to date. According to Wall Street Peloton, buy or hold this year? Unattractive zombie stock. We called it bad. We called it as an— we called it put in the danger zone before the IPO. Guess what? Down 24% year to date. According to Wall Street Warby Parker, buy or hold? According to New Constructs, unattractive. Also another danger zone feature. Guess what? Down 16% year to date. So why is our research different? What are we doing differently? Diligence. Diligence. We're analyzing all the data. We're not just running on a narrative and trying to sell you on some sexy story. If you don't really understand how Wall Street works, you And you haven't seen this video about how stock ratings— I'm sorry, credit ratings work. Kyle, if you don't mind, please drop this link into the chat. You need to watch this. If you haven't seen The Big Short, in this scene where they go and meet with the representative from S&P, you need to see this. This is reality, truth. I'm not going to play it right now. But trust me, this is an eye-opener. You need to see it. One of the best scenes in the entire movie. And I give it— I break it all down to you, like, down into 5 seconds. So I'm giving the Cliff Notes. So important to understand, we're not trying to get investment banking business from any company. We're not incentivized to overstate any company's profitability. And so we can be trusted to plainly report the truth. We share the truth 100% of the time. Right down to the exact details from the footnotes where we get the most important data. We also provide all the details on how we calculate all the metrics in our models and new constructs. So you may be wondering, sure, your stock ratings and new constructs are different from others, but how do we know that they're better? Right? If you missed the beginning and you didn't see how our indexes are outperforming the market, well, how about SumZero ranking us number 1 every month for 45 straight months? How about top-tier institutions proving the superiority of our research? When you look at the economic earnings, economic earnings of a business, you get the facts behind any stock and can make better investment decisions. It can help you uncover hidden opportunities in the stock market. Cigna, or Cigna Technologies, upgraded from unattractive to very attractive a year ago after, after 10-K season. was up 37% in a month last year. An example— another example, Cite Sciences, up 32% in a month after getting upgraded. Cohen and Company, up 32% in a month after getting upgraded. And of course, going the opposite direction, down to unattractive and very unattractive, is also bad. Skinexus, down 28% within a month. after being downgraded. Big 5 Sporting Goods down 27% in a month after being downgraded. Zymeworks down 16% in a month after being downgraded. I just mentioned over 800 stocks per quarter are getting upgraded and downgraded every month. So do you know what your portfolio looks like? Have they been upgraded or downgraded? You probably want to know if you want to survive this market. You need to know. Now, not only does our rating system work on an individual stock level, it also works on a macro sector level. As promised, we're going to talk about the 2 hottest sectors that are booming right now. But it's important to note, with market-moving catalysts such as earnings season and presidential announcements, sectors are bound to shift within weeks or even days. Sector ratings are bound to shift. At this point in time, the top 2 market— the top 2 sectors are energies and consumer non-cyclicals. Those are our 2 top-rated sectors. Now let's go into a deeper dive on the first hottest sector in the market right now, energy. So you can see, here's our ratings, and we're able to upgrade— or we're able to analyze this sector just like we do a stock. And just like we do a lot of model portfolios, just like we do the S&P 500 when we weight that sector, weight that portfolio based on core earnings, we're able to give you the numbers at a granular level for groups of stocks just as well as we can our individual stocks. And this is part of our research, sector ratings. And we also break down how many stocks get a good rating. How many stocks get bad ratings? Now let's go into a deeper dive into the second hottest sector, consumer non-cyclicals. Here you go. You see the overall rating system. You can see how many stocks and ETFs and mutual funds we cover within that sector. And you can see it was just downgraded, right? Energy was very attractive. Now just consumer non-cyclicals. Here's our commentary, a breakdown on how many good and bad stocks. And quick links. These are quick links to find the best and the worst you can hop to in a minute. I'm sorry, in a second, in a partial second, right? The best stocks, best ETFs, best mutual funds according to the best data in the business. Honestly, now, how can you survive without this? I'm not saying fundamentals should be everything you do, but it shouldn't be zero. And