|
click here to download file
DEFINING THE GRADING SYSTEM
_________________________________
1) An "INVESTMENT GRADE: A" rating is the HIGHEST RATING as it relates to financial strength, technical stock
performance, earnings growth rate, and assessment of the market price of the stock.
2) An "INVESTMENT GRADE: B" rating is the second highest rating indicating that three out of four of the considerations,
as stated with a "INVESTMENT GRADE: A" rating, exist with the stock. This is considered a GOOD STOCK RATING.
3) An "INVESTMENT GRADE: C" rating is the third highest rating, or middle rating, indicating that two out of
four of the considerations, as stated with a "INVESTMENT GRADE: A" rating, exist with the stock. This is considered
a NEUTRAL STOCK RATING.
4) An "INVESTMENT GRADE: D" rating is the fourth highest rating, second from the lowest or bottom rating, indicating
that one out of four of the considerations, as stated with a "INVESTMENT GRADE: A" rating, exist with the stock.
This is considered a POOR STOCK RATING.
5) An "INVESTMENT GRADE: E" rating is the LOWEST RATING indicating that none of the four considerations, as
stated with a "INVESTMENT GRADE: A" rating, exist with the stock. This is considered a POOR STOCK RATING.
Note: Please be advised that a (-) MINUS SIGN attached to the INVESTMENT GRADE denotes and emphasizes that there has been
a break in the growth pattern of the annual earnings over the past five years, and that there may be a slightly higher level
of risk in the stock. If there is a (+) PLUS SIGN attached to the INVESTMENT GRADE, it denotes that current earnings are accelerating
above the average annual earnings increase over the past five years.
GLOSSARY OF TERMS
______________________
"ESTIMATED (est.)" means this is our best estimated calculation based upon the best available information at
the time of the publication of the subject document. An estimated calculation is apt to be less accurate due to the quality
of the information used (Additionally, the use of abbreviations "X" means times and "N/A" means not applicable).
"FUNDAMENTAL ANALYSIS" is the financial analysis of the currently available financial statements for financial
strength, profitability and appreciation over the long-term (or per the most recent past five completed years).
"HISTORICAL EARNINGS GROWTH RATE" - This is the five year average annual diluted earnings growth rate over the
most recent past five completed years (diluted earnings - are earnings per share (EPS) if all convertible securities were
exercised). This number should be contrasted with the "P/E" - PRICE TO EARNINGS RATIO.
A "NEGATIVE" rating is an indication that the pattern of growth, or appreciation, has been broken.
A "POSITIVE" rating is an indication of a consistent pattern of growth, or appreciation.
"P/E" - PRICE TO EARNINGS RATIO - The earnings in this ratio are the accumulation of four quarters of trailing
earnings as compared to the current market price of the stock. This number should be contrasted with the "P/E" -
"HISTORICAL EARNINGS GROWTH RATE".
POSITIVE FACTORS (pfs) - This means out of the four factors analyzed in the calculation of the INVESTMENT GRADE, where
this abreviation is present it denotes the number of "positive factors" (pfs) present.
A "SATISFACTORY" indication is similar to a "Positive" rating, except it is referring to the acceptability,
in financial terms, of the financial statement in question. With the balance sheet it means the balance sheet is in a strong
financial position. With the Income statement it means it has a consistent pattern of growth, or appreciation, over the past
five years.
The indicated "STOP LOSS" is a price indicator of what maybe a technical breakdown in the pattern of growth,
or appreciation, of the charted stock price. It is designed to alert the investor so that he (or she) may re-check any available
news or information which could be a problem for the (company) stock and, at this juncture, the investor can make a decision
whether to "sell", "hold" or "buy".
"TECHNICAL ANALYSIS" is an analysis of the stock price trading pattern and trend over the publicly traded life
of the stock.
An "UNSATISFACTORY" indication is similar to a "NEGATIVE" rating, except it is referring to the un-acceptability,
in financial terms, of the financial statement in question. With the balance sheet it means the balance sheet is in a weakened
financial position. With the Income statement it means it has had an inconsistent, or incomplete, pattern of growth, or appreciation,
over the past five years.
____________________________________________________________
"We are the do-it-yourself growth stock investing stock report people!"
|
