The AI Agent that No One Wants You To See: August 2025 Training

Welcome everybody. I am glad to be with you. I'm David Trainer, and we are gonna do our monthly training on a different topic this time around. We are gonna be focused and we're gonna dig in a little bit more to all this AI stuff. I don't know about you, but I find it fascinating, all the talk about AI, especially how much of it is hocus pocus. You've heard us talk about AI in the past. Today we're really going to dig in and we're going to show you really how to separate the, the smoke and the mirrors from the real substance. And thus the title for our presentation today is The AI Agent That No One Wants You to See. This is the technology that Nobody in the stock market besides us wants you to know about because when you know about how to use this, you don't need any of the stuff that they're giving you anymore. And you certainly don't need to be trusting the narratives and incredibly biased Wall Street and in general, non-new constructs research that's out there. Better yet, this is fresh off of Q2 earnings. So, our data is never fresher than it is when we're right after earnings. We've processed over 2,700 filings, and this is how you can continue to get the AI that keeps beating the market. Disclosures and disclaimers. We are not advisors. We're not here to give advice. We're here to take questions. We're here to provide great information. We are a publisher and not an advisor. Please consult your advisor, your tax advisor, your tax consultant for any investment decisions or trades. I want to hear from you in the chat. First of all, put your tickers in there. If you want me to cover them at the end, I'll do that, time permitting. Let us know if you're professional or retail. Where are you from? And most importantly, I'd like to know if this is your first time with us. I'm always curious to, to get a sense of who the newcomers are. Now, let's set the stage. We're coming out of Q2 2025 earnings season, and we're in a very interesting time. Interesting time in the sense that market looks good. It's a bull market. We're hitting new highs, new levels every day. But there's several indicators out there that are screaming, watch out, overvalued. Even the Wall Street perma bulls are getting worried. That doesn't happen often. Morgan Stanley, Deutsche Bank, Evercore warning clients to prepare for a major pullback. These are this— these are the strategists, by the way, not the individual stock pickers. Is the speculative fever breaking? It's a question we have to ask ourselves, right? Can this market go up forever? The meme stock frenzy for sure is not like it once was. It's fizzled out in a big way, right? You see Krispy Kreme down 70%, GameStop 28%, SharpLink Gaming, look at that. Way up, way down. Those are not good charts, my friends. The easy money from chasing these hype trades is disappearing quickly, and investors caught in the frenzy, you got to start asking yourselves the single most important question right now: what is real? And I think now is the time to answer that question, not hide from it. You don't ever hear people on Wall Street or CNBC or anybody else out there, what is real? What is real? They don't want you thinking like that because what they're selling you 99% of the time is not real. Now, here's some real stats from Meb Faber, one of the smartest, I think, independent investors out there. This compares the current S&P 500 valuations to the 2000 tech bubble peak. You got forward PE, normalized PE, peak PE, price-to-cash flow. All this shows on average That we are within 6% of valuation seen at the peak, the absolute peak of the 2000 tech bubble. Who remembers the tech bubble? I do. I lived through it. It was nutty. It's a lot like it is now. Like, we get to a new high and people are like, oh yeah, well, that's really high. Can't go higher. And it just keeps on going. It keeps on chugging. And we've seen this happen a few times now. So, let's break this down. What does this really matter? How does 6% of potential upside compare to 60% of downside risk if this market sentiment shifts? I think we all know the answer. Here's some more disturbing charts to get us a sense of how close market sentiment could be to shifting. How about the Warren Buffett indicator? It jumps to the most expensive stock market valuation in history. surpassing the dot-com bubble and the financial crisis. That's the Wilshire 5000 to GDP ratio. And we're not just talking about a little bit of excessive versus 2000, right? We're talking about a pretty big number, a pretty big, significantly higher number than what we've seen at any point time period. Speaking of Buffett, Berkshire Hathaway has underperformed the market by the most since 2000. And 20 since 2020. Check it out way down there, like back at COVID time. This is a shortfall on par with 2000 and 2008, another red flag, especially considering the market tends to love Buffett. The NASDAQ 100 currently trades at 42 times earnings, 31 times enterprise value to EBITDA, and 61 times sales. And it's now worth 145% of all the money in America. It's the highest level in history. Morgan Stanley's top strategist sees a correction of up to 10% this quarter. Evercore is more bearish, expecting a decline of as large as 15%. And the calendar's working against us. Since 1929— since 1928, only 3 months produced negative average returns. With September being one of them. So if you're wondering, how do I profit from this chaos instead of becoming its next victim? How do you protect your hard-earned capital and find the real stocks to profit from in this market? That's exactly why you're here today. We're going to hand you the AI to cut through the noise and gain a true sustainable edge. So for those of you that are new, nice to meet you. I'm David Trainer. I'm the founder and CEO of New Constructs, author of Modern Tools for Valuation. And I spent 25+ years in machine learning and building robo-analytics AI. I got my start in this business on Wall Street before, during, and after the tech bubble. And I saw how this— I saw the sausage was made, the tricks they pull. And I decided that I needed to build something better. Because if we didn't build a technology to read through the filings and dig through the footnotes and get to the truth, No one was doing that work. No one was doing that work anymore. I saw it on Wall Street. When I got to Wall Street, people did that work. And they, they tried to give people clear, honest answers. After the tech bubble, that was nobody's business anymore. So over the last 2 decades, I've developed AI-powered stock research that digs deeper, picks stocks better, and produces alpha that beats the market. Pure and simple. And our alpha comes specifically from proprietary data. Extracted from footnotes in every financial filing that matters, because that's where the real story lives. This is— this information is very hard to get. Raise your hand if you guys have ever read a footnote before. Very few people have even seen them. What I'm going to show you is that there's serious alpha and outperformance, and the results speak for themselves. You don't have to take our word for it. Proof is in performance. First of all, our stock picking has beaten 16,000 buy-side professionals to claim the number one spot in multiple categories of stock picking for 50 straight months. 