if you're relying on fundamentals at all, you got to make sure it's the right fundamentals, because if it's bad, well, then everything that you're basing your strategy on is unreliable, right? Right now, the consumer non-cyclical sector consists of 20 attractive stocks and 12 very attractive stocks. Not a lot. Look, you want to be good in life, you got to be selective. You can't say yes to everything. Now let's do a live demonstration in our rating systems, and I'll show you how we do a quick dive in our utility sector analysis. Please note, only professional members have access to this. So be sure to pay close attention. So let's go here to the system. All right. We'll go to our sector ratings. And I'll go in here and we'll take a look at utilities. So, by the way, utilities not ranked well. We've done a lot of extra work on utilities. We did a lot of extra kind of cost of capital work on these guys because, well, they're regulated. So what can you see on this page? Again, quick links to buy the best, avoid the worst, right? Click on this, bam, takes you straight to our screeners summarized for you. Here's a breakdown on how many stocks get a good or bad rating, the percentage, right? So you can see there's one attractive stock, but its market cap is so small it doesn't even register. So we're breaking down the sector based on the number of good stocks and the percentage of capital or value allocated to good and bad stocks. Then we do the best sector stocks. There's not many that make the list. There's the one, right? Market cap's awfully small. The worst sector stocks, uh, best sector ETFs— there are none, right? We're not going to put something out there if it doesn't exist, folks. It's honest. We can't say something's good if it's not just for the sake of being able to make people happy. And trust me, I've run into this. I've sold research into the biggest banks and advisory firms in the world. And you know what the good ones say? We can't live without it. You know what most of them say? Oh, you don't have— you don't— you say you like certain— you actually say that you dislike stocks. Oh, we can't have that. Oh, yeah. I had a chief investment officer, one of the largest RIs in the world, say, oh my God, David, I need this. This is going to help me get out of trouble with the SEC. This is a way for me to show we're actually doing diligence. He took me to his compliance people, thought it was going to be a slam dunk. You know what they said? Oh, you have negative comments on stocks? Well, I mean, if any of our people allow any of our clients to have any of these stocks with a negative rating, well, we could get in trouble. So guess what? We'd rather not know. They passed on new constructs. Unbelievable. Unbelievable. This is what you're up against, folks. Good mutual funds, bad mutual funds don't have it. And then here you get to see At the sector level, economic and accounting earnings, right? So you can see part of the why it's getting a bad rating, because the overall sector— guess what? Oh, it's showing accounting earnings going up. Economic earnings are going down, folks. The, the business is getting worse. Free cash flow down. Price to economic book value up. Getting more expensive while the economics are getting worse. That's not good. Not good. Enterprise value up. Free cash flow Pretty much flat. And we got a bunch of other stats. Anyway, very, very deep research for the sector. Very deep research. Now, we believe that if you want to survive and thrive in today's market, you need trust. You need independent, non-conflicted research. Why would you trust anyone who's conflicted? Our independent research also has a technology edge. Wait a second. Let me take one quick second here. Why would you trust anyone who's conflicted like Wall Street and the media? Trusting Wall Street is like trusting the tobacco companies when they told you cigarettes wouldn't hurt you. You know they're conflicted. You know they're making money selling cigarettes, and you want to trust them when their opinion goes against a lot of other people and they're telling you, oh yeah, it's not harmful. We've paid for studies that commission— we've commissioned studies that will show you it's not harmful. Same thing happens with a lot of other drugs. The people that sell those drugs are commissioning studies that will tell you that these things are good for you when they're not really. You can't trust people when they're conflicted, period. Our research is independent. It's trustworthy, but it also has a technology edge, the robo-analyst edge. How do we do it? We use the first and best and only AI for investing. Here's what it looks like visualized. Here's a rating. And our rating system has 5 key metrics. Economic earnings. That's how you compare the real comprehensive earnings of the business to what the company's telling you, or reported earnings. Return on invested capital, Warren Buffett's probably favorite metric. It measures the cash flow of the