Compound Income
  • Blog
  • Scores
    • Subscribers Scores Access
  • Portfolio
    • Table of Returns
  • Resources
    • Check list
  • About
  • Contact



Storming Free trial offer.

18/2/2022

0 Comments

 
Further to the last post about the major upgrade to the Scores. Just wanted to mention the way in which the sign up process works now affords the opportunity for a storming free trial. The founder member fixed annual pricing is available by signing up for an annual direct debit. If you wanted to sign up now this will be set up to be taken on or around 21st March 2022 and annually thereafter.

Thus you could try the Scores & get access to the Portfolio for two or three weeks before you buy and cancel your direct debit mandate a week or so before the 21st March if you decided they were not for you. If you did decide to pay you'd be able to lock in the super low pricing that works out at just £1 a week. Not sure where else you can find such priceless information for that price, but then I'm biased. 

Any way mind how you go on this stormy day in the UK and safe investing however you decide to do it. 
Picture
0 Comments

Major upgrade to Scores & subscription offers.

8/2/2022

0 Comments

 
This post is to inform subscribers & potential subscribers of a major upgrade to the Scores.
Firstly to emphasise there will be no changes to the existing Compound Income Scores which will still seek to quickly help investors identify for further research good quality dividend paying stocks in the UK market with the potential to grow their income over time. 

What is being added?
There are three new Scores being added which will cover a broader range of names in the UK market including those that do not pay dividends. This will take the number of stocks covered up from just over 500 to just under 1500. The new Scores are as follows:

Quality, Value & Momentum Scores (VQM). 
These are based on work from a while back by the late Robert Haugen which found dramatic, consistent, and negative payoffs to measures of risk, positive payoffs to measures of current profitability, positive payoffs to measures of cheapness, positive payoffs to momentum in stock return, and negative payoffs to recent stock performance. The full details of the research can be found here. The metrics used in this research are reflected in the VQM Scores with one tweak where they are using 12 month total return rather than pure price momentum as I have always felt that ignoring dividends biases this measure against dividend paying stocks. although overall it will make little difference except where dividend payments are significant compared to price changes.

Shareholder Yield Score (SHY).
Going one step further than the Haugen Scores is the Shareholder yield  (SHY), which takes into account share buy backs when calculating a share holder yield. This has generally been suggested as a more effective way of selecting stocks for purer yield based strategies. While some suggest that debt pay back should also be taken into account, so a separate Debt Pay Back Yield is also presented for consideration, but not included in the actual SHY calculated and ranked. While others suggest also looking at quality and momentum factors along with this. Research from the guys at Alpha Architect can be found here. While the practical application of this in a fund from one of the early researchers / adopters, Mebane Faber, can be found here. In this case you could look at the Haugen VQM Scores alongside the SHY as well as the CI Score all on the one sheet.

Conservative Formula / Low Volatility (CFLV)
Finally we have added the Conservative Formula which is based on research by Pim van Vliet and David Blitz which found that low volatility stocks tended to do better over time. The research which is sub titled Quantitative Investing made easy, uses a volatility measure along with Shareholder yield and 12 month - 1 month price momentum. So it dovetails in quite nicely with the SHY Scores and adds extra information on volatility and pure price momentum. Volatility is also presented separately and ranked too with lower volatility stocks given a higher score, given that the research found that they do on average give better returns, so lower volatility is better and like all the other Scores 100 is best and 0 worst. This tendency for low volatility / low risk out performance also ties in with the findings of the Robert Haugen research.
​
All Scores (New Sheet) 
These new Scores together with the extra data on Debt pay down and volatility are all presented in the new All Scores sheet which summarises the Scores for all the stocks covered.  The Compound Income Scores, where available, are also shown on this sheet too, although  they are more limited in number given the yield requirement for them to qualify for the original Scores. All in all this will expand the universe of stocks covered from just over 500 for the existing Compound Income Scores to nearly 1500 in the All Scores. 

