EESTech (EESTech) Predictability Rank

View and export this data going back to . Start your Free Trial

What is EESTech 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.

EESTech 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

EESTech Predictability Rank Related Terms

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

EESTech (EESTech) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » EESTech Inc (OTCPK:EESH) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

16192 Coastal Highway, Lewes, DE, USA, 19958

Website

http://www.eestechinc.com

EESTech Inc is engaged in providing mine site waste management solutions and services through the application of industrially advanced and proprietary processing capabilities. The firm's objective is to provide tangible methods of mine-site remediation and reclamation through the cost-effective delivery of critical waste management solutions.

Executives

Graeme John Lynch	officer: Chief Operating Officer	EESTECH INC, 241 ADELAIDE ST., SUITE 417, BRISBANE C3 QLD 4000
Patrick James Caragata	director	EESTECH INC, 241 ADELAIDE ST., SUITE 417, BRISBANE C3 QLD 4000
Donald Graham Bartlem	director	EESTECH INC, 241 ADELAIDE ST., SUITE 417, BRISBANE C3 QLD 4000
Eestech, Inc.	officer: COMPANY SECRETARY and CFO	241 ADELAIDE STREET, SUITE 417, BRISBANE C3 4000
Ian Hutcheson	officer: SECRETARY & CFO	1260 S. HIGHWAY 89, BLDG. 1, SUITE H-5, CHINO VALLEY AZ 86323
Murray J. Bailey	director, officer: CHAIRMAN OF THE BD, PRESIDENT	1260 S. HIGHWAY 89, BLDG. 1, SUITE H-5, CHINO VALLEY AZ 86323
Gaylord Beeson	director	1260 S. HIGHWAY 89, BLDG. 1, SUITE H-5, CHINO VALLEY AZ 86323
Thomas L Svalberg	director, officer: Chief Operations Officer	5608 SOUTH ENSENADA COURT, AURORA CO 80015
John Ritter	director, officer: President	23011 MOULTON PARKWAY A-16, LAGUNA HILLS CA 92653
James W Zigler	director
James C Wilson	director
Steven Symms	director
Greg Paxton	10 percent owner	23011 MOULTON PARKWAY A-16, LAGUNA HILLS CA 92653
John Henderson	director, officer: CEO and CFO	23011 MOULTON PARKWAY A-16, LAGUNA HILLS CA 92653
Simon Mosley	10 percent owner