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Remedent (Remedent) Predictability Rank


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What is Remedent 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.

Remedent 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

Remedent Predictability Rank Related Terms

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

Remedent (Remedent) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Remedent Inc (OTCPK:REMI) » Definitions » Predictability Rank
Comparable Companies
SECI RSCF OZSC ASNB WHSI VLRXQ NURO ECIA POAI ELGX BDX ISRG XPAR:EL BAX OCSE:COLO B TSE:7741 XSWX:ALC TSE:4543 XPAR:DIM RMD
Traded in Other Exchanges
N/A
Address
Zuiderlaan 1-3, Box 8, Ghent, BEL, 9000
Website
https://www.remedent.com
Remedent Inc is a manufacturer of cosmetic dentistry products in Europe. The company is engaged in the research, development, and manufacturing of oral care and cosmetic dentistry products. It designs, develops, manufactures, and distributes cosmetic dentistry products, including a full line of professional dental products that are distributed in Europe, Asia, the Middle East, and the United States. The product line of the company includes SmileWise, the SmileMe mirror, and the Condor intra-oral 3D scanner.
Executives
Stuart Steinberg 10 percent owner 85 BELLEVUE AVENUE, RYE NY 10580
Marxe Austin W & Greenhouse David M 10 percent owner C/O SPECIAL SITUATIONS FUNDS, 527 MADISON AVENUE, SUITE 2600, NEW YORK NY 10022
Gruber & Mcbaine Capital Management Llc 10 percent owner 234 VAN NESS, STE 5, SAN FRANCISCO CA 94133
Stephen Farley Ross director, officer: CFO; Secretary XAVIER DE COCKLAAN 42 DEURLE C9 9831
Fred Kolsteeg director XAVIER DE COCKLAAN 42 DEURLE C9 9831
Acker Philippe Van director C/O REMEDENT, INC. XAVIER DE COCKLAAN 42 9831 DEURLE C9 9831
Robin List other: Former Officer and Director XAVIER DE COCKLAAN 42 DEURLE C9 9831
Roger Leddington officer: Sr VP & Head of US Marketing C/O REMEDENT, INC. XAVIER DE COCKLAAN 42 DEURLE C9 9831
Guy Devreese director, officer: Chairman of the Board XAVIER DE COCKLAAN 42 DEURLE C9 9831
Judd Darrin Hoffman officer: VP Worldwide Sales/Operations 702A JUANITA AVENUE REDONDO BEACH CA 90277
Nv Lausha 10 percent owner C/O REMEDENT, INC. XAVIER DE COCKLAAN 42 9831 DEURLE C9 9831

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