Ocean Biomedical (Ocean Biomedical) Predictability Rank

View and export this data going back to 2023. Start your Free Trial

What is Ocean Biomedical 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.

Ocean Biomedical 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

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	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 Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-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

Ocean Biomedical Predictability Rank Related Terms

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

Ocean Biomedical (Ocean Biomedical) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Ocean Biomedical Inc (NAS:OCEA) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

8AW0:Germany

Address

55 Claverick Street, Room 325, Providence, RI, USA, 02903

Website

https://www.oceanbiomedical.com

Ocean Biomedical Inc is a biopharmaceutical company. It is dedicated towards partnering with inventor-scientists and research institutes to bridge the gap between basic research and clinical development, to get new medicines to the patients who need it most.

Executives

Robert J Sweeney	officer: Chief Accounting Officer	20298 CRAIGEN CIRCLE, SARATOGA CA 95070
M Michelle Berrey	director	303A COLLEGE ROAD EAST, PRINCETON NJ 08450
William F Owens	director	C/O KEY ENERGY SERVICES, INC., 1301 MCKINNEY STREET, SUITE 1800, HOUSTON TX 77010
Inderjote S Kathuria	officer: Chief Strategy Officer	19W060 AVENUE LATOUR, OAK BROOK IL 60523
Gurinder S Kalra	officer: Chief Financial Officer	2305 WASHINGTON STREET, APT 301, SAN FRANCISCO CA 94115
Chirinjeev Kathuria	director	C/O UPHEALTH HOLDINGS, INC., 14000 S. MILITARY TRAIL #203, DELRAY BEACH FL 33484
Jerome Ringo	director	1731 EMBARCADERO ROAD SUITE 200, PALO ALTO CA 94303
Poseidon Bio, Llc	10 percent owner	OCEAN BIOMEDICAL, INC., 55 CLAVERICK ST., ROOM 325, PROVIDENCE RI 02903
Daniel Behr	officer: EVP, Innov./Acad. P'ships Head	OCEAN BIOMEDICAL, INC., 55 CLAVERICK ST., ROOM 325, PROVIDENCE RI 02903
Jack A Elias	director	OCEAN BIOMEDICAL, INC., 55 CLAVERICK ST., ROOM 325, PROVIDENCE RI 02903
Jonathan Kurtis	director	OCEAN BIOMEDICAL, INC., 55 CLAVERICK ST., ROOM 325, PROVIDENCE RI 02903
Elizabeth Ng	director, officer: Chief Executive Officer	OCEAN BIOMEDICAL, INC., 55 CLAVERICK ST., ROOM 325, PROVIDENCE RI 02903
Martin D Angle	director	OCEAN BIOMEDICAL, INC., 55 CLAVERICK ST., ROOM 325, PROVIDENCE RI 02903
Aesther Healthcare Sponsor, Llc	10 percent owner	515 MADISON AVE., SUITE 8078, NEW YORK NY 10022
Michael L Peterson	director	17 CANARY COURT, DANVILLE CA 94526