SAB Biotherapeutics (SAB Biotherapeutics) Predictability Rank

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What is SAB Biotherapeutics 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.

SAB Biotherapeutics 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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SAB Biotherapeutics (SAB Biotherapeutics) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » SAB Biotherapeutics Inc (NAS:SABS) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

2100 East 54th Street North, Sioux Falls, SD, USA, 57104

Website

https://www.sabbiotherapeutics.com

SAB Biotherapeutics Inc is a clinical-stage biopharmaceutical company focused on the development and commercialization of a portfolio of products from its proprietary immunotherapy platform to produce fully targeted human polyclonal antibodies, without using human plasma or serum. The company's novel DiversitAb platform enables the rapid production of large amounts of targeted human polyclonal antibodies, leveraging transchromosomic cattle (Tc Bovine) that have been genetically designed to produce human antibodies (immunoglobulin G) rather than bovine in response to an antigen. Animal antibodies have been made in rabbits, sheep and horses.

Executives

Eddie Joe Sullivan	director, 10 percent owner, officer: Chief Executive Officer	2100 E 54TH STREET NORTH, SIOUX FALLS SD 57104
Michael King	officer: CHIEF FINANCIAL OFFICER	2100 EAST 54TH STREET NORTH, SIOUX FALLS SD 57104
Samuel J Reich	director, officer: Executive Chairman	ACUITY PHARMACEUTICALS INC, 3701 MARKET STREET, PHILADELPHIA PA 19104
Sessa Capital Im, L.p.	director	888 SEVENTH AVENUE, 30TH FLOOR, NEW YORK NY 10019
Andrew Moin	director	2100 EAST 54TH STREET NORTH, SIOUX FALLS SD 57104
Sessa Capital (master), L.p.	director	888 SEVENTH AVENUE, 30TH FLOOR, NEW YORK NY 10019
Sessa Capital Im Gp, Llc	director	888 SEVENTH AVENUE, 30TH FLOOR, NEW YORK NY 10019
John Petry	director	888 SEVENTH AVENUE, 30TH FLOOR, NEW YORK NY 10019
Sessa Capital Gp, Llc	director	888 SEVENTH AVENUE, 30TH FLOOR, NEW YORK NY 10019
Erick Lucera	director	138 THISTLE ROAD, NORTH ANDOVER MA 08145
David Charles Link	director	2100 E 54TH STREET NORTH, SIOUX FALLS SD 57104
Christine E Hamilton	director, 10 percent owner	225 S MAIN AVE, P O BOX 5000, SIOUX FALLS SD 57117
Scott Giberson	director	2100 EAST 54TH STREET NORTH, SIOUX FALLS SD 57104
Alexandra Kropotova	officer: Chief Medical Officer	RIVER OAKS TOWER, 8800 HSC PARKWAY, BYRAN TX 77807
Jeffrey G Spragens	director	4400 BISCAYNE BOULEVARD, SUITE 1500, MIAMI FL 33137