business relative to how much capital has gone into that business. The same way you measure the performance of your money manager, right? The money manager makes you $1 million. Well, that's great if you only gave them $1 million. But if you gave them $500 million, that's not so good. Same is true with the company. You need to know what's on the balance sheet. You ever wonder why Wall Street never talks about the balance sheet? Because it's Wall Street's business to make balance sheets bigger, and that makes company value creation worse. So Wall Street wants to move the conversation away from balance sheets forever and totally, and they have succeeded. When is the last time you heard someone talk about a balance sheet on CNBC or any Wall Street report? Anybody here? What's, what's, what's Tesla's balance sheet look like? Any idea? Nobody talks about it. Free cash flow yield. If you got any kind of quant background, you know that free cash flow is one of the best measures. Free cash flow yield is one of the greatest measures. We measure free cash flow better than anyone in the world. Price to economic book value. That's the price relative to the no-growth value of the business. So when price is here and economic book value is here, that difference, that's the future profits that don't exist yet. But that the stock price is baking in. So the wider that gap, the more expensive, the more risky. What we really like to see is when the no growth value is above the stock price, which that means that the stock market's implying profits will decline. That's good. That's cheap. That's low risk reward. The market implied growth appreciation period, probably the most important metric of all the metrics, the one that we've noticed most tied to driving stock price performance if you wanted to choose one. It's this one. And it doesn't surprise me because it's based on probably the most sophisticated valuation model in the world at New Constructs. If any of you've seen my reverse DCF case studies, please raise your hand or put something in the chat if you've seen a reverse DCF case study. If you've seen that, you know exactly what this number means. But that's the most sophisticated and reliable valuation analysis in the world. And that's part of what makes our rating system great is we have this amazing, Superior fundamental data, superior valuation metrics, and that's why we outperform so well. And our AI ability to comb through thousands of government filings with precision is what gives us the data to create better ratings to begin with. You shouldn't be surprised that some of the top executives at some of the top firms in the world rely on our system. And by the way, this system makes it simple for you. Green is good, red is bad. I'm not here to overwhelm you with 50,000 pages, 500,000 pages of data. That's, that's the work we do. That's the value we add. We've gone through all of that to pull out what matters most and give you actionable decisions in seconds at the tip of your fingers. Type in a ticker and get an answer. Don't believe me that we're the only one? How about this? We're the only research firm that I know that has a rating system to back up— I'm sorry, a patent to back up our rating system. Name another firm that has one of those. Please put that in the chat and you'll get top of the queue benefit for getting a stock pick. If you haven't seen my interview at the Stansberry Research Conference on AI, it's a must-see. Look, I make the point that AI is not magic. Data matters more than technology. It doesn't matter how good your model is. And any of you guys have done any studying and listened to anything about AI from smart people in the business. They will tell you it's all about the training data. They're running out of training data. You know why? Because they don't have good training data. It's on the internet. How much of the internet can you trust? Would you bet your life on the internet? Right? It's a joke. Right? So to trust an AI, you gotta be able to audit the data. You need to know whether or not that data is good or bad. Guess what? Everything in New Constructs, all the data for us is auditable. ChatGPT, all these AIs, they're not reliable. They're based on the internet. You can't audit the internet. It's too much. So our AI, our robo-analyst technology leverages this AI to do very important things that other people don't do and the proper diligence that you need. Because to win in this world, you have to be willing to do things other people will not do. It's like Tom Brady. You got to go above and beyond. If you're just following the crowd, then you're only going to do as well as the crowd, and you're going to go over a cliff with all the other lemmings. Our RoboAnalyst technology analyzes things that people don't even look at— footnotes. That's where companies hide critical information. There's alpha in the footnotes. It's proven. You know, I mean, the core earnings funds that we talked about, the Core Earnings Leaders