This week's Alpha Trader podcast features hosts Aaron Task and Stephen Alpher speaking with David Trainer, CEO of independent research firm New Constructs, and the author of Value Investing 2.0, a newsletter available on Seeking Alpha's Marketplace service.
Among the topics covered:
The Evergrande story out of China is naturally worth paying attention to, but it's particularly important during these times of stretched market valuations. The question at hand is whether the Chinese government will step in to ease liquidity concerns. This is likely to happen, but there's no guarantee.
Trainer explains his proprietary concept of Earnings Distortion, a systematic alpha-generating calculation of a company's true (vs. reported) results.
Among Trainer's favorite picks is Disney (DIS), which is weathering the challenge from Netflix (NFLX) very well. Trainer notes Disney generates massive cash flow from multiple channels, while Netflix is burning through billions.
Another favorite is Walmart (WMT) - like Disney, generating billions in cash flow, and also like Disney, weathering the challenge from a sexier competitor (in this case Amazon).
Links of interest:
David Trainer's Value Investing 2.0
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