Verb Technology Co (Verb Technology Co) Predictability Rank

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What is Verb Technology Co Predictability Rank?

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Verb Technology Co Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

	Predictables	Non-Predictable	All stocks
Total Number of stocks	570	1833	2403
Total Lost Money	61	830	891
Total Lost More Than 50%	18	412	430
Total Lost More Than 90%	4	86	90
Average Gain	260.6%	100.0%	138.1%
Median Gain	150.0%	13.0%	39.0%
Maximum Gain	2852.0%	11483.0%	11483.0%
Maximum Loss	-100.0%	-100.0%	-100.0%
Annualized Average Gain	12.7%	6.7%	8.4%
Annualized Median Gain	8.9%	1.1%	3.1%

For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank	5-Star	4.5-Star	4-Star	3.5-Star	3-Star	2.5-Star	2-Star	1-Star (non-predictable)	Average among all
% Out of All 2403 Stocks	3.3%	2.9%	3.7%	3.3%	3.3%	3.7%	3.3%	76.3%	100%
% that are in Loss (10y)	3%	10%	8%	9%	11%	18%	16%	45%	37%
Average Gain (10y)	364.6%	330.9%	278.0%	235.1%	243.5%	227.8%	154.8%	100.0%	138.1%
Median Gain (10y)	238.5%	193.5%	171.0%	159.0%	132.5%	113.5%	87.0%	13.0%	39.0%
Maximum Gainer	2228.0%	2547.0%	2452.0%	2852.0%	2432.0%	1892.0%	1807.0%	11483.0%	11483.0%
Maximum Loser	-82.0%	-53.0%	-67.0%	-100.0%	-83.0%	-100.0%	-78.0%	-100.0%	-100.0%
Annualized Average Gain	15.4%	14.6%	13.2%	12.0%	12.2%	11.7%	9.1%	6.7%	8.4%
Annualized Median Gain	12.1%	10.6%	9.8%	9.3%	8.2%	7.3%	6.0%	1.1%	3.1%

For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

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Verb Technology Co (Verb Technology Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Verb Technology Co Inc (NAS:VERB) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

3401 North Thanksgiving Way, Suite 240, Lehi, UT, USA, 84043

Website

https://www.verb.tech

Verb Technology Co Inc leader in interactive video-based sales applications, transforms how businesses attract and engage customers. VERB's Software-as-a-Service platform, based on its proprietary interactive video technology, comprises a suite of easy-to-use, subscription-based sales enablement software products. Available in over 60 countries and in mobile and desktop versions, it includes verbLIVE an interactive livestream eCommerce, shoppable video and webinar, verbCRM a customer relationship management, verbTEAMS a self on-boarding version of verbCRM with built-in verbLIVE and salesforce synchronization for small businesses, verbLEARN a learning management system, and verbMAIL an interactive video mail solution integrated into Microsoft Outlook, among others.

Executives

Bill John Rivard	officer: Interim CFO	3401 NORTH THANKSGIVING WAY,, SUITE 240, LEHI UT 84043
Edmund C. Moy	director	130 ANDOVER PARK EAST SUITE 200, SEATTLE WA 98188
Salman Hassan Khan	officer: Interim CFO	25651 BIRCHLEAF CT, VALENCIA CA 91381
Julie Ann Holdren	officer: Chief Product Officer	PO BOX 48, MT VERNON VA 22121
Mitchell Duane Bledsoe	officer: Chief Information Officer	25992 SERENATA DR., MISSION VIEJO CA 92691
Jeff Clayborne	officer: Chief Financial Officer	2644 GREENFIELD AVENUE, LOS ANGELES CA 90064
Kenneth S Cragun	director	3775 CHIPPEWA CIRCLE, CORONA CA 92881
Judith Lynne Hammerschmidt	director	3511 CAMBRIDGE ROAD, DURHAM 1W 27707-4509
Nancy R Heinen	director	215 GOLDEN HILLS DRIVE, PORTOLA VALLEY CA 94028
Phillip J. Bond	director	10718 OX CROFT COURT, FAIRFAX STATION VA 22039
James P Geiskopf	director	901 HANCOCK AVENUE, UNIT 308, WEST HOLLYWOOD CA 90069
Rory J. Cutaia	director, 10 percent owner, officer: Pres, Treas, Sec, CEO	1157 NORTH HIGHLAND AVENUE, SUITE C, HOLLYWOOD CA 90038-1204
Michael Timothy Psomas	director	8605 SANTA MONITA BOULEVARD, LOS ANGELAS CA 90069
Peter Krogh Jensen	director	4656 HOSKINS ROAD, NORTH VANCOUVER A1 V7K 2R1
Kim Watson	officer: Exec. VP Strategic Relations	1157 HIGHLAND AVENUE, SUITE C, HOLLYWOOD CA 90038-1204