|GASKINS IPO Rating Method|
| Four factors are
used to rate companies on a scale of 1 to 5, with "5" being high.
The highest possible combined score is 20.
Is the company profitable with a high gross margin? Or, if a
development stage company, is the loss rate fairly low?
Does the company have significant strategic partners,
who can help the company dominate and promote the
company's brand image?
Is management "from the industry"?
Does management have business experience?
Does management have IPO experience?
Does the company have a strong, sustainable competitive
advantage? That's a "5" rating.
Is the company basically a distributor? That's a "1" rating.
Can the company become the leader in its defined market?
How fast is the company's market growing, relative to the
fastest growing high-tech markets?