LON:FA17 FAIR OAKS INCOME LIMITED

Outlook: FAIR OAKS INCOME LIMITED is assigned short-term Ba1 & long-term Ba1 estimated rating.
Dominant Strategy : Sell
Time series to forecast n: 23 Mar 2023 for (n+6 month)
Methodology : Transductive Learning (ML)

Abstract

FAIR OAKS INCOME LIMITED prediction model is evaluated with Transductive Learning (ML) and Sign Test^1,2,3,4 and it is concluded that the LON:FA17 stock is predictable in the short/long term. According to price forecasts for (n+6 month) period, the dominant strategy among neural network is: Sell

Key Points

1. How do you know when a stock will go up or down?
2. What is the use of Markov decision process?
3. Should I buy stocks now or wait amid such uncertainty?

LON:FA17 Target Price Prediction Modeling Methodology

We consider FAIR OAKS INCOME LIMITED Decision Process with Transductive Learning (ML) where A is the set of discrete actions of LON:FA17 stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.^1,2,3,4

F(Sign Test)^5,6,7= $\begin{array}{cccc}{p}_{\mathrm{a}1}& p_{\mathrm{a}2}& \dots & p_{1n}\\ & ⋮\\ p_{j1}& p_{j2}& \dots & p_{jn}\\ & ⋮\\ p_{k1}& p_{k2}& \dots & p_{kn}\\ & ⋮\\ p_{n1}& p_{n2}& \dots & p_{nn}\end{array}$ X R(Transductive Learning (ML)) X S(n):→ (n+6 month) $R=\left(\begin{array}{ccc}1& 0& 0\\ 0& 1& 0\\ 0& 0& 1\end{array}\right)$

n:Time series to forecast

p:Price signals of LON:FA17 stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

 

For further technical information as per how our model work we invite you to visit the article below: 

How do AC Investment Research machine learning (predictive) algorithms actually work?

LON:FA17 Stock Forecast (Buy or Sell) for (n+6 month)

Sample Set: Neural Network
Stock/Index: LON:FA17 FAIR OAKS INCOME LIMITED
Time series to forecast n: 23 Mar 2023 for (n+6 month)

According to price forecasts for (n+6 month) period, the dominant strategy among neural network is: Sell

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

IFRS Reconciliation Adjustments for FAIR OAKS INCOME LIMITED

1. The expected credit losses on a loan commitment shall be discounted using the effective interest rate, or an approximation thereof, that will be applied when recognising the financial asset resulting from the loan commitment. This is because for the purpose of applying the impairment requirements, a financial asset that is recognised following a draw down on a loan commitment shall be treated as a continuation of that commitment instead of as a new financial instrument. The expected credit losses on the financial asset shall therefore be measured considering the initial credit risk of the loan commitment from the date that the entity became a party to the irrevocable commitment.
2. An equity method investment cannot be a hedged item in a fair value hedge. This is because the equity method recognises in profit or loss the investor's share of the investee's profit or loss, instead of changes in the investment's fair value. For a similar reason, an investment in a consolidated subsidiary cannot be a hedged item in a fair value hedge. This is because consolidation recognises in profit or loss the subsidiary's profit or loss, instead of changes in the investment's fair value. A hedge of a net investment in a foreign operation is different because it is a hedge of the foreign currency exposure, not a fair value hedge of the change in the value of the investment.
3. Hedging relationships that qualified for hedge accounting in accordance with IAS 39 that also qualify for hedge accounting in accordance with the criteria of this Standard (see paragraph 6.4.1), after taking into account any rebalancing of the hedging relationship on transition (see paragraph 7.2.25(b)), shall be regarded as continuing hedging relationships.
4. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss. However, the entity may transfer the cumulative gain or loss within equity.

*International Financial Reporting Standards (IFRS) adjustment process involves reviewing the company's financial statements and identifying any differences between the company's current accounting practices and the requirements of the IFRS. If there are any such differences, neural network makes adjustments to financial statements to bring them into compliance with the IFRS.

Conclusions

FAIR OAKS INCOME LIMITED is assigned short-term Ba1 & long-term Ba1 estimated rating. FAIR OAKS INCOME LIMITED prediction model is evaluated with Transductive Learning (ML) and Sign Test^1,2,3,4 and it is concluded that the LON:FA17 stock is predictable in the short/long term. According to price forecasts for (n+6 month) period, the dominant strategy among neural network is: Sell

LON:FA17 FAIR OAKS INCOME LIMITED Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	Ba1	Ba1
Income Statement	Baa2	Baa2
Balance Sheet	Caa2	Ba1
Leverage Ratios	C	Baa2
Cash Flow	B1	Baa2
Rates of Return and Profitability	Baa2	Ba3

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

Prediction Confidence Score

Trust metric by Neural Network: 74 out of 100 with 534 signals.

References

1. LeCun Y, Bengio Y, Hinton G. 2015. Deep learning. Nature 521:436–44
2. M. Sobel. The variance of discounted Markov decision processes. Applied Probability, pages 794–802, 1982
3. Künzel S, Sekhon J, Bickel P, Yu B. 2017. Meta-learners for estimating heterogeneous treatment effects using machine learning. arXiv:1706.03461 [math.ST]
4. Matzkin RL. 2007. Nonparametric identification. In Handbook of Econometrics, Vol. 6B, ed. J Heckman, E Learner, pp. 5307–68. Amsterdam: Elsevier
5. R. Sutton, D. McAllester, S. Singh, and Y. Mansour. Policy gradient methods for reinforcement learning with function approximation. In Proceedings of Advances in Neural Information Processing Systems 12, pages 1057–1063, 2000
6. LeCun Y, Bengio Y, Hinton G. 2015. Deep learning. Nature 521:436–44
7. Çetinkaya, A., Zhang, Y.Z., Hao, Y.M. and Ma, X.Y., Can stock prices be predicted?(SMI Index Stock Forecast). AC Investment Research Journal, 101(3).

Frequently Asked Questions

Q: What is the prediction methodology for LON:FA17 stock?
A: LON:FA17 stock prediction methodology: We evaluate the prediction models Transductive Learning (ML) and Sign Test
Q: Is LON:FA17 stock a buy or sell?
A: The dominant strategy among neural network is to Sell LON:FA17 Stock.
Q: Is FAIR OAKS INCOME LIMITED stock a good investment?
A: The consensus rating for FAIR OAKS INCOME LIMITED is Sell and is assigned short-term Ba1 & long-term Ba1 estimated rating.
Q: What is the consensus rating of LON:FA17 stock?
A: The consensus rating for LON:FA17 is Sell.
Q: What is the prediction period for LON:FA17 stock?
A: The prediction period for LON:FA17 is (n+6 month)

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