The Hidden Metric To Find the Best Stocks No One Knows About – September 2024 Training

Hello everybody. We need some warmup or walkup music like all these other fancy firms have to keep people entertained while they're waiting. Otherwise, you're just hearing silence or hearing me click around. We're going to, we're going to kick off here in just a couple of minutes. We still got a ton of people coming in. We are really excited about sharing with you today a new discovery that astounded us. We, you know, we're working hard all the time and, and, and putting out, I think, a lot of great research. We don't always have as much time to do R&D as we'd like, but we've done some R&D recently and we found something that's really impressive and we're really excited to share it with you all today. And I recommend you, you call your friends, you call your family. You get everybody you can on this because I don't think anything like this has ever happened before in research. And there are a lot of reasons for that that I'll get into in the presentation. A lot of great work done by Kyle and Christian, and we're, we're pumped. We're extremely excited. And it's, it's not often in the research business and the stock picking business when you get to introduce something that you've never had before. You've never seen before, especially for somebody like me who's been reading 10-Ks and 10-Qs and studying accounting rules and all the loopholes for over 25 years. Starting new constructs, we did some really cool stuff, and over the years we've created some really awesome model portfolios, a ton of great stock picks. And, and this is the first time I think I'm really leveling up our rating system and our game on picking stocks. It's pretty awesome. It's really awesome. It's kind of funny, over the years we've had a lot of analysts come through here, and they always— a lot of them always want to like jump I try to tweak or improve the rating system. I'm like, you know, it's pretty good. I know I'm biased because we created it. I created it back in 2005, but it's pretty good. And this is the first time that I think we've come along and seen a way that we believe can meaningfully improve the stock rating system. So this, this, this training is for everybody, not just people who are, who aren't customers of New Constructs. This is for people who are already customers of New Constructs. Because we are rolling out effectively a new product, a new product. And we're going to figure out how to do more with it later. But we figured the best thing we could do is get you access to, to some of this amazing, this amazing research right away, right away. And that's what we did. And we don't think this should be something that's available only to Wall Street insiders. You guys know that's what New Constructs is about. And we're putting our money where our mouth is here by showing you the good stuff. Great to see such a big crowd here today, and I'm excited to share a new discovery at New Constructs. Training today is the hidden metric to find the best stocks no one knows about it, and why you can only find them with our research. We have proprietary data, and we do our own R&D because no one else has ever done it before. We've had a Harvard Business School and MIT Sloan. Other people have done R&D to prove that there's. Unique, idiosyncratic, novel alpha in our data, and we've taken it to a new level and have a new discovery that we are really excited to share. These are brand new picks that we've never put into a portfolio or shared before. Disclosures and disclaimers— please remember to take some time to pay attention to these. It's important to know that we are not advisors. We do not give out advice. We do not intend to. We don't ever plan to. We are a publisher. And I want to hear from you in the chat. What city are you in? What type, what type of investor are you? Are you retail advisor? You hedge fund manager? And give me the stock you want me to analyze because I'm going to take a look at a few at the end here. If you stay to the end of the presentation, I will reveal the hidden metric we use to find brand new stocks to beat the market. We don't even have a model portfolio for these yet. I'm also going to explain to you why this metric is so special. Because there are accounting loopholes that if you don't know about can totally distort a company's true earnings. I'm also going to show you how to grab my latest top stock recommendation based on our latest discovery. This is a new top recommendation based on this new discovery in our data. And the free bonus— bring us your tickers. I'm going to analyze 3 stocks based on popular demand. So you vote, and I think you can vote as many times as you want. Kyle's going to be in here counting them up, and so he'll— I don't know if he has time to distinguish between people who vote more than once or not, so maybe you'll get lucky. You guys know me mostly. I'm David Trainer. I'm the founder of New Constructs and author of Modern Tools for Valuation and The Valuation Handbook, and I spent 25 years in machine learning, robo-analytics, AI, accounting analysis, worked for the FASB. I don't think there are many people in the world that understand financial statements, footnotes, and technology better than I do. Our research at New Constructs has beaten out 16,000 buy-side professionals to claim the number one ranking