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URL:  http://boards.fool.com/the-new-academic-contribution-is-not-that-quality-30860304.aspx

Subject:  Re: Adding quality to MI Screens Date:  9/7/2013  9:50 AM
Author:  FLARAM Number:  245217 of 254177

The new academic contribution is not that quality is important, but that the simple ratio of gross income to total assets appears to capture quality quite well.

Just a first look using SIP (Gross income Y1/ Current assets Y1) from 6/2/200 to present gives:

CAGR per bin [-11.5 -1.9 1.9 2.6 5.3 5.3 7.4 7.1 7.7 6.9]
Av STDev of gains [ 15.6 13.5 12.7 12.4 12.1 11.8 11.7 11.6 11.6 11. ]

Does nicely just by itself.
Potentially a very nice addition to our toolbox.

RAM
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