Growth to Ride (with a margin of safety)

Components Performance/Risk
Period Return
68.9%
Return Rank
Strong
Risk Exposure
High Risk

The selection of equities, listed on NYSE and NASDAQ, is updated dynamically by machine learning at market closure every night

Stocks are screened for the strongest sales trends and capex (capital expenditures) growth

The selection is controled by constraints set on debt financing 

 

Sales & Capex trends

The trends are powerful indicators to bolster a momentum trade

  • As sales & capex will vary from quarter to quarter, moving averages may signal positive trends over time
  • A moving average over the past 5 reported quarters is viewed as a positive by surpassing a 20-quarter (5-year) moving average 
  • The longer the trend in favor of the most recent quarters persists, the higher the score assigned to individual assets, screened for above-average  ranking 

 

To reinforce the focus, the selection is screened for increase in sales & capex of the latest quarter over the previous quarter

 

Debt financing

While growth will rely in part on debt financing, prudent constraints are set on leverage and current liabilities 

  • D/E leverage is constrained, arbitrarily, to 1.5 - limiting Long Term Debt to 150% of Equity
  • Current liabilities, a preferred source of financing in the early stages of growth, is limited to 80% of Total Liabilities

 

The selection does not screen  any specific range for performance or volatility but the assets are ranked to highlight short-term momentum

The Invesco NASDAQ 100 ETF  is the benchmark of the selection 

Theme Components
Name
Ticker
Sector
Industry
Cur. Price
Mkt. Cap
Performance
Momentum
Risk Rank
Risk Contrib
 
Coherent COHR TechnologyOptics & Photonics288.0254 B150.2% Neutral High Risk
Micron Technology MU TechnologySemiconductors - Specialized989.041,113 B413.7% Neutral High Risk
NVIDIA NVDA TechnologySemiconductors - IC Design (fabless)226.325,500 B20.6% Weak Up Average Risk
Advanced Micro Devices AMD TechnologySemiconductors - IC Design (fabless)594.24969 B174.6% Strong Up High Risk
Arm Holdings ARM TechnologySemiconductors - IC Design (fabless)255.24271 B48.4% Neutral High Risk
Palo Alto Networks PANW TechnologySecurity Platforms & Software403.83330 B89.3% Weak Up Above Average
Cloudflare NET TechnologySecurity Platforms & Software350.87123 B57.7% Strong Up High Risk
Riot Blockchain RIOT TechnologyBlockchain16.476.2 B-24.1% Weak Down High Risk
Hut 8 Mining Corp. HUT TechnologyBlockchain85.249.5 B73.6% Weak Down High Risk
Datadog DDOG TechnologyData Processing & Data Analytics (EDP)287.29101 B75.0% Weak Up High Risk
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