Research Disclosures

Stock Ratings

Speculative Buy: The stock is expected to provide a total return in excess of 10% over the current trading price over the next 12 months; however, there is material event risk associated with the investment.

Buy: The stock is expected to provide a total return in excess of 10% over the current trading price over the next 12 months.

Hold: The stock is expected to provide a total return of 0% to 10% over the current trading price over the next 12 months.

Sell: The stock is expected to provide a negative total return over the next 12 months.

Risk Ratings

Low/Average Risk — Stocks with less volatility than the market as a whole, with solid balance sheets and dependable earnings.

Above Average Risk — Stocks with more volatility than the market.  Financial leverage is considerable but not threatening, earnings are more erratic, or other quality concerns regarding accounting, management track record, and similar issues.

Speculative — Stocks of unproven companies or ones with very high financial leverage, suspicious accounting, or with other significant quality concerns.  A speculative risk rating implies at least the possibility of financial distress leading to a restructuring.

Security Abbreviations:  NVS (non-voting shares); RVS (restricted voting shares); RS (restricted shares); SVS (subordinate voting shares); MV (multiple voting shares).

Quarterly Recommendation Hierarchy: Is a ranking distribution identifying the percentage of total, number, and the investment banking relationship (%) for all recommendation categories that can be found on the Jennings Capital Inc. website (www.JenningsCapital.com). 

Analyst Stock Holdings: Equity Research analysts, associates and members of their households are permitted to invest in securities covered by them.  No Jennings Capital Inc. analyst, associate or employee involved in the preparation of an analyst report is permitted to effect a trade in the security of an issuer whereby there is an outstanding recommendation for a period of 30 calendar days before and 5 calendar days after issuance of the research report

Compensation: The compensation of the analyst and/or associate who prepared this research report is based upon in part, the overall revenues and profitability of Jennings Capital Inc.  Analysts are compensated on a salary and bonus system.  Some factors affecting compensation including the productivity and quality of research, support to institutional, retail and investment bankers, net revenues to the equity and investment banking revenue as well as compensation levels for analysts at competing brokerage dealers.  Analysts are not directly compensated for specific Investment Banking transactions.

Jennings Capital Inc. Relationships: Jennings Capital Inc. may receive or seek compensation for investment banking services from all issuers under research coverage within the next 3 months. 

Jennings Capital Inc. or its officers, employees or affiliates may execute transactions in securities mentioned in this report that may not be consistent with the report’s conclusions.

Quarterly Recommendation Hierarchy (ranking distributions)

The Quarterly Recommendation Hierarchy listed in the chart below is a ranking distribution identifying the percentage of total (%), Number (#), and the Investment Banking Relationship (%) for all recommendation categories. This list is updated on a quarterly basis.

Dissemination of Research:  All of our research is disseminated directly to clients via email and is available through financial databases such as Bloomberg, Reuters, Thomson Financial, Capital IQ, Research Direct and at www.jenningscapital.com.  Jennings Capital Inc. research dissemination policies are available upon request.