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The
Channer Value is an investment
philosophy pioneered by Christopher S. Channer, and is based upon the
belief that conventional equity security analysis is deeply
insufficient, and fails to understand that there is no substitution
for buying the very best, when its acquisition price is rationally
favorable. Determining what is "the very best", is at the heart of
The
Channer Value. Unlike conventional analysis, which involves in-depth
financial investigation, examination, and the integration of that
research activity to the "story" of a given public security, Channer
believes that a "graphic display" of the ten-year financial
growth progressions tells the investor in an instant snapshot,
whether a company has superior "financial character", and whether that
security is worthy of the consideration of an investor's time, and an
investor's money.
Companies who exhibit undisturbed progressions in their key financial
results, including and most importantly earnings per share, are deemed
by Channer to have "perfect picture" progressions. Given all the
things that can cause a company to disappoint investors during a
ten-year period, including economic cycles, very few companies live up
to the Channer standard; generally less that one percent of the
well-established.
The Channer Value says the "story" of a company, or it's
industry, comes late in the analysis, never first. Once an investor is
attracted to the "story", objectivity is compromised. The story may
produce enthusiasm, but is generally not a relevant component compared
to measurable long-term investment performance, or the lack of it.
The Channer Value essentially turns conventional Wall Street
Analysis on its head in terms of its selectivity standard.
Historically, only about one percent of the securities covered by the
Wall Street research community have been rated a sell. This strongly
suggests that all those remaining (99%), are worthy of buying or
holding. Channer maintains that this history is the self-evident proof
that these pools of security analysts contribute little if any value
in the selectivity processes, and therefore it is of little, or even
negative value, in portfolio management.
The application of The Channer Value is found in the acronym
originated by Channer known as E.G.A.R.P.™ (Exceptional Growth at a
Rational Price). E.G.A.R.P.™ is an extension of the GARP concept (Growth at
a Reasonable Price). The addition of the 'E', meaning the growth
component of a company must be exceptional, and is characterized by
superior ten-year financial growth progressions, and not
by quarterly earnings reports. Finally, Channer advocates the use of
complex price evaluation models to determine rational,
(not reasonable) price entry points for equity securities, as the
criteria of "reasonable" is highly subjective, by comparison. Price
models are also used for possible exit points and portfolio
rebalancing disciplines.
Why Choose Channer Investment?
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Traditions and History |
Mission Statement
The Channer Value |
The Channer Style
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