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Taglich Brothers – RATING SYSTEM
In an attempt to better simplify our ratings system and in accordance with new FINRA and SEC policies our new ratings system is outlined below. For more information on risks inherent in the Microcap Marketplace see bottom of page.
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Buy |
We believe the Company is undervalued relative to its market and
peers. We believe its risk reward ratio strongly advocates purchase
of the stock relative to other stocks in the marketplace. Remember,
with all equities there is always downside risk. |
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Speculative Buy |
We believe that the long run prospects of the Company are positive.
We believe its risk reward ratio advocates purchase of the stock. We
feel the investment risk is higher than our typical “buy”
recommendation. In the short run, the stock may be subject to high
volatility and continue to trade at a discount to its market. |
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Neutral
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We will remain neutral pending certain developments. |
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Underperform
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We believe
that the Company may be fairly valued based on its current status.
Upside potential is limited relative to investment risk. |
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Sell
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We believe
that the Company is significantly overvalued based on its current
status. The future of the Company's operations may be questionable
and there is an extreme level of investment risk relative to reward. |
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From time to time our analysts may choose to
withhold or suspend a rating on a company. We continue to publish
informational reports on such companies; however, they have no ratings
or price targets. In general, we will not rate any company that has
too much business or financial uncertainty for our analysts to form an
investment conclusion, or that is currently in the process of being
acquired.
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Some notable Risks within the
Microcap Market
Stocks in the Microcap segment of the market have
many risks that are not as prevalent in Large-cap, Blue Chips or even
Small-cap stocks. Often it is these risks that cause Microcap stocks
to trade at discounts to their peers. The most common of these risks
is liquidity risk, which is typically caused by small trading floats
and very low trading volume which can lead to large spreads and high
volatility in stock price. In addition, Microcaps tend to have
significant company specific risks that contribute to lower
valuations. Investors need to be aware of the higher probability of
financial default and higher degree of financial distress inherent in
the microcap segment of the market.
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Visit our Equity Universe!
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Disclaimers |
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Please Click Here
to view our Disclaimers..... |
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