What is CXApp 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.
CXApp 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
CXApp (CXAI) Business Description
Traded in Other Exchanges
N/A
Address
Four Palo Alto Square, Suite 200, 3000 El Camino Real, Palo Alto, CA, USA, 94306
CXApp Inc is a workplace experience platform for enterprise customers. It is a SaaS product for enterprise organizations, distributing a mobile app to all employees within the organization. It includes a content management system (or CMS) so customers can adjust configurations for their workplace settings autonomously and spontaneously. Its technologies and solutions help enterprise customers deliver a comprehensive business journey in a work 'from-anywhere' world for employees, partners, customers, and visitors. CXApp offers native mapping, analytics, on-device positioning (or ODP), and application technologies that bring people together.
Executives
| Di-ann Eisnor |
director |
11465 JOHNS CREEK PARKWAY, SUITE 400, JOHNS CREEK GA 30097 |
| Khurram P Sheikh |
director, 10 percent owner, officer: CEO and CFO |
1140 EAST ARQUES AVE., SUNNYVALE CA 94085 |
| Camillo Martino |
director |
60 SOUTH MARKET STREET, STE 750, SAN JOSE CA 95113 |
| Leon Papkoff |
officer: Chief Product Officer |
C/O KINS TECHNOLOGY GROUP, INC., FOUR PALO ALTO SQ, 3000 EL CAMINO REAL, PALO ALTO CA 94306 |
| Shanti Priya |
director |
C/O KINS TECHNOLOGY GROUP, INC., FOUR PALO ALTO SQ, 3000 EL CAMINO REAL, PALO ALTO CA 94306 |
| George Mathai |
director |
C/O KINS TECHNOLOGY GROUP, INC., FOUR PALO ALTO SQ, 3000 EL CAMINO REAL, PALO ALTO CA 94306 |
| Michael D Angel |
officer: Chief Financial Officer |
935 STEWART DR, SUNNYVALE CA 94085 |
| Cubist Systematic Strategies, Llc |
10 percent owner |
72 CUMMINGS POINT ROAD, STAMFORD CT 06902 |
| Israel A Englander |
other: See Footnote 2 |
C/O MILLENNIUM MANAGEMENT LLC, 399 PARK AVENUE, NEW YORK NY 10022 |
| Millennium Management Llc |
other: See Footnote 2 |
399 PARK AVENUE, NEW YORK NY 10022 |
| Millennium Group Management Llc |
other: See Footnote 2 |
C/O MILLENNIUM MANAGEMENT LLC, 399 PARK AVENUE, NEW YORK NY 10022 |
| Ics Opportunities, Ltd. |
10 percent owner |
MILLENNIUM INTERNATIONAL MANAGEMENT LP, 399 PARK AVENUE, NEW YORK NY 10022 |
| Cohen Steven A/sac Capital Mgmt Lp |
10 percent owner |
C/O SAC CAPITAL ADVISORS LLC, 72 CUMMINGS POINT ROAD, STAMFORD CT 06902 |
| Allen Salmasi |
director |
C/O NEXTWAVE WIRELESS LLC, 12670 HIGH BLUFF DRIVE, SAN DIEGO CA 92130 |
| Eric Zimits |
officer: Secretary and CCDO |
C/O KINS TECHNOLOGY GROUP INC., FOUR PALO ALTO SQUARE, PALO ALTO CA 94306 |
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