Vaso (VASO) Predictability Rank

View and export this data going back to 2006. Start your Free Trial

What is Vaso 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.

Vaso 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

Vaso Predictability Rank Related Terms

Thank you for viewing the detailed overview of Vaso's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Vaso (VASO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Vaso Corporation (OTCPK:VASO) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

137 Commercial Street, Unit 200, Plainview, NY, USA, 11803

Website

https://www.vasocorporation.com

Vaso Corporation is a medical technology company. It provides diverse product and service categories, including noninvasive monitoring and therapeutic devices, diagnostic imaging equipment, and information technology for enterprises and clinical customers. The company currently operates in three distinct business units namely IT; Professional sales and Equipment. It generates maximum revenue from the IT segment. IT segment focuses on healthcare IT and managed network technology services.

Executives

Leon Dembo	director	137 COMMERCIAL STREET, SUITE 200, PLAINVIEW NY 11803
Janey Moen	director	137 COMMERCIAL STREET, SUITE 200, PLAINVIEW NY 11803
Jun Ma	director	C/O VASOMEDICAL, INC., 180 LINDEN AVENUE, WESTBURY NY 11590
Edgar Rios	director	1650 TYSONS BOULEVARD, SUITE 900, MCLEAN VA 22102
Michael Beecher	officer: Chief Financial Officer	C/O DIRECT INSITE CORP, 80 ORVILLE DRIVE, BOHEMIA NY 11716
Joshua Markowitz	director	3131 PRINCETON PIKE, BLDG. 3D, SUITE 200, LAWRENCEVILLE NJ 08648
Jonathan P Newton	officer: Vice Pres Finance & Controller	152 RICHMOND AVENUE, AMITYVILLE NY 11701
Peter C Castle	director	C/O NETWOLVES CORP, 4002 EISENHOWER BLVD, TEMPA FL 33634
David H Lieberman	director	3061 INDUSTRY DR, LANCASTER PA 17603
Behnam Movaseghi	director	C/O KERNS MANUFACTURING CORPORATION, 37-14 29TH STREET, LONG ISLAND CITY NY 11101
Nelson Randall Hill	officer: Senior Vice President	3880 EAST COUNTY HIGHWAY 30A, UNIT 201, SANTA ROSA BEACH FL 24159
William Edward Dempsey	director	52 PARK AVENUE, SANDYMOUNT L2 DUBLIN 4
David Tarachand Singh	officer: Chief Financial Officer	C/O VASOMEDICAL, INC., 180 LINDEN AVENUE, WESTBURY NY 11590
Joseph Giacalone	director
Derek Enlander	director	88C UNION AVENUE, CENTER MORICHES NY 11934