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Frequency, Scale and Usability  

The FireRock Element® is used to select high quality equities that provide superior, long-term capital appreciation.  As the FireRock Element® has evolved, the FireRock Research team has successfully generated a secure online tool to enable an interactive presentation of the research coupled with weekly updates.  The investment professional can analyze the latest Elements™ at any time and from any computer.  FireRock Research offers the FireRock Element® on a range of over 7,000 companies included in the United States domestic market.  We offer accurate, high-quality quantitative analysis of the parameters which measure growth, value, and management performance on Main Street.  This complex analysis is expressed in the form of a single composite: the FireRock Element®.

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How the FireRock Element® Works?

FireRock Research maintains a database of quarterly and annual financial reports filed by US listed public companies and local governing organizations as well as their historical stock prices. This data is converted into financial ratios and analyses used to measure every company’s financial health and overall business performance. Weekly, latest company filings and daily stock prices are updated from multiple data vendors and stored in our database. Our algorithm re-calculates all financial indicators for all companies and generates a spectrum opinion for each known as the FireRock Element®.

FireRock Research’s Director of Investment Research, Mr. Peter George Psaras has devoted more than 20 years to analyzing the strategy and discipline of Warren Buffett, Philip Fisher, Benjamin Graham, and George Michaelis.  Based on his analysis principally of Mr. Buffett’s purchases on behalf of Berkshire Hathaway, Mr. Psaras has developed ten unique financial ratios.  He has subsequently used these ratios to create FireRock Research.  The FireRock Element® is a composite of over 300 calculations, encompassing ten financial ratios which focus on a company’s real performance on Main Street. 

FireRock Element® reflects the price that a private investor would pay for the entire company per share on Main Street.  From this real performance valuation, an investment professional, weekend trader, or anyone subscribing to the Element® has the leverage to make intelligent, quantitative decisions concerning the stocks they buy and sell.  Subscribers of the FireRock Element® have access to a concise and easy-to-understand color-coded key.  The key acts as a guide to helping clients, regardless of investment experience or expertise, interpret and understand the FireRock Element®.

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What does the FireRock Element database look like? 

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How to use the FireRock Element database:

Company:
Choose from over 7,000 companies from in the United States and Canada simply by inserting the name of the company in the appropriate box corresponding to “company.”

Ticker:
Alternatively, you may find the company you wish to analyze by inserting the ticker symbol in the appropriate box corresponding to “ticker.” 

Country:
To view all the companies from a given country, simply insert the name of the country in the box corresponding to “country.”

Industry:
Similarly, to view the companies within a given industry, simply type the industry name in the box corresponding to “industry.”

FireRock Element®:
The FireRock Element® represents the price per share at which a private investor would purchase an entire company and take the company private.
Moreover, calculation of the FireRock Element® is based primarily on patterns that emerged by researching the purchases of Mr. Warren Buffett, on behalf of Berkshire Hathaway from 1972 to 2008.
Importantly, the FireRock Element® is not the same as the standard intrinsic valuations performed daily on Wall Street.

Finally, there are two situations in which we are unable to provide a FireRock Element™ on a given company.  These two scenarios are outlined below:

• A FireRock Element of 0.01:  When a company has negative earnings or negative book value, we are unable to calculate a FireRock Element®.  When this happens, we assign an arbitrary value of “0.01” to the FireRock Elemen®t to indicate that this company should be avoided altogether.

• A FireRock Element flagged as having a value of “0″ or “0%”:  “0″ and “0%” are absurd values.  When a company undergoes a building sale or an asset sale, generally its numbers are disproportionally attractive compared with the previous fiscal year(s).  Indeed, the company’s numbers are so attractive that the FireRock Element® is skewed.  Accordingly, the FireRock Element® is flagged with ”0″ and “0%” to identify a company in which a one-time event has recently taken place.  While we generally find that these stocks are attractive, we recommend that the subscriber investigate the basis for this attractiveness before making an investment decision.

Stock Price:
The stock price listed in the FireRock database is the final stock market closing price on the day that the FireRock research database was created.

The FireRock Percentile:
The FireRock Percentile is defined as the Stock Price divided by the FireRock Element®, multiplied by 100.  Percentiles range from 11% to 200%.  Importantly, we make six important distinctions in these ranges, as follows:

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Frequently Asked Questions, click here

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