No. of Recommendations: 6
I took Jim's idea and added some Buffetology to it. I excluded highly regulated industries, commodities, and services. The annual P123 return popped and its Sortino ratio soared (2.02). Now, I currently only have the 5-year backtest period, which is insufficient for critical analysis.
Here's the P123 pseudocode I used:
EPSActual(0, ANN) > 0
EPSExclXorTTM > 0
LTGrthMean > 0
!GICS(FINANC) and !GICS(BASICM) and !GICS(UTILIT)
!GICS(REOPER) and !GICS(BLDRAW) and !GICS(AGRLIV) and !GICS(ACROPS) and !GICS(CCOALL)
!GICS(SERVICESUPP) & !GICS(SERVICEPRO) & !GICS(SVCEDIV) & !GICS(HCAREPROVID) & !GICS(FINDIVSVCE) & !GICS(TECHSVCE)
DbtTotTTM != NA & DbtTot(0,ANN,FALLBACK) != NA
BVPSA < 0
FOrderOLD("CashTTM",#All,#DESC,#Previous,TRUE) <= 5
If someone has the long-term back test P123 subscription, please test this for the longer term and let us know if it holds.
What still perplexes me is that Air-France-KLM SA pops up in today's screen. It has a market cap of $3.18B but total debt of $19.390B! I have a hard time believing that is a good buy; however, anything I add to try and eliminate it has a negative effect on overall returns.
Ideas?
Taz
