How To Profit From Wall Street & The Financial Media's Propaganda - August 2024 Training

All right, let's go ahead and get going here. Thanks everyone for being here today. This is a special training on how to profit from Wall Street and the financial media's propaganda, and then how to get hidden gems based on proprietary data from Q2 earnings. Hidden gems being The best stocks in the market. So let's touch on disclosures and disclaimers. Look, can't say enough about this. We are not an investment advisory firm. We are a research firm. So please pay close attention to the fact that this is just research. There is no advice. If you want advice, go to someone who's officially registered to perform such a function. So I want to hear from you today. Let me know what city you're from, and let me know what kind of investor you are. I want to know, are you a self-directed investor? Are you professional? Are you a value investor? Are you a speculator? Are you a trader? And then make sure you tell us what kind of tickers you want us to look at, because we are going to focus on 3 tickers at the end of the show. We're going to do our research. I'm going to show you how it works on 3 different stocks. So please get those in and get them in soon, because, uh, we're going to be counting them up. The most popular tickers will be the one we'll see. But jump into that Q&A or in that chat. Let us know where you're coming from and what kind of investor you are as well. So here's our agenda. We're going to show you how the mainstream media and Wall Street manipulates numbers. We're going to show you the secret to smart investing with proprietary data gleaned from the latest earnings. We're going to show you how to perform real due diligence and how that applies to finding the best stocks, ETFs, and mutual funds. And we got 2 bonuses for you. We're going to reveal an attractive stock from our— from all of our research. You got to stay to the end for that. And we're also going to analyze 3 audience-selected tickers, so make sure you get those in. Nice to meet you. I'm David Trainer, founder of New Constructs. I've been doing this work since before the tech bubble. I've seen how the sausage is made, and trust me, it is complicated. It It is a long, windy story with all kinds of twists and turns that Wall Street wants to make difficult for you to figure out. Ever ask your advisor how much you're charged? Can they show you the fee schedule? Can they show you the assumptions behind that valuation and that research report? Usually the answer is no. On the other hand, our research has been vetted and even proven superior by some of the, by some of the most prestigious institutions in the world. The Journal of Financial Economics. Anyone ever heard of that? It's the number 3 ranked peer-reviewed journal in the world for financial analysis. Ernst Young, one of the Big 4 accounting firms, wrote a paper showing that our models were superior. MIT Sloan School of Management and Harvard Business School wrote papers proving our data is superior. And we got a stock, stock picking track record to prove it as well. The mission of New Constructs is different. We're not here just to make money off our clients like our competitors. We're here to make the world a better place. We're here to improve the efficiency of the capital markets. I personally believe that if our markets are allocating capital more efficiently because our investors are allocating capital more efficiently, then we make the world a better place because we're able to take a fixed amount of money. Let's just call it 10 bucks. And if we can allocate it smarter so that it's earning a 15% return on capital instead of a 10% return on that capital, well then that's more prosperity, that's more wealth created for everyone. The pie gets bigger, and I believe in making the pie bigger. That's been the mission for all of us at New Constructs since inception. Now before we get into training, I need to be transparent with you. If you're looking for the next meme stock, if you're looking for the next hype stock, You want to know how to trade options or crypto coins, stablecoins. This is not the place for you. Sorry. On the other hand, if you're interested in understanding what it means to be an investor and not a speculator, if you want to build wealth over the long term, if you're a financial advisor and you want to do proper due diligence, but you know you don't have time to do it, or if you're looking for steady income and growth from stocks that have great fundamentals. You're in the right place. Now, why today? This is a special time of year. We've just come out of earnings season for the 2nd quarter, and we've rigorously gone through 2,500+ quarterly and annual reports, or about 500,000 pages of information. No one else has done this anywhere close to this level of detail. We do this better than anyone else, and that's proven. I'll get to that in a second. What does this mean for you? We've got updated stock ratings based on fresh proprietary data and analysis. This will give you a sharp advantage to navigate today's volatile market because God knows what's coming. We got election, we got war, we got liquidity crises. I mean, who knows what's happening these days, right? So here's the big takeaway: since July 31st, there have been 471 ratings changes. That's how many ratings have changed in our system. 