for North American stock picks according to SumZero. And I need you to understand, buy-side professionals, that's the top competition. That's like playing in the NFL. And when you're competing against sell-side professionals, which is Wall Street analysts, That's like playing, playing in Pop Warner. Buy-side professionals are the professional hedge fund managers. These are the best of the best. They're the top of the game. That's why winning on SumZero is like winning in the NFL compared to trying to beat up a bunch of 10-year-olds in a Pop Warner league. Not to mention, our work has been studied and validated by prestigious institutions like MIT Sloan School of Management, Harvard Business School, Ernst Young, and the Journal of Financial Economics, one of the top peer-reviewed journals in the world. And we've been amongst the first to recommend many of today's most valuable stocks, best stock picks in the last 20 years, including Apple at $1,950 a share, Eli Lilly at $36 a share, Microsoft at $42, and even Nvidia at $0.57 a share, way before anybody else was talking about Nvidia. We highlighted it to clients and wrote a report recommending they invest. And today I'm going to show you how to get my latest number one stock recommendation, which could rival the performance of any of our previous recommendations. This new recommendation is not found in any of our current model portfolios. This recommendation is based on a combination of 2 factors: a powerful hidden metric that we've been studying and backtesting, and are revealing later tonight, and our proven superior stock rating system at New Constructs. This recommendation should not be taken lightly because our track record speaks for itself. I've recently been ranked number 1 picker for all time on SumZero out of 16,000— again, buy-side real stock picker professionals. I hold the number 1 spot in North America, the number 1 spot in value recommendations and consumer discretionary, industrials, consumer staples, And this has been for every month for the last, like, 3 years, pretty much. So impressive track record, to say the least. But as much as I'd like to give myself credit for these number 1 rankings, it's really all based on the proprietary RoboAnalyst technology and our stock rating system. I spent 20 years creating technology to provide better stock picks because I believe machines are better at analyzing financial documents than humans. And we've got the proof that it works. And in this training, not only will I test some of your favorite tickers against our rating system, I'll be showing you how to grab my number one recommendation later today. Why should you care about this today? Why should you act today on my latest recommendation? Well, I believe now is the perfect time to act in this market. I agree that the market is indeed overvalued presently, right? Any way you look at it, the stock market is dangerously overvalued. Even with a 50 basis point cut to the Fed funds rate, we didn't see the market react too much, right? All the good news is priced in. And we— but we believe there are still great investments out there, especially since there's been a rare new discovery here at New Constructs. We're constantly analyzing our superior data to find new, better ways to pick stocks, and after completing some backtests, the results we have found astounded us. I haven't been astounded in like 20 years, uh, and it has to do with a new hidden metric that finds stocks that no one else knows about— undervalued stars in the stock market. Look, I think there are 2 kinds of research out there. There's the stuff everyone has, and the media talks about that. That's what everybody's got. You can blab about it at cocktail parties, but you're never really going to add any real value. And then there's the stuff that only great investors have. The thing that gives them an edge, because it takes an edge to outperform and make money. You can get lucky, sure, but the only way to consistently outperform is to have an edge. And today we're going to give you an edge that no one else has ever had, because guess what? We just found it. It's brand new and indicates an excellent long-term future with potential triple-digit gains when it comes to picking stocks. Now, before I reveal the hidden metric, I want to give you some background. on how I discovered this metric and how you can use it to make you money. In the late 1990s, I started on Wall Street as an analyst. I was hired to build a new earnings model to better understand a company's profitability. Within a few years, nearly every major analyst was using my models. In creating these models, I learned the majority of financial reports are inaccurate or misleading, and that is exactly how we enable you to beat the market and your peers. We find the data that gives investors an edge so they can make more money. The opportunity starts with companies reporting based on generally accepted accounting principles, or GAAP accounting rules. Unfortunately, GAAP falls short when dealing with the complex nature of many companies. It's filled with inconsistencies and neglects entire parts of companies' operations. And as a result, GAAP rules distort earnings by the millions, obscuring, obscuring the truth about earnings, meaning you can't trust GAAP numbers, not to buy and not to sell. To uncover a company's actual earnings, one must study