Introduction to the Cara 100

Investment simply means the act of buying and selling a monetary asset such as cash, precious metals, stocks, bonds, exchange-traded funds, and mutual funds. We invest money in these assets either for income or capital appreciation based on our analysis of the lowest risk-highest potential reward. The prices of monetary assets are in constant flux, so there is always a matter of speculation in making buy and sell decisions, but there is a major difference between speculation and investment.

It has always been my belief that to invest in an asset, we must study and understand the asset, which requires an understanding of fundamental and quantitative analysis, which in turn requires a company to study, rather than a pool of companies held by a fund.

Before we trade the securities of a company, we must understand that analysis will show that there are relatively good companies (lowest risk among peers) and bad companies (highest risk among peers). There are shares of many companies held by a fund, which means that when we buy a fund we are speculating. Moreover, we must also appreciate that a fund holds investments in some bad companies, which is counter to the reason we invest.

To help investors in selecting a relatively small group of high-quality companies to study. I created the Cara 100 list. The components usually, but not always, are industry leaders in corporate fundamentals like balance sheet strength and operating performance like cash flow, margins, earnings, and possibly dividends. This list is free of the business and personal biases of sell-side investment analysts.

Due to evolving business and economic conditions, the financial condition and operating performance of companies are always in flux. Hence, the Cara 100 is always a work in progress. Because there are tens of thousands of companies whose shares trade on various stock exchanges, I try to select the Cara 100 from among the S&P 500 index components, each of which trades on a major US exchange. The S&P 500 index represents the largest investable pool of company stocks in the world. To monitor relative performance I am now developing a Cara 100 index, noting that, like the S&P 500, there will be changes over time made to the Cara 100.

As of September 30, 2021, this is the Cara 100 list of company stocks at finviz.com: click here.

https://finviz.com/screener.ashx?v=111&t=AAPL,ACHV,AG,AGI,AKRO,AL,ALGT,ALK,ALLO,AMAT,AMRS,AMZN,APLS,ARVN,ATVI,AVAH,AVIR,BAM,BBIO,BCEI,BKR,BMRA,BTG,CHE,CMPS,CNQ,COP,CRBU,CRM,CRMD,CRWD,CVX,DAR,DIN,DIS,DOOO,EAF,EPD,EQT,ERF,FANG,FCX,FLXN,FSS,GH,GIL,GROY,HBM,HUBS,IAC,KGC,KRTX,LEVI,LUV,MA,MED,MGTX,MHO,MPC,MRNS,MRTN,MTDR,MTZ,NESR,NVDA,NXE,OSK,PATK,PAYA,PDCE,PRPL,PRTS,RIOT,RNG,RTX,SDGR,SGH,SMCI,SMP,SSRM,STLA,TECK,TFX,TPTX,TSEM,TSP,TWLO,UBER,UCTT,UEC,UROY,V,VFF,VIR,VRNT,VSTO,WFG,WPM,ZBH,ZEN&r=81

The Cara 100 is a list of companies that we consider investment-grade for trading purposes but is not a recommendation to buy or sell. There are always times to buy and sell, and in order for a trade to occur, the buyer and the seller must agree on those times.

As you know from our blog and our Lessons publications, a company is not a price. We trade prices and seek to find the best times to buy and sell these fluctuating prices. Political and social developments in the world are constant and result in macro-economic changes that cause price fluctuations in all securities. Over time, price motion in market prices impacts the trends and cycles of these securities. I trade at times that I perceive there are reversals in price trends and cycles.

We hope you find value in our Cara 100 list of Good Companies. But, as market prices fluctuate, at times these Good Companies will also be Good Stocks (i.e., with Trends and Cycles that are rising), and at times they will be Bad Stocks (i.e., with Trends and Cycles that are falling). So investing requires price and volume technical analysis. In my practice, I try to buy at times the price is low and sell when the price is high. Your trading system may be different. For example, you may buy high, especially on breakouts from a recent trading range, and sell higher, at a profit.

Suffice to say that each of us has our own research methodologies and trading systems. However, do not ignore the fact that successful investing is a matter of finding and understanding good companies (such as the Cara 100) and then trading the good stocks among those good companies

Here is the full excel file of Cara 100 Companies as at September 30, 2021:

 

 

