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Golden Rule #3 - Outlook / Active Risks

To determine whether a company's growth and fundamental quality are sustainable, investors must analyse the company's outlook and active risks. Though a company may be may be financially healthy with good management that possess a strong track record, can they continue to maintain it into the future?

At Lincoln Indicators, our analysts are not focused on deriving forecasts which is time consuming and does not add much value to consensus. Rather, they focus on assessing the key active risks to forecasts and whether those risks have been factored into the share price. These risks include management churn, geographical exposure, competition, short sellers, changes to management holdings, etc.

The assessment of active risks is conducted by the research team and include company meetings, speaking to industry contacts and assessing broker research reports.

Should a company meet Golden Rules 1 and 3, but fail 2, Lincoln may still consider it for Borderline Star Growth Stock classification.

Consensus analyst forecasts shown here are based on a median of third party analyst forecasts 
(the number of research houses that provide analysis for the company is displayed in the top right corner).

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