
Beacon Equity Research provides research on undiscovered small cap companies and sheds light on them within the investing community. With no investment banking or consulting relationships with the covered companies, all analysis and conclusions are made independently from outside pressures and the risk of any conflict of interest is removed.
Beacon’s CFA certified research team is comprised of recognized professionals in their industry who have gained the respect of many brokers, money managers and individual investors. Because of these unique relationships and credibility in the small cap market, Beacon has an edge over most other research providers in this sector and was selected by more firms to provide research than any other provider in the micro cap sector.
Beacon has four ratings that are given to companies in their reports. The ratings include outperform, neutral, underperform and speculative buy. A rating of outperform means that the value of a stock should outperform the projected returns of the benchmark index in the coming year on a risk-adjusted basis. The most common benchmark is the Russell 2000 small cap index. The outperform rating concludes that the stock is under priced.
A neutral rating suggests that a stock will achieve risk-adjusted results similar to that of the benchmark index; concluding that the stock is fairly priced. An underperforming rating means that Beacon’s research concluded the stock is overpriced and suggests that the stock will achieve risk-adjusted results below the benchmark index. Finally, a speculative buy rating suggests that the stock should outperform, however there is a great deal of uncertainty regarding the assumptions made in the analysis.
The featured companies must agree to enroll in a research program for a set period and must also agree to pay an upfront fee to defray the costs of research, publishing and distribution. Beacon explores every pertinent aspect of a company’s business to make investors fully aware of the potential risks and rewards involved with the company’s stock.
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