Index, the Core Earnings Weighted S&P 500. You know what makes core earnings different from everybody else's earnings? Footnotes data. Alpha in the footnotes. manifest in reality in indices you can see trading live. These footnotes are hard to get. They're like needles in a haystack when you're going through 2,000-page filings. Who has time to do that work right on their own? I'm telling you, don't. I also tell you that it costs millions of dollars per quarter for firms to do this by hand. That's why they don't do it. It's extremely expensive and difficult. That's why I had to create a very complicated, very sophisticated technology to do it on behalf of society. It's a lot easier to just say, oh, buy now. Oh, just jump on the, on the, on the bull bandwagon. The comprehensive nature of our research entails countless pages of data and documentation, including information from balance sheets, income statements, cash flow statements, footnotes, and dozens of other disclosures. And I got some really special ones. I'm going to pull up— show up for you in a moment here that I'm going to demo. But remember, producing and maintaining this level of data and this level of research would set you back millions of dollars per quarter. This membership gives you access to a level of depth of financial research that's considered a gold mine to financial advisors and hedge fund managers. You know what my clients tell me when we go— the institutional clients, when I talk to them about renewals? When I say, oh, we're going up 20% this year. They're like, okay, great, thank you, David, because it would cost me 100x what you're charging me if I try to do this on my own, and I'd have to spend all my time just managing an entire army of people to do this and create a technology to do it all. We pull this all together for you on a silver platter. And when I say silver platter, we're talking about typing in a ticker and getting an answer on 10,000+ securities— stocks, ETFs, and mutual funds. Tracking on all of those. You want to know the rating change? You get an alert that next morning, right? You want to know how to make money when ratings change? You'll get an alert that morning. If you wanted to, you could act on it right away, but we're letting you know immediately. Stock screening with precision. This is un— what if you could screen the entire market based on the truth about profitability and valuation? Can't do this anywhere else. Never been done before. That's why it's so powerful. That's why we have so many model portfolios that outperform. That's why we're able to pick so many great stocks, because we go and we do the diligence. We do it at scale across thousands of companies, and we can truly pick the best and the worst. Compare us to all the other firms out there. Stack it up. Who else has empirical proof of superiority? Who else has any kind of technology? Oh, XBRL. If you've used XBRL, you know how bad that is, how much of a joke it is. It does not work, unfortunately. No one else has footnotes. They do. They've got a very limited amount. They can maybe show it to you. Can they model it for you? No. Doesn't help if you don't go ahead and do the work to show why that data matters. Who else has been ranked number 1 for 45 straight months? Now, with our professional membership, what you get at the end of the day is being able to invest with confidence, with a peace of mind. Opportunity to maximize profits by making informed decisions. Leverage the latest in AI for investing that empowers you to thrive in all market conditions. Enjoy the benefit of real due diligence. Don't just hope that you're making the right decision, know that you're making the right decision. As I mentioned before, clients consider us an entire research department at your disposal. Here's a case study. One of our institutional clients— I'm sorry, another pro client had $105 million that he had put with a big blue-blood investment firm. Guess what? They lost a bunch of money. He fired them, started using new constructs, made back his money in a short amount of time. I think this tells the story about your tool. I was skeptical, skeptical, but results gave me confidence. Here are some other notes from our clients. I feel much more comfortable knowing that New Constructs is providing an additional layer of diligence to my research by analyzing footnotes and making adjustments. New Constructs helped me clearly see if a company is creating value. From an RIA. There's another professional investor, how we amplify his abilities. Here's another professional investor talking about how they couldn't duplicate this on their own. Simply and instantly, you can see how, how your stocks or funds are rated and where they are trading compared to economic book value. For someone with limited time to spend watching the stock market, this top-down view is incredibly useful. I highly endorse the new construct system as a must-have tool. Here's someone who has experience with big data