What is Panacea Life Sciences Holdings 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.
Panacea Life Sciences Holdings 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
Panacea Life Sciences Holdings (Panacea Life Sciences Holdings) Business Description
Traded in Other Exchanges
N/A
Address
5910 S University Boulevard, C18-193, Greenwood Village, CO, USA, 80121
Panacea Life Sciences Holdings Inc is a cannabinoid nutraceutical manufacturer and research company that produces natural pharmaceutical alternatives for consumers and pets. It manufactures and sells soft gels, gummies, tinctures, sublingual tablets, cosmetics, and other topicals.
Executives
| Leslie Buttorff |
director, 10 percent owner, officer: CHIEF EXECUTIVE OFFICER |
16194 W 45TH DRIVE, GOLDEN CO 80403 |
| Janice Nerger |
director |
5910 S UNIVERSITY BLVD., C18-193, GREENWOOD VILLAGE CO 80121 |
| Nathan Joel Berman |
officer: CONTROLLER & PRIN ACTNG OFCR |
16194 W 45TH DRIVE, GOLDEN CO 80403 |
| 22nd Century Group, Inc. |
10 percent owner |
8560 MAIN STREET, SUITE 4, WILLIAMSVILLE NY 14221 |
| Harvey J Kesner |
10 percent owner |
65 E. 55TH STREET, NEW YORK NY 10022 |
| Lawrence Wert |
director |
170 NUTTALL RD, RIVERSIDE IL 60546 |
| Chesne Derek Du |
officer: Chief Growth Officer |
80 NE 4TH AVENUE, SUITE 28, DELRAY BEACH FL 33483 |
| Alvaro Daniel Alberttis |
director |
80 NE 4TH AVENUE, SUITE 28, DELRAY BEACH FL 33483 |
| Vladislav Yampolsky |
director, 10 percent owner |
332 PLAZA REAL, BOCA RATON FL 33432 |
| Steven A Schwartz |
director |
332 PLAZA REAL, BOCA RATON FL 33432 |
| Andrew L. Johnson |
officer: Chief Strategy Officer |
80 NE 4TH AVE. SUITE 28, DELRAY BEACH FL 33483 |
| Emiliano Angel Aloi |
officer: President |
510 SUNSHINE DRIVE, DELRAY BEACH FL 33444 |
| Jonathan Gilbert |
director, officer: Executive Chairman |
36 SYCAMORE LANE, ROSALYN HEIGHTS NY 11577 |
| John C Price |
director |
4721 IRONTON STREET, BUILDING A, DENVER CO 80239 |
| Kevin James Esval |
director |
NEURO HITECH INC, ONE PENN PLAZA STE 1503, NEW YORK NY 10019 |
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