In each issue of the Investor Advisory Service
, our analysts recommend three stocks for subscribers. In addition, we provide updates on companies previously-recommended by the Service
, with news of recent results and several tables of information about all stocks currently being tracked.
One of the items in the tables is a column labeled "Buy." This field is either blank or has a “B” in it for each company being followed by our analysts. New subscribers often have questions about this particular feature, and wonder if they should automatically buy any stock that is marked “B” in this column.
The answers is no – the spreadsheet does not contain any recommendations to buy or sell a stock. The only recommendations to buy any stock are the three stocks reviewed in depth each month.
So what is the purpose of the spreadsheet tables in each issue? These are designed as mathematical renditions of the Stock Study/Stock Selection Guide, and are intended for purposes of screening. These tables can bring attention to undervalued, fairly valued, and overvalued stocks. Just because a "B" is indicated next to any company, it does not mean that you should buy the stock. It merely means the math suggests an investigation may be warranted about this particular stock’s future potential performance.
We expect that subscribers will do their own further research into stocks on these tables, and determine the final buy (or sell) judgment based on their personal due diligence. (We’ll cover more on selling in a future article.) When looking for new investment candidates from the IAS universe, it makes sense to start with companies labeled “B,” but use your own judgment into the viability of any company before investing.
Comments in the News of Companies section will give often further insight into our thinking about a particular company. You can use the new Search feature on the IAS website to quickly find recent references to any company in past issues.