New Constructs publishes investment reports multiple times weekly covering long and short stock calls. A 2012 long call on Western Digital returned 200% while the S&P 500 gained 41%; a 2013 short call on Angie's List fell 60% as the market rose 19%.
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Welcome to the New Constructs tutorial for our Investment Insight Reports. To access our reports, click the Reports tab. Then click Investment Insights on the blue ribbon. We update our Investment Insight Reports with fresh content multiple times per week. These reports cover topics including long/short calls, updates to previous long/short calls, and general market comments. Among our most popular Investment Insight Reports are our Long Ideas and Danger Zone reports. To show the outstanding value of these reports, let's look at 2 examples. On December 4th, 2012, we published a long idea for Western Digital, ticker WDC. We pointed out that the long-term implications of cloud computing in the storage and computing businesses are very positive. This was in addition to Western Digital's very strong return on invested capital of 40%. Based on the market price at the time, Western Digital's valuation implied a permanent 70% decline in NOPAT. This was and still remains very unlikely. Since our long call recommendation, Western Digital is up 200% while the S&P 500 is up around 41%. As of the date of this video, we still recommend buying Western Digital. On September 9th, 2013, we published a Danger Zone, or short call, on Angie's List, ticker ANGI. Angie's List has been in business for 18 years and still hasn't made a profit. Although the company claims advertisers don't have a say in reviews, there's quite a bit of evidence to the contrary. Lower-rated companies can bump themselves up to the top of search results by paying extra money. In one case, the top-rated heat and air company showed up 12th on the list of search results because they wouldn't pay the amount required to move up the list. Customers are taking note of these misleading practices. Angie's List gets under 5 million unique visitors per month versus 25 million for Yelp. Angie's List is also overpriced. Based on their market price at the time of our short call, their valuation implied 25% compounded annual revenue growth for the next 15 years. Since our short call recommendation, Angie's List is down 60% while the S&P 500 is up around 19%. As of the date of this video, we still recommend selling Angie's List. As you can see, our Investment Insight Reports provide a great value. Thanks for watching this tutorial. If you have any questions, please leave a comment.