90 of those are upgrades to attractive or very attractive ratings. 90 new stocks are getting an attractive or very attractive rating. You can see here the rating changes after 2Q earnings. You know, we had not as many on the attractive and attractive side, tons of neutral, attractive, and unattractive. One of the unique things about new constructs is, guess what? We're going to be honest with you. We're not here just selling you good stocks all the time. We're also showing you which stocks are bad stocks. Specifically, when it comes to our model portfolios, we got 17 new stocks in the Most Attractive Stocks model portfolio, 19 new stocks in the Most Dangerous Stocks model portfolio, 5 new stocks in the Executive Comp Aligned with ROIC model portfolio. My personal favorite, I think an incredible product. And we don't get a lot of turnover in that portfolio, so 5 new ones is— that's a big number. We're also expecting in the next couple of weeks that we'll getting— be getting 8 new stocks in the Safest Dividend Yields portfolio when that gets updated in the next week. And then we're expecting 11 new stocks in the Dividend Growth Stocks Model portfolio. So lots of new information coming out, uh, in our research based on a big fresh batch of 500,000 pages of, of information. I think an important point to pause and lean in on here is that these new stocks aren't just coming out of a small batch, right? Traditional research firms are maybe covering a couple hundred stocks. Why? Because those— that's where the banking business is, investment banking business, right? Because it's investment banking business that pays everybody's bills. For us, when we're scanning for hidden gems, we got the whole market. We're talking over 3,000 stocks. That's the power of our technology, to apply best-in-world analytics to 3,000 stocks. That's how you find hidden gems, because you can look better, deeper, and farther than anyone else is looking. Here's an example: Jabil, recommended in April 2007— 2019. 4 years later, up 266% while the S&P's just up 55%. That was about a 5-year holding period, and that outperformed by over 100%. Simon Property Group, about a 1-year holding period, a little one over— yeah, about a year and a half— that outperformed by 143%. We find these good stocks because we've got a better platform for identifying what's good and bad and searching across more stocks. It's also allowed us to put together some of the best model portfolios in the business. Let's take a look at our focus list long stocks. Since 2001, it's outperformed the S&P by 21%. Focus list short model portfolio, and I think the short model portfolio is very important credibility builder for you guys, right? We're not just talking about the good stocks. I mean, we all know that Wall Street, almost all the ratings are skewed to the positive. Almost no sell ratings, because guess what? You don't get investment banking businesses from companies on whom you have a sell rating for the stock, right? Not the case with new constructs. As you guys saw in the rating distribution, there's more ratings that get an unattractive and very unattractive rating on our system than attractive and very attractive. And our short model portfolio outperforms really well too. It's a little bit easier in some cases on that side because no one else is doing it. So why do you need us now more than ever? Couple key reasons. First of all, volatility's back. And one of the things that all the experts on trading will tell you is that when you see larger than 2 standard deviation changes like we saw 2 Mondays ago in the VIX, That typically means volatility is going to be around for a while. Sure, the last several trading days been all good. I wouldn't trust it. I believe that we've begun to see the straws starting to break the camel's back with respect to liquidity. I wrote a couple of really detailed e-letters on this fact. Also, election seasons, presidential election seasons, almost guaranteed additional volatility. And then there's war in the Middle East. Never a good thing, especially in that area where you've got— I don't know, you've got a lot of crazy stuff going on, not to mention oil, a lot of oil coming from that area. And that's, that's just another risk out there that can push this sort of Goldilocks golden scenario of economy and market off the spot. And when we kind of got a really increasingly Risky high valuations out there. That's not good. And that's why we're also seeing a market increasingly driven by earnings, right? When it's all multiples, that's just valuation expansion. That's what happens when rates are super low. Well, we're moving more towards earnings now. That's more about fundamentals. And if it's— the market's going to be more driven by earnings and fundamentals, you need to know the truth about earnings. Here's the other thing. The AI bubble is even bigger than the tech bubble. I lived through the tech bubble. So I can tell you that that was some crazy times. I mean, people went to jail. People were afraid of going to jail. They wrote funny emails about how silly people were to invest in some of these IPOs. And we're seeing the AI bubble