50 straight months, according to SumZero. There it is. There's a picture. Keep in mind, buy-side professionals are professional stock pickers. This isn't something like Seeking Alpha or StockTwits or Any of these aggregation websites where you're dealing with everybody and their brother who may or may not get lucky, or who knows what they're doing, picking a microcap that goes up 50,000%, whatever. These are professionals that are out there trying to raise money from significant allocators. And we rank number 1 and have for 50 straight months. Here's an even better stat. Our work has been vetted and validated by prestigious institutions. Such as Harvard Business School, Ernst Young, the MIT Sloan School of Management, and the Journal of Financial Economics. If you're not familiar with these paper— papers, just go to our website or, or let us know in the chat, and Kyle can quickly drop you a link to a page that provides a bunch of these papers. And name another research firm that has any papers written that proves their research is superior. And we'll give you a free report on the ticker of your choice. Even better, we have live traded indices that are based on our research right now that have outperformed and proves value add and alpha. Let's go with the Very Attractive Stocks Index. You see up here in the picture on the right, this is what it's called officially in the Bloomberg lexicon. Bloomberg runs these for us, and this shows that year to date we've outperformed By half a percent. I think it's even higher now if you look at the last couple of months. Over the last 5 years, the very attractive stocks has beat the S&P 500 by 73 percentage points. That's huge. So I think you could say our, our ratings work pretty well. And by the way, if you're not familiar with our rating system, it goes from very unattractive to very attractive. Very attractive rated stocks are our best rated stocks. There's not a lot of them. A very small percentage of our universe because we're discerning. But you can see performance— outperformance is impressive. The Core Earnings Weighted S&P 500 is another actively traded index that Bloomberg runs for us. All this one does is say, hey, look, we don't even need to pick the stocks. We'll let the S&P 500 pick the stocks, but we will weight them more intelligently. We'll weight stocks in the S&P 500 according to their core earnings strength. Not market cap. Guess what? That outperforms in the short term and the long term. 31% over 5 years. 31 percentage points. Impressive. And here's perhaps maybe the best idea of all. It's the Core Earnings Leaders Index. Let's build an index around the stocks that have the strongest earnings power. Real earnings power, not some fake number that other people use. Real earnings power. Real earnings power based on footnotes proven by Harvard Business School, MIT Sloan, the Journal of Financial It's outperforming a ton year to date by 7%. And over the last 5 years, it's beaten the market by 42 percentage points. So near-term, long-term, significant outperformance based on superior research. What more can you ask for from an independent research firm? From any research firm? Again, if you know of another firm that can show you these same stats, please put it in the comments. Yeah. Put it in the chat and we'll give you a free report on the ticker of your choice. Now, there's a catch here. These indexes are managed by Bloomberg and they are not available for the public to purchase. Sorry about that, but you can get the research from us that all those indices are based on. You can do the same thing. The methodologies for these, for these indices are published in public. So you can do the same thing, but I'm sorry, you can't invest in them directly. For example, you get access to our focus list, long and short. They outperform. You can see from 2021 through the second quarter, focus list long model portfolio beating the S&P 500 by 10%. The shorts model portfolio has beaten it by 37%. Look, You're not here by accident. You're here because you sense something isn't right with the market and the stories we're all being fed. You're not alone. I mean, some crazy stuff is happening. President Trump fired the head of the Bureau of Labor Statistics because we're not sure the data is right. The market is flush with liquidity in a way that we've not seen, like, in the modern era. Look at this chart back to 1960. Look at money supply. Oh yeah, it went down for a minute there. We tried to get, try to get smart, try to get tight. It's going back up. Where's the market been going? Is this sustainable? Can the market go up like this forever? Maybe it can, but doesn't seem like it's doing so anymore, right? We've seen a lot of choppiness in the market here recently. And today I'm here to help you navigate this puzzling market environment and give you the answers needed to make real money, to be smart, and to be safe. You're here because you want a reliable edge that enables you to pick the right stocks at the right time. Who doesn't want that? I'm glad you can join me today because you're going to get what you're looking for. While others are panicking or chasing YOLO, MOMO, or FOMO, you're going to walk away with a clear roadmap for navigating what might be the most deceptive market we've seen in years. So here's our agenda for today. Why today's bloated market presents unique challenges for investors and advisors. How we use AI to find the best stocks to own now and in the future based on proprietary proven research. I'm going to show you the 2 hottest sectors in the market, and then I'm going to go over a couple free bonuses. A free bonus to get an insider's look into the professional membership where we analyze an entire sector And bring us your tickers. I'm going to get at least 3 if we have time. Put them in the chat. See if you're in there already. Now, despite an expensive, unpredictable, and bloated market right now, we're here to equip you with the best research to steer you through the noise in this market. We're still in a special time of the year here at New Constructs. We're coming off earnings season for the 2nd quarter of the year where we've rigorously analyzed 2,700+ quarterly or annual reports. That's 500,000 pages of information. Nobody else in the world that I know of does this. Again, throw it in the chat or the Q&A if you got some ideas about somebody else. Nobody else is doing this. And I think the proof is in the outperformance. Right? If someone else had the footnotes, they'd be doing this. They'd arbitrage this away. They have not, and they are not. The main thing this means for you is that we have updated fresh ratings based on this latest data and analysis that gives you a sharp advantage over everyone else for your own money or for your client's money. We know earnings season has a huge impact on market movement in stocks. And we have the technology to identify stocks that offer upside or overbought across the entire market. During 2024, there were on average 800+ stock rating changes during each earnings season. So stocks getting upgraded and downgraded, 800 of them. And for example, here recently we had 10 new stocks added to our most attractive stocks list. 10 new stocks. That's 10 out of 40. 