Eliminate the Noise. Focus on the Data that Matters…

Whether its positive gross margin growth, pure operating margin growth, or a strong FCF/EV ratio – these are some of the varying components that can provide investors with some limited insight into the strength and short term direction of a company’s stock price…

The challenge is in knowing how to bring together these initially fragmentary core metrics into cohesive, fully integrated, and fully testable formulae, which combine logic and reason into identifying successful businesses, which provide potential deep-value and growth trading ideas…

Below, you will learn how each of the two distinctive stock screens we run, which power the Select10 portfolio strategy, have consistently delivered strong value + growth trading ideas, fully supported by documented performance results, showing every trade, through every four week holding period, from December 2008 to April 2018.

Firstly, in order to screen stocks based on fundamental company data, the quality and integrity of the backend data is of critical importance…

Every Data-Point Backed by Stringent, Institutional-Core Quality Data…

Since 2008, we have collected and maintained our own in-house data, updated every quarter, for each of the five hundred S&P stocks. Each relevant line-item data is diligently derived and meticulously checked from each company’s reported quarterly statements.

To the raw line-item data (such as revenues, gross profit, inventory, cash and equivalents, etc.), we apply our own fundamental ratio’s and complex algorithms, developed in-house, to calculate more advanced metrics such as ‘pure operating margin’, ‘buy-side institutional volume flow’, ‘enterprise value’ (for which we apply our own formula rationale, as opposed to the generic EV), etc. The finished data is applied to our continual research, strategy testing and dual stock screening processes.

We do not rely on third party data, which in our experience lacks consistency, and neglects certain criteria/detail we demand in the data set. For instance, there is no readily available data source which differentiates between how we define ‘pure’ operating profit, versus generally accepted operating profit. This is frustrating, as the compromise can miss a key detail, and potentially affect bottom line performance in that particular trade…

By maintaining our own data sets, and calculated metrics (eg., pure operating margins, enterprise value, etc.), we are able to ensure every screening process and back/forward test we carry out, which ultimately places capital to work, has a superior and reliable degree of dependability.

The Satisfaction of Beating the S&P 500… Consistently.

Each one of our two stock screens run independently, based on distinct concepts/objectives. As shown on the previous page, for each strategy, exact screening rules are applied to every S&P 500 stock, in order to initially narrow down the universe to ‘qualifying’ stocks. These qualifiers are then ranked (sort-ordered) by a specific fundamental metric (eg., FCF/EV ratio), as shown earlier…

The stock screens and ranking process are run every fourth Sunday, giving us the published ‘top eight’ stocks from each stock screen. Effectively, the top 5 stocks from each screen (totalling 10 stocks) are bought and held over the next four week period (the holding period).

After each four week period, the entire process is re-run from the beginning. A freshly updated list of 10 stocks, which can include some stocks re-appearing from the previous period, are purchased/held from the next market open. Any stock which is no longer in the Select10 are sold, and new ones bought, always holding/maintaining exactly 10 stocks in the strategy-portfolio.

The following link (PDF) provides specific, trade by trade performance data for the Select10 strategy, run from December 1st 2008 to 4th April 2018. This provides a total of precisely 122 fully completed four week periods.

Register Your Interest Pre-Launch…

Currently we are looking to offer the service to a limited number of beta subscribers. If you would like to be considered in being one of the subscribers (each member will be provided a unique 3 digit access code), simply enter your details in the short form below, and we will be in touch…

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Smarter Trades

Discover Trade Ideas Based on Robust Fundamentals and Strong Cash Flow Dynamics

Proven Performance

Fully Documented, Checkable 10 Year Trade-by-Trade Performance Data Since 2008

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Focus On Liquid Stocks

Confident Entry/Exit + Hedging Demands 'Liquidity' - why we Focus 100% on S&P-500 Stocks

Highest Standards

All Research and Performance Data Backed by Stringent, Institutional-Core Quality Data

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