is even bigger. And look, I'm not here to say that AI is bad. AI is great. We have AI. We use AI. There's a real AI. Right? RIA is not about any fancy program. It's about better data. And I think AI, ultimately, every AI is about better data. How much do you hear about data in the marketplace? How much did ChatGPT talk about the quality of data driving it? Do you hear anything about that? Anything about Gemini talking about the quality of data driving it? No, because they don't want you to think about that. We all know The quality of the data is as good as the quality of the data on the internet. How much of that can you trust? Anybody wanna make a guess at that? What, can we trust half the data on the internet? Point is, if you can't trust half the data going into your AI, doesn't matter how good the technology is. You can't trust it. But most importantly, we, we want to, we want to help people understand that you're too often being misguided and misled by Wall Street and the financial media. There's so much fake news out there. I wrote an entire e-letter about fake news and fake data. And the same is true about stock research. There's a lot of fake research out there because guess what? Research is not designed to make you money. It's designed to make the investment bankers money. What percentage of the revenues does the research department at Goldman Sachs generate for the firm? Less than 1%, maybe 0. What? Oh, you mean the equity research analysts don't get— don't make money for the firm? Nope. Guess who makes the money? Investment bankers and traders. So if I'm a research analyst and I'm not helping the bankers make money, I'm not helping them have a better relationship with the companies they're trying to get banking business from, what happens to me? It's over. I'm fired. And there's plenty of examples of that. One of my best friends from Wall Street. Mike Mayo, one of the great analysts ever, got let go because he wasn't bullish about banks, bullish enough about the banks. No one advertises these facts. The average investor has no access to transparent, accurate information or any unconflicted diligence. You don't get that. You hear that they talk about that on CNBC ever? No, of course not. The media is littered with all these analyst recommendations. Do you know how many of these are paid blogs or ads? Like that's a big part of what the SEC spends their time doing, and they don't catch them all. A lot of times when somebody's talking about a stock, they're paid to do that. It's a paid promotion. Let's talk about some examples. How many of you have seen this video? And Kyle, you got to let me know whether or not you can hear this. Can we hear it? Standard of course. Help you. A little bit. Barely. Barely? All right, let me see if I can improve that. Don't think I can. All right, well, I'm gonna try this, this 30-second clip because it's quintessential. Basically, these guys went in to talk to Standard Poor's to ask them how they had AAA ratings. This is pre-financial crisis. It's from The Big Short, and this is the meeting about the people that knew The Big Short was going down. Before anybody else. This is a movie about that. And this is when they went in to talk to S&P and to ask them about how their ratings were so good on all these bonds and collateralized mortgages, mortgage buckets that they themselves knew were terrible. They'd done the work. They looked at the underlying portfolios. And so they went to go see this lady at S&P. They asked her about this. Here was, here was her, here was her reply. So, I mean, that's a testimony if I've ever seen one. That's how it works. We do it because everyone else is doing it. They're all in on it, my friends. They're all in on the same thing. And guess how much trouble they got in? A big zero. Check out these links. By the way, every time you, everywhere you see this sort of blue in one of our, in any of our slides, when you get access to the replay, you'll, into the slides, which will be available in our community, you'll be able to see, you'll be able to check out all these links. But here's a great Wikipedia story on all the— how inaccurate ratings are. It's like a Wikipedia post on this. This is fact. This is not fiction. This is a documentary in many ways, right? And then my favorite thing is how S&P, their excuse for why they shouldn't be sued for billions of dollars for their bad ratings— get this, their excuse— oh, nobody should believe our ratings anyway. Yeah, thanks a lot, my friend. Here's another case of insider trading where a big mutual fund executive— and by the way, I think the mutual fund industry will go down in the history of the human race as probably one of the biggest grifts of all time. And the ETF industry is a perfect example of how much of a grift it is, because you're getting the same performance of like a fifth of the fees. Anyway, this is a great example where this portfolio manager went in and bought shares in a stock that he knew his fund was going to be investing in. He was front-running his own fund and made a big ton of money. Thank you very much. We'll take advantage of information you don't have and, and, and make money at your expense. And here's a case study on Rob Gerber. A specific pump and dump play was super bullish