What is AXIM Biotechnologies Predictability Rank?
1 (5)
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.
AXIM Biotechnologies 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
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
AXIM Biotechnologies Business Description
Traded in Other Exchanges
N/A
Address
6191 Cornerstone Court, E, Suite 114, San Diego, CA, USA, 92121
AXIM Biotechnologies Inc is a vertically integrated research and development company focused on improving the landscape for the diagnosis of ophthalmological conditions such as Dry Eye Disease through rapid diagnostic tests. Additionally, The company owns IP and has conducted research on SARS-CoV-2 (COVID-19) rapid neutralizing antibody tests to detect levels of functional neutralizing antibodies that are believed to prevent SARS-CoV-2 from entering the host cells, as well as for oncological indications.
Executives
| Kurt Phinney |
officer: Chief Operating Officer |
6914 MAGELLAN WAY, SARASOTA FL 34243 |
| Peter O'rourke |
director |
C/O NORTHVIEW ACQUISITION CORP., 207 WEST 25TH STREET, 9TH FLOOR, NEW YORK NY 10001 |
| Catalina Valencia |
10 percent owner |
6191 CORNERSTONE COURT, E, SUITE 114, SAN DIEGO CA 92121 |
| Glycodots, Llc |
10 percent owner |
6191 CORNERSTONE COURT, E, SUITE 114, SAN DIEGO CA 92121 |
| Juniper & Ivy Corp |
10 percent owner |
5201 MEMORIAL DRIVE, SUITE 616, HOUSTON TX 77007 |
| Huemoeller John Walter Ii |
director |
305 SAN ANSELMO AVENUE, SUITE 300, SAN ANSELMO CA 94960 |
| Blake Schroeder |
director |
5 ROCKERFELLER PLACE, 20TH FLOOR, SUITE 83, NEW YORK NY 10111 |
| Robert L Cunningham |
director |
5 ROCKERFELLER PLACE, 20TH FLOOR, SUITE 83, NEW YORK NY 10111 |
| Timothy Richard Scott |
director |
5 ROCKERFELLER PLACE, 20TH FLOOR, SUITE 83, NEW YORK NY 10111 |
| Robert Malasek |
officer: CFO |
PO BOX 235472, ENCINITAS CA 92023 |
| Lekhram Changoer |
10 percent owner |
18 EAST 50TH STREET, 5TH FLOOR, NEW YORK NY 10022 |
| Medical Marijuana, Inc. |
10 percent owner |
12255 CROSTHWAITE CIRCLE, POWAY CA 92064 |
| Van Damme Philip A |
10 percent owner |
18 EAST 50TH STREET, 5TH FLOOR, NEW YORK NY 10022 |
| Foundation Sanammad |
10 percent owner |
18 EAST 50TH STREET, 5TH FLOOR, NEW YORK NY 10022 |
| George Anastassov |
10 percent owner |
18 EAST 50TH STREET, 5TH FLOOR, NEW YORK NY 10022 |
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