I want to share a success history of my algo, it is only few months going,
On March 26th, I did a post about the algorithm flagging a massive market anomaly: Edenred ($EDEN (+1,96%) ).
Since that post, the stock has rallied +50%. 📈
Let's be clear: my game is NOT 2-month swing trading. I am a long-term dividend growth investors. I propose to buy exceptional businesses when the market severely misprices them due to "temporary problems", and hold.
The panic in March was driven by headline noise regarding multinational antitrust probes and fee cap regulations. The market sold off on pure fear.
But the tool stripped away the emotion and looked at the cold data:
🔹 Pristine Balance Sheet: Net Debt/EBITDA of -0.37x (Net Cash). They have immense flexibility to absorb any fines.
🔹 Cash Machine: 41.3% EBITDA margin running on a capital-light business model.
🔹 Ultra-Safe Dividend: Currently yielding 5.91%, but it only eats up 26.3% of their Free Cash Flow. Incredibly secure.
The best part? Even after a 50% run-up, it’s still trading at a P/E of just 10.7x.
That’s exactly why Edenred is STILL sitting in our 🟢 OPTIMAL quadrant today. It offers a rare combination of deep value, margin of safety, and reliable income.
And i am still entering with small amounts.
to be fully fair, i selected the worst performer since march on my top opportunity scores (+85 opportunity).
And that is $FDJ (-0,4%) , down 28%. But here's the thing — our algorithm STILL rates it 🟢 OPTIMAL at today's price. 9.1% yield, forward P/E of 9.3x, state-backed lottery monopoly until 2044. The thesis is intact. This is exactly the kind of "temporary problem" we look for — and it's now even cheaper.
interesting that they are both French
