To ease you in assessing the prospects of a stock, then I will give ratings as conclusion from the analysis undertaken, to any stocks which reviewed. This rating consists of two categories, namely rating of the performance and rating of stock price. The highest is rating is S, and the lowest rating is C. Here's the explanation :
Rating of Company Performance :
• Rating C. This company has a performance at all bad and also did not have a future.
• Rating B. Although not yet profitable, but if viewed from a variety of factors, the company still have a future, or at least hope for survival.
• Rating BB. Companies have started to generate profits, but the consistency of its increasing over time is still questionable.
• Rating BBB. The company has a performance that is not bad, but not quite good.
• Rating A. The company has a fairly good performance.
• Rating AA. The company promises a consistent increase in revenues from time to time, and not easily influenced by external conditions, such as crisis.
• Rating AAA. In addition to its profit consistently rose from time to time, the company promises good profit ratios, and have a bright future. It is suitable for long term .
• Ratings S. 90% perfect! If you are a serious investor, then you almost have no reason to not invest in this company.
Rating of Stock Price:
• Rating C. Shares illiquid, with unnatural movements, and almost without hope at all to be strengthened both in the short or long term.
• Rating B. Almost the same as rating C, just still have a little hope to strengthen, at least because factors of technical or expectations of will be cooking.
• Rating BB. Opportunities for strengthening are smaller than to weaken.
• Rating BBB. Got a chance to strengthen in the near future. But the bigger opportunity is a stock stagnant.
• Rating A. Got a chance to strengthen, in addition to its normal movements.
• Rating AA. Opportunities for strengthening are greater as driven by technical, fundamental, and psychological factors, suitable for long term.
• AAA rating. Chances are above 60% to strengthen in the near future, including in the long term. Suitable for long term or short term.
• Rating for stock price do not have S rating.
Note :
Rating of performance is valid for an average of three months, and could change every time the company have published its latest financial statements, both quarterly and Full Year.
Rating of stock price is valid when the stock price does not change between 5 - 10%. For example, shares of X rated BBB at position 1,000. If the share rose to 1.050, then the ratings will probably go down to BB. Conversely, if shares of X dropped to 950, then the rating may be increased to A. Rating of stock price is also influenced by various factors, such as market conditions , conditions of economy and politics, etc.
If you are long term investor, the rating of performance is more important to you. Because if the performance of a company are good or very good, then although its stock price is expensive but its still have a chance to strengthened in the long term. If you are short term investor, then the rating of stock price is more important to you, because it is a matter of when the right time to enter, and when the right time to exit.
In the end , choose a stock that has a good rating, both in terms of performance and its shares price.
