Grading System

Brevis Research uses an A to D grading system instead of the usual recommendation system by financial institutions. This is to indicate our investment philosophy as follows:

1.   Our stock picks are not meant to be recommendations to buy or sell any stock. 

2.   Stock pick gradings only mean to indicate the view towards stocks from our value viewpoint. This does not mean an A-graded stock would guarantee profits, or a D-graded stock would guarantee to incur losses. Stocks are graded based on a subjective valuation system of analysing fundamentals, liquidity, technical movements, governance, brand name, industry, micro/macro risks and any other specific factors that may involve.

3.  The grading system ranges from A to D, with ‘A’ being the perceived highest quality investment indicating the best gain-to-risk ratio relative to its current price. ‘D’ graded stocks are typically included only on special circumstances i.e the stock(s) attracting recent attention or gaining abnormal momentum. ‘D’ graded stocks by themselves typically fall short of basic filters of fundamentals and thus do not make it as a stock pick.

*Note: Brevis Research does not produce picks on financial institutions, i.e banks and securities companies in the Vietnamese market. This is due to our view that fundamental-based valuation approaches are not meaningful or effective in valuing these companies in this specific market.