Disclosures

 

This information reproduced from Robert W. Baird’s RFID Monthly Publication. Please see this document for additional disclosures and important information. 

Disclaimers

Baird prohibits analysts from owning stock in companies they cover.  This is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy. 

ADDITIONAL INFORMATION ON COMPANIES MENTIONED HEREIN IS AVAILABLE UPON REQUEST   

The Dow Jones Industrial Average, S&P 500, S&P 400 and Russell 2000 are unmanaged common stock indices used to measure and report performance of various sectors of the stock market; direct investment in indices is not available.  United States broker-dealers and not Australian laws. 

 

Copyright 2008 Robert W. Baird & Co. Incorporated

Other Disclosures

UK disclosure requirements for the purpose of distributing this research into the UK and other countries for which Robert W. Baird Limited holds an ISD passport.

This report is for distribution into the United Kingdom only to persons who fall within Article 19 or Article 49(2) of the Financial Services and Markets Act 2000 (financial promotion) order 2001 being persons who are investment professionals and may not be distributed to private clients.  Issued in the United Kingdom by Robert W. Baird Limited, which has offices at Mint House 77 Mansell Street, London, E1 8AF, and is a company authorized and regulated by the Financial Services Authority.  For the purposes of the Financial Services Authority requirements, this investment research report is classified as objective. 

Robert W. Baird Limited (“RWBL”) is exempt from the requirement to hold an Australian financial services license.  RWBL is regulated by the Financial Services Authority (“FSA”) under UK laws and those laws may differ from Australian laws.  This document has been prepared in accordance with FSA requirements and not Australian laws. 

 

Robert W. Baird & Co. and/or its affiliates expect to receive or intend to seek investment-banking related compensation from the company or companies mentioned in this report within the next three months.

Investment Ratings: Outperform (O)  - Expected to outperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months.  Neutral (N)  - Expected to perform in line with the broader U.S. equity market over the next 12 months.  Underperform (U)  - Expected to underperform on a total return, risk-adjusted basis the broader U.S. equity market over the next 12 months.

Risk Ratings: L – Lower Risk – Higher-quality companies for investors seeking capital appreciation or income with an emphasis on safety. Company characteristics may include: stable earnings, conservative balance sheets, and an established history of revenue and earnings. A – Average Risk – Growth situations for investors seeking capital appreciation with an emphasis on safety. Company characteristics may include: moderate volatility, modest balance-sheet leverage, and stable patterns of revenue and earnings. H – Higher Risk – Higher-growth situations appropriate for investors seeking capital appreciation with the acceptance of risk. Company characteristics may include: higher balance-sheet leverage, dynamic business environments, and higher levels of earnings and price volatility. S – Speculative Risk – High-growth situations appropriate only for investors willing to accept a high degree of volatility and risk. Company characteristics may include: unpredictable earnings, small capitalization, aggressive growth strategies, rapidly changing market dynamics, high leverage, extreme price volatility and unknown competitive challenges.

Valuation, Ratings and Risks.  The recommendation and price target contained within this report are based on a time horizon of 12 months but there is no guarantee the objective will be achieved within the specified time horizon.  Price targets are determined by a subjective review of fundamental and/or quantitative factors of the issuer, its industry, and the security type.  A variety of methods may be used to determine the value of a security including, but not limited to, discounted cash flow, earnings multiples, peer group comparisons, and sum of the parts.  Overall market risk, interest rate risk, and general economic risks impact all securities.  Specific information regarding the price target and recommendation is provided in the text of our most recent research report.

As of December 31, 2009, Baird U.S. Equity Research covered 616 companies, with 42% rated Outperform/Buy, 56% rated Neutral/Hold and 2% rated Underperform/Sell.  Within these rating categories, 9% of Outperform/Buy-rated, and 6% of Neutral/Hold-rated, and 14% of Underperform/Sell-rated companies have compensated Baird for investment banking services in the past 12 months and/or Baird managed or co-managed a public offering of securities for these companies in the past 12 months.

 

Analyst Compensation. Analyst compensation is based on: 1) The correlation between the analyst’s recommendations and stock price performance; 2) Ratings and direct feedback from our investing clients, our sales force and from independent rating services; and 3) The analyst’s productivity, including the quality of the analyst’s research and the analyst’s contribution to the growth and development of our overall research effort.  This compensation criteria and actual compensation is reviewed and approved on an annual basis by Baird’s Research Oversight Committee. 

Analyst compensation is derived from all revenue sources of the firm, including revenues from investment banking.  Baird does not compensate research analysts based on specific investment banking transactions.

A complete listing of all companies covered by Baird U.S. Equity Research and applicable research disclosures can be accessed at http://www.rwbaird.com/research-insights/research/coverage/research-disclosure.aspx.  You can also call 800-792-2473 or write: Robert W. Baird & Co., Equity Research, 24th Floor, 777 E. Wisconsin Avenue, Milwaukee, WI 53202.