Logiq (LGIQ) Predictability Rank

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What is Logiq 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.

Logiq 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

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Logiq (LGIQ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Logiq Inc (OTCPK:LGIQ) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

85 Broad Street, 16-079, New York, NY, USA, 10004

Website

https://www.logiq.com

Logiq Inc is a U.S.-based leading global provider of e-commerce and customer acquisition solutions by simplifying digital advertising. It provides data-driven, end-to-end marketing through its results solution or providing software to access data by activating campaigns across multiple channels.

Executives

Bordes Peter A Jr	director	C/O BEASLEY BROADCAST GROUP, INC., 3033 RIVIERA DRIVE, SUITE 200, NAPLES FL 34103
Christopher Andrews	officer: Chief Operating Officer	228 PARK AVENUE SOUTH, SUITE 72602, NEW YORK NY 10003
Brent Suen	director, officer: CEO, PRESIDENT	198 WELLINGTON STREET, 8/F THE WELLINGTON, CENTRAL, HONG KONG K3 00000
Tom Furukawa	officer: Chief Executive Officer	840 NEWPORT CENTER DRIVE, SUITE 450, NEWPORT BEACH CA 92660
John Francis Macneil	other: INSIDER	85 BROAD STREET, 16-079, NEW YORK X1 10004
Leanora Iannone Hickman	director	85 BROAD STREET, 16-079, NEW YORK NY 10004
Steven James Hartman	officer: Chief Product Officer	85 BROAD STREET, 16-079, NEW YORK NY 10004
Daniel Urbino	officer: Chief Operating Officer	85 BROAD STREET, 16-079, NEW YORK NY 10004
Joshua Jacobs	director	9917 LA TUNA CANYON ROAD, SUN VALLEY CA 91352
Matthew Brent	officer: Chief Strategy Officer	85 BROAD STREET, 16-079, NEW YORK NY 10004
Conversionpoint Technologies Inc.	10 percent owner	18400 VON KARMAN AVE, SUITE 1000, IRVINE CA 92612
Foong Eddie Wai Keong	director, officer: CHIEF PRODUCT OFFICER	85 BROAD STREET, 16-079, NEW YORK NY 10004
George Yu	officer: President & CEO	FLAT 4, 8/F, MAN YUEN BLDG., YAU MA TEI, KOWLOON K3 0000000
Shan Ming Gu	10 percent owner	#902, NO. 55, LANE 789, QINGHU ROAD, QINGPU DISTRICT, SHANGHAI F4 201700
Christopher Sean Metcalf	director, other: Chairman of the Board	815-A BRAZOS ST., #322, AUSTIN TX 78701