Dart Group's massive move today (up 18% on a trading announcement) is a classic example of why rules based investing is so effective.  Dart Group yesterday was the highest ranked stock in the UK market on the Stockopedia StockRanks system - the only stock in the UK to rank 100/100 on our blended scale of Quality, Value and Momentum factors.  For those who hadn't noticed, it shot up today 18% to new highs. 

Apart from a brief wobble after a profit warning last year, it's been right at the top of the StockRanks for the last 2 years ( as shown in the chart below) .  Even before we launched the StockRanks, in late 2012 it was one of the top screened stocks on the 'Screen of Screens'.  As a result a huge number of Stockopedia subscribers have gradually bought into it and benefited from its awesome price run up.  Today we were humbled by some incredibly kind messages from subscribers.

It's so hard to buy stocks at new highs

For almost the entire run, investors have been reluctant to buy it - if you look back to 2 years ago in the FT, you'll find a great article by David Stevenson titled "Stock Screens to net the ones that got away".  In the piece... David wrote the following:

One of my big regrets for 2012 was not having bought into a small UK-based transport group called Dart Group. Lots of quantitative and qualitative measures told me that the owner of the Jet2 airline and those Fowler Welch lorries was way too cheap. Yet, sadly, I found more interesting stories to chase and I let it get away – only to watch in horror as the price more than doubled.

He wrote this when Dart's shares were trading at less than £1.50.   But they have since more than doubled again to reach £3.65.   He hadn't let it get away at all... it was just getting started. There's probably no-one who understands the power of momentum as well as Stevenson, but even he must be startled by how much further it's run since.


The rise has brought a near 400% gain for subscribers who first bought it when it  showed up on the  Screen…

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