Type

Description

Buy

These are stocks that we think offer a substantial margin of safety in their price, and most members should consider adding them to their portfolios.

Speculative Buy

These stocks have the potential to produce higher returns, but that comes with higher risk – often much higher – so they're only suitable for investors that are comfortable with that. Typically these recommendations will be accompanied by low maximum recommended portfolio weightings.

Hold

These stocks offer some value (if there was no value we'd say Sell or Avoid), but there's not enough margin of safety for us to recommend them as a Buy. Most stocks will fall into this category. As they move closer to our Buy price, they could make reasonable investments for some; as they move closer to our Sell price, it might make sense to take some profit (particularly where you're breaching our recommended portfolio weighting).

Sell

These stocks offer little to no value, and we therefore think that members should consider selling and finding alternative investments – if necessary holding cash in the meantime.

Avoid

These are stocks that have particular risks or business issues, which mean we think we're unlikely to see a price at which we'd want to Buy or even Hold the stock. As a result, we'd recommend that you steer clear.

Under Review

This recommendation means a review is pending. It’s used sparingly usually following an important announcement that could impact the stock’s previous recommendation.

Ceased Coverage

When we cease coverage on a stock it could be for any number of reasons, but it ultimately comes down to the phrase: 'We see better opportunities elsewhere and don't expect this stock to become undervalued anytime soon'.