Prior Ratings Systems

From October 11, 2002 until August 8, 2017 FBR had a relative rating system:

FBR instituted the following three-tiered rating system on October 11, 2002, for securities it covers:

  • Outperform (OP) — FBR expects that the subject company will outperform its peers over the next 12 months. We recommend that investors buy the securities at the current valuation.
  • Market Perform (MP) — FBR expects that the subject company’s stock price will be in a trading range neither outperforming nor underperforming its peers over the next 12 months.
  • Underperform (UP) — FBR expects that the subject company will underperform its peers over the next 12 months. We recommend that investors reduce their positions until the valuation or fundamentals become more compelling.

Prior to August 9, 2017, B. Riley used the following definitions for its ratings:

Buy: We generally expect “Buy” rated stocks to materially outperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly attractive.

Neutral: We generally believe “Neutral” rated stocks will perform roughly in line with the S&P 500 and Russell 2000 over the intermediate and long term.

We generally expect “Sell” rated stocks to materially underperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the
potential reward relative to the potential risk is particularly unattractive.