February 6, 2017

Bringing Technical Analysis into Value Investing

Bringing Technical Analysis into Value Investing

Though I’m a strong believer in the fundamentals, and will die by the principals that fundamental investing works the best, I do have to admit that there are some virtues to technical investing. This is especially true when we look at how technical analysis can help us build and maintain our more fundamental and value based strategies.

 

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The Trending Value has a very simplistic editor. Basically, for a company to pass, they just have to have a market cap of greater than 15% of the companies within the universe, and have an O’Shaughnessy VC2 score of greater than 90% of the market.…

October 17, 2016

Ally Invest Purchased Equities Lab Basic for All Members

Ally Invest Group has Just Purchased Equities Lab Basic Accounts for all of their Members

We are excited to announce that over the past few months we have been working hard on integrating the Ally Invest Group API into our system. Now that we have completed that task, you can easily go into Equities Lab and use our software for all of your investing needs – from analyzing potential positions to executing trades.

Better yet, Ally Invest Group has purchased all of their existing, and future, members an Equities Lab Basic membership. This means that you get our next generation screening and backtesting tools for free.…

June 28, 2016

Explanation of our new Value Across Time Score

Value Investing By Time

In this short article we are going to go over what exactly is calculated in the new Value Across Time Score. The first thing that you need to know is that each part of the score is based on the rank of a variable within the last year.

This strategy, at its core, takes a look at each company within the universe and ranks it based on these factors basing it off of the performance of that company over the past year in each of these categories. This results in companies that, when compared with themselves and then again to the broader market, have a history of outperforming the rest of the market.…

May 20, 2016

Six Steps to Validate a Stock Screen

Validating Investment Screens

It is honestly not very hard to find a screen that can easily beat the market over the past 20 years. If you have a rudimentary understanding of the market you can create a screen in a few seconds that can make you a great “return”.

Here is example of screen that does just that. It took me more time to actually navigate to the screener than to actually build and run this screen. I simply just grabbed every company whose share price increased last year. Well, it makes a nice return over this period of time. Should I invest in it?…

January 1, 2016

Value Investing with Equities Lab

Overview

A very simple stocker is presented that very effectively produces value-based stock returns. The screener, with realistic assumptions, produces 25% annualized returns with a standard deviation of 26% from 1995 to 2015, as backtested in Equities Lab.

Background

Value investing is a framework of investing that selects stocks that have low prices compared to their intrinsic value [1]. The hope is that the stock price comes to reflect the intrinsic value after the investment is made . A number of metrics are available to the general public and through Equities Lab that help identify potential value stocks.  These are ratios such as:

  • price / earnings
  • price / book value
  • price / sales
  • price / free cash flow
  • price / cash flow
  • enterprise value / EBITDA

The debate is open about how to best identify value, but this blog post does not attempt to resolve this.

November 18, 2015

Value Investing With Equities Lab

Overview

A very simple stocker is presented that very effectively produces value-based stock returns. The screener, with realistic assumptions, produces 25% annualized returns with a standard deviation of 26% from 1995 to 2015, as backtested in Equities Lab.

Background

Value investing is a framework of investing that selects stocks that have low prices compared to their intrinsic value [1]. The hope is that the stock price comes to reflect the intrinsic value after the investment is made . A number of metrics are available to the general public and through Equities Lab that help identify potential value stocks. These are ratios such as:

  • price / earnings
  • price / book value
  • price / sales
  • price / free cash flow
  • price / cash flow
  • enterprise value / EBITDA

The debate is open about how to best identify value, but this blog post does not attempt to resolve this.…