the footnotes, and that's where our AI technology gets its edge. It meticulously scans thousands of financial filings and footnotes to uncover earnings distortion. This is something that no one's ever done before. And once it finds distortions, we can correct them and identify stock picks before the rest of the market catches on. That's how we were able to find hidden gem stocks like Domino's, up 2,000%, Accenture, up 1,700%, AutoZone, 732%. We wrote reports on all of these stocks Highlighting them to investors. And it was how I was able to discover the hidden metric that these hidden gem stocks had in common. So what is the hidden metric I've been hinting— I've been hinting at? It is when economic earnings are greater than accounting earnings or GAAP earnings. Now, how do you calculate economic earnings? Well, the formula is pretty obvious, but what we do is proprietary and adjusted for footnotes. So while the formula, NOPAT minus WACC times invested capital, pretty straightforward, the trick is in getting NOPAT and invested capital right. Now let's first talk for a second about why economic earnings are better. Because respected investors from Adam Smith, Ben Graham, Charlie Buffett, Charlie Munger, Warren Buffett, they have repeatedly emphasized that accounting results should not be used to value stocks. And they all talk about economic earnings. And they're better because they're based on a complete set of financial information: balance sheet, income statement, cash flow statement, and footnotes. Show me another metric that looks at all of that. Show me another research firm that looks at all 4 of those. As far as we know, no other research firm has the footnotes. That's what Harvard Business School and MIT Sloan proved in a paper published, published in the Journal of Financial Economics. Right. The other thing that's great about economic earnings is that they're apples to apples across all companies. So you can really rank thousands of companies according to one metric. I like to call it one version of the truth because it is a more accurate representation of the underlying cash flows of the business and it's apples to apples across all companies. And guess what? It's also better, maybe the best, for finding hidden gems in the stock market. Now, how do you calculate it? I asked to put a couple examples in here. Here's one, Groupon, 2015, right? This is a stock that we'll see later didn't do so well. Guess what? Its economic earnings were worse than its GAAP earnings. Red flag. Bumble, another example, economic earnings way worse than GAAP earnings. NOPAT was negative $87. So when you subtract for the cost of capital, you're talking negative $383. GAAP earnings were positive $318. For Groupon, negative $22 million, positive GAAP earnings of $21 million. Almost a mirror image opposite. Bad sign. The bottom line, if a company is not generating positive economic earnings, it is not really creating shareholder value and could go to zero. Now let's show you how this has worked in the past and have a look at the stocks we mentioned before to see the hidden metric in place. Domino's Pizza back in 2005. When we looked at the 2004 10-K, we saw economic earnings are greater than GAAP earnings. We wrote about it. Since then, Domino's is up 2,000%. The S&P is up 370%. Similar story with Accenture. We saw that in 2002, GAAP earnings were less than economic earnings. Since then, the stock is up 1,700%. AutoZone. Our model also flagged accounting earnings greater than GAAP earnings, and the stock is up 732% while the S&P is up just 293%. Keep in mind, this is our proprietary adjusted measure of economic earnings you can't get anyplace else. Now, it's also important to realize how rare this metric is. More on that later. And how large the true difference between economic and GAAP earnings can be. Over the last 25 years, I found more than 30 GAAP loopholes that can distort a company's earnings. I published white papers on each one of them, which can be found on our website. We want you to know what the loopholes are so you can appreciate how impactful they are. I'm not keeping it a secret. My model's an open book. I'm just able to build more models with RoboAnalyst technology. That's our advantage, not some secret formula. Now, the other thing I've seen over time is that sometimes these distortions occur by chance, but more often than not, they're on purpose. The flexibility in GAAP rules creates loopholes that management teams can exploit to manipulate their reported earnings. They do it all the time. Sometimes the financial rule setters close those loopholes. Most of the time they don't. So the takeaway here is, in other words, the numbers, the earnings can be manipulated to make earnings and profitability appear more impressive than they truly are. And that's the sad truth. That's the tough truth of today's stock market. You cannot trust GAAP earnings or any earnings from companies or Wall Street. You can't trust earnings reported by companies or Wall Street. What do those 2 things have in common? What do companies and Wall Street have in common? They're trying to sell you stock. So they're conflicted. Thankfully, over the last 20 years, we've trained our system, our AI, to identify and close these loopholes to uncover the true distortions between economic and GAAP earnings. It helps warn investors about bad stocks in the market, such