What is Simplicity Esports and Gaming Co 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.
Simplicity Esports and Gaming Co 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
Simplicity Esports and Gaming Co (Simplicity Esports and Gaming Co) Business Description
Traded in Other Exchanges
N/A
Address
7000 W. Palmetto Park Road, Suite 505, Boca Raton, FL, USA, 33433
Simplicity Esports and Gaming Co is a North American esports organization managing esports teams domestically and internationally. The company through its subsidiaries owns and manages professional esports teams competing in games such as Overwatch, Apex Legends, PUBG, and more. The company owns Corporate and Franchised Gaming Centers. The company reports in Four segments namely Franchise royalties and fees, which is the key revenue generator; Company-owned stores; Esports revenue; and Franchise deposit revenue.
Executives
| Beatrice Tarka |
director |
800 WEST EL CAMINO REAL, SUITE 275, MOUNTAIN VIEW CA 94040 |
| Roman Nehemiah Franklin |
director, officer: President |
1345 AVENUE OF THE AMERICAS, 2ND FLOOR, NEW YORK NY 10105 |
| Herrmann William H Jr |
director |
PO BOX 6, BRYN ATHYN PA 19009 |
| Jed Philip Kaplan |
director, officer: CEO and Interim CFO |
C/O SIMPLICITY ESPORTS AND GAMING CO., 7000 W PALMETTO PARK ROAD SUITE 210, BOCA RATON FL 33433 |
| Edward L Jaroski |
director |
5847 SAN FELIPE, SUITE 4100, HOUSTON TX 77057 |
| Nancy L. Hennessey |
officer: Chief Financial Officer |
7000, W. PALMETTO PARK RD, SUITE 505, BOCA RATON FL 33433 |
| Laila Cavalcanti Loss |
director |
7000W PALMETTO PARK RD, SUITE 505, BOCA RATON FL 33433 |
| Lau Knicks |
officer: Chief Financial Officer |
1980 FESTIVAL PLAZA DR., SUITE 750, LAS VEGAS NV 89135 |
| Polar Asset Management Partners Inc. |
10 percent owner |
16 YORK STREET SUITE 2900, TORONTO A6 M5J 0E6 |
| K2 Principal Fund, L.p. |
10 percent owner |
2 BLOOR STREET WEST, SUITE 801, TORONTO A6 M4W 3E2 |
| K2 Genpar 2017 Inc. |
10 percent owner |
2 BLOOR STREET WEST, SUITE 801, TORONTO A6 M4W 3E2 |
| Steven Michael Grossman |
officer: President of Subsidiary |
C/O SIMPLICITY ESPORTS AND GAMING CO., 7000 W PALMETTO PARK ROAD SUITE 210, BOCA RATON FL 33433 |
| Donald R Caldwell |
director |
5 RADNOR CORP CENTER STE 555, RADNOR PA 19087 |
| Max Wayne Hooper |
director |
1345 AVE OF THE AMERICAS 2ND FL, NEW YORK NY 10105 |
| Frank Leavy |
director |
1345 AVENUE OF THE AMERICAS, 2ND FLOOR, NEW YORK NY 10105 |
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