SymbolCompanySectorIndustryCountryMarket Cap
AAPLApple Inc.TechnologyComputers, Phones & Household ElectronicsUSA2459.52B
ACHVAchieve Life Sciences, Inc.HealthcareBiotech & Medical ResearchCanada75.27M
AGFirst Majestic Silver Corp.Basic MaterialsMetals & Mining -- SilverCanada3.10B
AGIAlamos Gold Inc.Basic MaterialsMetals & Mining -- GoldCanada3.71B
AKROAkero Therapeutics, Inc.HealthcareBiotech & Medical ResearchUSA832.82M
ALAir Lease CorporationIndustrialsProfessional & Commercial ServicesUSA4.42B
ALGTAllegiant Travel CompanyIndustrialsAirlinesUSA3.52B
ALKAlaska Air Group, Inc.IndustrialsAirlinesUSA7.14B
ALLOAllogene Therapeutics, Inc.HealthcareBiotech & Medical ResearchUSA3.48B
AMATApplied Materials, Inc.TechnologySemiconductors & Semi EquipmentUSA130.10B
AMRSAmyris, Inc.Basic MaterialsChemicalsUSA4.12B
AMZNAmazon.com, Inc.Consumer CyclicalInternet RetailUSA1766.58B
APLSApellis Pharmaceuticals, Inc.HealthcarePharmaceuticalsUSA2.96B
ARVNArvinas, Inc.HealthcareBiotech & Medical ResearchUSA4.96B
ATVIActivision Blizzard, Inc.CommunicationsElectronic Gaming & MultimediaUSA61.66B
AVAHAveanna Healthcare Holdings Inc.HealthcareHealthcare Providers & ServicesUSA1.61B
AVIRAtea Pharmaceuticals, Inc.HealthcareBiotech & Medical ResearchUSA2.25B
BAMBrookfield Asset Management Inc.FinancialInvestment Banking & Investment ServicesCanada86.52B
BBIOBridgeBio Pharma, Inc.HealthcarePharmaceuticalsUSA7.39B
BCEIBonanza Creek Energy, Inc.EnergyOil & Gas -- ProductionUSA1.35B
BKRBaker HughesEnergyOil & Gas -- Equip. & ServicesUSA25.43B
BMRABiomerica, Inc.HealthcareDiagnostics & ResearchUSA52.50M
BTGB2Gold Corp.Basic MaterialsMetals & Mining -- GoldCanada3.84B
CHEChemed CorporationHealthcareHealthcare Providers & ServicesUSA7.52B
CMPSCOMPASS Pathways plcHealthcareHealthcare Providers & ServicesUK1.39B
CNQCanadian Natural Resources LimitedEnergyOil & Gas -- ProductionCanada40.96B
COPConocoPhillipsEnergyOil & Gas -- ProductionUSA79.31B
CRBUCaribou Biosciences, Inc.HealthcareBiotech & Medical ResearchUSA1.66B
CRMsalesforce.com, inc.TechnologySoftware -- ApplicationUSA254.89B
CRMDCorMedix Inc.HealthcarePharmaceuticalsUSA178.21M
CRWDCrowdStrike Holdings, Inc.TechnologySoftware -- InfrastructureUSA60.41B
CVXChevron CorporationEnergyOil & Gas -- IntegratedUSA188.21B
DARDarling Ingredients Inc.Consumer DefensiveFood & TobaccoUSA12.46B
DINDine Brands Global, Inc.Consumer CyclicalRestaurantsUSA1.39B
DISThe Walt Disney CompanyCommunicationsEntertainmentUSA333.15B
DOOOBRP Inc.Consumer CyclicalLeisure ProductsCanada3.79B
EAFGrafTech International Ltd.IndustrialsMachinery, Equipment & ComponentsUSA2.90B
EPDEnterprise Products Partners L.P.EnergyOil & Gas -- MidstreamUSA48.49B
EQTEQT CorporationEnergyOil & Gas -- ProductionUSA7.32B
ERFEnerplus CorporationEnergyOil & Gas -- ProductionCanada1.68B
FANGDiamondback Energy, Inc.EnergyOil & Gas -- ProductionUSA14.50B
FCXFreeport-McMoRan Inc.Basic MaterialsMetals & Mining -- CopperUSA50.35B
FLXNFlexion Therapeutics, Inc.HealthcarePharmaceuticalsUSA324.40M
FSSFederal Signal CorporationIndustrialsMachinery, Equipment & ComponentsUSA2.37B
GHGuardant Health, Inc.HealthcareDiagnostics & ResearchUSA12.86B
GILGildan Activewear Inc.Consumer CyclicalTextiles & ApparelCanada7.52B
GROYGold Royalty Corp.Basic MaterialsMetals & Mining -- Royalty & StreamingCanada215.18M
HBMHudbay Minerals Inc.Basic MaterialsMetals & Mining -- CopperCanada1.98B
HUBSHubSpot, Inc.TechnologySoftware -- ApplicationUSA33.05B
IACIAC/InterActiveCorpCommunicationsInternet Content & InformationUSA12.38B
