Want to see what the Crowd thinks are the BEST companies for discovery potential?
Want to see those the Crowd thinks are the poorest potential for discovery?
This AM I am showing the top 15% of companies ranked by at least 5 independent scorers followed by the bottom 15%. These are as of yesterday’s close. Currently there are 1036 DiS registrants. Approximately 30% are active scorers of their portfolios. Portfolio average size amongst scorers is about 6 companies. As you can see rankings change. They tend to correlate quite well with forward share price performance. More analysis of performance correlation will follow in another Morning Note.
We will also be correlating changes in rank and changes in individual factor scores (there are ten Discovery factors) in addition to the rank statistic itself, with forward performance and trailing performance.
We are pleased with the recency of the data. You can see that the most of the companies, both top 15% and bottom 15%, have been scored quite recently. It does seem that Discovery investors are focused on the best discovery opportunities as well as those they feel have the least potential.
The final scoring statistic (the Crowd Score, also the company’s final rank) takes into account the low crowd score, high crowd score and the shape of the footprint of uncertainty (or more precisely the footprint of imprecision in our lexicon) much in the way that CAPM deals with distributional aspects of the Gaussian or normal probability model.
We are now gaining traction in terms of scoring companies. Our goal is to increase the breadth (coverage, now at 769 companies from U.S., Canadian, Aussie and HKG exchanges) and depth (number of scorings). We will only report on companies that have a minimum Crowd / scoring size of 5. We will be increasing the minimum as more users populate the system.
Some have suggested that even 5 analysts is not a sufficient Crowd size. However you must realize that these are, for the most part, micro-cap companies that have no coverage. The DiS provides a mechanism for independent Crowd coverage of these heretofore unappreciated and sometimes over-promoted companies. Finally we will provide unexpected factor change analysis as well as individual Crowd factor scores. Company executives can then ascertain how the Crowd views their companies across each factor – both positively and negatively.
Join us and score your portfolio on the DiscoveryScoreboard. It’s free, there are tutorials and we provide you with weekly statistics. You may create as many portfolios as you require. I have portfolios for total stocks, Incubator, mature, legacy and Gold.
You will be able to track the Crowd score for your portfolio of stocks.
Note: These ranking are not offered as a buy or sell recommendation. These are scorings by a group of independent Discovery analysts from all walks of life. You must perform your own due diligence before deciding on the accuracy of these rankings. To do this you may use the Discovery Scoreboard to rank these stocks. If so, you will be provided your score as compared to the Crowd score adjusted by your score.
If you are interested in individual factor scores login, score your stock(s) and contact Chris Berry or myself. We will provide individual company factor scores. We may own stocks referenced in these tables.
The material herein is for informational purposes only and is not intended to and does not constitute the rendering of investment advice or the solicitation of an offer to buy securities. The foregoing discussion contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (The Act). In particular when used in the preceding discussion the words “plan,” confident that, believe, scheduled, expect, or intend to, and similar conditional expressions are intended to identify forward-looking statements subject to the safe harbor created by the ACT. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward looking statements. Such risks and uncertainties include, but are not limited to future events and financial performance of the company which are inherently uncertain and actual events and / or results may differ materially. We own shares in Goldcorp and Ucore. These companies are not necessarily recommended as investments. In addition we may review investments that are not registered in the U.S. We cannot attest to nor certify the correctness of any information in this note. Please consult your financial advisor and perform your own due diligence before considering any companies mentioned in this informational bulletin