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Bob Houle

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  1. 1 vote

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    Bob Houle commented  · 

    Add Return on Invested Capital (ROIC) to the Section 2 Management table in CoreSSG™ and SSGPlus™ to give members the definitive tool for assessing genuine operational excellence.

    As members become more proficient with modern tools like RightStock™, our fundamental software must support deeper analytical rigor. RightStock excels at automated triage, but its high Fit Scores require human verification. Adding a 10-year ROIC trendline to Section 2 bridges this gap:

    Unmasks Financial Engineering: Modern companies frequently issue debt to fund aggressive share buybacks, artificially inflating Return on Equity (ROE). ROIC measures returns across all capital, preventing members from mistaking balance-sheet leverage for an operational moat.

    Verifies Cycle Durability: A multi-cycle ROIC plot reveals whether a business achieves "higher troughs and higher peaks," confirming structural competitive advantage rather than temporary macro tailwinds.

    Fulfills Nicholson's Core Intent: George Nicholson designed Section 2 to evaluate management capability. Today, ROIC is the premier metric proving leadership allocates capital effectively.

    Adding ROIC completes the workflow from RightStock’s automated screen into disciplined SSGPlus judgment.

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  2. 5 votes
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    Bob Houle supported this idea  · 
  3. 58 votes
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    Bob Houle supported this idea  · 
  4. 12 votes
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    Bob Houle supported this idea  · 
  5. 3 votes
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    Bob Houle shared this idea  · 
  6. 6 votes
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    Bob Houle shared this idea  · 
  7. 1 vote
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    Bob Houle shared this idea  · 
  8. 5 votes
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    Bob Houle shared this idea  · 
  9. 3 votes
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    Bob Houle shared this idea  · 
  10. 7 votes
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    Bob Houle shared this idea  · 
  11. 115 votes
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    This item is now in the active planning/architecture stage. There are many use cases for how this could be implemented and, once we launch the first use case, we anticipate functionality to be added for other use cases over time.

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  12. 30 votes
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  13. 24 votes
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    Bob Houle commented  · 

    Right now SSGplus is hardwired to 15% for all size companies (see "SSG Results Summary") and keyed to total return. I would like to have the capability to set target return rate based on company revenue-based size.

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    Bob Houle commented  · 

    "SSG Results Summary" assumes total return of 15%. For large companies a realistic TR may well be lower than that Put in a box where the analyst specifies her/his own minimum acceptable rate of return and let the computer crunch the corresponding US/DS ratio and target buy price.

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  14. 13 votes
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    Bob Houle commented  · 

    Add data and growth rates for dividends, shares outstanding, free cash flow, net income, book value, and long-term debt to the data grid at the bottom of the 'Analyze Growth & Quality' page in the data grid with the sales, EPS and pre-tax profit data

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  15. 6 votes
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  16. 19 votes
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    Bob Houle supported this idea  · 
  17. 3 votes
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    Bob Houle shared this idea  · 
  18. 0 votes
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  19. 9 votes
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    Bob Houle shared this idea  ·