10 new stocks added to the Most Dangerous Stocks list out of 40. That's a 25% turnover. 5 new stocks added to the Executive Comp Aligned with ROIC Model Portfolio. My favorite model portfolio, by the way. That's around, I think, a 33% turnover. 9 new stocks added to the Safest Dividend Yields Model Portfolio. And 1 new stock added to the Dividend Growth Stocks Model Portfolio. In other words, a lot of changes. But I think the takeaway for you is that we're scanning the entire market, the entire market of over 3,000 US stocks. And that helps us identify hidden gem stocks that Wall Street's going to miss or Wall Street doesn't care about. We have the only AI, the only, the first and only AI to read the entire market and understand how both earnings season and major events such as wars, tariffs, etc., are affecting stocks. And before we get into how we do this with individual stocks, let me pull back and show you how we do this at the sector level, especially since we're coming out of earnings season. I know many of you are curious what the 2 best sectors are right now. Now, it's important to note a couple of things before we dive into this. First of all, market-moving catalysts all the time. Ratings are bound to shift. So we pulled this analysis down a few days ago. It could be different. It could change sometimes day to day. It kind of depends. Sometimes it's close, and depending on, on the market's performance, the ratings change. More importantly, it's important to know that there are good and bad stocks in every sector. There are attractive stocks in bad sectors, and there are unattractive stocks in good sectors, right? The sector analysis is a proxy for the overall group of stocks, but it is not a detailed review on all stocks. The only way to do that is to look at every single model for every single stock. That's what we do. Look at every single filing back to 1998 for every single stock. That's what we do. That's the diligence we do. So I want to be careful to point out that though we're going to talk about some high-level data, the low-level data still matters. And by the way, our ratings for sectors are based on all the stocks that go into that sector, right? We don't make up the numbers of the sector. We don't look at past price performance, everyone else. When we're doing a sector model, We are literally aggregating the fundamentals, income statements, balance sheets, cash flow statements, and footnotes for every single company in that sector into an overall number that gives us a real read on the fundamentals. No one else, I think, in the world does that across all sectors. So pretty cool. All right, top-rated sectors right now. Here's a sector ranking I put together. And you can see here they are top to bottom. I don't know how many days ago this, this was. But I think we might be able to show you some live reporting here in a minute. I think that's built into our agenda. So hold on for a second. But yeah, consumer non-cyclicals and telecom. Notice we give you the market cap overall and number of stocks, number of ETFs in each one of these sectors. Now let's go into a deeper dive into the number one hottest sector right now, consumer non-cyclicals. Here's our rating on consumer non-cyclicals. You can see this rating in a second. You will see this is just like our stock ratings. Just like it. Why not? This is an aggregation of all the companies in the sector. You can see quality of earnings is good, and the valuation, yeah, it's not so good. Now, the reason this gets a very attractive rating despite the fact that it doesn't have any very attractive criteria is because we're going to always have a distribution that looks like this. 2 sectors are going to get our very worst. And very best. 4 are going to get our next level, and then everything else is in between. So there's always going to be this, this normal distribution or this even distribution for all sectors. But that's consumer non-cyclicals. We provide, in addition here, analyst commentary, outlook, top stock picks, etc. And, and then we show you a breakdown specifically— how many good stocks, how many bad stocks. Now let's go into a dive on the second hottest sector, telecom services. Kind of a similar rating. Again, nothing very attractive here. I think this speaks to how the market's pretty expensive. Even in our best sectors, there's nothing that's getting a very attractive rating. Deeper dive, same thing. Outlook, investment recommendations, top picks, performance, and then a breakdown on how many stocks fall into each one of our categories of ratings. Very attractive, attractive, neutral, unattractive, and very unattractive. All right, let's do a live demonstration of what's going on here. And we'll take a second to talk about this rating. I will also jump in here real fast and take a couple questions. Do you think there's information in prices the 2 weeks before Labor Day? Absolutely. This is probably the best quarter for doing this because even the most analytical people Many of them are out to lunch or on vacation on the beach. And statistical studies have showed there's at least 2 weeks of alpha in the footnotes data. At least 2 weeks. We had some folks do some very sophisticated ex-MIT statistician types do some significant research on that. All right, so sharing the screen. Let's take a look at the utility sector. You can see here I just went in, chose utilities, and you can see I can go in really quickly and say, hey, give me all the worst stocks in the utility sector. Bam. There they are. Obviously, I could do very attractive. I'm not giving all those away right now. But this is like an AI, right? It's not a verbal interface. How about give me all the stocks in the utility sector that have a return on capital greater, or let's say worse than -5%. Go. Give me all the utility stocks that have a dividend greater than 5% and a return on capital that's greater than, greater than 0 and has a free cash flow that's greater than 5%. Go. None. Oh, too bad. How about we just go with all the stocks in the sector, because we want to be careful, that have weak internal controls warning? Just one. A S corp. Not bad. It also has a dividend greater than 5%. For those of you not familiar with our dividend work, that's great stuff too. Although it's part of a professional membership. By the way, what I'm demonstrating here is all part of our professional membership. But this is, I mean, do you know an AI that can answer questions like this? I don't. Right? Not even close. Not even close. We'll get into that more later, but imagine that, right? And we can break it down more specifically. Why don't we go multi-line utilities? Oh, none of those. What if we take out the dividend constraint? None of those either. What if we take out the subsector constraint? 