as Beyond Meat. We were early on this one. I think we were warning people before the IPO. Groupon down 91%. That was a no-brainer. Allbirds down 98%. I think it's a penny stock now. But it also helps us spot good stocks that can lead to triple-digit gains. Bath and Body Works. We discovered that our proprietary adjusted economic earnings were greater than GAAP earnings. And when that trigger hit, stock was up over 430% in the next year. Natural Resource Partners, similar story. When that proprietary adjusted signal hit, NPR increased over 260% within the next year. DXP Enterprises, another example, up over 160% within a year when our proprietary adjusted economic earnings Broke greater than GAAP earnings. Now, these stocks, these stock picks closely align with Warren Buffett's philosophy. If you ever— if you're wondering where we get all this stuff, we go back to the all-time greats, where, you know, and, and I want to show you an example of how Buffett highlights the difference between a good company and a good stock. I talk about this all the time, and this quote is awesome, and Christian found it. I want to highlight it. Investors making purchases in an overheated market need to recognize that it may often take an extended period for the value of an outstanding company to catch up with the price they paid. What's that an example of? That's the example of being late. That's when the stock price already captures all the good news. What we're here to give you today is how to be early, to find it before the market has crowded. It's an investor superpower to find companies earning significantly more than what the market perceives before the market finds out, because that's what gets you an edge like the greats. It's an investor superpower to find companies earning significantly more. I just told you about how Wall Street and companies are trying to tell you how to overstate earnings, or trying to overstate earnings all the time. Most of the time it's false. Every now and then it's real. That's where you get an edge. But you can only do that, get that edge, if you have the right research and data to see where economic earnings are greater than GAAP earnings. So we spent 20 years building a system to do things just like this. Heads up, Google or ChatGPT, they'll not give you an accurate list of companies where economic earnings are greater than GAAP earnings. I don't think you can get anywhere else. In fact, Harvard Business School and MIT Sloan School of Management wrote a paper proving that you can't get it anywhere else. They wrote a paper proving that you can't get it anywhere else. The market is missing footnotes. Only we have it because other firms' numbers are based on faulty data. They don't have the footnotes, and they— and that will not give you a good read on what's really happening. But we can. Here's what it looks like using our research platform. There it is, really simple chart. Economic earnings greater than reported earnings. I'm not here to make it complicated. I'm here to make it simple. I'm here to give you an edge that you can use today. Not after you've taken a $50,000 per month MBA course. Some of our analysts have taken some of those courses, and you know what they tell me? They could have taught them. But here are the examples of 3 companies where economic earnings greater than accounting earnings. And when that metric is in place, eventually those profits can catch up and boost the stock. The key is getting your money in ahead of the crowd. Now, I should be transparent with you. Although our hidden metric of economic earnings greater than GAAP earnings is extremely powerful and rare for stocks to have, it is not the be-all end-all to find a quality stock pick. It's, it's still important to find a stock with this metric in place that also has a cheap valuation that's poised to explode. And that's what our proven stock rating system is designed to do. It's called the RoboAnalyst Stock Rating System. Harvard Business School wrote a separate paper on how that beats Wall Street analysts. This AI, AI has the ability to comb through thousands and thousands of government filings with precision, with precision, analyzing every line and footnote. It's used by some of the top executives and investors in the world. Its superpower is finding these earnings distortions across thousands of publicly traded companies. Right? Finding it in one, you don't know if it's a big deal because, shoot, you can't compare what you know about one company to every other company if you only know it about one company. So the superpower is to be able to do this across thousands of publicly traded companies. There are 5, there are 5 core criteria or metrics in our rating system. It's— there's reported economic versus reported earnings, economic versus GAAP earnings. This has always been a part of our rating system, by the way, right? And this new metric, it adds to this. The other metrics in the, in the criteria, in the rating system are return on invested capital, another one of Buffett's favorites, the 2-year average free cash flow yield. Excluding cash. So for you super analysts out there, CFAs, CFPs out there, MBAs, you'll love this metric. We had a whole blog post about why this metric works so well. Price to economic book value. Fans of Al Rappaport will know what economic book value means. That's the no-growth value of