Basis of Analysis

In arriving at an investment rating, we use the following analytical measures:

1-Potentials and opportunities:
competitive advantage, market potentials, patents, properties, reserves.

2-Risk factors:
regulatory approvals, R&D results, ability to raise capital, going concern issues, competition.

3- Evaluation:
What is the stock’s fair value given the company’s potentials and risks?

How do you define CCM Research?
The quality of research coverage depends on the depth and predictive value of the analysis itself- although it is often judged by several additional factors. We believe these to be most important.

Dimension	High-Quality
Coverage	Is based on in-depth industry and company-specific information, Is based on in-depth industry and company-specific information, and embodies true analytical thought and cogent arguments. Suggests rational investment thesis and risks assessment based on available information and data.
Comprehensiveness	Complete coverage of all decision-relevant information, including competition, strength of IP rights, and myriad other factors.
Balanced	Professionally presented, allowing even informationally-dense topics to be easily understood. Well organized sections and layout.
User-Friendly	Well-written and intelligently organized text. Easy to read and understand. Reflective of a logical progression of ideas that leads to an investment thesis.
Independent	Reads like a two-sided, objective analysis of a company’s situation, in terms of strengths and weaknesses.
Financial Modeling (mature companies)	Complete financial models including P&L, Cash Flow, and Balance Sheet, and also including segment-by-segment growth projections and margin analyses. Accurate reflection of true operating variables allows for analysis of various future scenarios.