GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » LeapCharger Corp (OTCPK:LCCN) » Definitions » Predictability Rank

LeapCharger (LeapCharger) Predictability Rank


View and export this data going back to 2010. Start your Free Trial

What is LeapCharger Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

LeapCharger Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%1.1%3.1%


















For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-Star (non-predictable)Average among all
% Out of All 2403 Stocks 3.3% 2.9% 3.7% 3.3% 3.3% 3.7% 3.3% 76.3% 100%
% that are in Loss (10y) 3% 10% 8% 9% 11% 18% 16% 45% 37%
Average Gain (10y) 364.6% 330.9% 278.0% 235.1% 243.5% 227.8% 154.8% 100.0% 138.1%
Median Gain (10y) 238.5% 193.5% 171.0% 159.0% 132.5% 113.5% 87.0% 13.0% 39.0%
Maximum Gainer 2228.0% 2547.0% 2452.0% 2852.0% 2432.0% 1892.0% 1807.0% 11483.0% 11483.0%
Maximum Loser -82.0% -53.0% -67.0% -100.0% -83.0% -100.0% -78.0% -100.0% -100.0%
Annualized Average Gain 15.4% 14.6% 13.2% 12.0% 12.2% 11.7% 9.1% 6.7% 8.4%
Annualized Median Gain 12.1% 10.6% 9.8% 9.3% 8.2% 7.3% 6.0% 1.1% 3.1%
















For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Also read:

Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

LeapCharger Predictability Rank Related Terms

Thank you for viewing the detailed overview of LeapCharger's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

LeapCharger (LeapCharger) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » LeapCharger Corp (OTCPK:LCCN) » Definitions » Predictability Rank
Comparable Companies
HLLK CDXQ CIRX KDCE IDVV CBCA SPOM AFDG UPIN ADX:IHC HON TSE:8058 TSE:6501 TSE:8031 TSE:8001 MMM ADX:ALPHADHABI HKSE:00267 TSE:8002 TSE:8053
Traded in Other Exchanges
N/A
Address
Abu Hail, 1st Floor/29, Khalifa B A Balila Building, Dubai, ARE
Website
https://www.greenplex.net
LeapCharger Corp formerly Greenplex Services Inc is doing business with electric vehicle (EV) charging solutions for consumers and businesses.
Executives
Dale Robbins officer: President 2525 E. 29TH AVE., STE 10-B #342, SPOKANE WA 99223
Kurt Boehl director 2525 E. 29TH AVE., STE 10-B #342, SPOKANE WA 99223
Martin Murray director, officer: Treasurer, CFO 425 MADISON AVE, SUITE 902, NEW YORK NY 10017
Manuel Graiwer director 3600 WILSHIRE BLVD, #2100, LOS ANGELES CA 90010
Mark C. Hutchison director, officer: VP of Operations, Secretary 2525 E. 29TH AVE., STE 10-B, SPOKANE WA 99223
Roy Matthew Haskin director 2525 E. 29TH AVE., STE 10-B, SPOKANE WA 99223
Victor T. Foia director, officer: PRESIDENT, CEO 2525 E. 29TH AVE., STE 10-B #342, SPOKANE WA 99223
Bruce Gillis director 710 N. ARDEN DR., BEVERLY HILLS CA 90210
Kyle W. Carlson director, 10 percent owner, officer: Pres, Treas, CEO, CFO 10183 NORTH AERO DRIVE, STE. 2, HAYDEN ID 83835
Andrew Christman director, 10 percent owner, officer: VICE PRESIDENT 10183 NORTH AERO DRIVE, SUITE 2, HAYDEN ID 83835
Susan L. Troyer director, 10 percent owner, officer: TREASURER, SECRETARY, CFO 10183 NORTH AERO DRIVE, SUITE 2, HAYDEN ID 83835