4 utility companies with weak internal controls warning. Scary, right? That's why these guys are suspended. And you'll see, we'll show you suspended weak internal controls ever since December of last year. You know when this really matters? A lot. Who remembers Supermicro? What happened around a year ago, right around a year ago? Supermicro Computer. Anybody remember what happened to them? Stock dropped 50% at the end of September. At the end of August, we identified weak internal controls at Supermicro, and that stock dropped big time not long after. They lost their auditor. Yeah. So this weak internal control stuff, along with all of these other reasons for suspensions is a big part of the research we do. It's not just the data and the ratings, but it's the reliability of the data and the ratings based on corporate actions that are important. All right, let's get back to the slides. So if you're feeling uneasy about your portfolio in this environment, I think you should be. It's a pretty precarious time. Because the tools that most investors rely on simply aren't designed to cut through this level of noise and misdirection. I'll keep coming back to AI and to Wall Street, but they never have been. We live in a world where the narratives and misdirection— we've seen it in the media around presidential candidates, incredible amounts of misinformation. For whatever side of the aisle you're on. There's crazy stuff going on. It gets easy to say, you think they're doing anything worse in the stock market? Heck yeah, they are. Heck yeah. It's a tremendous wealth creation machine for folks on Wall Street. Those folks make hundreds of millions of dollars a year. Not all of them, but a lot of them. Even the lowest level people, they're making millions of dollars a year. Why do you think all these big companies are trying to create AI for investing? Because they know that stuff is ready to be disintermediated. They know it. Why don't we take a look at what these new AI tools do? Let's see how well they can answer certain questions. And so we did a deep dive on the on the tech on the tech sector. We asked three different AI tools: What are the best tech stocks for 2025? Here are the answers we got. Ooh, man! Really surprising. Really surprising. It's what ChatGPT said. What did Perplexity say? Yeah, pretty much the same thing. What did Claude say? Hmm, pretty much the same thing. And, and what are they talking about here? Well, let's go through this for a second. First, none of these stocks get an attractive or better rating from us. 2, there's no fundamental research to back the suggestions. There's no fundamental research to back the suggestions. It's all based on stuff like Past performance and market cap. So value add here. Keep in mind, our AI agent and stock picks are proven to outperform the market consistently. When you ask our system questions like we asked the utility sector, you get answers you can trust. So we can confidently state we know how to determine whether stock is truly an attractive buy. Or not. However, we noticed the free AI tools such as ChatGPT, Perplexity, or Claude, they tend to select stocks that are popular, big, big-name mega-cap stocks, often overvalued, that have already experienced gains. That's the main thing, like, oh, let's recommend stuff that's great and they're not attractive. Who knows why these things struggle so much? Why do these other AI tools struggle so much? Anybody have any ideas? I'll tell you why. Because they're asking the internet. You can ask the internet the same thing. The answers aren't any good. These things really, they just kind of implode because they get either really bad or biased data, or they get so much conflicting data they don't know what to do. So what do they default to? The simplest and easiest approach. The good news for you is that there is now a technology that, that can deliver the right stocks. And it involves shifting focus from the narratives to real data, shifting focus from the internet to real analytics. That, in my opinion, is how you protect your portfolio and find the right stocks while others are being misled. Intelligent investing starts with fundamentals, including footnotes, not the surface-level metrics everyone else uses. New Constructs, we've developed cutting-edge AI that transcends the noise systematically. That's why it's AI. That's why it's technology. Scale is everything. Specifically, our AI ingests and analyzes every page of financial reports, 10-Ks and 10-Qs, but especially footnotes and the MD&A. It is built for truth-finding, not narrative spinning. It exposes bad information, oftentimes legally and sometimes not legally hidden in company footnotes. Here's an example. A firm— what do we find? This on page 113— sublease income buried in their operating expenses to make their expenses lower and earnings look better. That's not— they're not in the business of leasing out property. Why is that included as part of their profits? It shouldn't be. We take it out. Now let me share 3 key ways our clients leverage our AI to pick the right stocks. First, we've already updated over 2,700 financial models post-earnings season. These model updates drove hundreds of rating changes, and ratings changes can identify winners and losers every day we get new filings. For example, this stock was upgraded on From neutral to attractive on February 11th, and the next month it increased 60%. Dell upgraded from neutral to attractive on April 4th, update and increased 32% in the next month. While the rest of the world is quibbling over EPS pennies per share, our clients are positioned to make big money with the stocks we identified. With the most over- and understated earnings. Second, our clients enjoy the most rigorous financial analysis in the world in US stocks. Here's how it looks inside our membership. Type in a ticker and get answers across as many stocks as you want and get alerts every day. I would submit that every company model and report that we built would cost you $50,000 at least if you were going to do it on your own. That's the amount of time and what it would cost you if you went to a sophisticated analyst to build a model comparable to ours. Every single rating lookup, I think, is worth $50,000 of work that goes into that. This consistency that we're doing this across so many companies means you're getting results you can, you can trust across thousands of stocks. To give you context of how our proprietary research scales, I'd like to bring up Warren Buffett. There's a Wall Street Journal article saying that they believe he's read, you know, over his lifetime, maybe 100,000 financial statements. Guess how much we've done in New Constructs? Over 200,000. 