Global Eagle Entertainment (Global Eagle Entertainment) Predictability Rank

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What is Global Eagle Entertainment 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.

Global Eagle Entertainment 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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Global Eagle Entertainment (Global Eagle Entertainment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Global Eagle Entertainment Inc (OTCPK:GEENQ) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

6080 Center Drive, Suite 1200, Los Angeles, CA, USA, 90045

Website

http://www.globaleagle.com

Global Eagle Entertainment Inc provides content, connectivity, and digital media solutions for the travel industry worldwide. It operates in two segments, Media and Content, and Connectivity. The Media and Content buys, produces, manages, distributes, and provides post-production services and wholly-owned and licensed media content, video and music programming, advertising, applications, and video games for and to the airline, maritime, and other away from home non-theatrical markets. Its Connectivity segment provides satellite-based connectivity services to enterprise and government customers in the aviation, maritime, and land vertical markets. The company derives maximum revenue from Connectivity segment and geographically from Asia and Middle East.

Executives

Joshua Marks	director, officer: Chief Executive Officer	4553 GLENCOE AVENUE MARINA DEL REY CA 90292
Per Noren	officer: President	6100 CENTER DRIVE SUITE 1020 LOS ANGELES CA 90045
Jeffrey A Leddy	director, officer: Executive Chairman	2002 SUMMIT BOULEVARD SUITE 1800 ATLANTA GA 30319
Robert W Reding	director	4333 AMON CARTER BLVD, FORT WORTH TX 76028
Ronald Steger	director	13710 OASIS TERRACE, LAKEWOOD RANCH FL 34202
R. Jason Everett	officer: Chief Accounting Officer	6080 CENTER DRIVE C/O GLOBAL EAGLE SUITE 1200 LOS ANGELES CA 90045
Eric Louis Zinterhofer	director	C/O SEARCHLIGHT CAPITAL PARTNERS GP, LP, 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Leslie Ferraro	director	6080 CENTER DRIVE C/O GLOBAL EAGLE SUITE 1200 LOS ANGELES CA 90045
Eric Sondag	director	745 FIFTH AVENUE, 27TH FLOOR NEW YORK NY 10151
Harry Sloan	director	1450 2ND STREET, SUITE 247, SANTA MONICA CA 90401
Stephen Hasker	director	C/O NIELSEN HOLDINGS N.V., 770 BROADWAY, NEW YORK NY 10003
Sc Ii Pv Tbo, L.p.	10 percent owner	745 FIFTH AVENUE, 27TH FLOOR NEW YORK NY 10151
Sc Ii Tbo, L.p.	10 percent owner	745 FIFTH AVENUE, 27TH FLOOR NEW YORK NY 10151
Searchlight Ii Tbo-w, L.p.	10 percent owner, other: Director by Deputization	745 FIFTH AVENUE, 27TH FLOOR NEW YORK NY 10151
Searchlight Ii Tbo Gp, Llc	10 percent owner	745 FIFTH AVENUE, 27TH FLOOR NEW YORK NY 10151