Research Process

Depressed stock price

A high quality company

Develop Peer Review spreadsheet analysis

Review Value Line research report

Review selected historical valuation metrics

Lead researcher presents to Investment Committee; if approved, proceed to Level Two

Define in one sentence the problem that caused the company's price to decline

Gather additional research: Wall Street research, HCM company and industry files, SEC filings, company website, business periodical articles, S&P and Fitch reports

Historical financial trend analysis, focusing on consistency of ratios

Lead researcher presents to Investment Committee; if approved, proceed to Level Three

Talk with industry experts, knowledgeable media contacts, and the company regarding the company's plan for solving its problem

Perform segment analysis to determine key drivers of earnings and cash flow

Calculate the potential upside and downside of the company

Buy — Yes or No

Pass For Now — Set lower price target and re-evaluate if reached