Performance Probability Score (PPS) Rating

• Identifies relative value and relative price direction
• Stocks are scored from 1–9
• PPS 1 is the most favorable (low valuation, positive long-term relative direction)
• PPS 9 is the most unfavorable (high valuation, negative relative price direction)

Portfolio Strategy

• Minimize exposure to stocks with unfavorable ratings (8-9)
• Maximize exposure to stocks with favorable ratings (1-4)
• PPS 6–7 are future PPS 1–2 and can be added to portfolio under opportunistic conditions