Los Angeles CA
I spend most of my time analyzing data with computers.
Scan for Deep Value
Finds all companies with an activist investor filing in the last year
Companies with Return on Invested Capital (ROIC) > 15%
For investors desiring income over capital appreciation, companies that pay dividends regularly are a great way to generate a steady cash flow. As in any purchase, the goal is to get most value for your dollar, and with dividends, a key metric is dividend yield. The dividend yield is the annual dividend paid divided by the current share price. Higher yields are better. This stock screen finds all securities with a dividend yield greater than 4%.
The Net Current Asset Value (NCAV) is a conservative valuation metric popularized by Benjamin Graham. To calculate it, simply subtract the total liabilities from a company’s current assets. To calculate NCAVPS (Net Current Asset Value Per Share), divide the NCAV by the number outstanding shares. This stock screener takes Ben Graham’s more conservative approach and uses ⅔ of the NCAV.
This stock screen finds microcap companies with positive annual revenue.
This is Benjamin Graham's Net Net Working Capital Screen
Companies with negative enterprise value generally get this way because they have a lot of cash. (Cash is subtracted when calculating EV). There is some evidence that negative enterprise value companies outperform the market, so companies matching this screen might be undervalued.
Finds companies where Price to Book Value < 1.0;
The fundamental task in investing is finding mispricings in price v. quality. There are a lot of cheap companies in the market, but most of them are cheap for very good reasons. The trick is finding companies that are cheap but actually healthy. In 2000, Joseph Piotroski wrote a paper in which he described a mathematical model that turned data from financial reports into a simple 9-point score that described a company’s health. He showed that this score, combined with a valuation metric (he used Book-To-Market), could be used successfully to produce excess returns in an investing strategy. This stock screener finds all companies with a score greater than six (which we call “healthy enough”). In his work, he suggested taking a list like this and buying the cheapest of that list. Note that many people believe, incorrectly, that buying companies with the best score is the proper approach, but they end up overpaying for quality. Remember, the goal is to find mispricings in price and quality, not overpay for high quality.
2017-08-25 - Wilton
In 2000, Joseph Piotriski published a paper called “Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers.” In this paper, he outlines a methodology, now known as the Piotroski Score, for increasing one’s investment returns by closely examining the historical financial information of companies. Now, there are many articles available that describe what the Piotroski score is, and since there are mechanisms for calculating it automatically, we will cover it only briefly. In this article, we will dig into the underlying investment strategy and explain how it works. Value investing is a well-known investing strategy that is followed by almost all of the famous investors. Benjamin Graham, of course, is the father of it, and Warren Buffet is one of his most famous disciples. Value investing, as the name implies, is focused on finding “cheap” companies – that is, companies who are trading at a low market price relative to their actual val...
2017-08-25 - Wilton
Starting a hedge fund, or any fund for that matter, is the ultimate dream of many talented investors around the world. For those people that haven't worked in a fund before, the internal workings of hedge funds can seem pretty opaque and complicated. In reality, starting the fund is pretty straightforward - once you have an investment strategy and committed seed capital for the fund.This article describes the steps that come after those two. Earn a Winning Track Record - Before anybody gives you money to manage, they will want to see your performance for the previous three years. This means you will need awinning and differentiated investment strategy, long before it's hedge fund time. Besides beating your benchmark, your strategy will need to be significantly different than what other funds offer, or else you won't be able to command standard 2/20 hedge fund fees. Long-only equity strategies are common and will not get anybody excited. Hire an Attorney - Next, you need to ...
2017-11-26 - Wilton
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2017-11-28 - Wilton
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2017-08-25 - Wilton
One of the more interesting types of analysis available on Fintel is overall investor sentiment in industries. When doing analysis on individual securities, it is wise to examine the overall health of the company's industry. Rising tides lift all boats, and the same can be said for securities. Just like with companies, industry performance moves in cycles. As the performance of industries rise and fall, so does the investor sentiment and total investment . This phenomenon is called "sector rotation" and it is an important part of investing. Fintel provides a tool that allows you to visualize the institutional funds flow into any industry. This allows investors to get a sense of the overall institutional sentiment of the industry, and to know whether money is pouring in, or pouring out. What we do is examine the 13F filings made by every institution and cross-reference them against the self-reported SIC codes of every company that files with the SEC. We aggregate the total repo...
2018-03-05 - Wilton
XBRL is a standard for representing digital financial statements. XBRL formatted financial data is required by the SEC for all public companies that file financial statements, and is the source for all financial data displayed on Fintel. Here are some XBRL resources that we have found useful in our work. http://www.xbrlsite.com/2014/Reference/Mapping.pdf https://xbrl.us/xbrl-taxonomy/2018-us-gaap/ http://xbrl.squarespace.com/intelligent-xbrl/ [http://xbrlsite.azurewebsites.net/2017/IntelligentDigitalFinancialReporting/Part03_Chapter06.2_ValidatingModelStructureAndFundamentalAccountingConceptRelations.pdf](http://xbrlsite.azurewebsites.net/2017/IntelligentDigitalFinancialReporting...