on Tesla forever, told everyone to buy at $400 when he was selling. They do that all the time. Wonder why the brokerage firms were all closed on Monday or broken when retail traders wanted to sell too. Because they let the institutional guys do their selling first. They were afraid for the individuals to pile on. How fair is that? What do we see about that in the news these days? Nothing. So Ross Gerber, everyone should buy at $400. Now it's at $200. There it is. There's your evidence all over it. One of the biggest bulls on Tesla of all time, and then he suddenly switches. After he sold his position. Here's another good example of the diligence we do when we work. They wanted to IPO this thing with a $47 billion valuation. How many other firms wrote a report, published it, that said this is the most ridiculous IPO of the year? We did. We pointed out this stock could go to zero. Even after the IPO was shelved, we said this is going to go to zero. Guess what happened? They shelled the IPO. SoftBank, the owner of WeWork, wrote the stock down, the company down to $4 billion on their own books. So, hey, SoftBank says to Wall Street, let's go sell it to the public for $47 billion. But if you're going to put it back on me, I'll value it at $4 billion within just a few weeks. Think about that. If you still don't believe me about this, then you can read it for yourself in the disclaimers of any Wall Street report. I've got an example of one from RBC Securities, a report they wrote on Cord Energy Group. Here it is in the disclaimers: the research might not be accurate. RBC and its affiliates or any of its person does does not attest. No representation or warranty expresses or expressed or implied is made as to its accuracy, completeness, or correctness. Correctness. And then, by the way, RBC Capital Markets research analyst compensation is based in part on the overall profitability of RBC Capital Markets, which includes profits attributable to investment banking revenues. What have I been saying, right? The analysts get paid by the bank. By the investment bankers. So research might not be accurate, but it's definitely conflicted. Not surprisingly, when they showed us their free cash flow, we saw much lower numbers— I'm sorry, much higher numbers for Cord Energy Group than what we showed. We showed, I mean, even negative numbers when they were showing really strong positive numbers. Wonder why that is. Why does new contract number— why are numbers different? Because we don't care. We only focus on the truth. We're not trying to get investment banking business. We're not trying to get that CEO to speak at our conference. We share the truth 100% of the time. We provide all the details behind all of our calculations and all of our metrics. You can get that on the education page for free. I've had institutional money managers call me up and say, hey David, I want to be a customer now. We want to be happy to pay you a lot of money because I learned everything I know from your website. That's how I got this job. That's how good our education is. That's how transparent we are. Let's talk about ratings for a second. A case study on Federal Express. Guess who has a positive rating? Argus. Buy rating. Look at that. Best you can get. Bank of America buy rating, price target of $340 a share. London Stock Exchange Group gets 9 out of 10, that's a buy rating. So traditional research, lots of buy ratings. What happens when you go further? Well, new contracts is going to show you very unattractive. It's just the bottom line. Look, the quality of the earnings Aren't there? Not very good. Valuation looks expensive. That's bad reward. That's bad risk reward, my friends. Bad risk reward. No reason to be in stocks like that. So what is it that makes our research different? It's one word. It's easy. It's diligence. We do this better than anyone else. We've done the work analyzing thousands of pages of SEC filings every week. Millions, tens of millions over the years. What do you learn when you analyze things at that much detail for that much time, millions and millions of times? You learn how to create a technology that no one has ever seen before. And we also know how to find data that no one else knows how to find in the footnotes. That gives us an edge. More diligence, better data, right? Here's an example. Talking about FedEx, we made almost $23 billion in adjustments to the income statement and the balance sheet to convert it to economic earnings. We do this for every single company. You'll get a report with this kind of a summary on every single company we cover. That's over 3,000 stocks. That's diligence, ladies and gentlemen, that no one else can match. So what does that mean about ratings? Well, I showed you the FedEx example. Why don't we take a look at some Morningstar ratings? I got this from a report somebody published for free. I think it was on MarketWatch. No, it was on Twitter. Some put some data out there, right? Morningstar, top rating all the way across. New constructs rating, not so good. Big differences. Rating stars are much more— Morningstar ratings are much more positive. It's not just Wall Street. They're all in on it. Morningstar, FactSet, etc. We've done the comparisons. We are different. Now, are we better? I'd say