throughout their career. What does she say? I sincerely appreciate all the work that has gone in creating new constructs, going from marked-up footnotes and filings to easy to reliable, easy-to-understand indicators of a company's performance. Huge undertaking. New Constructs is the only company that has allowed me to feel secure in both my buy and sell decisions, and that has been truly valuable. Thank you first and foremost for your integrity. Over the years, I can— I've concluded that if one quality can be singled out as the most important, it's honesty. And in today's market, I don't know if that could— has ever been more true. Love the service, period. Who do you trust? Stock promoters? No. Trust New Constructs. Kurt WG, I look for value. Your research digs that out for me and provides a high level of confidence in my selection process. You see a theme here? Confidence, trust. Not just me saying it, it's what everybody says. People who use us, people who work with us. They know, they see it. He calls it right out. Most stock ratings analysis type services that are available, but as a business owner, I know how financials can be manipulated, put forward best-case scenarios. I use other rating metrics, but I rarely buy something that doesn't get a good rating from New Constructs. Provides me with concise insights into investment opportunities derived from meaningful metrics I couldn't duplicate. Right now, my friends, trust is hard to come by. We've seen it withering all over the place. I'm not saying this to complain. I'm telling you how many other firms out there are campaigning to you and promoting to you their trust. Put it in the chat. Let me know, because I don't want to be telling any falsehoods here. A lot of people talk about trust. How many do you think can really trust it? You can really trust— how many people, how many other firms can prove to you that they're trustworthy? At New Constructs, we believe in proving it to you because we can. We can transparently and authentically show you how we recommend all of our recommendations, how we understand our data is truly valuable. Now let's do another live demo. We're going to take your, your recommendations. Kyle, what do we got here for recommendations? What are our top picks here? I think Yeah, let's make sure we give credit to those people who also gave us some answers to my questions. First one is Adobe, ADBE. I believe this is for Chandra. There we go. She was an answerer. He or she answered one of our questions. Adobe. Okay. Classic. Good company, bad stock. Great profitability, but it's all priced in. You see, this is up over 100 years. Not a good sign. Not a good sign. Very expensive. You want to check out the credit rating as a pro member? There you go. Look at that. Oh, amazing credit rating. It doesn't surprise me given that the quality of the business is so strong. So you get 56, 46% return on capital, super high. If you wanted to see how high that is across the entire market, you just go to the screeners and you could go in and say, okay, I want to rank the entire market based on return on invested capital. Unfortunately, puts the zeros at the top, but you can see here's the whole market return on invested capital, right? You could do that by sector very easily. There's return on capital by sector, right? You can do it by rating as well. Super fast, amazing screening, right? So back to Adobe. What else do we talk about? Well, we can look at the rating history. We can do a breakdown under the rating so we can see how economic earnings compare to accounting earnings. So economic earnings are, are positive and, and rising, but they're still below accounting earnings. That's, that's not ideal. Return on capital really steady and rising. We love that. Margins come down a bit, but capital turns offsetting that. That's why you're seeing return on capital go up even though margins are going down. Free cash flow yield looking strong. Not a great number, right? These are pretty low single digits. Again, it's a great business, great business, but not a great stock, which is why the yield is so low because your enterprise value is so huge. Even though it's come down quite a bit here in the last year. Price to economic book value ratio. Here's why I was showing you the distance between these 2 lines is how much risk. Risk is higher when the, when the distance is higher, right? And you can see the economic book value staying pretty low, right? I mean, compared To the stock price, that's that's a sign of it's really expensive when so much of the stock price is dependent upon future growth. Not a good thing. And here's a summary of our reverse DCF model. There's a hundred years. There's a hundred years. All right, Kyle, what's our next one? Ticker FANG. Bang. Oh yeah, I remember this stock. Diamondback Energy. So not looking so great. But looking pretty cheap. If you believe that the economics of this business are going to turn around, then this would be a great stock to buy. If