2 times as much as Warren Buffett. And that's just what the— that's what just the expert humans have gone through and made sure and marked up. That does not count the number of times the AI has tested itself against the perfect filings. We have 200,000 perfectly marked up filings that we use to teach the machine to perfectly mark up filings. We got hundreds of thousands more that the machines have tested and gone against. Hundreds of thousands, but 200,000 perfectly marked up filings. This is what drives our AI. Our AI has been endowed with subject matter expertise to make decisions like the human experts that mark those filings up. It's hard work. It's sophisticated work. It's super detailed work. It's nuanced work, but it has to be done. The machines cannot magically figure this out on their own. That's the mythology about most AI, and that's the truth about our AI. So at New Constructs, we've analyzed 2 times as many filings as Mr. Buffett and counting. Think of us as like the AI, the next generation Mr. Buffett. Third reason you get an edge from us is that we maintain true independence. We have no investment banking conflicts, and it shows up in our ratings. Less than 4% of the stocks we cover get a very attractive rating, right? That very attractive stocks index doesn't hold a ton of stocks. Why? Because we're discerning. Less than 13% of the stocks get an attractive or better rating. Guess who's not discerning? Wall Street. 96% of the stocks covered by Wall Street are listed as buy. Or hold, right? Does that even make sense? Like it's like telling you the market's incredibly inefficient, in which case there's no reason to invest in anything because if the market's inefficient, there's no rhyme or reason for how things go up. Why do they do that? Because their paychecks depend on you buying stocks. They don't make any profit from the research department. Research departments are cost centers. They make money in investment banking. And trading, and you should be out there buying, sell, buy, sell, sell, buy, sell, buy. That's how they make money. Here's another great stat: 57% of all Wall Street covered stocks get a buy rating. 57%. And we're, you know, our buy and strong buy is just 13%, as I mentioned before. Ridiculous. Again, the market would be entirely inefficient if that were true. So let's go through some specific examples where Wall Street rated things as a buy. Wall Street rated stocks as a buy, and our rating system disagreed. Let's go with Shake Shack. Buy and hold by a majority of analysts on Wall Street all this year. Guess what? We have an unattractive or very unattractive rating during this time frame. Down 21% year to date. This is actually through today. Wall Street loves Peloton. Buy or hold for most analysts. For us, unattractive. Down 13% year to date. How about New Fortress Energy? Buy or hold by all the Wall Street analysts. Unattractive from New Constructs. Down 85%. So the value of our AI solution is proven by our performance. Let's go back to our indices. These are live traded indices, folks. The Very Attractive Stocks Index outperforming year to date, outperforming 73 percentage points over the last 5 years. The Core Earnings Weighted S&P 500, right? The smart S&P, the enhanced S&P 500 outperforming year to date, outperforming by 31 over the last 5 years. Core Earnings Leaders Index. Outperforming a lot year to date, outperforming by 42 percentage points over the last 5 years. Same is true, our focus list long outperforming by 10%, focus list short outperforming by 37%. Folks, proof is in performance, right? And what's the takeaway here? Our AI data-driven system allows you to cut through Wall Street's misleading narratives and identify stocks where the fundamentals are strong. Regardless of the noise. Conversely, we also identify the overvalued stocks where the narratives overstate the financial reality. This disciplined approach aligns with Warren Buffett's investing philosophy. You can predict— you can't predict what stocks will do in the short term, but you can predict what businesses will do well, which businesses will do well over time. That's what it's about, folks. Let's focus on the things we can really analyze. And not pretend that we can chase meme stocks, YOMO, FOMO, because that's what, that's what Wall Street's luring us into, luring us in, luring us in, luring us in. Market keeps going up, everything looks great until all of a sudden it doesn't. So how do we do this amazing AI work? What's our secret edge to outperform in even the most chaotic market? If you know us at all, you know it's about our robo-analyst technology. It is the first, best, and only AI agent for investing. And here's what our ratings look like. This is our typical stock rating. You can see there are 5 key metrics. You got economic earnings versus reported earnings. The economic earnings of a business, that's the full comprehensive measure. That's if you go through all the textbooks of the history of the world, the most sophisticated investors going back to Adam Smith and Wealth of Nations will tell you You need to look at economic earnings, not accounting earnings. Guess why you don't ever hear that in the public narrative? That's the truth that no one wants you to see. And the AI that does that work is also the AI that no one wants you to see. Let's talk about return on invested capital. That's one of Warren Buffett's favorite metrics. That measures how much cash flow a business generates relative to how much capital has gone into it. All right, let's take— let's pay attention to the balance sheet. The denominator, right? Because if a company has invested $50 billion and they only make $5 million, that's not good. But if they make $5 million on a $10 million investment, that's really good, right? So, we need to know the balance sheet, just like you know how much money you've given your advisor or money manager, right? Their performance depends not just on how much return they generate, but how much return they generate relative to the assets they're given. Right? We should hold companies to the same standard. Next, we look at free cash flow yield, price to economic book value. That's the price to the no-growth value of the business. So when the price is greater than the no-growth value of the business, that's all price that's entirely dependent— that portion of the price that's greater than the no-growth value of the business, that's the price that's, that's the portion of the price entirely dependent on future growth. So when the price is way bigger than the economic book value, you've got, you got, you got danger there. You got danger. How about the market implied competitive advantage period? Or the market implied growth appreciation period? That's the number of years of profit growth that are, that's baked in the current stock price. That's a metric you can't get anywhere else. It's based on best-in-class reverse DCF models. No one else has those. It's the most sophisticated modeling system in the world for stocks. And that's part of the rating system. Most importantly, I think overall though, really is that RAI has the ability to comb through thousands of government filings with precision, analyzing every line and footnote. Some of the top executives and investors in the biggest firms in the world have been clients for years. And the cool thing about it is that we're not just dumping a bunch of data on you. We're going to go through and make it simple. Green means good. Red means bad. All 5 metrics play a critical role. in rating a stock. We're the only stock rating system— guess what— that has a patent. Again, another free report for anybody who can give me— name another research firm that's got a patent on their research, on their research process. So coming back to a key point, our robo-analyst has processed and structured data from over 200,000 financial filings. 