Frank, thank you for this effort! The goal is to figure out how cash heavy companies fare over longer period of time. You can see it as both a long and a short opportunity and here is why:
- Long thesis - there will always be plenty of Benjamin Graham wannabe hedge fund managers who are loking for "cash heavy takeover candidates" and who will start buying such shares, so if you buy before them, they will lift your own shares as well (you just need to be smart and unload on time).
- Short thesis - these are poorly managed companies, start ups, pharmaceuticals, etc. who burn cash, then raise cash, then burn it again, until such time comes where they can not raise any more capital and they go bust. This a very plausible proposition, and this is why I said above that you should not touch most of them with a 10 foot pole (but you can certainly short them if you can take the volatility)
So, whatever comes out of this could be interesting. The uninteresting result will be that it performs about the same as SPY but it is more volatile.....which will make the case I have been talking about: stay put with a broad ETF and sleep well....but again, that would be the most boring result.
Anyhow, I added a line for data.cantrade(stock) and I am running it since 2002, where the current assets cover total liabilities 15X. I will share the results when the backtest is done.
Again, thank you, and I will try to do the hold n-day implementation, but if it is not obvious that I am a Python tinkerer at best, then here, I am confirming that. I am a total noob to coding but I have great experience in finance and trading.