Our rating system, for stocks we rate, is divided into three classifications: Buy, Neutral, and Sell/Avoid. Our Buy rating is divided into sub classifications by our analysts to reflect the degree to which the analyst believes the shares are undervalued in relation to the market and its peers, and the degree of financial risk represented by an investment in the shares. These Buy sub classifications include: Strong Buy and Strong Speculative Buy, and Buy and Speculative Buy. The analysts will comment in the company reports on any of the perceived risk factors underlying the assigned rating.
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Strong buy and strong speculative buy ratings represent more than a 40% difference between current market price and the target price, while buy and speculative buy ratings reflect at least a 15% difference between current price and its target price.
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Neutral is an analyst's judgment that the share price will approximate the market performance over the next 12 months.
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Sell and avoid ratings reflect the difference of -15% between the current price and the analysts projected target price decline.
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Classification
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Sub Classification
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Description
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BUY RATINGS
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Strong Buy
Strong Speculative Buy
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The current price of the company reflects a substantial discount from the market and from the valuation accorded its peers, and the company does not possess significant financial risk. The analyst believes the stock at current levels represents a compelling opportunity for capital gains over the time period to its target price. Speculative means the company does have significant financial or other risks.
Means at least a 40% gain indicated over 12 months between current and analysts' target price.
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The current price reflects a discount from the market, and from its peers, and the company does not possess significant financial risk. The analyst believes the stock at current levels will provide an opportunity for capital gains over the period of its target price. Speculative means the company does have significant financial or other risks.
Means at least a 15% gain indicated over 12 months between current and analysts' target price.
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NEUTRAL
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Neutral Rating
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The analyst is unable to assign a buy rating due to a number of specified factors noted in the report. These include the stock being fairly valued relative to its peers and the market, or the company may have risks that make it potentially unsuitable for investment. Finally, there may be actions or financings the company must accomplish before being considered for raising the investment rating.
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SELL/AVOID
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Avoid
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The analyst believes that the risks of investment in the company are too severe, and an investment in the company has a substantial probability for loss of all invested capital.
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Sell
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We believe that the Company may be fairly valued or overvalued based on its current price, and that an investment in the company should produce below market returns.
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