Local investment evaluator David Trainer has signed an agreement to supply its research reports to clients of FA Today, which sells news and technology tools to independent financial advisors looking to connect with each other. FA Today's current format was launched in October, when it had about 12,000 users.
Saying that Apple's profits are "on the back side of the mountain," David Trainer of New Constructs on Tuesday told viewers of MoneyLife with Chuck Jaffe that the company's shares are worth just $240, more than 40 percent below where they closed trading yesterday. Trainer's method of valuing stocks relies on deep dives into its financials and he said Apple is looking a lot like Dell in its heyday.
Trainer said that if the company can maintain a 75% return on invested capital, “the stock’s worth about 295 bucks. If the return on invested capital drops closer to 50, the stock’s worth closer to 240 bucks, and I think that’s where it ought to be, or where it’s going to go eventually.”
UPDATE: Trainer also talked to CNBC's "Squawk on the Street" Wednesday
David Trainer, president of local investment ratings firm New Constructs and miner of financial fine print, says ETF investors would be well served in the coming months by putting their money in vehicles that track the consumer staples sector. That part of the market, Trainer says, contains the fewest stocks he considers to be risky and plenty of names that produce a lot of cash for investors.
Local investment researcher David Trainer at New Constructs says technology stocks are primed for decent gains in the remainder of 2011. But he doesn't see many options for getting into the game via ETFs.
Note: New Constructs is backed by Solidus, which also has invested in Nashville Post parent SouthComm.
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