SOURCE: Capital Insight Partners

September 15, 2008 08:30 ET

Capital Insight Tightens Relations With Dutton Associates to Provide Clients Maximum Value From Paid Equity Research

CHICAGO, IL--(Marketwire - September 15, 2008) - In forming a partnership with Dutton Associates, Capital Insight Partners (CIP) (www.cap-insight.com) is helping public companies receive the greatest benefit possible from paid-for equity research coverage.

While Dutton produces and disseminates expert research reports on small public companies, CIP obtains direct feedback from the buy side, and continuously provides feedback to clients and Dutton which supports the equity research with ongoing investor communication.

As many in the investment industry have witnessed, brokerage firms have slashed research budgets since the 2003 Global Settlement of Conflicts of Interest between Research and Investment Banking. Its unintended consequence has been to leave small- and micro-cap companies without expert research available to guide investors.

For many years Dutton has been offering clients a valuable tool in investor communication -- one that has become scarce in the micro-cap investment industry: Professional equity research to give individual investors and money managers credible, accurate, analytical models and guidance.

"Our open line of communication with Dutton helps facilitate continuous improvements to their research so it includes all information important to clients' investors or potential investors," said Jacob Eisen, President of CIP, an investor relations, financial media relations and capital raising firm.

Additionally, CIP's clients benefit from its targeted outreach to key institutional, individual investors and high net worth managing brokers in which the Dutton research is an important component, including independent modeling and analytics, broad distribution to investor websites, and easy availability of reports and updates. CIP works with Dutton to enable mutual clients to capitalize on opportunities, such as investor conferences featuring Dutton clients.

True, the clients pay for Dutton's equity research. But anyone who argues that brokerage research was more credible need only look at the follies of the late 1990s when "all star" analysts were endorsing the outrageous financial models of Internet and technology companies destined to fail. In 2000, First Call noted that less than 1% of all analyst ratings were "sell."

Dutton turns down about 30% of the companies that approach it for coverage based on initial review. Dutton says its covered companies outpace the Russell 2000 by nearly 4 times after 60 days and by 30% after one year.

The final decision about whether they agree with the research offered is up to the investor -- no different than it has ever been with equity research.

By serving the full spectrum of investor relations and corporate financing requirements for micro and small-cap corporations, Capital Insight Partners helps build a growing, diversified shareholder base, resulting in contented investors and improving its odds to obtain additional financing should the need arise.

Contact Information

  • Public companies interested in learning more about how CIP can provide them
    with equity research coverage through Dutton, and the ancillary benefits
    that CIP provides, should contact the below:

    Contact:
    Tad Gage
    Executive Vice President
    Email Contact
    (312) 466-7646

    Anthony Burke Boylan
    Media Relations Manager
    Email Contact
    (312) 466-7646