Torpedo Alert® Ratings
Our Torpedo Alert® ratings are based on our philosophy that, over time, equity performance is driven by company fundamentals. Our Torpedo Alert® ratings identify changes in fundamentals which are key to both: 1) avoiding “torpedo” stocks (with the resulting performance penalty); and 2) making timely purchases of strong or improving companies. When companies can no longer meet promised growth goals, the next step is often to disguise this through more aggressive accounting. Since many investors rely on simple metrics subject to distortion by management, any successful analytical approach must identify and measure both fundamental trends and potential distortions in financial reporting.
Our proprietary Torpedo Alert® ratings system captures these changes, ranking nearly 2,500 companies within five categories, based on nearly fifty indicators that define the ten key dimensions. Torpedo Alert® reports are sent weekly to clients in a spreadsheet format. Clients with a more specific focus – investors looking to mitigate risk in their specific portfolio holdings or sector managers looking for ratings on a specific set of companies – can contact us regarding customized Torpedo Alert® rating reports.