This site offers methodology and tools for successful investing. It is a new project that well be built in stages. At the first stage the primary objective of the site is to help users to make money in the stock market by offering them sophisticated stock valuation tools with the emphasis on relative valuation.
The problem with any stock valuation methodology is that it is always “backward looking”, as it relies on historical financial performance of the company and is often backtested on historical stock prices. Therefore, any absolute stock valuation is primarily dependent on the valuator’s prediction of the future, which is always highly subjective and, as a rule, wildly inaccurate.
However, if all stocks are valuated within the same framework of strictly-defined rules and assumptions, then relative valuation (of one stock versus the other) becomes of great importance, as it allows us to identify stocks that on average should outperform (or underperform) the market. This would also allow us to construct a hedged portfolio by buying stock that are expected to outperform and selling short stocks that are expected to underperform. Such a portfolio, if it includes a sufficiently large number of stocks, should be able to generate positive return irrespective of the market conditions (i.e. regardless of whether the market rises, falls, or moves sideways).
InvestorsCraft.com is an independent investment research and advisory site concentrating at the moment on U.S. equities. It is the successor of iStockResearch.com and X-FIN.com that served investors well since 2005 and attracted a number of dedicated followers. Our goal is to help individual investors and fund managers in their stock selection process.
The core offering of our site is intrinsic value estimation of stocks based on our proprietary stock valuation model. The model has been extensively tested and improved over the past fifteen years. Now it is a formidable stock valuation tool offering a clear advantage to investors who use it. What we have here is unique and cannot be found anywhere else.
Investing, by and large, is a process with unpredictable results. We strive to reduce this unpredictability for investors by offering tools that are based on sound fundamental analysis. We consciously minimize any subjectivity in the process so that our valuation results are consistent and comparable.
We would be grateful to hear your comments and suggestions. Customer feedback drives the site development. The better the site, the more money you make.
In the meantime, have a profitable day!
Alexander Chepakovich, CFA