Eleven Years of Consistent Market-Beating Performance…

Powered by a Precise 12-Rule Stock-Selection Algorithm, Our SmartRank Portfolio Has Generated an Average 72.4%/Year Return, Trading Just 5 Stocks (Refreshed Weekly).

Step 1: Over 5,000 NYSE/Nasdaq Stocks Screened Against a Precise 12-Point Checklist…

Every Friday (after the close), our computers run a systematic algorithm, which screens over 5,000 NYSE/Nasdaq stocks, against a precisely formulated 12-rule checklist of deep-value company fundamentals, plus technical ‘timing’ indicators.

Every stock is automatically given a SmartRank score (between 0-100), based on the 12-point algorithm.

Step 2: Stocks are Automatically Ranked into a Sort-Order…

The stock with the highest SmartRank score is listed at the top. The stock with the second highest score is listed second. And so on. Companies with the highest SmartRank score (nearest the top of the list) provide the most optimum, deep-value trading opportunities. We buy and hold the top-five ranking stocks…

Top Ranking Stocks

Every Buy, Sell and Hold – Clearly Defined…

This simple 2-step process allows us to instantly check if there have been any new stocks which have entered the top-five.

The trading rules are simple…

Whenever a stock newly enters the top-five rankings, this represents a ‘buy’ signal for that stock. We buy that stock on the Monday open.

Whenever a currently held stock drops below the top-five, this represents a ‘sell’ (exit) signal for that stock. We sell that stock on the Monday open.

As long as a stock remains in the top-five rankings, we need do nothing, and continue to ‘hold’ that stock.

Trades for Monday Open

Proven Performance:

Trading the five-stock portfolio, the model has been profitable in 11/11 years, with an average 72.4%/year return since January 2008…

Annual Performance
SmartRank Portfolio Equity Growth

The Stock Selection Method – Step-by-Step…

At the core of everything we do, is the SmartRank algorithm – a precise integration of 12 distinct rules. The algorithm synergizes both company fundamentals (identifying the highest quality deep-value + growth stocks) and technical-analysis (price, volume, and money-flow), for precision entry-timing…

Here’s how the method works…

In the below example, you can see a snapshot of the 12-factor model algorithm applied to just one example stock, Humana Inc. (don’t worry if you don’t fully grasp the method – you don’t need to know all the nuts-and-bolts of the strategy to profit from it).

We run simultaneous screens across all 5,000+ NYSE/Nasdaq stocks (refreshed weekly)…

SmartRank Stock Screener

A single factor is either a fundamental indicator (such as ‘gross margin growth’ or ‘price/sales ratio’), or a technical indicator (such as ‘relative volume flow’, or an ‘overbought/oversold’ indicator)…

Each individual indicator is automatically given a ‘bullish-to-bearish score’ depending on how that indicator is performing ‘relative’ to history, and how it is performing in relation to industry-peers (competitors).

The higher the score for an indicator, the more ‘bullish’ the stock based on that ‘singular’ indicator (also known as a single ‘factor’)…

The individual scores are then combined (depending on weighting of each indicator) to return a total, simplified SmartRank score, between 0 to 100.

The higher the score, the more ‘bullish’ the stock.

Based on this logic and rationale, we always hold the top-five ranking stocks in the SmartRank portfolio.

12 Distinct Factors. One Complete Trading Strategy…

Building a factor-based trading algorithm begins with a clear theme/objective. In our 12-factor algorithm, we look for companies which exhibit positive datapoints ‘relative’ to each company’s own history.

For instance, the algorithm would measure current price/sales ratio against a company’s own historical equilibrium, and cross-check this against industry peers.

There are multiple factors the algorithm takes into account, including sustainability in both sales revenue and gross profit margins, debt/capital levels, operating and free-cash-flow margins, institutional buying, etc.

Specifically, we apply 12 distinctive rules (factors). These are…

  • Price/Sales Ratio (P/S Ratio)
  • Enterprise-Value/Free-Cash-Flow (EV/FCF Ratio)
  • Enterprise-Value/EBITDA (EV/EBITDA Ratio)
  • Free-Cash-Flow/Capital (FCF/Capital Ratio)
  • Debt/Capital Ratio
  • Gross Margin Growth (Relative)
  • Operating Margin Growth (Relative)
  • Free-Cash-Flow Margin Growth (Relative)
  • Revenue Sustainability
  • Institutional (Smart-Money) Order-Flow
  • Relative Volume Trend
  • Technical Analysis Indicators (Oversold)

A precise formula combines all 12 factors (weighted), resulting in a single, simplified SmartRank score (between 0-100), for each of the 5,000+ companies we track.

The goal is to capture the strongest businesses which offer deep-value/growth, trading at a relative-discount (undervalue), confirmed by smart-money-flow, allowing us to enter at an optimal-value price point.

The algorithm targets specific stocks that have undergone a recent technical pullback, combined with pattern price/volume (positive accumulation) activity, backed by institutional (smart) money-flow.

This combined method (which fully integrates both qualitative company fundamentals and technical-analysis/timing indicators) delivers trading ideas which offer a high-probability of success, and the opportunity for us (and our members) to profit from the resulting recovery/rally.

Make Smarter, Better Informed, Better Prepared Trades…

Every Sunday around 6pm, we publish the latest, top-five ranking stocks, based on the strategy. This allows us (and our subscribers) to see all the latest ‘buys’, ‘holds’ and ‘sells’…

We ‘buy’ any new stock which has entered the top-five. We ‘sell’ (exit) any stock no longer in the top-five. We ‘hold’ any stock which continues to remain in the top-five. Subscribers can easily emulate our trades.

As a member, having access to pre-screened, superior-quality stock-picks will save hours of research time capturing those companies which offer the best value, relative to the 12-point algorithm…

Let Us Do the Math…

Our members do not need to worry about every mathematical ratio, or complex fundamental or technical indicator. As a subscriber, you will receive full access to our members-only site, where we publish the top-five ranking stocks, updated every Sunday (around 6pm New York time), ready for the Monday open…

The trading rules are simple…

Whenever a stock newly enters the top-five rankings, this represents a ‘buy’ signal for that stock. We buy that stock on the Monday open (you can easily emulate our trades).

Whenever a currently held stock drops below the top-five, this represents a ‘sell’ (exit) signal for that stock. We sell that stock on the Monday open.

As long as a stock remains in the top-five rankings, we simply continue to ‘hold’ that stock.

Members will have full access to our helpdesk at any time (including weekends) throughout membership. Ask any questions, no matter how simple or complex. We are here to help you advance.

We don’t just stop at providing our weekly top-five report. Our goal is to make you a smarter, better informed, better-prepared trader. You will build confidence witnessing market-outperformance, trading alongside experienced, fully knowledgeable, self-directed traders.

We combine deep research tools, with a precise rule-based stock-selection approach. The result is a superior, complete trading plan-of-action, one that has proven to deliver consistent profitability year after year.

Join us today, and start elevating your trading to a new level. To get started, click the subscribe link below. If you have any questions, please get in touch with us at any time.

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