The institutional investors we call on are highly sophisticated investors who make their own decisions with regard to valuation, price targets and when to buy or sell a stock. Being keenly aware of the potential conflicts of interest between investment banking and research departments, we believe they routinely discount the opinions of research analysts as being overly optimistic.

For this reason, Stonegate does not write research in the traditional Wall Street sense. Instead, we provide high-quality analysis, complete with an earnings model, industry analysis and a competitive overview. Our work is presented in an "Information Memorandum," typically 20-28 pages long, which contains many of the same section headings found in a research report from other Wall Street firms. These memorandums are also submitted to most of the same research services as the research reports of Wall Street firms. Stonegate information memorandums provide an in-depth overview that is an exceptionally useful tool to get investors up to speed on a story very quickly. However, our analysis does not contain price targets or any form of buy-sell-hold recommendation.

Stonegate's analysts focus exclusively on small cap companies. This universe is vast, with more than 4,000 U.S. companies with market caps of $25 million to $500 million, and includes equities from all types of industries. Our goal is to work with high -quality, under-valued companies with low institutional ownership that have little or no following from Wall Street research departments. We commit our resources toward generating high-quality, in-depth investment analysis in a limited number of companies.