SCI AI trading strategy
SCI AI Trading Strategy Framework
The SCI AI trading strategy is a rules-based research framework, not personalized investment advice. It links chart zones with funeral volumes, average revenue per service, cemetery preneed production, cremation mix, trust-fund returns, free cash flow, leverage, dividends, and buybacks.
Trend-following setup
Wait for SCI to hold above the $74 to $76 support zone and reclaim the $79 to $82 area while preneed production, average revenue per service, and volume confirm the move.
Reduce trend confidence if price closes below $74 after failing to recover $79 to $82, especially if funeral volumes keep declining or management softens cash-flow or EPS guidance.
Mean-reversion setup
If SCI tests support while cemetery production, pricing, and cash conversion remain intact, compare valuation with normalized volume assumptions rather than peak flu-season comparisons.
Do not treat a lower price as value if it follows weaker preneed sales, rising cremation mix without pricing offsets, higher interest expense, or a balance-sheet shock.
Fundamental monitor
Track funeral services performed, average revenue per service, cremation rates, cemetery preneed production, adjusted EPS guidance, operating cash flow, maintenance capex, net debt, dividend growth, and share-repurchase pace.
Position sizing should reflect leverage and volume cyclicality. SCI is a cash-returning consolidator, not a risk-free demographic bond substitute.