Ratings

         Filling the information gap on small-cap stocks...

Crystal Equity Research rates a stock according to the forecast of a stock’s future capital appreciation potential, based on a six- to twelve-month time frame.  Absolute returns expectations are a guideline but overall recommendations may also be influenced by qualitative and technical factors determined to be relevant.  For example, we compare the sensitivity of our valuation results to different phases of the market as a means to determine the level of downside protection.

Our ratings are based upon expected performance of a stock compared with other stocks in its sector and relative to a primary market index such as the Russell 2000 Index or the S&P Small Cap Index.

The Crystal Report Rating System has three performance categories:

Buy      Price appreciation expected 10% or above over a 12-month period.    

Hold     Price appreciation/depreciation expected between 10% and –10% over 12 months. 

Sell       Price depreciation expected 10% or more over a 12-month period. 

The CER Report Rating System has three performance categories:

Speculative Buy  Establish positions in anticipation of fundamental developments.          

Accumulate        Add to positions.  

Hold                    Positions should be maintained with possible profit taking. 

Sell                     Investment thesis is no longer valid. 

In addition to these ratings, two other actions may be taken:

Not Rated   

Rating Suspended   

Our ratings and comments are based on information obtained from the company, its management, competitors, customers, suppliers and other sources we believe to be reliable, although we do not verify the truth or accuracy of such information.  Our ratings may be changed or withdrawn as a result of changes in, or the unavailability of information or for other reasons. 

We believe our Methodology provides a sound and objective analysis of a company's potential.  However, we continuously strive to improve our approach.  We trust in doing so our product will gain credibility and win the acceptance of investors as a reliable resource on small capitalization stocks.