a stock. This is like a much smarter price to price to earnings multiple. And then there's the market implied growth appreciation period. That's based on our best-in-class and proprietary reverse discounted cash flow model, which is what I use to call the top in Nvidia. Got a whole separate paper on that if you want it. Send us a text or email us or put your email in the chat and we'll send you that report. Now our system makes it simple for you. Again, I'm not here to complicate things. The RoboAnalyst has done the work. It's a revolutionary new technology that puts the the power of good information in more people's hands. And I'm not going to put it to— put it to you in the form of a 200-page filing. What good would that do you? You just have to start over from what we've already done. No, we make it simple. Green means good, red means bad. And all 5 of these metrics play a critical role in rating a stock. These metrics help us gauge the quality of a company's earnings and determine if the stock is priced correctly in relation to those earnings. It's so good, Harvard Business School published a 50-page paper proving its superiority. It's the only stock rating system with an official US patent behind it. That's right, I got a patent for the system and method for reversing accounting distortions and creating— calculating a true value of a business. Another sad truth for you. What does Wall Street think about stocks? 95% of their ratings are buy or hold. Remember I told you they're in the business of selling stock? How hard is it to sell stocks when you got a sell rating? How hard is it to sell stocks when you have a buy rating? Not surprisingly, most of the stocks get a buy rating. That's because their paychecks depend on you buying stocks. It's how they make their money. I've got friends on Wall Street who've been fired because they did not have enough buy ratings. So while Wall Street wants you to buy or hold 95% of stocks, only about 15% of our stocks have an attractive rating or better. Even fewer, like under 5%, get a very attractive rating. We're not biased. We're just truthful. And this shows we are more honest and care about protecting you. Let's get into some case studies from earlier this year to show you what we mean. According to Wall Street, Mobileye was a buy this year, moderate buy based on 25 analyst ratings. According to New Constructs, Mobileye was unattractive. The result? Mobileye is down 74% year to date. Truth matters. According to Wall Street, Five Below was a moderate buy one year ago. According to New Constructs, it was unattractive at that time. The result: Five is now down 61% year to date. Truth matters. According to Wall Street, MongoDB was a moderate buy 12 months ago, again 3 months ago. According to New Constructs, it's been unattractive the whole time. The result: MongoDB Now down 30%. All this is in up markets, by the way. All 3 of the examples, market's done great this year. All-time great week last week, an all-time great month recently. Truth matters. Now, not only does our research protect you from false buy ratings, it shows you the true buys, those stocks that are attractive or very attractive based on our superior research. Remember, only about 15% of the stocks we analyze have an attractive or very attractive rating. So it's really rare to begin with. And by the way, rare— good stock picks are rare. Not 95% of stocks are good stock picks. Not true. If it were that easy, everyone could do it. And we know very few people outperform. Now, here's where you get to the supercharge ratings. Here's where you get to something we've never really even studied before until recently. When you find a stock that has both an attractive or very attractive stock rating and economic earnings are greater than GAAP earnings, you'll be able to find stock plays that can potentially demolish the S&P 500 in the next year or few years, such as Capri Holdings. When our signal clicked, proprietary adjusted economic earnings greater than GAAP earnings in July of 2020, CPR increased over 220% in the next year. Funko, when the signal flashed, up 110% over the next year. Argonne, when the signal flashed, up over 90% within a year. That's an amazing level of performance. Based on our current data, only 11 of the S&P 500 companies have this metric in place. It's rare. Good stock picks are rare, and of those stocks, only 2 have an attractive or very attractive rating based on our superior stock rating system. So when I'm saying rare, this is extremely rare. And when we scan thousands of stocks and there are precious few stocks that meet these special criteria, you know this opportunity is extremely rare today and not likely to come around again anytime soon. It's important to note These picks go above and beyond our typical rating system. They are considered outliers, and even amongst the attractive rated stocks, we have not placed these types of stocks into a model portfolio. We just found them, and we wanted to get them to you sooner because it takes a while to put together model portfolios. They are special stock picks that could get a new super rating. We might even have a new rating to highlight these on a more regular basis. Why? Because not only are they rated attractive or better, they also have this hidden metric that no one else is able to see but us. And you who subscribe. We've been building and refining