There will be examples where a company narrowly fails to meet Stock Doctor’s Star Growth Stock selection criteria. However, at our discretion we may decide to analyse them in detail and provide a Lincoln Valuation. These companies are defined as Borderline Star Growth Stocks.
Borderline Star Growth Stocks are covered at Lincoln’s discretion and may be possible Star Growth Stock in the near future, or alternatively have recently lost its Star Growth Stock status yet we are comfortable that the underlying fundamentals remain healthy with manageable active risks. While they may fail one of the benchmark criteria, we do not compromise on Financial Health, therefore every Borderline will be healthy.
Borderline Star Growth Stocks can be used by investors to broaden their spread of quality businesses beyond Star Growth Stocks as they have the emerging properties of a quality business. Under most scenarios a Borderline Star Growth Stock will be consistently healthy and therefore meet Golden Rule 1. More commonly a Borderline Star Growth Stock will meet Golden Rule 1 - Financial Health and Golden Rule 3 - Outlook and Forecast. Though there may be times when alternatives do appear. Be sure to read Stock Doctor’s strategic comment to understand why the company currently holds a Borderline status and whether you are comfortable with that.
Borderline Star Growth Stocks are well suited to a growth seeking investor. They can be used by investors to fill any immediate gaps within a portfolio as they have the emerging properties of a quality business.
If you would like to discuss a company’s Borderline Star Growth Stock status, members can contact our Research team via email at firstname.lastname@example.org or speak to the team directly on 1300 676 333.