Automating Wealth Creation – discussion of actual use cases
Couple days ago, I posted at LinkedIn about “Automating Wealth Creation”. It introduces a new dimension of using deductive reasoning for financial gain. In this post, I am providing couple recent use-cases to demonstrate the effectiveness of QBA. QBA stands for “Qualitative Business Analysis”. It is the code name for this automatic system.
The following are tweets posted on Twitter by QBA’s automatic NLG process on May 10 for stock symbol - CHAP, and on Jun 27 for stock symbol - CAG.
The following donut graphs are excerpts from the corresponding reports, which are included in the tweets and presented here as part of my discussion.
The first use case being discussed in this posting is the stock symbol CHAP. According to QBA’s analysis of Earnings Call for CHAP on May 10th, it detected momentums in Chaparral Energy Inc.’s operation. The facts are substantiated in the detailed report. The above donut graph for CHAP showed disproportion size of momentums in comparison to challenges and work-in-progress. As the market force was weighing on its earnings report, the share price continued to deteriorate after the earnings call on May 10th, 2019. Subsequently, QBA waited for the share price to bottom around Jun 17, 2019 and signaled a buy opportunity. It turned out that CHAP rebounded with vengeance soon afterward, and was added to the Russell 3000 Index on July 1st as part of the 2019 Russell U.S. Indexes reconstitution. At the time of Jun. 17th, 2019, CHAP was price at $3.05. As of end of trading day on Jul 8, 2019, its closing price was $5.23. A gain of 71% was realized over a period of 21 days.
The second use case being discussed in this posting is the stock symbol CAG. The company is called ConAgra Brands Inc. QBA analyzed CAG’s earnings call transcript and detected an opportunity potentially powered by its operational strategy. The market force was extremely negative over its earnings. As a result, its share price dropped from $28.93 to $25.43. Accordingly, QBA signaled a buy at its low on Jun. 27. The closing price of CAG at the end of trading day on Jul 8th, 2019. A gain of 13.76% was realized over 10 days.
As I have mentioned during my last post, these results are astounding. Although similar findings are recurring within the earnings season on other companies, we are continuing our effort to validate if QBA will continue to deliver robust opportunities under different economic conditions. As of today, QBA has been providing qualitative intelligence for investment opportunities. Our ultimate goal is to turn on the automated trading mechanism so that we can achieve our ultimate goal of creating wealth automatically with Artificial Intelligence.