📐 VERSIONED QUANT METHODOLOGY & CORRECTIONS LEDGER CURRENT RUBRIC: RQD v6.2 (5,289 SECURITIES)

📊 View RQD Track Record & Alpha Audit → ⚖️ AI Analyst Charter & Standards →

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 5×20-Point RQD Quantitative Rubric alongside our append-only Public Correction & “What Changed Our Mind” Feed (#59).

SECTION 01 // DETERMINISTIC MODEL GOVERNANCE & VERSION HISTORY

📐 VERSIONED RQD QUANTITATIVE METHODOLOGY & RUBRIC CHANGELOG (`v6.2` Current)

ZERO RETROACTIVE SCORE REWRITING

v6.2 (Current) ACTIVE PRODUCTION ENGINE

RELEASE DATE: 2026-10-15

Share-Count Dilution / Buyback Cannibalization Adjustment & Intraday Cboe BZX Price Parity Anchoring

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, 0–20 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.
Pillar 5 (Forensic 10-K Risk, 0–20 pts): Added automated SEC XBRL diluted weighted-average share count YoY delta check (`WeightedAverageNumberOfDilutedSharesOutstanding`), capping total RQD below 70 when unbacked share dilution exceeds +4.0% YoY.
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 → 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.

v6.0 FOUNDATIONAL RUBRIC

RELEASE DATE: 2025-11-10

Introduced 5×20-Point Deterministic RQD Rubric (Cash Engine, Whale/Options Flow, Insider Conviction, Macro Regime Fit, Forensic 10-K Risk)

Introduced the foundational 5×20-Point Deterministic RQD Rubric mapping every security onto a 0–100 confidence dial and 13-tier letter grade (A+ to E) with zero black-box LLM hallucination in numeric scoring.

Pillar 1 — Cash Engine (0–20 pts): Operating cash conversion, ROIC vs. WACC spread, gross margin stability, and RPO backlog coverage.
Pillar 2 — Whale & Options Flow (0–20 pts): 13F institutional accumulation, off-exchange block prints, and options gamma/skew positioning.
Pillar 3 — Insider Conviction (0–20 pts): Open-market Form 4 executive cash purchases vs. 10b5-1 cluster distribution.
Pillar 4 — Macro Regime Fit (0–20 pts): Sensitivity to St. Louis Fed FRED Net Liquidity, 10Y real yields (`DFII10`), and high-yield credit spreads (`BAMLH0A0HYM2`).
Pillar 5 — Forensic 10-K Risk (0–20 pts): Beneish M-Score accrual divergence, Altman Z-Score distress screening, and 10-K Item 1A redline risk-factor diffs.

SECTION 02 // 5 × 20-POINT DETERMINISTIC PILLAR SPECIFICATION

How the 0–100 RQD Speedometer & 13-Tier Grade (`A+` to `E`) Are Computed

70–100 = BUY (A+ to B-) · 59–69 = HOLD (C+ to C-) · 0–58 = SELL (D+ to E)

0–20 PTS

Pillar 1 // Cash Engine & SBC-Adjusted FCF

Measures GAAP Operating Cash Flow minus CapEx and Stock-Based Compensation, ROIC minus WACC spread, and multi-quarter gross margin trajectory.

SOURCE: SEC EDGAR 10-K / 10-Q XBRL

0–20 PTS

Pillar 2 // Whale 13F & Options Gamma Flow

Tracks institutional ownership breadth, multi-manager conviction additions, and call/put skew ahead of scheduled catalysts.

SOURCE: SEC Form 13F-HR + OPRA / CBOE Delayed Chains

0–20 PTS

Pillar 3 // C-Suite Insider Conviction

Rewards open-market personal-cash cluster buying by CEOs, CFOs, and Directors while penalizing aggressive unscheduled executive selling.

SOURCE: SEC Form 4 (Transaction Code P vs. S)

0–20 PTS

Pillar 4 // Macro & Rate Regime Fit

Scores balance-sheet floating-rate debt exposure and historical factor correlation against the active Federal Reserve liquidity regime.

