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Investment Management and Research (AIMR), NASD, and SEC. We provide
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content, and outside articles.
It is important that investors read the disclosure on any research
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and the subject company. A truly independent fee-based research firm is
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report on the subject company.
If the research firm received stock (or some other form of equity) as
payment, there can be a conflict of interest that could result in a less
than objective analysis. The conflict of interest arises from owning
the stock of the company that is being researched.
The conflict of interest is significantly reduced if the relationship
consists of a fixed-fee without a "performance bonus."
A fixed-fee arrangement is similar to a doctor/patient relationship
where the patient is paying the doctor for an examination and
professional opinion, not to tell the patient that they feel good.
Our objective is to find undervalued stocks with long-term investment
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For additional information on independent research, see the following:
Research for Sale This article is a well-balanced and objective
discussion of fee-based research. It appears on the May/June issue of
Shareholder Value magazine, who has allowed us to reprint it on our
site. Here is the link:
http://www.researchstock.com/members/companies/outside/Research_for_Sale_Shareholder_Value.pdf
Signs that Help Spot an "Objective" Research Report This article
provides six "tests" that help investors tell the difference between
objective research reports and other material whose goal is to mislead
(rather than inform) investors.
http://www.researchstock.com/members/companies/commenta/.Six_Signs.PDF