Computerized system and method for creating a buyback stock investment report

Abstract

A computer implemented method for creating an investment report. A database of stock information is screened based upon buyback ratio and prices / sales ratio selection criteria. The buyback ratio represents the percentage of stocks repurchased by a company during a given period that resulted in a net decrease in outstanding shares. The method and system use the criteria to identify companies with a highest buyback ratio and with the lowest price / sale ratio. The resulting list of stocks are ranked and output in an investment report that provides superior return over conventional investment techniques.

Description

BACKGROUND[0001]1. Field of Invention[0002]The present invention relates generally to the field of investment portfolio management. More particularly, the present invention relates to a computerized method and system for creating a stock investment report based on a buyback investment strategy.[0003]2. Description of Related Art[0004]Investment in accordance with the stock buyback theory is based on the premise that a company's management is in the best position to determine when the company stock is over or under valued. Further, it has been postulated that companies announcing a stock buyback tend to outperform the overall market. For example, in the article entitled “Market Underreaction to Open Market Share Repurchases,” by D. Eikenberry and J. Lakonishok, Journ. of Finance (1994), the authors demonstrate that companies announcing stock buybacks outperformed the market by a margin of up to 9% in the four years after the initial repurchase announcement. The study did not follow t...

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Problems solved by technology

Further, it has been postulated that companies announcing a stock buyback tend to outperform the overall market.

Currently, there is conflicting literature, however, as to whether companies actually repurchasing their stock outperform others in the market.

There is, however, no single method that combines the performance of the price / sales ratio with the buyback theory to maximize the performance of a stock investment portfolio.

In fact, many experts in the field discount the importance of buyback statistics, and those recognizing its potential have not thought to combine it with a company's price / sales statistics.

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