Methodology

GUIDE TO ORD MINNETT RECOMMENDATIONS

Our recommendations are based on the total return of a stock – nominal dividend yield plus capital appreciation – and have a 12-month time horizon.

SPECULATIVE BUY
We expect the stock’s total return (nominal yield plus capital appreciation) to exceed 20% over 12 months. The investment may have a strong capital appreciation but also has high degree of risk and there is a significant risk of capital loss.

BUY
The stock’s total return (nominal dividend yield plus capital appreciation) is expected to exceed 15% over the next 12 months.

ACCUMULATE
We expect a total return of between 5% and 15%. Investors should consider adding to holdings or taking a position in the stock on share price weakness.

HOLD
We expect the stock to return between 0% and 5%, and believe the stock is fairly priced.

LIGHTEN
We expect the stock's return to be between 0% and negative 15%. Investors should consider decreasing their holdings.

SELL
We expect the total return to lose 15% or more.
 
RISK ASSESSMENT
Classified as Lower, Medium or Higher, the risk assessment denotes the relative assessment of an individual stock’s risk based on an appraisal of its disclosed financial information, historic volatility of its share price, nature of its operations and other relevant quantitative and qualitative criteria. Risk is assessed by comparison with other Australian stocks, not across other asset classes such as Cash or Fixed Interest.

COVERAGE CRITERIA
OML's ability to deliver quality investment advice on the securities that we cover.

Walter Watson and/or related parties holds stock in the following companies:

John O'Shea and/or related parties holds stock in the following companies:

Ord Minnett Disclosures

Ord Minnett Limited acted as a broker, or as a manager or co-manager, in the offering of securities for the following companies in the last 12 months:

• American West Metals Limited
• ANZ Group Holdings Limited
• Aurelia Metals Limited
• Bank of Queensland Limited
• Catalyst Metals Limited
• Challenger Limited
• Commonwealth Bank of Australia
• EQT Holdings Limited
• Group 6 Metals Limited
• H&G High Conviction Limited
• Hammer Metals Limited
• Insurance Australia Group Limited
• Iperionx Limited
• Kingston Resources Limited
• Leeuwin Metals Ltd
• Macquarie Group Limited
• Magmatic Resources Limited
• Manuka Resources Ltd.
• MoneyMe Limited
• MyState Limited
• National Australia Bank Limited
• Pantoro Limited
• Red 5 Limited
• Redox Limited
• Regal Investment Fund
• Regal Partners Limited
• Simonds Group Limited
• The Star Entertainment Group Limited
• Tribeca Global Natural Resources Limited
• Silver Mines Limited
• WAM Leaders Limited
• Westpac Banking Corporation