so. Ranked number one by some zero for 39 straight months. And by the way, that's out of 16,000 buy-side professionals. That's not the sell-side people. I'm not trying to compete, compare myself to those very same analysts that I've told you are conflicted. That gotta please the bankers. That would be lame, right? I'm not gonna compare myself to this because their performance, by the way, is terrible. I don't even know if you can find the stock rating success of those folks. Very rarely can you see that. No, we're going against buy-side folks, other people who are buying stocks, not selling stock. They're in the business of managing money. Ranked number 1 for 39 straight months across a variety of categories. Name someone else who's done that. Here's another thing that's really important. Name another research firm. Throw it in here. Throw it into the comments or the Q&A. Please name another research firm that has been vetted by some of the most prestigious institutions in the world. Name another research firm where papers have been published proving that their research is superior. Superior data, superior modeling, superior ratings. It's on the homepage of our website. Go look them up and download the papers. It's amazing. Empirically distinct from commonly used alternatives. Abnormal returns. What does that mean? There's alpha. There's idiosyncratic alpha in the footnotes. Only we have that. It gives you an edge. Value Line does not do anything close to this kind of research. Value Line is sort of like the old-fashioned version of New Constructs. It's like a steam engine compared to a jet engine, right? They're just not doing the diligence. It's good. It's a lot of old-school folks like us. We are the next generation of Value Line, way more superior, way more diligent, way more research. Please compare us at any time. Great question on that front. And it's not just the data, it's the modeling and it's the ratings. Our ratings outperform Wall Street ratings. The ratings work because they've got better models and better data driving them. There's no substitute. There's no magic formula for any of this stuff. It's just good old-fashioned hard work. Because when you look at the economic measures of a business, you get the facts. And that's what we're about. This is how we found KLA-Tencor, up 175% versus the market just 46%. Lam Research, similar outperformance. That's how you do it. There's no real— there's no other way. I mean, that's what Warren Buffett tells you. There's no magic trading formula like you see all these other, these, all these other like financial publishers and newsletters, like they're trying to sell you on like, oh, I'm going to train you to be like an option, blah, blah. No, it's about doing hard work. It's about doing hard work and going to this, to places that no one else is willing to go. That's the only way you can trust somebody. And I think that's what you need today in today's market. You need something you can trust. We've talked about why you can't trust other places, other firms, the media, Wall Street, other research providers. They're faking it. We're not. You deserve independent, non-conflicted research. Why would you trust anybody who's conflicted? Talk to me about that. The media is conflicted too. Do you think they sell more advertisement when markets are good or markets are down? Right? Everybody wants the game to keep going. I mean, goodness gracious! You watch CBC lately? You seen Jim Kramer? Did you see him on that Monday trying to be bullish? David Faber had to tell him to stop. It's just stop, Jim. It's not making any sense. There's so it's just not even right. So. Why new constructs? How do we do this? We have a— we don't just have an independence edge. We don't just have a data edge. We have a technology edge. This has also been written about by Harvard Business School and in all the other papers. It's an AI, the first, best, and only AI for investing. And I say that because we're the only AI that I know of that's based on superior data. I'm not going to talk to you about some fancy technology because everyone has the fancy technology. We see that, right? It's an arms race. Everyone's got the— it's such an arms race that it just matters who can sell the best semiconductor to drive the technology. And, and I, I say this because it's not about the technology. Everyone has the technology. You know what no one else has? The Footnotes data at scale. That's what makes a difference. That's what makes us special. Our AI has built on a dataset that we've been carefully, meticulously curating for For 20 years, that's what you call doing proper due diligence, and the work that most people want to, won't do, and don't do. They don't either have the time or the expertise. And let me tell you one thing: if there's one thing you take away from this training today, is that if you want to win in this world, you got to be willing to do things that other people aren't willing to do. You got to be willing to go the extra mile. Right? We see this in sports and everything else all the time. Who's working harder? Who's trying harder? Who's going the extra mile? You have to have a discernible edge. It has to be based on something real. That's what we do. We're getting the footnotes where