you believe that right now they're suffering because oil prices are low and the business is going to turn, this would be a great way to go. Look through ratings. Looks like economic earnings have come down quite a bit, well below accounting earnings. Return on capital was much higher, come back down. So if that's going to go back up Could be good margins. This is all probably you know related to the price of the underlying commodity. Free cash flow took a big drop. I guess they did a big acquisition here. All right, not a good sign. Not a good sign for capital allocation. So I think this is you know it makes me wonder a little bit. Yeah, free cash flow. You can see economic book value took a big drop here. Now below. The stock price way above. Looks like the market knew something bad was going to happen here for a while because economic book value was way better. But bam, maybe market knew that this management team was prone to spending big amounts of capital on acquisitions that would ultimately hurt shareholder value. Let's see if there are any hidden liabilities here. Here's another interesting thing about new constructs. We will show you exactly how we make all of our adjustments. So you can see here Here's reported net income. Here's our NOPAT. So very rare for NOPAT to be above net income. But you can see this because we're giving them credit for a bunch of non-operating expenses. We're pulling that out. These are the hidden ones, right? If you wanted to know what the hidden expenses were, just click here. This is part of our transparency in new constructs. I'm going to go in here and say, okay, income statement adjustments. Where's that $76 million come from? Oh, here it is on page 95 of the filing. Revisions and estimated liabilities. That doesn't affect the underlying economics of the business. This is accounting change. That's a non-operating expense. We pull it out so that your earnings number is fixed for that. That's why our core earnings number is better, right? Great example of the transparency you get for new contracts. By the way, this is in filings going back to when the company IPO'd, 2012, all the way quarterly Ks. Boom. You want to know why Ernst Young could write a paper? Harvard Business School could write a paper about new constructs? Because guess what? They could audit all of our data right back to the source. Here's a summary of our adjustments. This is all part of your, your Pro subscription where we go into detail around like how, how, how are notepad adjustments looking? They're getting worse or better. You see a little bit worse. It's not always a good sign. Balance sheet adjustments. Better or worse? Yeah, getting worse. Huge increase in net assets here. Huge increase in net assets here. All right, Kyle, what's our third one? Change it up a bit. Someone had the Russell 2000, so we'll look at the style ETF for that, IWM. Okay, real quick though on Diamond Energy, right? Credit rating not so good either. Couple flashing bad on a couple of these. After that acquisition, free cash flow is bad. Not a lot of cash left. So, so rub it in here. What would the traditional metrics show you? Well, that's one of the things we specialize in is like always showing you what the market shows and what other people think and how we're different when it comes to debt to total capital. Not that different when it comes to EBITDA to debt. EBITDA to debt, not that different when it comes to free cash flow to debt. Very different. The adjusted free cash flow, way worse. Than the unadjusted. Folks, better data makes a difference. Are you going to get this from the credit rating agencies? No. S&P, Moody's, are they doing this kind of work? I don't think so. You want the truth? We're the only place that has it. We're willing to do the work. And you never know. See, all these metrics, they look the same except for this one. And by the way, that could be the canary in the coal mine that you need to know to avoid something. All right, sorry about that. Here's this, here's the, here's the click for the sector ratings I showed you before. We saw the top 2 sectors, you know, utilities the worst. But going back to our ratings, we IWM. Yep. All right, I like, I really like that we put that somebody put this in here because we do ratings on stocks, ETFs, and mutual funds. And you can see this is a rating on the overall market proxy for the market or ETF. Based on the holdings. Nobody else does this kind of work, right? We're going through, we're building a model. We've built a model for every one of the holdings. So when you aggregate that up, you're actually getting like a real fundamental picture of what's going on, not just extrapolating past price performance. Nobody invests on— very few people invest on stocks entirely based on past price performance. So why do you do that for ETFs and mutual funds? Well, mostly because it's all you got unless you want to do new constructs. Look, it's not that hard to get better research. You