20 years of optimization and perfection. So we've analyzed 2 times as many financial statements as Mr. Buffett. We're the AI version. Now, importantly, we use a proprietary technology to standardize complex financial disclosures into accurate measures of core earnings and free cash flow. And these metrics are proven vital for assessing a company's true financial health. So we're putting all this data together in a way that has— makes real sense. You know what you call that? You call that an ontology. Ontologies are incredibly important to AIs. This is an ontology that works. So a lot of firms out there, they collect a lot of data. I can mention all these firms. They got LLMs collecting data. FinChat, FinTool, Daloopa, Fiscal AI. Yeah, they got a lot of data. They collect a lot of data. But do they put it into proven accurate measures? They put it into metrics that are proven to outperform? They do not. So key summary here. Our Robo Analyst technology leverages AI to get data that the market is missing. That's the footnotes. And do the diligence for you that no one else does. Put that data together into signals that matter. To win in this world, you have to be willing to do other things that other people will not do. You have to be willing to go the extra mile. That's what our AI does for you. That's how you get an edge. That's how you can outperform. Specifically is from footnotes where companies hide critical information. There's alpha in footnotes, especially when you're looking at it across hundreds of thousands of filings. Like needles in millions of pages of haystacks, we are picking those gold needles out and giving them to you on a silver platter. Most investors and professionals don't have time to even think about reading 200-plus page 10-Ks and 10-Qs to do proper diligence. Anybody in the audience today— there's a lot of you here— how many of you read an entire 10-K or 10-Q once this year? Put in the chat, let everybody else see. Let me tell you something, our clients are so happy to pay us hundreds of thousands of dollars a year because they know it would cost them millions of dollars per quarter to replicate what we do. I got one person here says He's read more than one 10-K this year. Okay, that's great. Or 10-Q, that's awesome. You know exactly the value of how much work we do because you've actually done it. You know how hard it is. Over 10,000 Ks and Qs that we've already taken care of just this year. Every quarter, let me give you a sense of how expensive it is. And, and by the way, Gerard, thank you for saying that. You know how hard it is. If you haven't read a filing, I encourage you, go read a filing. Go see how much data is buried in there. Understand how much value you can get from that filing, and also understand why it's so much simpler for firms to just blast out buy, buy, buy. Now I've got a few questions for you. Do you see yourself ever being able to use roboanalyst technology and proven superior research? Do you see why you cannot rely on unscrubbed data? Especially during earnings season? How about the power of unbiased, truly complete information? If you do see this as something that's interesting to you, I've got something for you special. It's our professional membership. Now, the regular price, price is about $11,000 a year. Now, the comprehensive nature of our research entails countless pages of data and documentation, including information from balance sheets, income statements, cash flow statements, and footnotes, and dozens of other disclosures. This is the research you can't get anywhere else and is proven to give you alpha. Here's a sneak peek of what it looks like inside of our institutional membership, right? This is a look-through capability that we give our institutional clients. They can go in and see all the, all of the write-downs, all the footnotes items. Now let me ask you a question. Do you think any other firm can offer this? No, they can't. A lot of firms will let you go through the income statement, balance sheet. Yeah, that's not hard. That's easy to do. Even the cheap new LLM firms out there can do that. That's not new. No one's giving these details from the footnotes. That's why no one else has papers from Harvard Business School, Ernst Young, MIT Sloan, the Journal of Financial Economics. One of the key reasons, I should say, not the only. But one of the key reasons we have these papers written about us is because those super prestigious individuals that wrote those papers knew they would not risk their reputation by making claims that our research is superior because they could back it up with details like this. Backing it up with details like this, absolutely critical. Absolutely back it up. You got to show where this information comes from. You can't just make claims and get a paper published in the Journal of Financial Economics You have to prove it hundreds of times. And if you read the paper on us, you'll see they proved it over 300 times. Here's another example, deep in the footnotes, buried expenses. This is back in 2023 when Meta was one of the top holdings in the Core Earnings Leaders Index and was a dramatic outperformer. Now, here's why this matters. By understanding the true profitability and identifying the hidden risks, we can build you a superior financial model to find the best stocks. Our stock ratings are grounded in the verifiable numbers from the filings, not speculative narratives or biased analyst reports. This gives you a much more accurate picture of the company's sustainable profits and helps us discover stocks such as Mind Technology, upgraded from neutral to attractive in April of this year, up 32% in one month. Alibaba upgraded from neutral to very attractive in April of this year, up 24%. We also help you avoid bad stocks. Caesarstone downgraded from neutral to unattractive in March, went down 24% in one month. Voyager Therapeutics downgraded from neutral to very unattractive in March of this year, down 22% in the next month. Our website, our professional membership, is your personal AI agent to give you unrivaled insights about thousands of stocks in the US