Capital Growth: Jan 2010-Nov 2018 (Starting Cap: $10K)
Plus: 9 Years of Consistent Market Beating Performance
Week-by-Week Profit/Loss (%): Jan 2010-Nov 2018 (Total 463 Weeks)
- Trades Just 5 Stocks/Week, Issued 8pm Every Sunday.
- Focused 100% on Easy-to-Trade S&P500 Stocks.
- Average Yearly Return 36.1%/Year Since Jan 2010.
- Low Margin Used (Max 2:1).
- Based on Systematic, 12-Rule Algorithm.
- Profitable in 9/9 Years Since Inception.
- Outperformance vs the S&P500 Benchmark in 9/9 Years.
Only the Strongest, Free-Cash-Flow Generating Companies Make the Weekly Top-Five…
At valuScreen, we have been developing stock trading strategies for over fifteen years, with a focus on capturing deep-value, fundamentally superior stocks we believe will consistently outperform competing stocks in the same industry, and the S&P500 index.
Our systematic approach to trading, powered by a fully-automated 12-rule algorithm, scans every S&P500 stock against multiple company fundamentals, with one goal: to capture the strongest, free-cash-flow generating businesses, with sustainable growth.
Each weekend, our system ranks every qualifying company into a ‘top-five-stocks’ sort-order, using a precise free-cash-flow-yield formula. The company which generates the highest sustainable free-cash-flow (relative to historical average) is ranked number one. The company with the next highest score is ranked second. And so on.
Our weekly list of top-five ranked stocks are emailed to our subscribers every weekend, ready for trading at Monday’s market open.
Moving Beyond EPS Growth, and the P/E Ratio…
Built upon professional, time-tested valuation methods, we developed our unique strategy by integrating 12 logical rules, taking into account key company fundamentals that capture quality growth businesses with robust, sustainable cash-flows and a healthy balance sheet.
The rules take into account key company fundamentals, derived from each company’s quarterly profit/loss, balance sheet, and cash-flow statements. Our fully-automated algorithm applies very specific quirks to how company data is read and interpreted.
For instance, we prefer to focus on gross profits (and margins) as opposed to just the sales revenue. We look specifically for current and expected improvements in free-cash-flow margins, instead of just looking blankly at EPS growth/expectations.
We dissect comparative value measures such as free-cash-flow-to-enterprise-value yield (FCF/EV), which imparts depth and accuracy (as this takes into account both market-cap and total debt baked into the equation), towards measuring cross-industry valuation multiples. This provides a superior edge, than relying on the more commonly used, and intrinsically flawed price-to-earnings (or P/E) ratio.
Most critically, we identify the strongest companies with the highest (relative to historical average) sustainable free-cash-flow yields. These are the top-five ranked stocks we hold in our five-stock portfolio.
Based on historical testing, the results of the five-stock portfolio have proven to demonstrate profitability every year since inception, and consistent outperformance against the S&P500 benchmark in nine out of nine years…
- Starting Capital ($): $10,000
- Total Gains ($): $316,275
- Total Losses ($): $175,106
- Net Profit ($): $141,169
- Win/Loss Ratio: 1.80
- Return on Capital (%): 1411%
- Avg Return/Year (%): 36.1%
- Total No. of Weeks Traded: 463
- No. of Profitable Weeks: 289
- No. of Losing Weeks: 174
- % of Profitable Weeks: 62.4%
Note: The results shown are based on algorithmic, simulated tests. Always keep in mind, trading does involve risk, and past performance is not necessarily indicative of future results.
Let Us Do The Math…
While the algorithm has been developed and finetuned through many years of experienced trading, keep in mind, that the entire process of identifying the weekly top-five stocks, is fully automated.
You do not need to worry about every mathematical ratio, or complex fundamental or technical indicator.
Once we run our screener, the results automatically place every qualifying stock, based on the precise screening rules, into a watchlist, from which the stocks are ranked (top-five) in order of highest sustainable free-cash-flow yields, relative to historical levels.
Start Receiving the Latest Top-Five Stocks, Published 8pm Every Sunday…
We publish and email the top-five ranked stocks around 8pm, every Sunday evening.
Membership is currently limited to a maximum of 100 subscribers.
To sign up, please click on the ‘Subscribe’ button below. If you have any questions, please get in touch with us, at any time.