Trading Strategies Using Accruals

Do Your Diligence on Stocks

Please read my latest article about checking for Red Flags before you invest: click he cialis online re for more...

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Lemons or Lemonade?

Lemons or Lemonade? This past Sunday it was 71 degrees and dry in Chicago.  If you’ve ever lived here in November, you know that’s an anomaly.  At this time of year, it’s usually 44 and wet. ...

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An Accrual Example: The Tale of 2 Lemonade Stands

What Are Accruals? In order to illustrate exactly what accruals are and how they affect earnings, we begin with a simple example. Let us assume that Bill and Ted are two budding entrepreneurs who each...

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Just Released: The Handbook of Equity Market Anomalies

The Handbook of Equity Market Anomalies is now available! To learn more about this book, please click here....

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Accrual anomaly produced a 29% average annual return

The accrual anomaly can be calculated in varying ways using different reported data items. In our test using Research Wizard, accruals is formulated as (Net Income – Cash Flow) / Total Assets. This ...

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Zhang finds 10.3% Long Short returns

Zhang found that the anomaly is stronger in companies that are profitable ...

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Houge Long/Short annual returns were 10.4%

It was not until 2000 that Houge and Loughran (2000) compared ACC and CFO hedge strategies and found that a portfolio that combined CFO and ACC generated higher returns that either the CFO or the ACC ...

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16% Annual Long/Short: using last 4 quarters

Using Accruals calculated over rolling 4 quarters, we found very similar results to quarterly accruals of 3 to 4% per quarter hedged returns....

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