Investment Red Flags - Micro-Cap Companies
Every time I get on the internet to try and find something new to learn about the markets I’m inundated with advertisements selling classes. These classes all seem to follow the same theme – they teach you how to become “rich” on penny and microcap stocks. Some people even get lucky and make some money doing it, but the vast majority is simply throwing money into a pit.…
Investment Green Flags - Increasing Sales and High Asset Turnover
Revenue Growth and High Asset Turnover When it comes to finding green flags, sometimes the simplest idea is the best. In the case of our flag–Revenue Growth and High Asset Turnover–we look for just that. It’s self-explanatory that if a company brings in more money and sells units faster, its long-term price should increase.…
Investment Red Flags – Bad Beneish Score
How negatively does a bad Beneish score affect your portfolio? With all of the recent articles regarding red and green flags, I realized I should begin writing articles on the flags within the score. One such flag, the bad Beneish score, is a key component of the red flags score.…
Feature image not available
If you have been using the Equities Lab system in recent weeks, you may have seen a new error that hadn’t appeared before. ——————————— Stock Server Error:Server Error:Cannot compare split ajusted quantities to constants: greater(Close, 444) Don’t worry! This error message doesn’t mean that the system is down; it simply tells you that there is a split adjusted value in a place it shouldn’t be.…
Learning about Green Flags and their score
Green Flags Now that we’ve gone over red flags, it’s time to look at the other side of the equation and learn about green flags. In our previous article, we discussed that red flags don’t necessarily mean that an investment is going to lose money. Green Flags are the polar opposite from a red flag, but it still doesn’t guarantee anything.…
I have noticed one major theme among every person(myself included) when it comes to screening for potential investments – we are all far too selective.
It isn’t uncommon for one of our users to call us up and ask for help. To be honest, there have even been times when I will help a client at their site to get them up and running. In the past two years of working in this industry, I have noticed one major theme among every person(myself included) when it comes to screening for potential investments – we are all far too selective.…
millennials want to invest in something that they feel is groundbreaking and familiar to them within the culture of their age group. Many times, this results in them asking me for advice on marijuana stocks. So, instead of going into it with every single friend, I've decided to compile my thoughts on the Marijuana industry here.
Being the 20 something year olds that they are (myself included), millennials want to invest in something that they feel is groundbreaking and familiar to them within the culture of their age group. Many times, this results in them asking me for advice on marijuana stocks. So, instead of going into it with every single friend, I’ve decided to compile my thoughts on the Marijuana industry here.…
   August 1, 2017    0
Ohlson O-Score
If you’re a short seller, then I’d like to introduce you to the Ohlson O-Score. This is a score created by Dr. James Ohlson of New York University, aimed at predicting the financial distress of a company. The Ohlson O-Score is the result of a nine-factor linear combination of coefficient-weighted accounting ratios that are found from financial disclosure statements that are provided by publicly traded companies.…
The semiconductor industry is an important one, in fact, if it weren’t for semiconductors then you wouldn’t even be able to read this. So what exactly is a semiconductor, and why should you care about them?
The semiconductor industry is an important one, in fact, if it weren’t for semiconductors then you wouldn’t even be able to read this. So what exactly is a semiconductor, and why should you care about them? A semiconductor, in a nutshell, is a materials product usually made of silicon, which conducts electricity more than an insulator but less than a pure conductor, such as aluminum or copper.…
   July 16, 2017    0   ,
With the publishing of our Synopsis with red flags article, I thought it was time to discuss what exactly a red flag is and why they should be looked for when identifying and eliminating potential investments
With the publishing of our Synopsis with red flags article, I thought it was time to discuss what exactly a red flag is and why they should be looked for when identifying and eliminating potential investments. At its core, a red flag doesn’t mean that the investment is bad. It just means that you are more likely to lose money on the long position than you are to make a profit.…
I've been seeing a lot of articles recently that are very focused on the idea, that by purchasing the industry or sector that performed best over the past year you are giving you the best chance at making returns. I'm a little skeptical, but just as hopeful to see whether or not this is a potential new avenue to take in my portfolio.
I’ve been seeing a lot of articles recently that are very focused on the idea, that by purchasing the industry or sector that performed best over the past year you are giving you the best chance at making returns. I’m a little skeptical, but just as hopeful to see whether or not this is a potential new avenue to take in my portfolio.…
 When investing, for every fairy tale stock like an Amazon(AMZN) or Nvidia(NVDA), there’s an equally disastrous stock like MoSys(MOSY) or Gevo (GEVO). To avoid getting into stocks like these, it’s important to look at their failures and analyze them to avoid getting into the next potential train wreck of a stock
When investing, for every fairy tale stock like an Amazon(AMZN) or Nvidia(NVDA), there’s an equally disastrous stock like MoSys(MOSY) or Gevo (GEVO). To avoid getting into stocks like these, it’s important to look at their failures and analyze them to avoid getting into the next potential train wreck of a stock. …
The term "red flags" is synonymous with "bad things are going to happen," and, for investors, they are a sign that you should likely stay away from that investment. However, all this talk of red flags being able to predict that a company is going to do poorly makes you wonder, does it work?
Just how telling are red flags? The term “red flags” is synonymous with “bad things are going to happen,” and, for investors, they are a sign that you should likely stay away from that investment. However, all this talk of red flags being able to predict that a company is going to do poorly makes you wonder, does it work?…
Creating Your Own Score
Most anytime we analyze a company or build a screen; we use a number of scores that are pre-built in the Equities Lab system. These scores are tried and tested, but they lack that personal touch. I think it’s time we learned how to build our own scores within the software.…
Is Biotech Back From the Dead?
Background Biotech, a sector that can make or break your portfolio. But first, what even is “biotech”? In a nutshell, biotech is the use of living organisms to make products or run processes. People know biotech best for the vital role it plays in the field of medicine. However, biotech is not limited to just medicine.…
   June 26, 2017    1   
Survivorship Bias – How does it work?
I was recently lurking around an online investment forum when the following post came up – “I recently ran an experiment where I generated random 7 to 50-stock portfolios from the 500 largest U.S. traded companies and measured their performance over the past 10 years. All of the randomly selected portfolios outperformed the S&P500 and BRK.B in terms of compound annual rate of return.…
Monte Carlo Simulation – Advanced Investing
Monte Carlo Simulation As investors, we all know that each investment we make comes with a certain amount of risk. We can decrease this risk by understanding all possible outcomes. Better yet, we can visualize each outcome through the use of a Monte Carlo Simulation. In a broad stroke definition – a Monte Carlo simulation allows for people to make informed quantitative decisions based on a range of possible outcomes.…
Feature image not available
In my years of using Equities Lab as a quantitative investment tool, I have never lost sight of the core values of long term investing. Many of these values are in the teachings of Benjamin Graham and used by an idol of mine, Warren Buffett. Remembering this, no matter how much risk I take on in my portfolio, I always keep a subsection for value investments.…
Beneish M-Score
The Beneish M-score was designed as a way to detect possible manipulation of a company’s financial statements. The score itself can be anything between –infinity and +infinity, though most scores fall between -10 to 10. Anything below -2.22 is considered a good score and suggests that the company is likely not manipulating their balance sheet.…
   April 30, 2017    1   ,
Relative Strength Indicator (RSI)
I’m not a big technical trader. That being said, a lot of people in the information age are, and because of that we have been sure to include a number of technical indicators within the Equities Lab system. One such indicator, the relative strength index(RSI), is extremely common among technical analysts, and I think it is time to put the RSI indicator to the test.…