The Project: TradePilot.com – Beta Launch June 2014

Targeted at independent, self-directed investors, I wanted to create a one-stop, cloud based (access anywhere) stock market screener encompassing all the essential screening rules traders and investors look for in order to discover newly developing trade ideas based on any number of screening rules…

tradepilot-market-screener

For instance, an investor may want to view only those companies in the US stock market which have produced at least a 15%+  improvement in their quarter-on-quarter sales revenues/earnings, coupled with a similar increase in their operating margin and return on capital. Another investor may want to view companies with the lowest debt-to-equity ratio in their balance sheet. Yet another investor may want to combine all of these filters. A short term trader may wish to add some technical analysis to the mix, or to view only those qualifying stocks which have exhibited a significant increase in recent volume (known as a volume-spike) coupled with a price increase.

The screener was developed to sweep the entire market of over 6,000 companies and provide the required results based on user-customized filters. The results can be further ranked (sort-ordered) according to individual requirements – for instance to view results with the highest dividend yielding stocks at the top, or stocks with the highest percentage price move, or highest percentage recent volume-spike, etc.

The goal was to maintain ‘simplicity’ as the basis upon which to build the service. It was also important to allow users to build their own screener based strategies, according to their own needs and values (no two investors are the same, yet both can be equally successful) rather than offer pre-packaged systems and closed-end black-box strategies. Our mission to this day, and into the future remains always to provide a quality (accurate, timely) information service, and not to introduce subjective opinion, while delivering the values of simplicity and time-efficiency to the best of our ability.

Tradepilot is a currently free –  a continually evolving project of the heart – I am passionate about the markets, always looking for ways to invest and trade better with my own capital.

As a small, close-knit group of investors and [in my opinion] some of the smartest programmers in the industry, we are continually tuning and improving the technology/data offerings to make the service that bit better, with recent introductions including not only end-of-day updates, but also intraday updates, allowing mark-to-market ratio’s such as price-to-book, or price-to-free-cash-flow, continually updated throughout the day.

There are currently no fees, no signups/login required. Investors can simply go to the screener, and start using the service – screen and rank stocks by fundamentals, technical trends, price & volume action. The database covers over 6,000+ companies listed on the NYSE/AMEX & Nasdaq exchanges – tracking intraday price/volume data with built-in quarterly and annual fundamental data metrics.

Investors are able to develop their own unique mix of price/volume/fundamental rules, hit ‘go’ and benefit from their own personalised, automatically generated, ready-to-go watchlist before the market open.

 

Exiting “Long Apple/Short Netflix” Pair Trade…

For those of you who acted on my original June 2011 theses to go ‘long’ Apple shares and ‘short’ Netflix (view original article & trade alert published here), anticipating the relative value (fundamental) arbitrage opportunity between these two companies, you will be pleased to note, the position has now been exited (live exit alert published via stocktwits and twitter), for a net gain in excess of 75%…

Shiraz Lakhi AAPL/NFLX Pair Trade Alert

The trade lasted precisely 85 days, with Apple (our long position) appreciating 25.3% in this time period, while Netflix (our short position) declined 50.5%.

Net gains from this dollar-neutral trade (eg., long $50,000 AAPL/short $50,000 NFLX) was therefore 75.8% (the differential between the long/short position). On an annualized basis, this represents capital growth of 325% over a pro-rata 365 day period – by Shiraz Lakhi.

Long Rimage Corporation (RIMG) With Short S&P Hedge

By Shiraz Lakhi – Original Article Posted 06/12 Seeking Alpha – Holding Long Rimage Corporation (RIMG) Dollar-Neutral Hedged By Short S&P Index ETF (SPY)

Currently holding a long position in Rimage Corporation (RIMG) on strong cash flow reserve. The business maintains a significant cash flow which can be distributed via dividends or re-invested in acquisitions, research & development, or transitioning into cloud technology based data-transfer. Basic ‘strong fundamental’ argument to the upside (read the full article by clicking below image) is founded on an extraordinary 64% free-cash-flow-yield. The long position in RIMG is fully hedged via a dollar-neutral long stock/short S&P pair trade, in anticipation of RIMG outperforming the S&P…

Rimage Corporation, a technology company operating within the computer peripherals industry, generates a current free-cash-flow of $12.07 million (based on trailing 12 month data), with an enterprise-value of $18.58 million. The free-cash-flow-yield (FCF/EV) is hence 64.9%. Additional positives in favor of RIMG include zero long & short term debt, 5 year average ROE exceeding 10%, a book-to-market (based on historical cost) of 0.94, and a bullish analyst mean target of $17 per share – by Shiraz Lakhi.

