What is CLS Holdings USA 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.
CLS Holdings USA 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
CLS Holdings USA Business Description
Traded in Other Exchanges
Address
516 South, 4th Street, Las Vegas, NV, USA, 89101
CLS Holdings USA Inc is a diversified cannabis company that acts as an integrated cannabis producer and retailer through its Oasis Cannabis subsidiaries in Nevada and plans to expand to other states. CLS stands for Cannabis Life Sciences in recognition of the company's patented proprietary method of extracting various cannabinoids from the marijuana plant and converting them into products with a higher level of quality and consistency. The company's business model includes licensing operations, processing operations, processing facilities, sale of products, brand creation and consulting services. The company generates the majority of its revenues and corresponding accounts receivable from the sale of cannabis, and cannabis related products.
Executives
| Ross Silver |
director |
516 SW 13TH STREET, SUITE 201, BEND OR 97702 |
| Frank Koretsky |
director, 10 percent owner |
C/O 11767 SOUTH DIXIE HIGHWAY, #115, MIAMI FL 33156 |
| Navy Capital Green Management Llc |
10 percent owner, other: See Remark(1) |
482 BAYBERRY LANE, MOUNTAINSIDE NJ 07092 |
| Tribeca Investment Partners Pty Ltd |
10 percent owner |
LEVEL 23, 1 O'CONNELL STREET, SYDNEY C3 2000 |
| Andrew Glashow |
director |
1C BOWENS LANDING, NEWPORT RI 02840 |
| David Zelinger |
director |
C/O CLS HOLDINGS USA, INC., 11767 SOUTH DIXIE HIGHWAY, SUITE 115, MIAMI FL 33156 |
| Charlene Soco |
officer: Executive VP of Finance |
C/O CLS HOLDINGS USA, INC., 11767 SOUTH DIXIE HIGHWAY, SUITE 115, MIAMI FL 33156 |
| Chetan Gulati |
10 percent owner |
28 REICHERT CIRCLE, WESTPORT CT 06880 |
| Todd V Swanson |
10 percent owner |
10120 W. FLAMINGO ROAD, #4333, LAS VEGAS NV 89147 |
| Gregg E. Carlson |
officer: Chief Financial Officer |
2342 MALAGA PEAK STREET, LAS VEGAS NV 89135 |
| Navy Capital Green Co-invest Partners Llc |
10 percent owner, other: See Remark(1) |
28 REICHERT CIRCLE, WESTPORT CT 06880 |
| Navy Capital Green Co-invest Fund, Llc |
10 percent owner |
28 REICHERT CIRCLE, WESTPORT CT 06880 |
| Navy Capital Green Management Partners Llc |
10 percent owner |
28 REICHERT CIRCLE, WESTPORT CT 06880 |
| John Kaden |
10 percent owner |
28 REICHERT CIRCLE, WESTPORT CT 06880 |
| Sean Stiefel |
10 percent owner |
28 REICHERT CIRCLE, WESTPORT CT 06880 |
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CLSH has been successfully added to your