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Unconventional Valuations

Ockham research follows a four step process for individual securities valuation:


1.  Create a historical data base of individual securities prices, sales, cash earnings, and dividends.

2.  Assign valuation ranges for each security based upon the average annual highs and lows for price to sales, price to cash earnings and dividends. 

3.  Utilize these valuation ranges as bands to identify a stock's conventional high and low valuations.

4.  Identify stocks whose share price has moved outside of these conventional valuations. 

This rubric is insightful and direct, thus eliminating confusion at times of decision making in extreme market volatility.  Our methodology combines empirical conclusions derived from two decades of analysis with a strict adherence to the abiding principles derived from those conclusions.

Ratings Methodology

Our ratings methodology is a simple one: "Strong Buy" or “Buy” ratings are reserved for securities that are priced below their average annual lows with respect to their normal per share metrics, “Hold” ratings are applied when a security is valued within its historical high and low range, and “Sell” or "Strong Sell" ratings are applied when a security is priced above its average annual high with respect to its per share metrics.