 

Long Northrop Grumman (NOC) With Short S&P Hedge

Original Article Posted 06/12 Seeking Alpha By Shiraz Lakhi – Northrop Grumman (NOC) Offers Strong Upside Potential Based On Robust Free Cash Flow Yield

I am currently long Northrop Grumman (NOC), dollar-neutral hedged by the S&P 500 index ETF (SPY), in anticipation of NOC outperforming SPY over the next 3-4 weeks. Northrop Grumman Corporation, a conglomerate operating within the aerospace and defence technology industry, generates a current free-cash-flow of $2.08 billion (based on trailing 12 month data), with an enterprise-value of $19.55 billion. The free-cash-flow-yield (FCF/EV) is therefore a solid 10.6% (implying undervalue based on yield), which offers deep value relative to peers within the same industry. Additional data in favor of NOC include a low PEG ratio of 1.21, a price/sales ratio of 0.57, institutional favored ownership exceeding 90%, and low book-to-market of 0.65 – by Shiraz Lakhi.

Long Cisco Systems (CSCO) With Short S&P Hedge

New Trade Idea – Long Cisco Systems (CSCO) Hedged With Short S&P Index Pair Trade In Anticipation Of CSCO Outperforming The S&P 500 Index – Alert Published 06/12 Shiraz Lakhi

I am currently long Cisco Systems (symbol: CSCO), based on strong fundamental argument to the upside (click on article below, to view analysis). The long position in CSCO IS fully hedged via dollar-neutral long CSCO/short SPY pair trade strategy, in anticipation of CSCO outperforming the S&P 500 index.

Cisco Systems, a tech company operating within the networking and communication devices industry, generates a current free-cash-flow of $9.25 billion (based on trailing 12 month data), with an enterprise-value of $58.1 billion. The free-cash-flow-yield (FCF/EV) is therefore 15.9%, offering strong upside. Additional positives in favor of CSCO include a book-to-market (based on historical cost) of 0.55, a low (relative to industry) price/cash ratio of 1.96, and a low debt/equity ratio of 0.81 – by Shiraz Lakhi.

Long TAM S.A (TAM) With Short S&P Hedge

Brazilian TAM S.A (TAM) Offers Solid Upside On Robust Free Cash Flow Yield – Currently Holding A Long Position In TAM With S&P Hedge – Original Idea Posted 06/12 Seeking Alpha By Shiraz Lakhi

With a 22.9% free-cash-flow-yield cushion, TAM offers strong upside, despite the current downturn in the airline industry. Operating within the major airlines industry (Brazil), TAM generates a current free-cash-flow of $462.8 million (based on trailing 12 month data), with an enterprise-value of $2.02 billion. The free-cash-flow-yield (FCF/EV) is hence a strongly bullish 22.9%. Additional metrics in favor of TAM include a low price/cash ratio of 2.98, return on equity (ROE) of 47.87% (based on trailing 12 month data), a low price/sales ratio of 0.48 (consensus bullish), and a low (relative to industry) debt/equity ratio of 4.28. I am long TAM, with a dollar-neutral hedged short position in the S&P index ETF (symbol: SPY), in anticipation of TAM outperforming the S&P – by Shiraz Lakhi.

Long Computer Sciences (CSC) With Short S&P Hedge

Computer Sciences Corporation (CSC) Vs S&P 500 Index (SPY) Offers Opportunity For Market-Neutral Hedged Pair Trade – Original Alert Posted 06/12 Seeking Alpha By Shiraz Lakhi

I am currently long Computer Sciences Corporation (CSC) with a dollar-neutral short S&P (SPY) hedge, wagering on CSC outperforming SPY over the next 4-6 weeks. Computer Sciences operates within the information technology services industry, and currently generates a free-cash-flow of $1.01 Billion (based on trailing 12 month data), against an enterprise-value of $6.61 Billion. The free-cash-flow-yield (FCF/EV) is a healthy 15.3%, offering significant upside potential. Additional data in favor of CSC include a low PEG ratio of 0.91, low price/book of 0.76, a book-to-market of 1.32, and analyst mean target of $43.85 per share – by Shiraz Lakhi.