market. And we can answer prompts better than any other AI. We can answer prompts like, hey, what are the best stocks in the AI industry? What is the most profitable energy company? Which healthcare stock is the best earnings quality? Show me companies where stock price Where the stock— whose stock price implies it will grow profits by 50% over the next 10 years? Show me the cheapest stocks in the tech sector. REI can answer these questions. How about something simpler? What are the best dividend stocks in any given sector? Show me the most attractive stocks in any sector. I showed you how we did that on the flip side for utilities just a minute ago. Tell me that's not powerful. Tell me that's not better than anything you've ever seen. Now tell me you can live without it. Tell me what you think about being able to ask an AI, what's the best sector? What's the worst sector? Show me the most dangerous stocks in the market. Show me the most attractive stocks in the market or in any sector. Would that be helpful to you? Remember, producing and maintaining this level of detailed research would set you back millions of dollars each quarter. Those of you who answered here in the chat, how much time and trouble and energy it takes to read a 10-K or 10-Q, you know that these numbers are right. You felt it. You've seen it. The professional membership gives you access to a level and depth of financial research that's considered a gold mine to financial advisors and hedge fund managers. Now, what we're giving people— unbiased ratings on 10,000+ securities, Stocks, ETFs, mutual funds, and alerts and portfolio tracking. Stick your tickers into our portfolio and we will alert you. You get equity ratings, you get credit ratings, you get stats, you get a lot more details on any individual company you want as well. You get stock screening with precision like I showed you before. You get an API, an Excel add-in tool, all of our model portfolios. Monthly idea dinners. Those monthly ideas are amazing. Think about a room full of professional membership clients all using this tool, talking about the best ideas in the market. The smartest investors using the smartest tools. Think about this like an entire research department at your disposal that's not conflicted, that covers more stocks, that's got the best AI. We do way better than the competition with the quality of our research. Nobody else over here has any of these products. Nobody else can match us. That's why nobody entered into the chat. No one knows anyone else with a paper written about proving the superiority of their research. No one. No one's been ranked number 1 by SumZero for 50 straight months. So with your professional membership, what do you get? What does this deliver to you? It's the ability to invest with confidence, the ability to maximize profits, to minimize downside risk, to leverage the newest, greatest cutting-edge AI and enjoy real due diligence, knowing you have the complete financial picture when making financial decisions for yourself or for your clients. Is that valuable? Is it invaluable? How about a case study? This is from a super high net worth client who came to us after working with a big blue blood firm for many years. They lost him a lot of money. He left and within a few months had made his money back and more with new constructs. Guess what? He's a professional member. You're probably wondering, what's the price of professional membership? Here's what it would cost for you to do it on your own. Remember I was telling you how much it costs to do this work? Here's a day-by-day breakdown of what we did during filing season, going through 2,800 filings. And this is what it would cost if you assume it's somebody paying $100 an hour and it takes 8 hours to go through a filing, pull all the data out, and build a model. That's what it would cost you. per quarter to do the diligence. Why do you think our clients pay us what they pay us? It's an amazing opportunity, amazing deal. And not surprisingly, our clients pay us $10,000 a month. That's not all you're getting inside the Pro membership. Extreme value-add number 1, access to all model portfolios. That's the Most Attractive Stocks model portfolio sold separately for $299 $2,995 a year. The Most Dangerous Stocks Model Portfolio, that's $539 a year. The Dividend Growth Stocks Model Portfolio, the Safest Dividend Yields Model Portfolio, that's another $549 a year, each sold separately. The Executive Comp Aligned with ROIC Model Portfolio, that's $6,000 a year. All these guys sold separately, it's over $10,000. Now, earnings season results and hundreds of rating changes and updates to our model portfolios. As I mentioned before, 10 new stocks in the Most Attractive Stocks model portfolio, 10 new ones in the Most Dangerous Stocks model portfolio, 5 new ones in the Executive Comp Aligned with ROIC model portfolio, 9 new ones in the Safest Dividend Yields. Things you can't get anywhere else that's not sold separately: API and Excel add-ins, monthly Idea Diners, access to more reverse DCF case studies. That's where I'll show you as a professional member We'll walk through how to use our best-in-class reverse DCF model. These rating updates often uncover new market-beating opportunities, as we noticed in the past. Quick switch back to the ratings, right? When the ratings change, stocks tend to move. JD.com got upgraded from neutral to very attractive. It went up 38% the next month. American Public Education upgraded from neutral to very attractive in August of last year, up 21%. in the next month. Consul Energy upgraded from neutral to very attractive, up 15% in the next month. And of course, shifts in our rating system to unattractive and very unattractive, well, they had the opposite effect. Denny's was downgraded back in February, down 24% in one month. And Vista Holdings downgraded back in February of this year Declined 23% in one month. New Fortress Energy downgraded from neutral to unattractive, down 24% in one month. Here's a short summary of how our Most Attractive and Most Dangerous Stocks model portfolios performed in the first half of this year. The small-cap long strategy beat the Russell 2000 by 7%. The large and small-cap long strategy beat the S&P 500 and Russell 2000 combined by 4%. Our large-cap short strategy beat shorting the S&P by 2%. Value-add number 3, access to our focus lists, long and short. These are super lists. This is what goes on SumZero for the most part. And you see what we've done there. 