I am a newbie to Stockopedia. The good news - it is very easy to use the website, lots of information at one's fingertips. The bad news - Stockopedia does throw up some 'interesting' investment opportunities.
Today SYS1 has announced an ugly profit warning (okay all profit warnings are ugly, but this one is particularly ugly). To be fair to SYS1, it has been struggling of late, the previous trading update hinted that more bad news was in the offing.
I thought I would turn to Stockopedia and see how the company was rated before today's trading update - imagine my surprise that SYS1 had a quality rating of 100% Amazing. I must research Stockopedia's quality rating in more detail.
Morning Colin.
Welcome to Stocko. If you’re new to the site, it’s worth spending some time learning how the various factors are put together. This link will take you to a review of the Q score and leads on to a discussion of some of its other elements such as the Pitroski F score.
https://help.stockopedia.com/product-guide/stockranks/basics/the-quality-rank
I’ve been using Stocko for about 3 years and my most important take away has been to use the headline ranking scores and various screening tools to identify possible shares to buy and follow up with my own research rather than as a stock picking tool in themselves. Each of the Q, V and M scores are a good summary of different aspects of a share but by no means the final word. The Q score for example is largely backward looking in that it is driven by historic financial results and a snapshot of current performance ratios. Q in itself says little about how the company will do in the future or how the market, through its share price, assesses its prospects.
Looking at SysGroup (LON:SYS)1 the M score of 4 would indicate the share is pretty poorly thought of by the market suggesting some scepticism about the sustainability of the Q. Likewise, a quick look at the discussion thread and Paul Scott’s SCVR write up on 24/10 should be enough to identify potential issues that SysGroup (LON:SYS)1 faces (not least the likelihood of further future profit warnings) and to my mind some pretty good reasons to avoid it.
Contrary to your headline view, I think Stocko is a pretty good tool for avoiding these kind of traps compared to some of the alternatives such as company marketing materials, broker reports and internet chat rooms. Like any tool, however, it’s essential to learn how to use it.
Good luck.
Gus.