J.M. Dutton & Associates

Independent Equity Research

Corporate OfficeSuite 3, 4989 Golden Foothill Pkwy
El Dorado Hills, CA 95762

(916) 941-8119

Issuer-paid independent researchCoverage universe as of 12/23/2005Buy · Neutral · Sell/Avoid rating scheduleOffices: El Dorado Hills · Redondo Beach · Zichron Yaacov

Recognizing Opportunity

Dutton Associates is one of the largest issuer-paid equity research firms in the United States and our investment performance is ranked comparable to that of the top Wall Street firms. Our analysts, primarily CFAs with over 20 years of experience at the major securities firms, are among the most experienced on Wall Street. We offer high-quality, independent, fundamental research on small cap public companies.

We recognize independent investment research as an opportunity for both companies and investors, because the traditional avenues of gaining research coverage are closing for smaller company stocks. They do not generate the level of investment banking or brokerage business which draws the interest of the Wall Street research departments, who are funded by banking and brokerage business. Without analyst coverage, the current market prices of companies are often significantly below their intrinsic value and are many times below the relative valuation of their analyst-covered competitors. The amount of this discount attributable to lack of analyst coverage, while hard to measure, is suggested to range up to 50%. Many institutional and individual investors will not invest in companies lacking independent third-party research coverage.

Companies recognize the opportunity afforded by enrolling with Dutton Associates. Our continuing year-long program of research coverage allows under-followed companies to gain a thorough, independent analysis of their competitive position, along with independently developed earnings and valuation models that otherwise would not be available to interested investors and institutions. Dutton Associates research program is modeled in terms of prepaid compensation after the Standard & Poor's and other credit rating services. Dutton Associates research is used by investment banking firms, institutions, and individual investors to obtain independent company equity research. Our firm's operations are similar to a research department of a major investment banking firm, except we do not have any brokerage or investment banking operations. Unlike traditional brokerage firms that limit research distribution to their client bases in exchange for commissions, we widely distribute our research to institutions and individuals, both domestic and international. Our estimates are included in the major consensus estimates - Zacks, Multex, The JCF Group, and First Call.

The firm, its officers and directors

Coverage by Industry Sector

Rated coverage as of 12/23/2005. Full register at Research Coverage.

Automotive

  • SAUP SORL Auto PartsSpeculative BuyTarget $6.50Sean Yu

Banks, Financial Services & Insurance

  • TCHC 21st Century Holding CoStrong BuyTarget $20.00Richard W. West, CFA
  • TMFZ TMSF Holdings, Inc.Strong BuyTarget $3.70Richard W. West, CFA
  • PLCC Paulson Capital CorpStrong Spec. BuyTarget $16.25Richard W. West, CFA

Business & Support Services

  • FSVP FIND/SVP IncStrong BuyTarget $2.40David Riedel
  • GFX Media Sciences International, IncBuyTarget $3.00David Riedel
  • PFSW PFSweb IncSpeculative BuyTarget $3.00David P. Soetebier, CFA

2 further rated companies in this sector

Chemicals

  • LSCO LESCO, Inc.BuyTarget $18.00Paul J. Resnik, CFA
  • CESV China Energy Savings Technology, IncStrong Spec. BuyTarget $13.75Richard W. West, CFA

Computers, Technology & Internet

  • AMSWA American Software IncStrong BuyTarget $8.00David P. Soetebier, CFA
  • FORG Forgent Networks, Inc.Strong BuyTarget $5.00Richard W. West, CFA
  • IGLD Internet Gold-Golden Lines LtdStrong BuyTarget $9.50Rafael K. Kapelinski

7 further rated companies in this sector

Consumer & Retail Products

  • SMF Smart & FinalBuyTarget $15.00Jonathan H. Ziegler, CFA
  • GFME George Foreman Enterprises Inc.Strong Spec. BuyTarget $6.00Gerald F. LaKarnafeaux, CFA
  • JADE LJ International Inc.Strong Spec. BuyTarget $4.80Sally H. Wallick, CFA

2 further rated companies in this sector

Electronics & Engineering

  • AMPX Ampex CorporationStrong BuyTarget $50.00Richard W. West, CFA
  • ELRN Elron Electronic Industries LTD.Strong BuyTarget $15.00Barry Raeburn
  • LTRX Lantronix, Inc.Strong Spec. BuyTarget $2.00David P. Soetebier, CFA

1 further rated company in this sector

Food Manufacturing & Products

  • NTRZ NutraCeaStrong BuyTarget $1.80Gerald F. LaKarnafeaux, CFA
  • VSF Vita Food Products, Inc.Speculative BuyTarget $3.00Gerald F. LaKarnafeaux, CFA

Healthcare, Biotechnology & Pharmaceutical

  • ACDI Arcadia Resources, Inc.Strong BuyTarget $3.50David Riedel
  • NXXI Nutrition 21 IncStrong BuyTarget $1.70William R. Prather, RPh, MD
  • TRIB Trinity Biotech plcStrong BuyTarget $12.00Stephen L. Handley

24 further rated companies in this sector

Industrial & Manufacturing

  • DXPE DXP Enterprises IncStrong BuyTarget $24.80Paul J. Resnik, CFA
  • IBTGF International Barrier Technology IncSpeculative BuyTarget $1.44Gerald F. LaKarnafeaux, CFA
  • YDHCE Yantai Dahua Holdings Company LimitedSpeculative BuyTarget $0.50Sean Yu

Leisure & Entertainment

  • AIX Access Integrated Technologies, Inc.Strong Spec. BuyTarget $14.00Jonathan H. Ziegler, CFA
  • JYSR Joystar Inc.Speculative BuyTarget $1.00Richard W. West, CFA

Metals & Mining

  • SA Seabridge Gold IncStrong BuyTarget $16.50Les W. Childress
  • APP African Platinum plcSpeculative BuyTarget $1.20Les W. Childress
  • SIL Apex Silver Mines LtdNeutralTarget - - -Les W. Childress

Oil, Gas & Energy

  • CDNR Aurora Oil & GasStrong BuyTarget $7.08Richard R. Wolfe, CFA
  • PHX Panhandle Royalty CompanyStrong BuyTarget $50.00Les W. Childress
  • DLSL Deli Solar (USA), Inc.,BuyTarget $7.35Yan Zhao

11 further rated companies in this sector

Publishing & Media

Software

  • TISA Top Image Systems LtdStrong BuyTarget $4.00Rafael K. Kapelinski
  • IW ImageWare Systems, Inc.BuyTarget $3.25Rafael K. Kapelinski
  • UNFY Unify CorpStrong Spec. BuyTarget $0.65Rafael K. Kapelinski

2 further rated companies in this sector

Telecommunications

  • ISR I-Sector CorporationStrong BuyTarget $10.00David P. Soetebier, CFA
  • XING Qiao Xing Universal Telephone, Inc.Strong BuyTarget $10.50Sean Yu
  • CHDW China Digital Wireless, Inc.Strong Spec. BuyTarget $4.00Sean Yu

2 further rated companies in this sector

Utilities

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