Summary of Changes
So to summarise, subscribers will continue to get access to:
  • Access to the Compound Income Scores & associated portfolio
  • Transactions details from monthly screening of the 500 CI stock universe.
  • Journal notes on screening decisions & news flow comments on portfolio holdings

New features available on the new All Scores sheet:
  • Value, Quality & Momentum Score plus Value Quality / Quality Momentum Scores
  • Actual Shareholder Yield & SHY Score plus Debt Paydown yield details
  • Conservative Formula / Low Volatility Score plus volatility details and ranking
  • Expanded stock coverage to nearly 1500 names including non dividend payers.
 
Hopefully existing subscribers will find the new Scores a useful addition to their research tools. It should give you the ability to search for, sort or filter stocks and sectors etc. and see at a glance how they rank quantitatively in terms of value, quality, momentum, volatility and different combinations of those as detailed above. While of course still being able to see how those that qualify on yield grounds score in terms of their Compound Income potential as well as the newly introduced Shareholder Yield.

Subscription Arrangements
The Scores have been held at their current price level since launch some years ago, despite increased costs along the way and to come. I do however wish to reward initial founder members / subscribers for their loyalty & support by maintaining their pricing despite the cost pressures and the major upgrade to the coverage and Scores now on offer. So if you are a current subscriber, rest assured that you will be able to continue to benefit from that low price for as long as you remain a subscriber.

Pricing & New Subscriber offer.
If you are new to the site and would like to benefit from the same value pricing as founder members, I can offer new annual subscribers the same fixed price offer if you sign up by 14th March 2022. After that date the price will be going up by 25%. If that is something that interests you then please click here to subscribe for an annual subscription via direct debit. 

Alternatively if you would prefer to pay monthly but at the newly introduced monthly rate you can do so by clicking here to set up a monthly direct debit instead. 

Either way you will get access to the Scores and the Portfolio etc. via google sheets or directly via the subscriber link under the Scores heading on the site menu. 
​
Thanks for reading & subscribing if you are a subscriber - good luck with your investing. 




0 Comments

As goes January, so goes the year?

3/2/2022

0 Comments

 
Picture
Click to enlarge
Introduction
As I feared in the year end update last month, it seems that returns this year may well not be as good. This may be especially so if the old axiom that so goes January, so goes the year does have any substance to it, although I've seen research in this interesting post that it is not that predictive. This also looks at the thorny issue of market timing & seems to conclude that it is hard to find evidence of it being done successfully. 

For what it is worth the market timing indicators that I maintain are still in above trend bullish territory for the larger headline UK indices like FTSE 100, FTSE 350 & FTSE All Share. Interestingly Mid 250 & Smaller Company Indices in the UK have fallen below trend and therefore into sell / beware territory after they were hit hard in January. However, the economic indicators that I use along side those are still positive - so in the absence of a recession, hopefully this will just turn into a normal correction at this stage (10 to 20% or so) rather than a horrible -50% bear market. Of course there are plenty of other things to worry about like cost of living, supply chains, Russian aggression etc. but as the other axiom says - the market climbs a wall of worry. 

Performance Review
Given that Mid & Smaller companies led the way down while the larger FTSE 100 held up better, it was probably no surprise that the Compound Income portfolio gave back some out performance  as it is more exposed to Mid & Small cap names than the FTSE All Share that I use as a benchmark. Please see the graphs at the top of this post for full details of that and other time periods including the 15% per annum achieved since inception in April 2015.

Update on this months Screening & to the Scores.
No update here on this months screening due to time pressures (more on that in a moment). Subscribers will however have been able to see details of this months trades in the transactions sheet & discussion of those stocks considered in the journal sheet. 

Aside from that I have been spending some time working on an update to the Scores to bring a broader set of data and greater stock coverage for those who are interested in shares that do not meet the income requirements to be in the Compound Income Scores investment universe. Rest assured the Compound Income Scores will remain in their current form, just that subscribers will have access to a broader information set & rankings which should give some useful insights into all of the stocks covered including those currently in the Compound Scores universe.

