Investment Recommendation Definitions

Research Notes
There are three recommendations:

• BUY stocks are expected to have a total shareholder return of at least 10%.
• HOLD stocks are expected to have a total shareholder return of between 0-10%.
• SELL stocks are those which could deliver a negative total shareholder return.

The time horizon for which the recommendation is deemed valid is three to six months unless otherwise specified in the particular research.

Commentary Notes
There are three recommendations:

• BUY stocks are expected to have a positive total shareholder return.
• HOLD stocks are those which could deliver a total shareholder return of between -10% and +20%.
• SELL stocks are those which are expected to deliver a negative total shareholder return of more than -10%.

The time horizon for which the recommendation is deemed valid is three to six months unless otherwise specified in the particular research.

Panmure Liberum SAM

The Panmure Liberum SAM systematic approach ranks stocks against their Revisions Momentum, Combined Shareholder Value and Valuation Rankings. These rankings are relative to a defined population (Europe, United States etc.). Each stock is assigned a decile figure showing its position within each ranking. The decile scores are combined to give an overall Summary Ranking for each stock. Each stock is also assigned an Analysis Category based on these rankings.

The table below shows how the combination of these rankings and scores leads to a particular Analysis Category. The Analysis Categories then ultimately lead to either a Recommended Action and/or an Investment View. This is explained in the table below.

Analysis Categories	Summary Ranking	Revisions Momentum	Combined Shareholder Value / Valuation Rankings	Recommended Actions	Investment Views
Most attractive	Score above 8	Score above 5 and not falling significantly	Indicate opportunity	Buy i.e. continue to buy more or go overweight	N/A See ‘Recommended Actions’
Attractive	Score between 5 and 8	Score above 5 and not falling significantly	Indicate opportunity
Potential, improving	Score above 2.5	Score of 5 or below, improving significantly	Indicate opportunity	No Action See left for an ‘Investment View’	Alert + i.e. get interested, potential future buy
Fair, deteriorating	Score above 5	Score above 5, falling significantly	Indicate opportunity		Alert – i.e. get interested, potential future sell
Hold on	Score of 5 or below	Score above 5 and not falling significantly	Indicate risk		Hold i.e. take no action or do not sell
Hold off	Score above 5	Score of 5 or below and not improving significantly	Indicate opportunity		Avoid i.e. take no action or do not buy
Poor, improving	Score above 5	Score of 5 or below, improving significantly	Indicate risk		Alert + i.e. get interested, potential future buy
Risk, deteriorating	Score below 7.5	Score above 5, falling significantly	Indicate risk		Alert – i.e. get interested, potential future sell
Unattractive	Score between 2 and 5	Score below 5 and not improving significantly	Indicate risk	Sell i.e. continue to sell more or go short	N/A See ‘Recommended Actions’
Least attractive	Score of 2 and below	Score below 5 and not improving significantly	Indicate risk

 

Relative performance is not anticipated within any particular timescale but, rather, depends on changes in overall ranking and especially that for revisions momentum. A full explanation of the methodology and of the definition and purpose of each measure is available on request.

Please note the ‘Distribution relative to market’ graph shows how stocks in a selected population are distributed into each of the Recommended Action and/or Investment View groupings in comparison to the current overall distribution within the region specified by a SAMnav user. Recommended Actions are Buy, Sell or No Action as defined in the table above. Where the stock has a No Action recommendation, an Investment View is given. These terms are also defined above. The regions available for a SAMnav user are Global, Europe, United States, North America, United Kingdom, Asia Pacific, Japan and Malaysia. Example: if 30% of a selected population falls into a Buy Recommended Action on the SAMnav matrix while 20% of the selected regional population falls into a Buy Recommended Action, the value shown in the distribution graph would be +50%. 

​