How to Use the 'My Portfolio' Tool

Hello, and welcome to New Constructs, investment research that reads the fine print so you don't have to. Once you log in, you will be directed to the dashboard page where you're able to access many of our most popular research reports. Click on My Portfolio to begin adding tickers to your personal portfolio. You can add your personal and/or client holdings to the portfolio by typing in the company ticker into the box at the top of the page and clicking Add. If you would like to delete a ticker from your portfolio, simply click the red X under the column heading Remove. Now let's assume you already have a set of portfolio holdings that you would like to research. You can add your entire portfolio by copying all the tickers from an Excel spreadsheet or Word document and pasting them directly into the search box. If you sort these holdings by rating, you will quickly see that there is some serious room for improvement. With more than half of holdings in neutral to very dangerous stocks and funds, You're putting your portfolio into a high-risk territory for future losses due to poor earnings reports, market corrections, and/or bankruptcy. For now, let's focus on the very dangerous stocks, as these are the ones that will most affect your portfolio. Companies with a very dangerous rating offer little upside while increasing the overall risk of your portfolio. We at New Constructs believe that the best portfolios offer investors and their clients the ability to lower risk while increasing future potential returns, not the other way around. But wait a second, you've held General Motors and Boston Scientific in your portfolio for years. Why should you change your portfolio just because it says these stocks are very dangerous? Well, let's take a closer look. If you want to investigate a stock or fund rating further, click on the green arrow under the Report/Details column heading to download a full report of the stock. Based on the New Constructs data collection analysis, Each company is assessed by the following 5 metrics to determine the overall rating: economic versus reported EPS, return on invested capital, free cash flow yield, price-to-economic book value, and the growth appreciation period. Attractive investment opportunities should have rising economic earnings, a high return on invested capital, a high free cash flow yield, a low and positive price-to-economic book value, and a low GAAP. These ratings are based on data that is taken directly from company reports, and not from third-party providers. New Constructs uses better inputs and a better discounted cash flow model to provide investors with the best company stock and fund analysis possible. The holistic rating system also ensures that investors can be confident that our ratings are based on quantitative measures of performance, and not speculative information. In the case of General Motors, our analysts found that not only does it earn one of the lowest returns on invested capital, but it also is reporting misleading earnings. The accounting versus economic earnings chart at the bottom left corner of the screen clearly shows that while General Motors reports positive earnings, it is actually experiencing losses. Companies with misleading earnings trends tend to be placed in the very dangerous category because this not only indicates poor management decisions, but it also raises the question of whether the company engages in unethical and perhaps even fraudulent practices. Looking at the General Motors ratings for its valuation metrics, we see that it fares well with a positive free cash flow yield, but its price-to-economic book value indicates that the company is highly overvalued based on its current stock price. Its high valuation combined with a poor and declining quality of earnings demonstrates why New Constructs rates General Motors as a very dangerous stock. After reading the company report, you may still wish to seek more information, which we encourage you to do. By clicking on the blue card under the Report/Details column heading, you will jump to the company ratings page that again outlines the reasons for the current rating and offers a complete rating history of the past 5 years of the company as it has been under coverage. For the investor who held General Motors in the past, we understand why. When we first began covering General Motors in 2011, it was an attractive investment. However, companies change, and therefore so must one's portfolio holdings. As you can see, the stock price has almost doubled in the past 2 years, while earnings have certainly not. So let's say you are now convinced that General Motors is no longer a good investment opportunity and wish to remove it from your portfolio, but you have no idea what company would be best to take its place. If you go back to the My Dashboard page, you will find the Most Attractive Stocks list. This list is comprised of the 20 best small-cap and the 20 best large-cap stocks each month. We find that Intel is on the list. Intel's high-quality earnings combined with a relatively cheap valuation make it a perfect pick to replace General Motors. Navigate back to your My Portfolios page to delete General Motors and add Intel. By clicking on the Download Report button, you can access more information about Intel's rating and see if you'd like to purchase Intel stock or look for another option. Now, say you already checked out the Boston Scientific report, and you determine that you no longer want this company in your portfolio either. But, if you delete Boston Scientific, you still want to have a holding to stay exposed to the healthcare industry. Click on the screeners tab at the top of the page to navigate to our stock screener tool. In the select criteria box, you can search for the exact stock you wish to find. To replace Boston Scientific, you're going to want a stock in the healthcare sector, with a high market value, and a very attractive rating. Now we have 2 options to choose from: Johnson Johnson and Cigna. Selecting between 2 attractive stocks can be a challenge, as both offer enormous upside potential with relatively low risk. In this case, Johnson Johnson appears to be the better pick due to its higher ROIC. ROIC, or return on invested capital, is calculated by dividing the net operating profits after tax a business earns each year by the amount of capital invested that year. This single value represents the efficiency of a business, by measuring how much a business is able to earn for every dollar invested in its operations. To add J&J to your portfolio, click on the green cross under the Add to Portfolio column. So let's say you decide that you want a more diversified and broad exposure to the healthcare sector. Let's use the ETF/Mutual Fund Screener to search for the best funds to add to your portfolio. While other firms rate funds on their past performance, New Constructs sees it differently. ETF and mutual fund ratings are based on the quality of a fund's holdings and the total annual cost required to purchase the fund. By clicking on the ETFs and Mutual Funds heading in the blue bar, you can enter in your specific criteria for the fund you wish to add to your portfolio, whether it is a fund of a certain style, particular market cap of holdings, or sector preference. In addition, our Total Annual Cost column allows you to compare funds and pick the one that won't cost you everything in your returns. Now that we've cleaned up your portfolio a bit to include more attractive investments, let's go through some other ways you can manage your portfolio with New Constructs research. If you sort by sector/category, you will notice that this portfolio is heavily invested in the information technology sector. Nothing against IT, but diversification is your portfolio's best friend, so make use of our research by adding the best stocks outside of the IT sector. Now, you could go back to the screener and search there, But let's check out a different way you can diversify your holdings across sectors and industries. Go back to your My Dashboard page and scroll down to the Comprehensive Sector Analysis reports. These 10 reports give explicit detail of individual stock performance and outline our picks for the best stocks and funds in each sector based on quantitative and qualitative research. After sifting through some of these reports, you find that Lockheed Martin is one of our top picks in the industrial sector. After reading through Lockheed's analysis in the sector report and checking out its report page, you determine that a good defense is a great offense when it comes to your portfolio. So, let's remove Salesforce and add Lockheed Martin to improve your aggregate portfolio rating and lower your individual sector risk. You may also wish to add another fund for broad-based exposure to an industry that you currently have no holdings in, like the financial sector. All of the sector reports include our top picks for ETFs and mutual funds within that sector. Based on a low 0.39% annual total cost rate and a 48% concentration of very attractive and attractive holdings, KIE would be a great add to your portfolio. Now that you've created your portfolio and enhanced its holdings, click on the Blog heading to access the New Constructs Research Blog. The blog gives New Constructs members access to the most up-to-date information on financial markets and investment opportunities. Our posts vary from weekly podcasts, to general investing tips, to stock pick articles that will help you manage your portfolio going forward, and may help you find that stock that will double, triple, or even quadruple your returns this year. Now you are ready to build and manage your portfolio. Take some time to navigate through our site and test out these features. Read an article or two from the blog to expand your investing knowledge, and get started making the most of your new Constructz account today.