50 straight months of being ranked number 1. Not bad. These are the best of our best ideas. A lot of really cool reports and research go into those. Value-add number 4, access to long idea reports, access to Danger Zone reports. These are long-form write-ups that I think are better than any Wall Street research report you'll ever see. We go into details. We become our own best client. It's a lot of fun. I love our write-ups for long ideas and Danger Zone ideas because we get to go to war in the market to find the best stocks with the best weapons of all time. Value-add number 4, Idea dinners. We do all kinds of cool stuff. Again, the smartest folks using the best tools talking about stocks. You can't beat that. Let's do a few more testimonials. This is a client talking about how much they respect and appreciate our integrity. This is another advisor saying he highly endorses New Constructs as one must-have tool in any stock or fund selection system. Another client just thanking us for how much they know the work is useful and how much of an undertaking it is because they worked in big data before. To say that we— they find us truly reliable, relevant, and trustworthy. Name another research firm that has testimonials like this. Please put in the— put it in the chat. How about Kirk? Our analysis is superior. Your research digs that out for me. He knows as a business owner that financials can be manipulated. All right, these are real-life examples, folks. It provides me with concise insights that I couldn't duplicate on my own. Think about this: in a world where trust is declining like crazy everywhere— Supreme Court, newspapers, Congress, the media— we're giving you a place that you can come and be safe and trust and get reliable information vetted by the most prestigious institutions in the world. And validated every day in live traded performance indices. We believe in trust and transparency. That hasn't come across. I want to say it to you now. What we have done is truly valuable, and we're transparent and trustworthy because we can be. We have truly better data and analytics because we are not paid to promote or rate anything as attractive. All right, I'm going to take some requests. Who's got a couple stocks for us to talk about? This is actually a stock, interestingly, that one of our clients just asked us to add to coverage recently. They're really interested in it. I don't know how they felt about the result—neutral rating—but Kyle, yeah, you want to give me the top three requests? Yep. First one, KNSL. KNSL. Kinsale Cap Group. Interesting. I don't know about this company. Neutral rating. So high return on capital. Economic earnings, I guess I'm guessing that the economic earnings not doing as well as the accounting earnings. Valuation looks pretty full. So, you know, not too good, not too bad. But yeah, let's go through some, some of the key features here of our professional membership, right? So you're going to see how economic earnings are doing. You see how shares are moving. Like, we'd like to see share counts going Down. That's a huge new indicator, by the way, for, like, value investors. We're not value investors in New Constructs. We're diligent investors. So it encompasses more than just value. But value investors want to see shares going down because guess what? That means the stock's going to go up by brute force at some point because the company keeps buying back shares. We'll show return on invested capital over time. We'll show your NOPAT margin versus your capital turns. Free cash flow yield, 2-year average, as well as the regular free cash flow. We'll give you the real free cash flow every period. Price-to-economic book value ratio. Remember I talked to you about the economic book value and the difference in the price versus the economic book value? So you can see all this value above from the price above the economic book value. That's all based on future growth. That's why that gets risky. Here's a summary from our reverse DCF model. You can see it shows that if the company can grow revenues at 12.7% compounded annually for 7 years while experiencing a return on capital versus cost of capital spread a bit, a bit higher than what it's done in the past, that's what's baked into the current stock price. That's what you need to justify $461 a share. Who gives you that kind of insight? No one gives you that kind of insight. 7 years isn't bad. I think we're showing some pretty high revenue growth though, probably in the first few years here to get 12.7% compounded annually over 7 years. Maybe they can do it. The key takeaway from this is that if you believe the company is going to do significantly better than these 3 stats, then you can buy the stock. Or then you can consider the stock attractive. If you don't believe it's going to do that— I'm sorry, if you don't believe it's going to do significantly better than that, you should avoid the stock because you only want to buy stocks when you think expectations are too low. So you got to believe that the stock's going to do significantly better than that. That's what getting attractive rating is about. Element back to GAAP reconciliation, all the adjustments to convert GAAP net income to our NOPAT number. All the adjustments for the balance sheet, all laid out here for you. All of our adjustments on the valuation side. Not a lot for this company. The only thing really is a bunch of outstanding option liabilities. All right. What's our next ticker, Kyle? Ticker CRM. CRM. One of the favorites. The company by itself put a great friend of mine who was a hedge fund investor pretty much out of business because he shorted it forever. Terrible business. But, you know, they had capital as a weapon. They were able to spend, spend, spend, lose a lot of money until they actually got profitable. And look, they are profitable, not by a lot. We come in here, you can see economic earnings barely positive. Accounting earnings are way up there for a long time, way better than economic earnings for a long time. And but the business is pretty decent, 11% ROIC, free cash flow around 3%, but valuation expensive. Good company, Bad stock. That's the takeaway. To get a very attractive rating, you got to be a good company and a good stock. That's the key takeaway. There's not a lot of those. I think I mentioned before, less than 13% of all the 3,300 stocks we cover get an attractive or better rating. Why? Because good stocks are hard to find. We're the only AI tool that can help you find them. Okay, what's our, what's our last one here, Kyle? Last one, CHE Corporation. All right, we got an attractive rating. Good job to everyone who ever picked that one. Kyle may have, may have filtered some of these to make sure we had one attractive one. Thank you, Kyle. The audience thanks you. But yeah, I don't know anything about this company except that it's got good quality of earnings and a decent valuation. Not really cheap, but not so expensive that the earning gets up to neutral. Got a good credit rating as well. So yeah, the economics of this business look good. See if there are any differences between our traditional and adjusted metrics. This is a deep, you know, it's a great breakdown on exactly how these metrics differ when you look at the traditional unscrubbed accounting data versus our adjusted data. Not a lot of difference for this company. That's good. Amazing level of detail there. Very proud of that. Okay, let's finish up here. Thanks for being with me today. We look forward to seeing you on the other side.