Grail Securities (Switzerland)

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The Grail Stock Market Model

• "The key is not to predict the future, but to be prepared for it" - Pericles (c. 495 - 429 BC) Greek Orator and General
• "If a stock makes a 20% move or so gain in 8 weeks, it has the potential to make a huge move." - William O'Neil, stock broker and founder of the business newspaper Investor's Business Daily

Grail's 4 Cs of Stock Selection

• Competitiveness: Industry dominance strategies that make companies market leaders.
• Catalyst: Events that trigger sudden bursts of price velocity and create sustainable upward trends.
• Consistency: High consistency in past and projected earnings growth and surprises.
• Certainty: Predictability becomes more certain when stocks continuously exceed market expectations.

The basis of outstandng stock selection

To identify high grade stocks it is essential to analyze the drivers of their performance. The graph shows how this is achieved. The 26 data points are weighted in terms of their relevance in Grail's search for Alpha stocks.

Click to enlarge

The Grail Risk Assessment Sub-System (GRASS) recognizes that executing an exit strategy is dependent on the proper evaluation of a number of interdependent variables, such as the nature of a turn-down, i.e. specific or systemic risk, the level of profit achieved so far, and the underlying key technical signals generated. In the latter case, GRASS is aided by the Grail Trading Indicator (GTI).