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HowTheMarketWorks.com has developed a new business relationship with FireRock Research,
providing fundamental quantitative analysis to its users. We are currently offering
FREE stock research on over 7,000 US and Canadian companies.
The FireRock Element® is used to select high quality equities that
provide superior, long-term capital appreciation. As the FireRock Element® has evolved,
the FireRock Research team has successfully generated a secure online tool
to enable an interactive presentation of the research coupled with weekly updates.
The investment novices and professionals can analyze the latest FireRock Element® at
any time and from any computer. FireRock Research offers the FireRock Element®
on a range of over 7,000 companies including Canada and the United States domestic
market. We offer accurate, high-quality quantitative analysis of the parameters which
measure growth, value, and management performance on Main Street. This complex
analysis is expressed in the form of a single composite: the FireRock
Element®.
FireRock Research maintains a database of quarterly and annual financial reports
filed by US listed public companies and local governing organizations as well as
their historical stock prices. This data is converted into financial ratios and
analyses used to measure every company's financial health and overall business
performance. Weekly, latest company filings and daily stock prices are updated
from multiple data vendors and stored in our database. Our algorithm re-calculates
all financial indicators for all companies and generates a spectrum opinion for each
known as the FireRock Element®.
The FireRock Element® reflects the sell
price of a stock (or company) on Main Street (real performance value) when we
believe the company has reached its maximum value. From this real performance
valuation, an investment professional, weekend trader, or anyone subscribing to the
FireRock Element® has the leverage to make intelligent, quantitative decisions concerning
the stocks they buy and sell. Subscribers of the FireRock Element® have access to
a concise and easy-to-understand color-coded key. The key acts as a guide to helping
clients, regardless of investment experience or expertise, interpret and understand
the FireRock Element®.
To learn more and sign up for a DEMO of the FireRock Element®,
click here.
FireRock Element®:
The FireRock Element® represents the price per share at which a private investor
would purchase an entire company and take the company private.
Moreover, calculation of the FireRock Element® is based primarily on patterns that
emerged by researching the purchases of Mr. Warren Buffett, on behalf of Berkshire
Hathaway from 1972 to 2008.
Importantly, the FireRock Element® is not the same as the standard intrinsic
valuations performed daily on Wall Street.
Finally, there are two situations in which we are unable to provide a FireRock
Element® on a given company. These two scenarios are outlined below:
• A FireRock Element® of 0.01: When a
company has negative earnings or negative book value, we are unable to calculate a
FireRock Element®. When this happens, we assign an arbitrary value of "0.01" to
the FireRock Element® to indicate that this company should be avoided altogether.
• A FireRock Element® flagged as having a value of
"0" or "0%": "0" and "0%" are absurd values. When a company undergoes a
building sale or an asset sale, generally its numbers are disproportionally attractive
compared with the previous fiscal year(s).
Indeed, the company's numbers are so attractive that the FireRock Element®
is skewed.
Accordingly, the FireRock Element® is flagged with "0" and "0%" to identify a
company in which a one-time event has recently taken place. While we generally
find that these stocks are attractive, we recommend that the subscriber investigate
the basis for this attractiveness before making an investment decision.
The FireRock Percentile:
The FireRock Percentile is defined as the Stock Price divided by the FireRock
Element®, multiplied by 100. Percentiles range from 11% to 200%. Importantly,
we make six important distinctions in these ranges, as follows:
Here is an example of performing a search on Firerock's website:
To learn more and sign up for a DEMO of the FireRock Element®,
click here.
DISCLAIMER: The information provided by FireRock Research in no way indicates a Buy or Sell recommendation by Marketworks, LLC.
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