New York Times, Los Angeles Times, ShareHolder Value Magazine All Confirm the Dutton & Associates Model
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All the reason for public companies to look elsewhere for research coverage. Independent investment research firms are becoming increasingly accepted and needed, especially when they use the model as we do at Dutton & Associates: Upfront payment like that used by the S&P in doing credit ratings and no IR, investment banking, share ownership or other bias to deter an objective research report.

As a recent article in the Los Angeles Times noted (8/14/01), fund managers and individual investors who are tired of Wall Street brokerages' "perpetually sunny and potentially compromised stock research" are turning more and more to independent research as a strong source for ideas.

The New York Times editorialized on July 19 about the merits of research that is independent of investment banking, writing that, "A profitable opportunity exist for independent research firms. If investors truly value accurate research, analysts not associated with any investment banks and barred from holding shares in companies they analyze should be able to charge a premium for their reports."

And our own Sherry Grisewood, CFA, assistant director of research, was interviewed in the May/June 2001 cover story of Shareholder Value magazine, as representing a new and potentially beneficial paradigm in investment research.

Citing statistics that show 1,558 of the 4,890 companies with market caps under $500m have no analyst coverage, and the remaining 3,332 have fewer than two on average, the magazine wrote that "all research costs money," and quoted Sherry as noting that independent research like ours "gets the company coverage without having to offer an investment banking deal."