The Summary is the most important part of Tykr. Tykr has a very clear-cut rating system. Every stock is either classified as On Sale, Watch, or Overpriced. This allows you to easily make buying and selling decisions with confidence.
Keep in mind, Tykr does most of the hard work for you but you still need to apply the 4 M’s before buying or selling a stock. We’ll touch on the 4 M’s in another article but here is a quick summary:
MOS (Margin of Safety): This is the math part that Tykr handles for you. It determines if a stock has a summary of On Sale, Watch, or Overpriced.
Meaning: Do you know the business, industry, and sector? Do you know if this business or industry will be around in 10 years or more?
Moat: Is the business easy or hard to duplicate?
Management: Is the business run by good leaders?
Here is how the summary is determined:
On Sale: If MOS is equal or greater than 50% and score is equal or greater than 10, the stock is On Sale. On Sale stocks tend to increase more than Overpriced stocks. This is the foundation of value investing. You want to look for On Sale stocks.
Watch: Watch means you may add this stock to your watchlist. If MOS is greater than 50% and score is less than 10, the stock is Watch or if MOS is less than 50% and the score is greater than 10, the stock is Watch.
Overpriced: If MOS is less than 50% and the score is less than 10, the stock is Overpriced. Overpriced stocks tend to decrease more than On Sale stocks.