Versioned RQD Quantitative Methodology (`v6.2`) & Public Corrections Feed
Every quantitative rating model evolves as market structure and accounting practices change. To prevent hindsight bias or silent backtest curve-fitting, Roarable documents every version of our deterministic 5ร20-Point RQD Quantitative Rubric alongside our append-only Public Correction & “What Changed Our Mind” Feed (#59).
SECTION 01 // DETERMINISTIC MODEL GOVERNANCE & VERSION HISTORY
Added Share-Count Dilution / Buyback Cannibalization adjustment to Pillar 1 (Cash Engine) & Pillar 5 (Forensic 10-K Risk), penalizing issuers whose Stock-Based Compensation (SBC) consumes >35% of operating cash flow or expands diluted share count >3.5% YoY. Added intraday Cboe BZX price parity anchoring across all 5,289 rated securities.
Pillar 1 (Cash Engine, 0โ20 pts): GAAP Free Cash Flow is now evaluated strictly net of Stock-Based Compensation (FCF - SBC) to prevent high-SBC software/biotech issuers from inflating cash-conversion percentiles.
Intraday Cboe BZX Parity: Synchronized live valuation multiples (P/E, EV/FCF) and Ellis Vennor Setup Ledger trigger distances to consolidated Cboe BZX snapshots.
v6.1 UNIVERSE EXPANSION
RELEASE DATE: 2026-06-01
Expanded Rated Universe from 1,531 to 5,289 US Exchange-Listed Equities & ETFs with Sector-Neutral Percentile Normalization
Expanded universe from 1,531 to 5,289 US exchange-listed equities & ETFs (NYSE, NASDAQ, NYSE Arca) with GICS sector-neutral percentile normalization and dedicated ETF/Index composite scoring rules.
Universe Scale-Up (1,531 โ 5,289): Added full mid-cap, small-cap, and liquid thematic ETF coverage with automated SEC CIK-to-ticker mapping.
Sector-Neutral Percentile Normalization: Calibrated gross margin, ROIC-WACC spread, and asset-turnover thresholds within 11 peer sector cohorts so capital-intensive utilities/industrials are scored fairly against asset-light software.
ETF / Index Composite Branch: Separated exchange-traded funds from single-issuer Beneish M-Score / Altman Z-Score corporate accounting checks.
Introduced the foundational 5ร20-Point Deterministic RQD Rubric mapping every security onto a 0โ100 confidence dial and 13-tier letter grade (A+ to E) with zero black-box LLM hallucination in numeric scoring.
Pillar 3 โ Insider Conviction (0โ20 pts): Open-market Form 4 executive cash purchases vs. 10b5-1 cluster distribution.
Pillar 4 โ Macro Regime Fit (0โ20 pts): Sensitivity to St. Louis Fed FRED Net Liquidity, 10Y real yields (`DFII10`), and high-yield credit spreads (`BAMLH0A0HYM2`).
LIVE ACCOUNTABILITY LEDGER (#59)
APPEND-ONLY REVISION HISTORY
Public Correction & “What Changed Our Mind” Feed
We never stealth-edit a factual mistake or bury a broken thesis. Every factual CORRECTION, thesis-level MIND_CHANGED pivot, and material NEW_EVIDENCE update across the Roarable Research Desk is logged chronologically below.
7 Logged Audit Entries
2026-11-01 NEW_EVIDENCE
THESIS STATUS: ACTIVE
PIPELINE: roarable-jev-desk-v2.4
What Changed Our Mind Revision: Upgraded AI Ethernet back-end switching adoption curve after Arista Form 10-K deferred revenue and multi-cluster production rollouts disconfirmed our slower FY26 crossover assumption.
PUBLIC CORRECTION (#59): An earlier summary paragraph inaccurately implied FERC Docket No. ER24-2172 imposed a blanket ban on all nuclear data-center PPAs rather than rejecting a specific behind-the-meter amended ISA over transmission cost-allocation standards. We corrected the legal scope, added exact docket citations (ER24-2172 & EL25-49), and extended our modeled behind-the-meter regulatory timeline by 9โ12 months.