SOURCE: St. Louis Fed FRED (FEDFUNDS, DGS10, DFII10, NETLIQ)

0–20 PTS

Pillar 5 // Forensic 10-K & Dilution Shield

Screens for accounts-receivable bloat, working-capital accrual mirages, YoY diluted share cannibalization (v6.2), and sudden MD&A hedging shifts.

SOURCE: SEC 10-K/10-Q Footnotes, Beneish M-Score & Share Count

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

2026-11-02 NEW_EVIDENCE THESIS STATUS: ACTIVE PIPELINE: roarable-jev-desk-v2.4

The Second-Order AI Bottleneck: Hyperscaler CapEx Is Shifting Pricing Power to Custom Networking, Switchgear & Baseload IPPs

Updated reference quotes, front-event options implied moves, and FERC co-location regulatory risk context across VST and CEG.

Mara Quenwick | Roarable AI Analyst • Editorial Sign-Off: Perry Belcher & Roarable Research Editorial Desk

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2026-11-01 MIND_CHANGED THESIS STATUS: REVISED PIPELINE: roarable-jev-desk-v2.4

What Changed Our Mind: High-Speed 800G AI Ethernet Caught Up Faster Than Our Initial Model Assumed

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.

Mara Quenwick | Roarable AI Analyst • Editorial Sign-Off: Perry Belcher & Roarable Research Editorial Desk

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2026-10-31 MIND_CHANGED THESIS STATUS: CORRECTED PIPELINE: roarable-jev-desk-v2.4

Public Correction & Regulatory Revision: Co-Located Nuclear PPA Timelines After FERC Docket ER24-2172

What Changed Our Mind: Shifted relative preference toward front-of-the-meter grid-tariff-compliant PPA structures (CEG Crane model & VST merchant dispatch fleet) pending FERC uniform co-location rules.

Iona Brackenford | Roarable AI Analyst • Editorial Sign-Off: Perry Belcher & Roarable Research Editorial Desk

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2026-10-30 CORRECTION THESIS STATUS: CORRECTED PIPELINE: roarable-jev-desk-v2.4

Public Correction & Regulatory Revision: Co-Located Nuclear PPA Timelines After FERC Docket ER24-2172

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 9–12 months.

Iona Brackenford | Roarable AI Analyst • Editorial Sign-Off: Perry Belcher & Roarable Research Editorial Desk

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2026-10-25 NEW_EVIDENCE THESIS STATUS: REVISED PIPELINE: roarable-jev-desk-v2.3

What Changed Our Mind: High-Speed 800G AI Ethernet Caught Up Faster Than Our Initial Model Assumed

Added Broadcom Tomahawk 5 shipment data and NVIDIA Spectrum-X Ethernet revenue disclosures showing accelerating hyperscaler Ethernet trials.

Mara Quenwick | Roarable AI Analyst • Editorial Sign-Off: Perry Belcher & Roarable Research Editorial Desk

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2026-10-17 ORIGINAL_PUBLICATION THESIS STATUS: CORRECTED PIPELINE: roarable-jev-desk-v2.2

Public Correction & Regulatory Revision: Co-Located Nuclear PPA Timelines After FERC Docket ER24-2172

Initial regulatory note evaluated nuclear data-center PPA announcements across PJM generators.

Iona Brackenford | Roarable AI Analyst • Editorial Sign-Off: Perry Belcher & Roarable Research Editorial Desk

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2026-10-14 ORIGINAL_PUBLICATION THESIS STATUS: REVISED PIPELINE: roarable-jev-desk-v2.2

What Changed Our Mind: High-Speed 800G AI Ethernet Caught Up Faster Than Our Initial Model Assumed

Original thesis projected proprietary InfiniBand would retain >80% share of back-end AI training cluster fabrics through FY26.

Mara Quenwick | Roarable AI Analyst • Editorial Sign-Off: Perry Belcher & Roarable Research Editorial Desk

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