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

Schedule of Stock Ratings

Our rating system is divided into three classifications: Buy, Neutral, and Sell/Avoid. Our Buy rating is divided into sub classifications by our analysts to reflect the degree to which the analyst believes the shares are undervalued in relation to the market and its peers, and the degree of financial risk represented by an investment in the shares. These Buy sub classifications include: Strong Buy, Buy, Strong Speculative Buy, and Speculative Buy. The analysts will comment in the company reports on the factors underlying the assigned rating.

Dutton Associates schedule of stock ratings
ClassificationSub classificationDescription
BUY RATINGSStrong BuyThe current price of the company reflects a substantial discount from the market and from the valuation accorded its peers, and the company does not posses significant financial risk. The analyst believes the stock at current levels represents a compelling opportunity for capital gains over the time period to its target price.
BuyThe current price reflects a discount from the market, and from its peers, and the company does not posses significant financial risk. The analyst believes the stock at current levels will provide an opportunity for capital gains over the period of its target price.
Strong Speculative BuyThe current price of the company reflects a substantial discount from the market and from its peers, but the company does have significant financial or other risks. The analyst believes the stock at current levels represents an opportunity for significant capital gains over the period to its target price, adjusted for the risks as noted.
Speculative BuyThe current price reflects a discount from the market, and from its peers, but does posses significant financial and/or other risks. The analyst believes the stock at current levels will provide the opportunity for capital gains over the period of its target price, adjusted for the risks as noted.
NEUTRALNeutral RatingThe analyst is unable to assign a buy rating due to a number of specified factors noted in the report. These include the stock being fairly valued relative to its peers and the market, or the company may have risks that make it potentially unsuitable for investment. Finally, there may be actions or financings the company must accomplish before being considered for raising the investment rating.
SELL/AVOIDAvoidThe analyst believes that the risks of investment in the company are too severe, and an investment in the company has a substantial probability for loss of all invested capital.
SellWe believe that the Company may be fairly valued or overvalued based on its current price, and that an investment in the company should produce below market returns.