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PLSH (Panacea Life Sciences Holdings) Predictability Rank


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What is Panacea Life Sciences Holdings 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.


Panacea Life Sciences Holdings 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

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%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 Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-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

Also read:

Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

Panacea Life Sciences Holdings Predictability Rank Related Terms

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Panacea Life Sciences Holdings Business Description

Traded in Other Exchanges
N/A
Address
5910 S University Boulevard, C18-193, Greenwood Village, CO, USA, 80121
Panacea Life Sciences Holdings Inc is a holding company organized as a plant-based natural health ingredient and product company, specializing in the development, manufacturing, research, and distribution of products and rapidly growing natural health and wellness market segment for both humans and animals. Its products are CBD Softgels, CBD Tablets, CBD Topicals, CBD Skin Care, CBD Tinctures, CBD Edibles, CBD Patches, CBD Pets, and PPE.
Executives
Leslie Buttorff director, 10 percent owner, officer: CHIEF EXECUTIVE OFFICER 16194 W 45TH DRIVE, GOLDEN CO 80403
Janice Nerger director 5910 S UNIVERSITY BLVD., C18-193, GREENWOOD VILLAGE CO 80121
Nathan Joel Berman officer: CONTROLLER & PRIN ACTNG OFCR 16194 W 45TH DRIVE, GOLDEN CO 80403
22nd Century Group, Inc. 10 percent owner 8560 MAIN STREET, SUITE 4, WILLIAMSVILLE NY 14221
Harvey J Kesner 10 percent owner 65 E. 55TH STREET, NEW YORK NY 10022
Lawrence Wert director 170 NUTTALL RD, RIVERSIDE IL 60546
Chesne Derek Du officer: Chief Growth Officer 80 NE 4TH AVENUE, SUITE 28, DELRAY BEACH FL 33483
Alvaro Daniel Alberttis director 80 NE 4TH AVENUE, SUITE 28, DELRAY BEACH FL 33483
Vladislav Yampolsky director, 10 percent owner 332 PLAZA REAL, BOCA RATON FL 33432
Steven A Schwartz director 332 PLAZA REAL, BOCA RATON FL 33432
Andrew L. Johnson officer: Chief Strategy Officer 80 NE 4TH AVE. SUITE 28, DELRAY BEACH FL 33483
Emiliano Angel Aloi officer: President 510 SUNSHINE DRIVE, DELRAY BEACH FL 33444
Jonathan Gilbert director, officer: Executive Chairman 36 SYCAMORE LANE, ROSALYN HEIGHTS NY 11577
John C Price director 4721 IRONTON STREET, BUILDING A, DENVER CO 80239
Kevin James Esval director NEURO HITECH INC, ONE PENN PLAZA STE 1503, NEW YORK NY 10019

Panacea Life Sciences Holdings Headlines

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