The INK Edge Outlook ranking process is the same process that is used to determine a stock's membership in the INK Canadian Insider Index. This completely quantitative process ranks a stock based on our V.I.P. criteria:
Value: how a stock compares to other stocks based on traditional valuation measures including P/E, Price-to-book, price-to-sales and dividend yield.
Insider commitment: officer and director buying activity, including number of active insiders buying and executive holdings.
Price momentum: a stock's relative strength over multiple time frames.
INK Edge Outlook combines rankings in the 3 V.I.P. categories on an equal basis to assign a composite ranking to a stock. The objective is to identify which group of stocks are most likely to out or under-perform over the next year on a portfolio basis.
Stocks are assigned one of 5 rankings. From the most attractive group to least attractive group, INK Edge Overall Outlook conditions are:
Sunny (most favourable - top 10%)
Mostly Sunny (favourable - top 30%)
Mixed (middle 40%)
Cloudy (unfavourable - bottom 30%)
Rainy (least favourable - bottom 10%)
Based on historical experience, a portfolio of Sunny stocks is expected to outperform a portfolio of stocks in the Rainy category on average over the next 12 months. Results may vary over time, and past success of a strategy does not guarantee positive performance in the future. Visit the methodology section of the INK Research Index site for more.