Each stock has a historical story. The story consists of two components :
These two components are the only objective tools for valuing a company.
For each stock, Investec’s technology scans the historical story and places the current stock price within the historical coherent sequence. But the past alone is not enough to know whether it is worth buying the stock today. So in addition Investec examines future financial performance, and in relation to the historical model examines the future share price. If Investec identifies a significant upside between the current price and the future stock price, Investec will alert the stock as a growth stock and present it in the portfolio.
: Context
Symbol : LRCX
Sector : Semiconductor & Equipment
Main Business : Manufacturing, marketing and service semiconductor processing equipment
Time Frame : Mid-April 2017
InvesTec’s Algorithm Findings :
Company Level, Financial Performance:
In the period 2013-2017 LRCX’s earnings (EPS) are on a strong uptrend, manages to beat the consensus of analysts time and time again and reports higher-than-expected EPS.
Sector Level, Market Penetration :
15% -> 21% -> 29%.
Between the years 2012-2016 LRCX manage to increase its market segment relative to competitors in the same industry.
Market versus Sector Level :
The potential inherent in growth stocks versus long-term investment in the market- SPY index.
The SPY index manage to rise slowly relative to growth stocks that are expected to grow following an expected increase in earnings.
Entry point is mid-April 2017 per our algorithm.
So all the financial indicators look positive, what gives us the confidence to invest in LRCX ?
To connect the whole puzzle in the story InvesTec is also looking at future estimates.
How The Story Ends :
An investment in LRCX during that period bought us a profit of 69% in 9 months.
At the same time, an investment in SPY bought a profit of 20%.
: Context
Symbol : LRCX
Sector : Semiconductor & Equipment
Main Business : Manufacturing, marketing and service semiconductor processing equipment
Time Frame : Mid-April 2017
InvesTec’s Algorithm Findings:
Company Level, Financial Performance:
In the period 2013-2017 LRCX’s earnings (EPS) are on a strong uptrend, manages to beat the consensus of analysts time and time again and reports higher-than-expected EPS.
Sector Level, Market Penetration :
15% -> 21% -> 29%.
Between the years 2012-2016 LRCX manage to increase its market segment relative to competitors in the same industry.
Market versus Sector Level :
The potential inherent in growth stocks versus long-term investment in the market- SPY index.
The SPY index manage to rise slowly relative to growth stocks that are expected to grow following an expected increase in earnings.
Entry point is mid-April 2017 per our algorithm.
So all the financial indicators look positive, what gives us the confidence to invest in LRCX ?
To connect the whole puzzle in the story InvesTec is also looking at future estimates.
How The Story Ends :
An investment in LRCX during that period bought us a profit of 69% in 9 months.
At the same time, an investment in SPY bought a profit of 20%.
: Context
Symbol : TRGP
Sector : Oil & Gas Midstream
.Main Business : TRGP owns, operates, acquires, and develops a portfolio of midstream energy assets in North America
Time Frame : Early August 2021
InvesTec’s Algorithm Findings :
Company Level, Financial Performance:
In the period 2017-2021 the average earnings of TRGP is slightly above 0.
Sector level, Market Penetration:
3%-> 10% ->12%
During Apr2020-Jul2021 TRGP manage to increase its market segment relative to competitors in the same industry.
Market versus Sector level, and the time context:
The time is post-Covid, technology stocks have grown to bubble size and the market has grown by 80% in a year and a half (Mar20-Aug2021).
Investec’s algorithm read the map and at that time most of the recommendations of our algorithm were stocks from the natural energy industry.
What gives us the confidence to invest in TRGP ?
To connect the whole puzzle in the story InvesTec is also looking at future estimates.
In addition as stated, most of the recommendations of the algorithm in this period were from a certain sector, with each decision being made independently it gives a high level confidence that the sector will grow. Entry point is early-Aug 2021 per our algorithm.
How The Story Ends :
An investment in LRCX during that period bought us a profit of 88% in 9 months.
At the same time, an investment in SPY bought a profit of -2%.
: Context
Symbol : TRGP
Sector : Oil & Gas Midstream
.Main Business : TRGP owns, operates, acquires, and develops a portfolio of midstream energy assets in North America
Time Frame : Early August 2021
InvesTec’s Algorithm Findings :
Company Level, Financial Performance:
In the period 2017-2021 the average earnings of TRGP is slightly above 0.
Sector level, Market Penetration:
3%-> 10% ->12%
During Apr2020-Jul2021 TRGP manage to increase its market segment relative to competitors in the same industry.
Market versus Sector level, and the time context:
The time is post-Covid, technology stocks have grown to bubble size and the market has grown by 80% in a year and a half (Mar20-Aug2021).
Investec’s algorithm read the map and at that time most of the recommendations of our algorithm were stocks from the natural energy industry.
Entry point is early-Aug 2021 per our algorithm.
What gives us the confidence to invest in TRGP ?
To connect the whole puzzle in the story InvesTec is also looking at future estimates.
In addition as stated, most of the recommendations of the algorithm in this period were from a certain sector, with each decision being made independently it gives a high level confidence that the sector will grow.
How The Story Ends :
An investment in LRCX during that period bought us a profit of 88% in 9 months.
At the same time, an investment in SPY bought a profit of -2%.
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