companies hide critical information. And by the way, there's alpha in footnotes. It's proven by the Journal of Financial Economics. Read the paper. It's right there. Companies try to hide the data as best they can. That's part of their job. I've been doing this for 25 years. When I first started, guess how long an annual report was? Anybody want to make a guess how many pages? It was about 15. A long one was 30. Guess how long they are now? 200 to 2,000 pages. We've been analyzing hundreds of thousands of filings For twenty years, we have experience going through millions of needles in haystacks. We know what we're doing. We've done the work. Who else has time to do this? I don't know. It's a lot of work, right? It costs millions of dollars per quarter just to keep up with the data. Nobody's doing it, right? It's so much easier just to blast out, buying out, you know, keep you focused. On the superficial stuff. Oh, let's talk about AI. It's so great. Oh, let me look at my robot. Look at my Cybertruck. Look at my whatever, whatever. Anyone else talking about footnotes and doing, doing real diligence, quality of data? I don't think so. So let me ask you a few questions. Do you see yourself as someone who could take advantage of cutting-edge technology that's proven to be superior? How about, do you see yourself as someone who doesn't want to rely on the unscrubbed data that corporate America and the media are pushing out? Do you see the power of unbiased, independent, complete information on the economic profitability of companies as something that is attractive? If your answer to these questions is yes, then I got something special for you. Our professional membership, normally valued at about $12,000 a year— if you buy it for the full year, you get it for $11,000. Let me tell you what this gets you: detailed equity and credit ratings And earnings distortion scores for over 10,000 stocks, ETFs, and mutual funds. That's a lot of research, my friends. That's unlimited detailed research on any of the tickers in your portfolio or in the market. You can track them all, track up to 50 portfolios, get alerts on changes in the models, equity ratings, credit ratings for all the things you're tracking. Anything that happens during the day, we'll send that— we'll send an alert to you first thing the next morning. And then you can screen the entire market on our proprietary metrics, our proprietary Improvement Superior Ratings, and our proprietary Improvement Superior Metrics— RIC, free cash flow, free cash flow yield. I mean, it's an incredible tool. Let me say something really important. Most of the time, people think of screening as a way to just, just get rid of the dumb stocks. They screen so they can figure out the smaller number of companies to focus on. At new constructs, you get to screen with precision. Precision. Just why our model portfolios— I'm so proud of them. Why I think they're so great— because you screen with precision. You're getting to a list of stocks that's been vetted because we do the work from the ground up, whereas other people are trying to take big swaths, big picture view, pull out a bunch of stocks so they can then do the real work on a handful of stocks. And they never do the real work on all stocks because up until, up until the robo analyst technology we developed, that kind of work was impossible. Same research has been, been lauded in papers published by some of the top institutions in the world. Let's take a look at some of the key takeaways from these prestigious institutions. An accurate calculation of ROIC requires more diligence than often occurs in some common off-the-shelf calculations. Only by scouring the footnotes and the MD&A can investors get an accurate calculation of ROIC. That's from one of the top accountants and auditors in the world. How about this from a Harvard Business School case study? New Constructs created a technology that can quickly parse complicated public firm financials to point— paint a clear economic picture of firms, remove accounting distortions, and aid investment analysis. The Journal of Financial Economics. Generally, net adjustments identified from the income statement footnotes in the MD&A Are strongly predictive of future performance. The adjustments—they're talking about footnotes. Please name another research firm that can that has that written about them. Name another research firm that's been ranked number one for 39 straight months against other buy-side firms. So with our professional membership, what do you get? You get to invest with a confidence, a security. A diligence you can't get anywhere else. You get to make informed decisions on the fundamentals. You're not flying blind. By the way, you may not realize you've been flying blind, but you are unless you have access to the full financial picture, which we only— only New Constructs gives you. Take advantage of a new AI, a real AI. Do real diligence. Get the complete financial picture. Think about new constructs as like an entire equity research department that's not conflicted, that cares about you at your disposal. Think about how much it would cost to replicate that for your firm. Here's a great case study by one of our, one of our more recent clients came over, had over $100 million invested