United Health Products (United Health Products) Predictability Rank

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What is United Health Products 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.

United Health Products 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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United Health Products (United Health Products) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » United Health Products Inc (OTCPK:UEEC) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

526 Commerce Circle, Suite No. 120, Mesquite, NV, USA, 89027

Website

https://www.uhpcorp.com

United Health Products Inc is a US-based company. It mainly manufactures and markets a patented hemostatic gauze for the healthcare and wound care sectors. The company's product HemoStyp is derived from regenerated oxidized cellulose, which is naturally designed to absorb exudate from superficial wounds and helps control bleeding. It markets its product to dental and medical markets as well as, sports, military and veterinary sectors, and others. The company's trademarks include Boo Boo Strips; The Ultimate Bandage; Hemostrips; CelluSTAT and Nik Fix.

Executives

Brian David Thom	officer: CEO	10624 S EASTERN AVE., STE A209, HENDERSON NV 89052
Kristofer Heaton	officer: Vice-President Finance, CFO	526 COMMERCE CIRCLE, STE 120, MESQUITE NV 89027
Nate Knight	director	C/O MORSE & MORSE, PLLC, 1400 OLD COUNTRY ROAD, SUITE 302, WESTBURY NY 11590
Louis Schiliro	officer: Chief Operating Officer	10624 S. EASTERN AVENUE, STE. A209, HENDERSON NV 89052
Douglas K Beplate	officer: CEO
Robert J. Denser	director	10624 S. EASTERN AVE., STE. A209, HENDERSON NV 89052
John Vito Capotorto	director	1090 KING GEORGES POST ROAD, SUITE 501, EDISON NJ 08837
Sherman Lazrus	director
Rodney Paul Leibowitz	director	420 EAST 54TH STREET, APARTMENT 15B, NEW YORK NY 10022
Michael R. Wiechnik	director	11 PRESWICK DR., MEDFORD NJ 08055
Richard Rifenburgh	director	2637 E. ATLANTIC BLVD., #133, POMPANO BEACH FL 33062
Phillip David Forman	director, officer: President, Chairman and CEO	1090 KING GEORGES POST RD,501, EDISON NJ 08837
Jan E Chason	director, officer: Chief Financial Officer	120 WALL STREET, SUITE 2401, NEW YORK NY 10005
Kelly Thomas Hickel	director, officer: Chief Executive Officer	1630A 30TH STREET, SUITE 300, BOULDER CO 80301
Patrick Donelan	10 percent owner	3570 LAKEVIEW DRIVE, DELRAY BEACH FL 33445