Empower Clinics (Empower Clinics) Predictability Rank

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What is Empower Clinics 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.

Empower Clinics 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

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Empower Clinics (Empower Clinics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Empower Clinics Inc (OTCPK:EPWCF) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

1771 Robson Street, Suite 505, Vancouver, BC, CAN, V6G 1C9

Website

https://www.empowerclinics.com

Empower Clinics Inc is an integrated healthcare company that provides body and mind wellness for patients through its clinics, with digital and telemedicine care, and medical diagnostics laboratories. The company has a clinical and digital presence across North America. The firm's Health & Wellness and Diagnostics & Technology business units are positioned to positively impact the integrated health of its patients, while simultaneously providing long-term value for its shareholders.

Executives

John Kenneth Campbell	director	905 WEST PENDER ST STE 500, VANCOUVER BC CANADA A1 V6C1L6
Dan Brown	director	4615 232ND STREET, LANGLEY A1 V2Z 2S1
Michael Barry Hart	officer: Pres/Prin Exe Officer/Sec/Trea	3331 BEACH AVE, ROBERTS CREEK A1 V0N 2W2
Garth Johnson	officer: CFO	1407 - 1050 BURRARD ST., VANCOUVER A1 V6Z 2S3
Trans Orient Petroleum Ltd/	10 percent owner	WORLD TRADE CENTRE, SUITE 404-999 CANADA PLACE, VANCOUVER A1 V6C 3E2
Robert Pollock	10 percent owner	94 GARFIELD AVENUE, TORONTO A6 M4T 1G1
Doug Lynes	director	SUITE 350 - 6165 HIGHWAY 17, DELTA A1 V4K 5B8
Alex Guidi	10 percent owner	1055 WEST GEORGIA STREET, SUITE 1500, VANCOUVER A1 V6E 4N7