our data for over 2 decades now. It gets updated daily with new stock prices and any new filings from the SEC as soon as they're out. At least once a quarter, we update our models on over 3,000 stocks with the latest financial data. Anytime those cues come out, we are on it. That means there are always new ideas coming out of our research. However, we still get very few stocks with these criteria in place. And when we do find these special stocks, we pay extra close attention because most of the time these stocks will have us shouting, it is time to back up the truck. The comprehensive nature of our research entails countless pages of data and documentation, including information from balance sheets, income statements, cash flow statements, footnotes, dozens of other disclosures. Producing and maintaining this, this level of detailed research would set you back millions of dollars each quarter. We publish our work rate, and it's shown that anybody that would understand how to do this, it's millions of dollars a quarter just to analyze all the filings. And our higher-level memberships at New Constructs, they get access to all this detailed data. a special level of depth of financial research that's really a gold mine to professional investors, financial advisors, and hedge fund managers. Saves them millions of dollars every quarter. This high level of research consists of superior unbiased ratings on 10,000+ securities. You can see tons of detail here for Apple, all kinds of detail, ratings, you know, returns on capital, free cash flow yield. All this is like a— every single one of these ratings reports is like having your own model. Take you probably— if you wanted to hire out an expert, you're going to have to pay them probably at least $20,000 to $25,000 to build one model. Then you get portfolio tracking. We'll track all the stocks that you want to put in a portfolio, see how they're doing. This is a picture from a long time ago, but this is what you get when you have a professional membership. You get to rank and sort all the stocks that you want to care most about based on any of these key criteria. You get to screen for stocks with an unprecedented level of precision across all sectors, all industries. It's the best screening system ever produced, in my opinion, in the world. And by precision, we mean it. I mean, you can go in— if you're an institutional client, you can screen on all of these ideas. You can download data on all of these criteria, proprietary metrics, adjustments, operational metrics. It's an incredibly, incredibly rich system. And we go far beyond the competition with the quality of our research. This is how we compare against the best. Nobody else comes close. And this reminds me of a letter that Roberto Goizueta, the legendary CEO of Coca-Cola, wrote me after seeing my economic earnings model in a report. This was back when I was on Wall Street, and the first analyst at Credit Suisse that published the report based on my model, got a, got a personal letter from Roberto Goizueta. And Roberto Goizueta basically said, I love your research, this is great, you were on the right thing. You were focused on return on invested capital, the most important driver of economic earnings, and I believe in that. And I take my hat off to you, Marty Rahm, who was the author of the report, for focusing on this. And by the way, Roberto Goizueta focused on ROIC, and during his tenure Coca-Cola's market cap went from $4 to $100 billion. That's what made Coca-Cola famous. Roberto Goizueta was the legendary CEO of that time. And so when we bring this all back to what you're doing, we're basically unlocking access to the greatest metrics that all the greats have focused on. These stock picks closely align with Warren Buffett's philosophy, where he highlights the difference between a good company And a good investment. I read this to you before. This is like getting Warren Buffett's intelligence before anyone else. Now let's hear from our clients. Here's Nancy saying, thanks, thanks to you and your team for all you do, but mostly for your integrity. Over the years, I've concluded that if one quality can be singled out as the most important, it's honesty. I think that's the best testimonial I've ever seen for any product in the history of the world. This one, this one, this one makes my heartbeat a little faster. I'm, I'm really, really grateful for feedback like this because this is why we're in the business. Here's from Joe. Love the service, period. Think David and the rest of the team have been and continue to do a great job, a good job, and provide a valuable service. Who do you trust? Stock promoters? Everybody's got an angle. So far to date, New Constructs have provided me with more facts than fiction. New Constructs helps identify equity cushions as fixed income investment candidates. This is for somebody who's also a fixed income investor. So we have big clients that are investing in stocks as well as bonds. From David, David M., it provides me with concise insights into the investment opportunities Derived from meaningful metrics that I couldn't duplicate on my own. Okay, let's get to the live demonstration time and show you guys some stock picks. All right, let me get my screen up here. We will log in. Kyle, what do we got here? What's our first pick? First pick will be SLB. All right. Schlumberger. I remember