Wave Sync (Wave Sync) Predictability Rank

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What is Wave Sync 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.

Wave Sync 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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Wave Sync (Wave Sync) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Wave Sync Corp (OTCPK:WAYS) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

19 West 44th Street, Suite 1001, New York, NY, USA, 10036

Website

Wave Sync Corp is a shell company.

Executives

Xinfeng Nie	director, 10 percent owner	PUDONG BUILDING, 2ND FLOOR, JUILONG AVENUE, LONGWEN DISTRICT, ZHANGZHOU CITY FUIJAN PROVINCE F4 363000
Bin Zhou	director	PUDONG BUILDING, 2ND FLOOR, JUILONG AVENUE, LONGWEN DISTRICT, ZHANGZHOU CITY FUIJAN PROVINCE F4 363000
Zhibin Jin	officer: Secretary	PUDONG BUILDING, 2ND FLOOR, JUILONG AVENUE, LONGWEN DISTRICT, ZHANGZHOU CITY FUIJAN PROVINCE F4 363000
Jianjun Xu	director	PUDONG BUILDING, 2ND FLOOR, JUILONG AVENUE, LONGWEN DISTRICT, ZHANGZHOU CITY FUIJAN PROVINCE F4 363000
Mingyong Hu	director	PUDONG BUILDING, 2ND FLOOR, JUILONG AVENUE, LONGWEN DISTRICT, ZHANGZHOU CITY FUIJAN PROVINCE F4 363000
Jingmei Weng	director, officer: Chief Financial Officer	PUDONG BUILDING, 2ND FLOOR, JUILONG AVENUE, LONGWEN DISTRICT, ZHANGZHOU CITY FUIJAN PROVINCE F4 363000
Sanfu Huang	director, 10 percent owner, officer: Chief Executive Officer	PUDONG BUILDING, 2ND FLOOR, JUILONG AVENUE, LONGWEN DISTRICT, ZHANGZHOU CITY FUIJAN PROVINCE F4 363000
Fulun Su	director	PUDONG BUILDING, 2ND FLOOR, JUILONG AVENUE, LONGWEN DISTRICT, ZHANGZHOU CITY FUIJAN PROVINCE F4 363000
Nie Xinfeng Co.,ltd.	10 percent owner	P.O.BOX 957, OFFSHORE INCORPORATIONS CTR, ROAD TOWN, TORTOLA D8 000000
Gaomin Huang	10 percent owner	PUDONG BUILDING, 2ND FLOOR, JIULONG AVENUE, LONGWEN DISTRICT, ZHANGZHOU F4 363000
Sanfu Holding Co.,ltd	10 percent owner	PUDONG BUILDING, 2ND FLOOR,, JIULONG AVENUE, LONGWEN DISTRICT, ZHANGZHOU F4 363000
Xiaoshuang Chen	director	RM 502 HUA TENG BUILDING NO 302, JINGSONG 3RD DISTRICT CHAOYANG DISTRICT, BEIJING F4 100021
Yong Bian	director	C/O CHINA INSONLINE CORP., 4F HENRY HOUSE, 10 ICEHOUSE ST., CENTRAL HONG KONG F4 00000
Renbin Yu	director	RM 502 HUA TENG BUILDING NO 302, JINGSONG 3RD DISTRICT CHAOYANG DISTRICT, BEIJING F4 100021
Edith Kamying Ho	director	800 5TH AVENUE, SUITE 4100, SEATTLE WA 98104