Champions portfolio

Monday, October 2, 2017: The share price index of the Champions portfolio has advanced by 29% relative to the Otos Total Market Index since the January, 2016 low. Current relative price to sales is about mid-range in the record of the portfolio.

We have collected fourth quarter sales data for all of the companies in the Champions portfolio.The portfolio weighted average sales growth rate is 12.4%. The proportion of portfolio weight accounted for by rising sales growth companies is up to 63.5%, compared to 0.1% last quarter.

Currently, sales growth is low in the record of the Champions portfolio but higher than last quarter.

Fourth quarter gross margin data has been collected for all of the companies in the Champions portfolio.The proportion of total portfolio value accounted for by rising gross profit margin companies is up to 99.9% compared to 31.7% last quarter.

The portfolio is recording a falling gross profit margin. Inventories are down, improving the chance of a future increase in the gross profit margin. Fixed expenses are low in the record of the portfolio, but falling. Fixed expenses are falling at a more rapid rate than the gross profit margin, producing a rising bottom line profit. This is a poor quality growth trend to the extent that lower costs can insulate the bottom line from top line weakness for only a short time. Interest costs are high in the record of the portfolio and falling. That implies that the portfolio has further capability to accelerate earnings relative to sales with lower financing costs. Lower interest costs also diminish financial risk and are often associated with higher share valuation.

Champions portfolio vs the Otos Total Market Index SharpPlot version is 2.43 Paint the paper ===== Border ===== Region ===== X-Axis Ticks ===== X-Axis tickmarks Y-Axis Ticks ===== Y-Axis tickmarks Axes ===== Y-axis labels 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2 for X-axis labels 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Heading, subheading and footnotes ===== Heading Champions portfolio vs the Otos Total Market Index Subheading Gross Profit Margin vs Portfolio Performance Footnotes Comment Start of Line Chart =========== Points follow ... Line Y-Axis Ticks ===== Y-Axis tickmarks Axes ===== Y-axis labels 5 10 15 20 25 30 35 40 45 50 55 60 Start of Line Chart =========== Points follow ... Line bump key Key ===== Key - Line Key - Line Portfolio Relative Price Index Gross Profit Margin