Rizzo, Farrugia & Co. (Stockbrokers) Ltd. is committed to providing its clients and potential investors with investment research of high quality standards. It is our view that the long-term interests of our company and of all our clients are best safeguarded by the provision of investment reports that are taken from well-researched sources. We are proud to state that the RFC Research & Analysis Unit places the company as one of the few local brokerage firms that prepares investment research reports on most companies listed on the Malta Stock Exchange. Our investment research updates are compiled at least twice yearly following publication of the listed company's interim and annual financial results. Updates may also be issued following a material corporate action such as a new issue of securities or an acquisition.
Rizzo, Farrugia & Co. (Stockbrokers) Ltd. conducts investment management, corporate finance and brokerage services. RFC has or may seek corporate finance and broking relationships with a number of listed companies on which we provide research. Furthermore, RFC, their directors, employees and members of their families may have positions in the securities of covered companies referred to in our published research. Where our analyst holds securities in companies covered by RFC, this fact will be disclosed. Our independent and objective research is possible also due to our strong relationships with the companies we follow, which enables us to gain a deep understanding of their businesses and the industry environment in which they operate.
The research analysts have a close working relationship with the top management of listed companies and perform regular company visits. In this respect we are able to arrange for prospective professional investors to meet the management of any of the companies covered. Moreover, the research analysts attend all presentations made by listed companies including stockbrokers’ meetings held regularly by the listed companies, all Annual General Meetings and Extraordinary General Meetings.
Equity research provides timely, in-depth analysis to enhance the performance of our clients’ portfolios. The Research & Analysis Unit compiles stand-alone reports on individual companies with the aim of identifying those with investment value and assessing the investment outlook based on the company’s fundamentals. Moreover, since it is our belief that investing in equities is based on the future financial performance of the companies in question, we also prepare our own internal estimates of the companies' financial results to support the investment outlook and our recommendation.
Our recommendation policy is based on the expected returns to an investor (share price change and dividend income) during a specified period of time. The recommendation is normally reviewable every six months after the publication by the company of its periodic financial statements. The recommendation may, therefore, be altered if the analysts’ view of the company changes (possibly due to a change in outlook), the result of a noteworthy announcement (for example an acquisition), or a significant share price has movement from the last recommendation. On a day-to-day basis, fluctuations in the share price do not alter the recommendation.
Our recommendations and their respective meanings are provided below:
• STRONG BUY: total return expected to exceed 25% within the next 2 years;
• BUY: total return expected to range between 10% and 25% within the next 2 years;
• LONG-TERM BUY: total return expected to exceed 25% within the next 5 years;
• HOLD: total return expected to range between +10% and –10% within the next 2 years;
• SELL: total return expected to drop by 10% or more over the next 2 years;
• UNDER REVIEW: the previous rating, if any, is no longer in effect and should not be relied upon until a review of the company is completed.
Recommendations are given in good faith but without legal responsibility and are subject to change without notice. The information does not constitute advice or a personal recommendation or take into account the particular investment objectives, financial situations or needs of individual clients. Clients are recommended to seek advice concerning suitability from their investment advisor. Investors should be aware that past performance is not necessarily a guide to the future and that the price of shares, and the income derived from them, may fall as well as rise and the amount realised may be less than the original sum invested.
Other than disclosures relating to RFC, this research is based on current public information that we consider reliable, but we do not represent it as accurate or complete and it should not be relied on as such. The research produced is not an offer to sell or the solicitation of an offer to buy or sell any security in any jurisdiction where such an offer or solicitation would be illegal.
The Research & Analysis Unit also compiles Weekly as well as Quarterly Market Reviews to keep investors abreast of the main developments in the local market. These reports are available free of charge. In order to subscribe to receive these reports kindly send your request here.
Rizzo, Farrugia & Co. (Stockbrokers) Ltd. also compiles research on fixed income securities coming to the market through a public offer. The research team focuses on both government and corporate debt with the aim of helping clients maximise their investment opportunities.
Our research is available to our clients in conventional printed form as well as electronically via email.