just got to be willing to think a little bit outside of the box, a little bit outside of the box, and you can go to a world of amazing new better research at an incredible price, at an incredible price. Don't forget about our education, huge education, everything you want to know. About everything we do, it's all here explained. Our methodologies, our ratios, everything. We'll show you how we calculate this stuff. Here it is. It's time weighted for average invested capital. You want to know the formula for economic earnings? There's the formula. It's all there. We show you how we do everything because we want you to know how hard we're working. We have nothing to hide. We have the opposite of nothing to hide. We're also attracting, attracting FASB because they're changing rules, which changes accounting. Someone's got to help you keep up with that stuff. Those are 3 great stocks. Now I'm going to get to the thing that I promised you in the beginning, the big surprise that I added to the slideshow right before we started. And I didn't really do a great job of it. So, but here's what it is. One of the things that came out here recently, just in the last few days, is that there are a ton of companies Reporting weak internal controls. And then they got footnotes that say things like this. In our opinion, this is from the auditor. Because of the effect of the material weaknesses described below on the achievement of the objectives of the control criteria, Maravai Life Sciences Holdings has not maintained effective internal control over financial reporting. Material weakness is a deficiency or combination of deficiencies in internal controls. So there's a great quote here. I'm going to read it from my notes. A material weakness is a deficiency or combination of deficiencies in internal controls over financial reporting such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis. In other words, you can't trust the financials. Folks, who else is giving you research like this? Let me know. Right? That's what we found here today. Another company we found a similar thing. Right? Ticker on this one, I believe, is LOB 2024. In our opinion, the company did not maintain in all material specs effective internal control. You need to know this, right? By the way, this just came out today in the filings. It's being parsed in the system right now. How about another one? Live Oak Bank shares. That one again. We got one more. There's another one in the system that just got added. UBS and IHS. All these guys are reporting material internal weakness or weak internal controls. That's a major headline, my friends. You're getting a scoop here that gives you more protection than you can find anyone else anywhere else. You got to dig through the footnotes to get that. All right, our stock screener capability. I did a quick demonstration of this already today, but I'm going to do one more. I'm going to do one more here because our stock screener is worth spending some extra special time on. So I showed you in the utilities industry how it works. And so we'll talk about this. Why don't we go with— we'll go with basic materials. What can you do in our stock screener for basic materials? You want to know all the good stocks, all the very attractive stocks in basic materials? Ready? Go. Click. There's the list. There's only 3. All right, let's make it a little bigger. Very attractive. But let's say we want a 10% free cash flow yield and greater. Go. How many of those are there? 6. Okay, let's say I need to make sure I know which ones to avoid immediately. We'll just look at— focus on the really tough, on the really bad ones. Very unattractive, right? And we can break it down. Let's say, you know, if you're really into construction materials, What's the danger zone in there? Just one. Okay. What are the really good ones? None. Right? This screening tool, what I just did to find you the best and worst, you know what it should cost you to replicate this? Hundreds of millions of dollars to build the history, to build the model, to build the technology, to produce it, the website. Unbelievable. And we're talking about you having this for 6 months for $4,000. Unbelievable deal. And you can screw this. One of our institutional clients says, yeah, David, he's really big into dividend yield. So you want to say, all right, I want dividends and I want to go for the whole sector. I want that. I want a return on capital greater than 10%. I'm going to make it a little bit easier. Free cash flow yield greater than 5%. Go. Nobody. Let's make a dividend yield of 4%. Maybe get a little bit too greedy. Okay. Let's make, let's make it 2%. There we go. There's a couple. You get the idea. You do this across every sector. You do it across the entire market. You want to know how to find the best stocks, avoid the worst stocks based on real due diligence? There's not a better tool in the world. Not a better tool in the world. Okay. Thank you very much. Thank you again for being with us.