KGCKinross Gold CorporationBasic MaterialsMetals & Mining -- GoldCanada7.03B
KRTXKaruna Therapeutics, Inc.HealthcareBiotech & Medical ResearchUSA3.41B
LEVILevi Strauss & Co.Consumer CyclicalTextiles & ApparelUSA10.28B
LUVSouthwest Airlines Co.IndustrialsAirlinesUSA29.06B
MAMastercard IncorporatedFinancialBanking Credit ServicesUSA341.73B
MEDMedifast, Inc.Consumer CyclicalFood & TobaccoUSA2.53B
MGTXMeiraGTx Holdings plcHealthcarePharmaceuticalsUSA576.47M
MHOM/I Homes, Inc.Consumer CyclicalHomebuilding & Construction SuppliesUSA1.82B
MPCMarathon Petroleum CorporationEnergyOil & Gas -- MidstreamUSA37.72B
MRNSMarinus Pharmaceuticals, Inc.HealthcarePharmaceuticalsUSA424.63M
MRTNMarten Transport, Ltd.IndustrialsFreight & Logistics ServicesUSA1.30B
MTDRMatador Resources CompanyEnergyOil & Gas -- ProductionUSA3.64B
MTZMasTec, Inc.IndustrialsConstruction & EngineeringUSA6.71B
NESRNational Energy Services Reunited Corp.EnergyOil & Gas -- Equip. & ServicesUSA1.09B
NVDANVIDIA CorporationTechnologySemiconductors & Semi EquipmentUSA556.05B
NXENexGen Energy Ltd.EnergyMetals & Mining -- UraniumCanada3.48B
OSKOshkosh CorporationIndustrialsMachinery, Equipment & ComponentsUSA7.47B
PATKPatrick Industries, Inc.IndustrialsHomebuilding & Construction SuppliesUSA1.89B
PAYAPaya Holdings Inc.TechnologyProfessional & Commercial ServicesUSA1.43B
PDCEPDC Energy, Inc.EnergyOil & Gas -- ProductionUSA4.43B
PRPLPurple Innovation, Inc.Consumer CyclicalHousehold GoodsUSA1.51B
PRTSCarParts.com, Inc.Consumer CyclicalSpecialty RetailersUSA888.77M
RIOTRiot Blockchain, Inc.TechnologyFinancial Technology (Fintech) & InfrastructureUSA2.82B
RNGRingCentral, Inc.TechnologySoftware -- ApplicationUSA20.55B
RTXRaytheon Technologies CorporationIndustrialsAerospace & DefenseUSA126.69B
SDGRSchrodinger, Inc.HealthcareHealth Information ServicesUSA4.33B
SGHSMART Global Holdings, Inc.TechnologySemiconductors & Semi EquipmentUSA1.21B
SMCISuper Micro Computer, Inc.TechnologyComputers, Phones & Household ElectronicsUSA1.84B
SMPStandard Motor Products, Inc.Consumer CyclicalAutos & Auto PartsUSA912.87M
SSRMSSR Mining Inc.Basic MaterialsMetals & Mining -- GoldCanada3.27B
STLAStellantis N.V.Consumer CyclicalAutos & Auto PartsNetherlands61.94B
TECKTeck Resources LimitedBasic MaterialsMetals & Mining -- CopperCanada13.78B
TFXTeleflex IncorporatedHealthcareHealthcare Equipment & SuppliesUSA18.06B
TPTXTurning Point Therapeutics, Inc.HealthcareBiotech & Medical ResearchUSA3.88B
TSEMTower Semiconductor Ltd.TechnologySemiconductors & Semiconductor EquipmentIsrael3.36B
TSPTuSimple Holdings Inc.IndustrialsTruckingUSA7.89B
TWLOTwilio Inc.CommunicationsInternet Content & InformationUSA61.26B
UBERUber Technologies, Inc.TechnologySoftware -- ApplicationUSA74.47B
UCTTUltra Clean Holdings, Inc.TechnologySemiconductors & Semi EquipmentUSA2.14B
UECUranium Energy Corp.EnergyMetals & Mining -- UraniumUSA828.01M
UROYUranium Royalty Corp.EnergyMetals & Mining -- UraniumCanada360.31M
VVisa Inc.FinancialBanking Credit ServicesUSA477.11B
VFFVillage Farms International, Inc.Consumer DefensiveCannabisCanada955.74M
VIRVir Biotechnology, Inc.HealthcareBiotech & Medical ResearchUSA6.87B
VRNTVerint Systems Inc.TechnologySoftware & IT ServicesUSA2.93B
VSTOVista Outdoor Inc.Consumer CyclicalLeisure ProductsUSA2.37B
WFGWest Fraser Timber Co. Ltd.Basic MaterialsLumber & Wood ProductionCanada10.46B
WPMWheaton Precious Metals Corp.Basic MaterialsMetals & Mining -- Royalty & StreamingCanada18.74B
ZBHZimmer Biomet Holdings, Inc.HealthcareSoftware -- ApplicationUSA30.54B
ZENZendesk, Inc.TechnologyFreight & Logistics ServicesUSA15.06B