Prairie Operating Co (Prairie Operating Co) Predictability Rank

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What is Prairie Operating Co Predictability Rank?

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.

Prairie Operating 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

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Prairie Operating Co (Prairie Operating Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Prairie Operating Co (NAS:PROP) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

8636 N. Classen Boulevard, Suite 110-502, Oklahoma, OK, USA, 73114

Website

https://www.prairieopco.com

Prairie Operating Co develops and operates bitcoin mining scaled-up facilities using natural gas to power the operations. It generates substantially all its revenue through cryptocurrency, which it earns through mining activities.

Executives

James W. Wallis	10 percent owner	6410 NORTH SANTA FE AVE., STE B, OKLAHOMA CITY OK 73116
Daniel T. Sweeney	officer: General Counsel & Corp. Sec'y	8636 N. CLASSEN BOULEVARD, OKLAHOMA CITY OK 73114
Jonathan H. Gray	director	657 PERUGIA WAY, LOS ANGELES CA 90077
Erik Thoresen	director	C/O FUSION ACQUISITION CORP. II, 667 MADISON AVENUE, NEW YORK NY 10065
Robert Craig Owen	officer: Chief Financial Officer	2350 N. SAM HOUSTON PARKWAY EAST, SUITE 125, HOUSTON TX 77032
Stephen Lee	director	3326 MID LANE, HOUSTON TX 77027
Jeremy Landon Ham	officer: Chief Commercial Officer	12115 DOUBLE TREE DRIVE, HOUSTON TX 77070
Michael Martin Breen	director	LOWSLEY HOUSE 133 HEADLEY ROAD, LIPHOOK X0 GU30 7PU
Paul Kessler	director, 10 percent owner	555 MARIN STREET, SUITE 140, THOUSAND OAKS CA 91360
Bryan Freeman	officer: Exec VP of Operations	16200 PARK ROW, SUITE 300, HOUSTON TX 77084
Gary C Hanna	director, officer: President
Gizman I Abbas	director	415 WASHINGTON STREET, APT 1B, NEW YORK NY 10013
Edward Kovalik	director, officer: Chief Executive Officer	1 GRAND ARMY PLAZA, 11 GG, BROOKLYN NY 11238
Scott D Kaufman	director, 10 percent owner, officer: Chairman, CEO and President	MIDUSMMER INVESTMENT LTD, 485 MADISON AVENUE 23RD FLOOR, NEW YORK NY 10022
Alan Louis Urban	officer: Chief Financial Officer	1524 CLOVERFIELD BOULEVARD, SUITE E, SANTA MONICA CA 90404