Cannibal Turn

Buys companies that, after years of dilution, start genuinely shrinking their own share count. Two conditions have to come together: across the eight quarters before, the share count fell in no single step to speak of and rose by at least 3 percent over the whole stretch — that is the dilution the company is turning away from. After that it sits at least 1 percent below its year-ago quarter for at least two quarters in a row. It is not the buyback announcement that counts but the measured share count: real money from the cash flow statement must also have gone out across those declining quarters, otherwise the drop would be a reverse stock split. Purchases start from 100 million dollars of revenue over the last four quarters — that is the only revenue base on which the signal carried in the backtest. Only shares our own deep-dive analysis rates green are bought — yellow or no analysis at all is not enough. New positions are added once a month and held for twelve months — that is how the back-test over 2013 to 2026 arrived at its headline figure. One note for context: the hit list of the scanner of the same name follows the second measured version and holds for as long as the turn stays intact; this portfolio uses the fixed holding period so that it stays comparable with the other portfolios in the same category. If the list holds no green-rated share, the portfolio stays in cash.

This portfolio buys shares.