Super Stock Consistency

Tuesday, Aug 13 2019 by
3

From your full 6 year history have any Super Stocks remained Super Stocks from the beginning?

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way

Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. The author may own shares in any companies discussed, all opinions are his/her own & are general/impersonal. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.


Do you like this Post?
Yes
No
3 thumbs up
0 thumbs down
Share this post with friends




5 Posts on this Thread show/hide all

Nick Ray Tue 1:49pm 1 of 5
3

I'm going to guess the answer is "no".

I have data on some stocks back to 2016. So if you are curious my list of the best performers in terms of maintaining a high stock rank seem to be these:

Persimmon (LON:PSN)
Bloomsbury Publishing (LON:BMY)
Games Workshop (LON:GAW)
Ocean Wilsons Holdings (LON:OCN)
Barratt Developments (LON:BDEV)
Plus500 (LON:PLUS)
RM (LON:RM.)

I don't track the smaller caps and I have only sorted using Stock Rank (rather than requiring high Q V M) for this list. So it is just a flavour.

Overall performance since 2016 is reasonably good - but it should be. We are selecting for stocks which have had consistently high Stock Rank so we are forcing them to have at least reasonable historical Momentum.

5d52b0aed85c4topsrperf2016.png


| Link | Share | 1 reply
herbie47 Tue 2:04pm 2 of 5
1

In reply to post #504181

Most of those are not Superstocks currently, only Barratt Developments (LON:BDEV) and RM (LON:RM.) seem to be. H & T (LON:HAT) has been for nearly 2 years I think. I doubt any will have been for 6 years.

| Link | Share | 1 reply
Howard Marx Tue 2:09pm 3 of 5
5

Such a stock would obviously need to have:

1. persistently high Quality
2. persistent eps upgrades (Momentum), but
3. a rational share price that appreciated only in line with the upgrades (so preserving the Valuation).

Such stable growth companies tend to occur in established industries such as Food Producers, Household Goods, Pharmaceuticals or Support Services.

Pfizer almost suceeds over five years, as does Accenture:

5d52b639a4d46pf.jpg


5d52b6558d074acc.jpg


| Link | Share
Nick Ray Tue 2:54pm 4 of 5

In reply to post #504186

I had another look, this time forcing Q V M to all be above some minimum value. Using the rule that the stock must have a continuous record from 2016 to now there is only one stock where Q V and M all stay above 50 and that is Bloomsbury Publishing (LON:BMY) where worst case (Q,V,M) are at different times (64, 59, 51). Nothing does better than that. So no stocks even have all QVM above 60 for the whole period.

There may be many I have missed of course. Stocks which change name will escape my simple attempts to track them and stocks which performed well but were taken over will have disappeared, and anything smaller than £100M will be missed.

| Link | Share
colin1862 Tue 3:10pm 5 of 5
1

Thanks for informative replies. I was a bit naive to expect a 6 yr Super Stock (if found will promote to Super Duper Stock.)....I was trying to compose a portfolio with minimum buy/sell so was going to start with all Super Stocks but was wondering what rule I could use before being forced to sell. Maybe if any of their Stock Ranks (Q V M) falls below 50 would be reasonable  or if the SR falls into Bearish from graph would be appropriate. Thanks all for input!

| Link | Share

Please subscribe to submit a comment





Stock Picking Tutorial Centre



Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis