Can anyone explain a very basic question to me, it has me boggled and I have searched numerous sites for an answer to no avail, whats the difference between the ADD and BUY brokers recommendations, BUY is obviously to buy, but ADD ?
Can anyone explain a very basic question to me, it has me boggled and I have searched numerous sites for an answer to no avail, whats the difference between the ADD and BUY brokers recommendations, BUY is obviously to buy, but ADD ?
Buy is a stronger recommendation than Add, it all depaends on the broker but i think buy means they expect it to grow by more than 15% this year and add means they expect it to grow by at least 5%. Thats my rough idea of what it means
Buy is a stronger recommendation than buy, it all depaends on the broker but i think buy means they expect it to grow by more than 15% this year and add means they expect it to grow by at least 5%. Thats my rough idea of what it means
When the NASDAQ 100 was over 5000 points around March 2000 there was hardly a sell note on any of the stocks, despite farcical valuations. Most of these stocks were covered by numerous brokers. Don't pay too much attention to broker recommendations imo.
For a buy rating on a stock the minimum expected upside is 10% in absolute terms over 12 months. For a hold rating the expected downside is below 10% in absolute terms, A reduce rating is applied when there is expected downside on the stock. Ratings are based on a 12 month view.
Add is not a term we use anymore.
It doesn't answer your query unfortunately but he said most brokers have stopped using add as it wasn't a definitive enough term.
Do not buy or sell stock on the recommendation of any broker - the only reason they make 'recommendations' is to increase activity and hopefully commissions (if you do business with them). Educate yourself regarding the workings of the market.
I always assumed that Add meant that if you already own some then maybe you should get some more but if you do not have a position then stay away from them. This may be relevant if you want to bring down your average cost.