with one of the big trust companies. In a short amount of time, they lost a lot of money. He took his money out, took his money out, sold off the bad stocks based on new constructs, bought stocks that he liked based on new constructs, and immediately improved his performance. He says, this is my purchases based on your tools and additional research. This tells the story. I was skeptical, skeptical, but the results have given me the confidence. So you're probably wondering, what's the real price of this, right? Let me tell you first how much work went into this in just the last couple of weeks. We analyzed almost 2,600 filings, probably as of today over 2,600. This was as of yesterday. And you look at how much this would cost if you hired somebody at about $100 an hour to do 9 hours of work for every single filing. That's what it takes to do it right. If you add that up over the last couple of weeks, you're talking about $2.3 million just in, just in human time. That doesn't count computers, office space, the technology to organize the data, the model to process the data, the parsing system, just human capital. $2.3 million of value provided just in human people capital every quarter to get the data right. We have clients that pay us as much as have paid as much as $25,000 a month for access to this research. All right, let's talk about some, some stocks. Uh, we promised we would do 3. Kyle, do you have, uh, those that were voted for, uh, most by our audience? Yep. I didn't see any repeats, so I put them in a random selector and we'll just go with those. Uh, first one is RIO. RIO. Random selector. Rio Tinto, attractive, suspended. We only— this is, I think it's an ADR they only give us. So you'll see that whenever you're a client, you'll see that under analyst notes, we'll have a lot of additional information at times. Click on this analyst note anytime and it will explain what all these suspended ratings mean. It's a full list of reasons why you can't always trust the data as much as you'd like. You know, sometimes there's an adverse auditor's opinion. That doesn't show up in numbers, but we will go through— we've got 34 different reasons why we will mark ratings as suspended at times. That's important to know. But Rio Tinto, number 1, annual data only, not ideal, not ideal. And our equity rating, attractive here. So decent company, pretty cheap valuation. This price-to-economic book value implies that the company's profits will permanently decline by 30%. Uh, from the last period, which was December 31st. And here you can see that's the latest filing in our system here. And you also know when we're expected to get the next one, and that's February 24th, 2025. It's a long time to go without new data, but unfortunately that's all they're giving us. You can see we got a dividend yield, a pretty nice dividend yield, 8.3%. Credit rating, pretty impressive as well. That's very attractive. I like that. That looks good. Our credit ratings are pretty awesome too. And some of our highest paying clients, by the way, are fixed income investors. Why? Because we have a better measure of all the fixed income metrics. We use a lot of the same metrics that everyone else uses. We have better data going into them. For example, when you look at debt to total capital, here's the traditional unscrubbed data is the red line. The blue line is our adjusted. Obviously, I didn't know the stock was going to be picked, but you can still see there's a significant difference. Sometimes there's not a big difference between the traditional and the adjusted. Sometimes there's a big difference. Here you go, right? And we'll not only show you at the ratio level, but we'll come in and show you at the individual data level. So is it the free cash flow or the debt that's different? Well, we see the debt's a little different, but the free cash flow is much more different. Talking about close to a billion in difference, whereas it's just a couple hundred million in difference on the debt side. So I think that the credit ratings are really, really impressive in my opinion. Stock ratings, you get a ton of detail here as a professional subscriber. You can see how our ratings have looked over time compared with the stock price. You get a summary. And then the rating breakdown is impressive, super impressive. We'll show you how economic earnings compare to reported earnings. We'll show you return on invested capital. You'll get current, you get an annual version, you get a 2-year average, 3-year average, 4-year average, 5-year average. So we're looking at things over time. We understand that, that investment isn't just made on, on short-term data, 1-year data, 2-year data. Institutional clients have access to the models. You see the button for that here. There we have up to 20 years of data. We'll also break down return on invested capital into the NOPAT margin and invested capital returns. So you can understand, is it operating efficiency or capital efficiency that's driving the business? Here's our free cash flow yield. You get a, you get a 1-year free cash flow yield and a 2-year free cash flow yield. And that 2-year free cash flow excludes cash. That's a, that's a sort of super sophisticated way of approaching free cash flow. You're probably not going