Coverage on a public company can extend up to two years, but traditionally is a one-year contract term. We also customize coverage in certain cases to an initiation of coverage report (“initiation report”) only.
Initiation reports are extensive — typically extending beyond 15 pages — and include company background, history, competitive analysis, product/service analysis, investment merits, limitations/risks, valuation (using DCF and peer group multiples), industry evaluation, financial and ratio analysis, recommendation, rating, price target and conclusion.
For companies seeking one-year coverage, update reports review quarterly results or any material event such as acquisition, funding, merger or other major event deemed relevant to the analyst.
Prime Equity Research and its enrolled companies have no influence on the independent analyst’s views, opinions and ratings — as the assigned analyst is paid in advance and often works in ‘silo’ approach — rendering a fair and balanced opinion without any outside influence.
In order to address the need for more independent research for smaller public companies, (the U.S. Securities and Exchange Advisory Committee on Smaller Public Companies recommends) that the Commission:
- Maintain policies that allow company-sponsored research to occur with full disclosure by the research provider as to the nature of the relationship with the company being covered.
- Entities providing such research should disclose and adhere to a set of ethical standards that ensure quality and transparency and minimize conflicts of interest.
- Further, the trading markets for public companies are assisted in great measure by the dissemination of quality investment research.
- The problem is particularly pronounced in the case of small-cap companies, of which less than half receive coverage by even a single analyst, and in the micro-cap universe, where analyst coverage is virtually non-existent.
- A lack of independent coverage has several adverse effects, both for individual companies and for the capital markets as a whole.
The sole model referenced in testimony to the SEC Advisory Committee in establishing the Advisory Committee’s language is the Standards for Independent Research Providers, which is the ethical foundation for Prime Equity Research.
Having standards-based analyst coverage makes the most profound statement that can be made in the eyes of shareholders and potential sources of investment. Research speaks to the essence of what it means to be a public company, and the Market is more receptive to research than any other form of information.
EQUITY RESEARCH
Coverage on a public company can extend up to two years, but traditionally is a one-year contract term. We also customize coverage in certain cases to an initiation of coverage report (“initiation report”) only.
Initiation reports are extensive — typically extending beyond 15 pages — and include company background, history, competitive analysis, product/service analysis, investment merits, limitations/risks, valuation (using DCF and peer group multiples), industry evaluation, financial and ratio analysis, recommendation, rating, price target and conclusion.
For companies seeking one-year coverage, update reports review quarterly results or any material event such as acquisition, funding, merger or other major event deemed relevant to the analyst.
Prime Equity Research and its enrolled companies have no influence on the independent analyst’s views, opinions and ratings — as the assigned analyst is paid in advance and often works in ‘silo’ approach — rendering a fair and balanced opinion without any outside influence.
DUE DILIGENCE RESEARCH
We have considerable experience in the field of financings, and provide first-rate, independent due diligence to investment banks and financial partners.
MARKET(S) RESEARCH
For companies, we also provide customized solutions to businesses looking for insights that will enable them to better penetrate their current market, or move into new markets.
For investment banks, we provide customized solutions that focus on any aspects of any sectors, industries of segments. We will also consult with you regarding effective research strategies for such projects.
