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Beacon Equity Research

Rating System

Outperform:

Our proprietary valuation model in addition to the opinion of our analysts determine the value of the stock should outperform the projected returns of the benchmark index in the coming year on a risk-adjusted basis. The most common benchmark used in our analysis is the Russell 2000 small cap index. Our research concludes the stock is under priced.

Neutral:

Our valuation model and analysis suggest that this stock will achieve risk-adjusted results similar to that of the benchmark index. Our research concludes the stock is fairly priced at current levels.

Underperform:

Our valuation model and analysis suggest that this stock will achieve risk-adjusted results below that of the benchmark index. Our research concludes the stock is overpriced.

Speculative Buy:

While our valuation model and analysis suggest the stock should outperform the benchmark index on a risk-adjusted basis in the future, there is too much uncertainty regarding the assumptions we make in our analysis. This rating suggests the stock has the potential for significant gains in the future, but may have considerable financial risks in the immediate term.