to find that anyplace else. And of course, our education section of our site will give you full details on how we calculate all these metrics. There's a whole metric section, every single item. Here's a whole page on free cash flow and what goes into it. Big details on, on what drives it, how it's different versus traditional approaches. Again, super details on how every— how we do everything, because we want clients to know how much diligence we're doing. You get a lot of free cash flow information. Here's the 2-year average free cash flow excluding cash. You get 2-year average, 3-year average, both in yields, free cash flow excluding acquisition. free cash flow margin, price to economic book value. I love this metric right here. You can see the economic book value above the stock price. Interesting. Stock price seems to have anticipated that the economic book value is going to come down. Uh, it also seems to anticipate the economic book value will come down even further. And then here's a summary of our reverse discounted cash flow model. Typically, when the stock price is implying permanent profit decline, You don't need a lot of future cash flow growth, which is what you're seeing here with a market implied growth appreciation period of less than 1 year. All right. What's our next stock, Kyle? Next one will be CB. Chubb. Chubb. Interesting stock here for sure. You got another attractive rating, similar profile here. We— our last filing was for the June 30th period, so we probably updated this one pretty recently. We won't get another filing till November 10th. Credit rating looks good here too. Let's talk a little bit more about the braiding detail here, right? GAAP reconciliation. Here's a really powerful tool. This is worth— this tab right here is worth all the money you're going to be paying for us because this would probably take you again $15,000 to $20,000 to replicate on your own. That's 5 years of data showing you all the income statement adjustments. How we convert GAAP net income into net operating profit after tax. And then on the balance sheet, how we convert the reported net assets to invested capital and what the average invested capital is. There's a big difference here. Reported net assets, $239 billion almost, and we're only talking about $74 billion in invested capital. Lots of adjustments here. Lots of great work. We're showing it to you. And then on the valuation side, we're making a bunch of adjustments too. Some of these are canceling out because you got a bunch here added for debt. You get minority interest. You got an option liability of $1 billion, underfunded pension of about $1 billion. So, and all in, you got like $5 billion in valuation adjustments. It's a big number, right? It's good to know that. If you're an institutional client, you can actually go through to the original filings, see where the adjustments come from, right? Here we are going through the footnotes, deep into the footnotes to find all kinds of stuff. Right, and you can do that for all filings going back— here it is— to 1998, quarterly filings going back to 2012. You want to see if there's adjustments there, balance sheet adjustments, again, deferred tax assets, pension liability. There you go. That's due diligence. That's institutional only, not professional. But I'd like to show this to you guys today because I want you to know that this kind of transparency is what sets us apart. There's a summary on the adjustments section as well, where you can go through and see how the adjustments trend over time and get details. Like, for example, we made 17 adjustments to convert Chubb Limited reported— Chubb Limited's reported 2020B earnings to NOPAT for net impact of $1.8 billion. 9 income adjustments of $2 billion against 8 expense adjustments of $316 million. The most notable adjustment $939 million of non-operating income hidden in operating line items. That's a— that's an item you couldn't find on the income statement that we had to make an adjustment for. Same thing for the balance sheet. Same thing for the valuation adjustments. Huge amounts of data and detail here to back up what it is we're doing. All right, Kyle, we got time for one more. Yep. Ticker CARR. Somebody said that Buffett just bought Nvidia, and somebody wanted us to do an— I'm sorry, just bought Chubb. Somebody wanted us to do to look at Nvidia there. If you look, if you join our community, which you can join for free, you can find that on the website. We've got a reverse DCF analysis on Nvidia, and you can also see for free on the website an interview I did earlier today on what we think about Nvidia. We made a big call today on Nvidia on Bloomberg. You can see that in the news. If it's not posted today, it'll be there tomorrow. But Carrier Global, very unattractive. Red flags abound. We're going to see a false positive. What does that mean? Accounting earnings going up, economic earnings going down, even though economic earnings are positive. The worst situation is when economic earnings are negative and declining when accounting earnings are positive and rising. But look, that's not a good divergence. Low return on capital, and you got a really high valuation across the board. Bad risk reward. Bad risk reward. Alrighty, those are our 3 stocks.