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Summit Networks (Summit Networks) Predictability Rank


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What is Summit Networks 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.

Summit Networks 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

Summit Networks Predictability Rank Related Terms

Thank you for viewing the detailed overview of Summit Networks's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Summit Networks (Summit Networks) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Summit Networks Inc (OTCPK:SNTW) » Definitions » Predictability Rank
Comparable Companies
FGI KEQU VIRC AUVI LUVU LNBY EFOI NVFY CRWS NTZ SZSE:000333 SHSE:600690 SZSE:000651 SHSE:603833 WHR FBHS MHK SHSE:603486 SZSE:002032 SHSE:605117
Traded in Other Exchanges
N/A
Address
3010-8888 Odlin Cresent, Richmond, BC, CAN, V6X 3Z8
Website
https://www.sumnets.com
Summit Networks Inc was engaged in the development and operation of a business engaged in the distribution of glass craft products produced in China. It is looking for new business opportunities. Currently, The company is in the early stage of development of Its new business plan which involves acting as an international agent through Their wholly-owned subsidiaries, Smith Barney, Green Energy, and Beijing ALW.
Executives
Chi Ming Tso 10 percent owner 3A, KINGSWELL COMMERCIAL TOWER,, 171-173 LOCKHART RD., WANCHAI, HONG KONG K3 HKG
Keun Harry Cheung 10 percent owner ROOM 1006, 10/F TIAN GARDEN, LIN HE EAST, GUANGDONG F4 00000
Hang Dennis Cheung 10 percent owner FLAT H, 5/F, BLOCK 2, WHAMPOA GARDEN, BAUHINIA MANSIONS, KOWLOON K3 00000
Yee Man Cheung 10 percent owner RM 1709, NORTH TOWER, ZHONGZHOU CENTRE, 1068 EAST XINGANG AVENUE,HAIZHU DISTRICT, GUANGDONG PROVINCE F4 00000
Qiuli Chen director 1709 NORTH TOWER ZHONGZHOU CENTRE, 1068 EAST ROAD HAIZU DISTRICT, GUANGZHOU, GUANGDONG F4 00000
Riggs Cheung director, officer: President 41 BOBOLINK LANE, LEVITTOWN NY 11756

Summit Networks (Summit Networks) Headlines

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By Marketwired Marketwired • 02-17-2021