Ratings Explained
Real Value is what the book value per share is. If the company is posting a profit and the book value of the share is above the current market price then the stock is a buy.
Potential returns, this is something that holds a heavy weight on the decision making for the stock rating. An investor can look at this in two ways, growth of stock in value, or dividend returns. If the growth of the book value per share exceeds 7% per month, it would generally be a buy. If the dividend return is 5% of the stock value, or higher the stock would be a buy.
Past returns plays a good role in the rating system in that it can help give vision into the potential returns.
The economy of second life can play a part in the decision on the rating of a stock, a quick example of these would be the recent gambling ban. Where are companies tied heavily to gambling went from buy, to light sell, or even sell.
Each individual CEO has a persona that can be seen through their actions, including postings and meetings. If a CEO seems the have their head on straight, posts regular reports, and is easy to confront with questions about their company. It would generally be accepted that the company would be heading in a good direction.
These five parts play the biggest roles in determining the rating for each stock. Any other effects would be on a stock by stock basis.
As Karlfeldt & Delgado Mutual develops it is likely that investors will see indivual reports on each traded company.