Watch this space for a further post with details about the enlarged and enhanced scores when they become available. Any way mind how you go out there in these tricky markets, hopefully with all the focus on inflation & a cost of living crisis doesn't mean we are flying back to a 1970's style stagflation environment. With that in mind I'll leave you with an appropriately naff song from that period.
​
0 Comments

    RSS Feed

    Archives

    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    August 2019
    June 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014

    Categories

    All
    32Red
    Aberdeen Am
    Admin
    A G Barr
    Airtel Africa
    Alliance Pharma
    Alternative Telecoms
    AMEC
    Amino Technologies
    Amlin
    Anglo Pacific
    Ashtead
    Asset Allocation
    Auto Trader Group
    Barclays
    BA Systems
    BATS
    Behavioural Finance
    Bellway
    Berendsen
    BHP Billiton
    Bloomsbury Publishing
    Bodycote
    Books
    Bovis Homes
    BREXIT
    Britvic
    Caledonia Mining
    Capital Ltd.
    Catlin-group
    Central Asia Metals
    Centrica
    Character Group
    Churchill China
    Cineworld
    City Of London Investment Group
    Clarkson
    CMC Markets
    Commercial Property
    Compound
    Computacenter
    Connect Group
    Croda
    Currencies
    Demographics
    Diageo
    Diploma
    Directors Dealings
    Dividends
    DotDigital
    Easyjet
    Economics
    Emerging Markets
    Emis
    Empiric Student Property
    Etfs
    Fairpoint
    Ferguson
    Ferrexpo
    Finsbury Foods
    Food Retailers
    Forterra
    Games Workshop
    Gateley
    Go Compare
    Goid
    Greene King
    GSK
    Hargreaves Services
    Hays
    Headlam
    Hedge Funds
    Hikma Pharmaceuticals
    Hill & Smith
    House Builders
    Howden
    HSBC
    IG Group
    IMI
    Imperial Tobacco
    Indivor
    Inflation
    Insurance
    Intermediate Capital
    Interserve
    Investec
    Investment Trusts
    It
    ITV
    James Halstead
    Jarvis Investment Management
    JLT
    Jupiter Fund Management
    KCOM
    Kingfisher
    Legal & General
    Lloyds Bank
    Luceco
    Macfarlane
    Maintel
    Man Group
    Market Timing Indicator
    Market Valuation
    Marston's
    Matchtec
    Media
    Merlin Entertainment
    Micro Focus
    Mining
    Mitie
    Miton Group
    Moenysupermarket
    Mondi
    Moneysupermaket.com
    Morgan Sindall
    Music
    National Grid
    N.Brown
    News
    Next
    Nichols
    Norcros
    Oil
    Page Group
    Paypoint
    Pennon
    Persimmon
    Personal Finance
    Pharmaceuticals
    Phoenix Group
    Photo Me
    Photo-Me
    Plus500
    Podcasts
    Polar Capital
    Politics
    Polymetal
    Portfolio
    Portmeirion
    Provident Financial
    PZC
    Qinetiq
    Ramsdens Holdings
    Rank Group
    Reckitt Benckiser
    Renewable Energy
    Renew Holdings
    Renishaw
    Research Papers
    Restaurant Group
    Retailers
    RIO
    RM Group
    Rolls Royce
    RPC
    RPS
    Safestore
    Sage
    Sainsburys
    Savills
    Schroders
    Scores
    SCS Group
    Sell Discipline
    Shareholder Yield
    Share Picks
    Short Interest
    Somero
    Spectris
    Sprue Aegis
    SSE
    Stock Spirits
    Strix Group
    S & U Plc
    Sureserve
    Sylvania Platinum
    TalkTalk
    Taptica
    Tax
    Technology
    Telecoms
    Tobacco
    Trading Ideas
    TSB
    TUI
    UK Market Update
    Ultra Electronics
    Unilever
    Utilitywise
    Value
    Victrex
    Vodafone
    VP.
    Water Utilities
    Watkins Jones
    WH Smiths
    William Hill
    Wynstay
    XL Media
    XP Power
    Yield
    Zytronic

    googleda4a17cac6d02bb9.html
    File Size: 0 kb
    File Type: html
    Download File

Powered by Create your own unique website with customizable templates.
  • Blog
  • Scores
    • Subscribers Scores Access
  • Portfolio
    • Table of Returns
  • Resources
    • Check list
  • About
  • Contact