2017-09-26 - Wilton
Delcath Systems, Inc. is an interventional oncology company focused on the treatment of primary and metastatic liver cancers. Our investigational product—Melphalan Hydrochloride for Injection for use with the Delcath Hepatic Delivery System (Melphalan/HDS) —is designed to administer high-dose chemotherapy to the liver while controlling systemic exposure and associated side effects. In Europe, our system is in commercial development under the trade name Delcath Hepatic CHEMOSAT® Delivery System for Melphalan (CHEMOSAT®), where it has been used at major medical centers to treat a wide range of cancers of the liver. Our primary research focus is on ocular melanoma liver metastases (mOM) and intrahepatic cholangiocarcinoma (ICC), a type of primary liver cancer, and certain other cancers that are metastatic to the liver. We believe the disease states we are investigating represent a multi-billion dollar global market opportunity and a clear unmet medical need. Our clinical development p...
2017-11-27 - Wilton
This is a list of resources that outline methods for applying machine learning to stock market prediction problems. Articles Machine Learning for Investors: A Primer Sigmoidal: Machine Learning for Trading QuantInsti: Overview of Machine Learning in Trading Equity forecast: Predicting long term stock price movement using machine learning DataRobot: Using Machine Learning to Predict Out-Of-Sample Performance of Trading Algorithms Courses Lemma: Linear Algebra - Highly Recommended! [Udacity: M...
2017-09-25 - Wilton
If you really like Fintel and you want to help out, this blog post is for you. Here are five simple things you can do that will help keep Fintel operating and growing. 1. Be a Friend, Support our Advertisers Every month we get a bill from Amazon, and as Fintel grows, so does that bill. In order to keep Fintel free, we allow advertisers to promote their products on our site. We get paid when you click an ad. They get paid when you purchase or subscribe to their products. We try to keep the advertising on Fintel as lightweight as possible, while maintaining enough revenue to keep the servers on (and cold). Fintel is not venture funded. It has been built from our own pockets. Support Fintel by supporting our advertisers. 2. Spread the Word If you really love Fintel, then you're the best person in the world to tell others about us. Besides clicking ads, this truly is the best gift you can provide. There are dozens of online stock communities that would love to have your parti...
2017-12-11 - Wilton
One of the key components of a successful machine learning system is the Training File. The training file is a specially formatted file that is used as input into a machine learning algorithm. The machine learning algorithm uses the data in the file to "learn" how to predict success from the data. However, in order to work properly, there are some specific things you must understand. First of all, the most common machine learning algorithms are trained to predict "success." Success, of course, is whatever we define it. With stock market algos, success generally means that the stock price rose after a period of time. This takes us to our next concept. When running in production, the machine learning algorithm has no ability to see the future. So, when you create your training file, you must ensure that the features you provide are lagged. For stock market algos, you want to lag the features by your expected investment horizon. The "features" are the various items that you want ...
2017-10-11 - Wilton
Hi Asif - I found more great information on CYTR in this corporate presentation PDF document - http://www.cytrx.com/downloads/CYTR_Corp_Overview_July_2017.pdf - do you think you could incorporate this presentation into the company overview? There is a lot of information about the product pipeline and various drug trials that would help this doc....
2017-08-24 - Wilton
Anybody who has browsed around Fintel has probably noticed that we track a lot of ownership data. The Securities and Exchange commission (the SEc) requires many funds and institutions to disclose their positions under certain circumstances, and this information can be very helpul when trying to guage investor sentiment in a company. This guide will walk you through the various forms and show how you can use Fintel to make more informed investing decisions. The 13D and 13G forms are "beneficial ownership" forms. The primary purpose of these forms is to understand control of a company. To that end, the 13D and G forms do not just disclose the shares directly held by an investor, but also shares indirectly held (but controlled) by that institution. These indirect shares include all the shares held by the clients of financial advisors. Another requirement of the beneficial ownership forms is that they include related parties to the funds. For example, the firm called "Point72"...
2017-10-11 - Wilton
Hi Asif - There is some great information about the Pebble Mine on Wikipedia that you might be able to incorporate into this article - see https://en.wikipedia.org/wiki/Pebble_Mine for more information o that....
2017-10-11 - Wilton
2017-10-28 - Wilton
I've been doing some research on hedge fund incubators, and particularly Austrlian hedge fund incubators. Here is a list of the players I've found: Benelong Funds " Bennelong Funds Management acquires, incubates and distributes active funds from Australia and around the globe. We have a proud history of identifying and partnering with quality boutique asset managers, offering high-grade investment solutions. As equity partners in their individual businesses, each asset manager’s goals are aligned with those of their investors, providing greater impetus to achieve superior outcomes. While each boutique has its own distinctive philosophy and a dynamic and highly disciplined approach, they collectively believe in the benefits of active investment management. As such, they strive for out-performance, always seeking opportunities to maximise returns within their robust risk management frameworks. Globally, we have over AUD9 billion funds under...
2018-02-24 - Wilton
Thanks for submitting these observations and ideas on how to improve the alerts. I have made a few changes that should help - specifically, I was able to remove the "Actionable emails e.g. reset password" text from the alerts which should make them more readable. I am a bit hesitant to reduce the subject line down to just "TICKER Alert" for all alerts since having a bit of info in the subject is helpful to people who use regular email. However, I have trimmed some of the subjects down. You should start seeing modified alerts on Monday when filings resume. Please let me know how they look....