TOP 10 CRITICAL RATING COMPANIES


ranking


Company name


market


Probability of worsening


R.R.S.


risk score


Market capitalization (billion)




1


KS Industry


KOSDAQ


89.27%


18.64


13.9


428




2


DHX Company


KOSDAQ


89.18%


15.24


48.0


90




3


EN Plus


KOSPI


89.15%


15.69


38.0


Transaction suspended




4


iToxy


KOSDAQ


89.12%


15.34


40.9


66




5


Studio Santa Claus


KOSDAQ


89.05%


14.96


41.0


Transaction suspended




6


toolgen


KOSDAQ


89.02%


11.15


23.0


4,097




7


Alpha Chips


KOSDAQ


88.97%


14.68


46.0


1,070




8


light and electronics


KOSDAQ


88.97%


15.05


46.0


946




9


Incredible Buzz


KOSDAQ


88.95%


12.75


34.0


397




10


carry


KOSDAQ


88.89%


11.94


48.0


62


Four things this list tells us

1. All CRITICAL, concentrated at 88.9~89.3% probability of worsening

All 10 stocks are CRITICAL rated. The fact that the probability of deterioration is concentrated in an extremely narrow range of 0.4%p suggests that these companies are not bad by chance, but rather share structurally similar risk patterns.

If we think back to what the number 89% means, it means that 9 times out of 10, things will get worse. It is a condition in which deterioration is expected to be overwhelmingly more likely than recovery.

2. 9 out of 10 are KOSDAQ, mostly small-cap stocks

There is only one KOSPI stock, EN Plus, and the remaining 9 are all KOSDAQ. Market capitalization ranges from KRW 6.2 billion (Carry) to KRW 409.7 billion (Toolgen), with most of them distributed in the small-cap sector. Even market capitalization data has not been confirmed for EN Plus and Studio Santa Claus.

This is an especially important signal for KOSDAQ small-cap investors. Stocks with high relational risk tend to be concentrated in small-cap stocks with low liquidity, and once bad news breaks out, even exit options are limited.

3. 1st place KS Industry’s RRS of 18.64 is actually close to perfect score

KS Industries, which scored 18.64 out of 20 RRS, has almost reached its limit in network risk. There is a difference of more than 3 points from the second place score of 15 points, showing that the complex risk factors of relational risk are extremely overlapped.

4. Toolgen — Market capitalization of 409.7 billion is not safe

Toolgen, the only company on the list with a market capitalization of 400 billion won, is ranked 6th. The common belief that “larger market capitalization means safer” does not apply in the face of relational risk. Although the RRS is relatively low at 11.15, the probability of deterioration of 89.02% is essentially the same risk level as other stocks.


#relationalrisk #raymondsrisk #raymondsindex

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