those guys. I lived in Houston for several years. Great company. Well, not looking great these days. Economic earnings are positive and rising. That's great. But the return on invested capital, not so great. The valuation looks really cheap. So overall rating is attractive. You know, the other thing you get with a professional membership is you see this chart. At one point, economic earnings were greater than accounting earnings. Not anymore. Accounting earnings have gone up, maybe too much. You get that chart. You also get to see the return on invested capital over time. You can see return on capital is on the rise. That's a good thing. See the historical returns on capital, 2-year, 3-year, 4-year, 5-year average. The DuPont model, NOPAT margins and capital turns. This is the most sophisticated analysis you'll see anywhere in the world. Most sophisticated analysis you'll see anywhere in the world based on the best data. Here's the free cash flow yield. You got the 2-year average, average free cash flow yield and the regular free cash flow yield. Not too different. There's also the data behind it. You want to know what the free cash flow for Schlumberger has been? That's a big number. It's gone down a little bit. That's generating a lot of cash. If you, if you're a client and know, followed a lot of our long ideas, you'll notice that we've seen a lot of energy companies generating A ton of cash. We got a two-year average free cash flow margin, which is the same thing except you divide by revenue set enterprise value, price to economic book value, and a summary of our of our reverse DCF model. Pretty amazing. All right, Kyle, what's our next one? Next one will be ZTS. ZTS. All right, unattractive. I don't know if you were looking to sell or short, in which case it's good news. Let's switch over and check out the credit rating for a second. Credit rating looks better. You know, the main difference between a stock rating and a credit rating? Valuation. Valuation. So stock— the credit rating can look good because, you know, the economics of the business aren't too bad. When you go to the equity rating, return on investment, economic earnings moving in the wrong direction. What does that look like? Ah, we see, we see the divergence between accounting and economic earnings. Never a good thing. We don't like to see accounting earnings going up and economic earnings going down. Bad sign. And that's a big part of the unattractive rating. Also expensive valuation. So bad risk reward. And that's what we're about. We're not here to like make prognostications. We're not here to give advice or recommendations. We're going to give you— we're going to give you intelligence around risk-reward. Because in a world where you can't predict the future, risk-reward analysis is all you got. I want to click on here on GAAP reconciliation. This is where we summarize all the changes we make to the income statement, right? So again, transparency. Here's how you get To our adjusted earnings or net operating profit after tax. Showing you all the adjustments. There they are. Transparency. Same is true for balance sheet adjustments. Start with total assets, and here's what we get for invested capital and average invested capital. Oh, all those valuation adjustments. What are those? Oh, here they are. Oh, look at this. We got a $100 million option liability. Some people don't even know what that is. That's, you know, it's very important to understand how many options are outstanding and unexercised because that's a claim on existing investors' future cash flow. All right, Kyle, let's hit one more. Last one, COF. CUS. Capital One Financial. Well, they just did a large acquisition of one of our long ideas, or just announced it, so it's suspended. By the way, if you want to know more about analyst notes, you just click on here. And you can actually find, I think, analyst notes in the education section of our site. But that's— this is really, you know, suspended ratings are just— it's a way to highlight that things have happened, corporate actions and things like that that have happened that mean we don't really, you know, we're not real sure about the current financials. So whenever a company makes a huge acquisition like Capital One, they announce it. We know that the financial statements could change materially, which means what we're seeing in the current financial statements is not indicative of what the future is going to be. So we put a pause or suspension on the rating. Still looks pretty cheap, but again, quality of earnings not so good. Credit rating. Yeah, not bad either. Not so bad. One of the really cool things about the credit rating And I'm about to wrap it up and we may take a few more questions here. But the coolest thing about the credit rating, in my opinion, is where we compare traditional versus adjusted metrics. So traditional in red is what you get if you just take unscrubbed data from a data feed or from the income statement and balance sheet. Adjusted is what you get if you got the footnotes data. So I love opportunities to highlight where better data makes a difference. And like, we do it all day long with the credit ratings, and there's not always a difference, but when there is, you want to know. All right, well, thanks so much, everybody. I appreciate all the, the votes. Tons of votes in there for stock picks, and thank you.