morgan keegan-specialty finance report
TRANSCRIPT
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8/3/2019 Morgan Keegan-Specialty Finance Report
1/15Page 1 of 15Please see Disclosure and Certification Statement beginning on page 14 of this report.
September 6, 2011
Investment Company Weekly
Over this past week, BDCs as a group dropped 1.85% in price versus a 0.3% gain in theSNL REIT Index and a 0.24% decline in the S&P 500. Over the last twelve months, BDCsas a group have had a total return of 6.7% in comparison to a return of 9.9% and 8.8% inthe S&P 500 and the SNL REIT Index respectively. Stocks of the SNL InvestmentCompany group were down 1.81% in the past week; the dividend yield stands at 13.1%from the previous weekly reading of 12.9%
The MK BDC Index mean dividend yield is currently 9.6% (10.6% for dividend payingBDCs), vs. 9.4% (10.4% for dividend paying BDCs) from last week and the 8.3% yield ofa year ago; The spread between mean BDC dividend yields and 5-yr treasuries is now7.84%; The current yield spread is 64% higher than the long-term median of 4.79% (vs.5-yr treasury); Relative to the comparable corporate bond, the Baa 5-yr Industrial spreadis currently 183 bps (versus 166 bps last week) compared to the historical median spread
of 153 bps since 2001; Baa Bank spread multiple is currently higher (about 1.9 times thehistorical median) due to higher perceived risk in the banking sector
Headlines from last week in the Morgan Keegan BDC coverage universe: ProspectCapital (PSEC M/S) reported earnings, increased total commitments to the creditfacility by $25 million to $400 million, and filed a $750 million shelf registration; andTriangle Capital (TCAP O/S) declared a quarterly cash dividend of $0.44/share.
Specialty Finance
Robert Dodd, PhD901.579.4560
Robert Ladyman901.531.3331
Dixon Braden901.579.4511dixon.braden
@morgankeegan.com
Morgan Keegan & Co., Inc. does and seeks to do business with companies covered in its research reports. As a result, investors shoube aware that the firm may have a conflict of interest that could affect the objectivity of this report.
Investors should consider this report as only a single factor in making their investment decision.
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Morgan Keegan & Co., Inc.
Tuesday, September 06, 2011Investment Com an Weekl U date -
[email protected] Co mpass Div ersified Holdings
Fifth Street Finance Corp.
Fidus Investment Corporatio n
Horizon Technology Finance Corp.
[email protected] Main Street Capital
Prospect Capital Corporation
T riangle Capital Co rpo rationDixon Braden
901-579-4511
MRobert J. Dodd, Ph.D.
901-579-4560
Bo Ladyman
901-531-3331
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Morgan Keegan & Co., Inc.
Price / NAV Recurring Return on Equity - NII / NAV
Market Capitalization ($MM) Debt / Equity
Balance Sheet Charts For All BDCs / Investment Companies
0.61
0.87
0.94
0.84
1.30
0.87
0.740.71 0.73
0.92 0.89 0.87
0.71
1.26
0.63 0.62
0.69
0.87
0.80
0.91
0.77
1.24
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
6.3%
10.1%
8.9%9.3%
9.6%
8.4% 8.5%
9.6%
8.6%
7.1
0%
2%
4%
6%
8%
10%
12%
14%
16%
2,954
$3,500
90%
100%
Source: SNL Financial and SEC filings
,
1,673
606 593675
160 142 122
388
118 206 138
417334
257
144
441
902
292
75
386
$0
$500
$1,000
$1,500
$2,000
$2,500
,
36%
65%
52%
38%
19%
39%43%
20%
2%
61%
56
0%
10%
20%
30%
40%
50%
60%
70%
80%
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Morgan Keegan & Co., Inc.
Income & Expense Charts For All BDCs
Gross Investment Income as a % of Total Assets Interest Expense as a % of Total Assets
Management Fees as a % of Total Assets Net Investment Income as a % of Total A
9.4%
11.7%
14.9%
12.9%
16.7%
11.8%
8.9%
0.4%
13.8%
12.8%
3.6%
7.7%
14.6%
7.9%
3.9%
9.2%
12.3%
NA
14.6%
1.9%
15.7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
1.8%1.7%
2.7%
1.3%
1.7%
0.8%
0.2%
0.0%
1.9%2.0
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
6.2%6.0% 5.9%
7% 12%
(1) Gross Investment Income, Interest Expense, Management Fees, & Net Investment Income values are calculated on a TTM basis; Total Assets are calculated by averaging the quarter ending asset values o
(2) BDC's with a negative Net Invetsment Income are not included in chart 4
(3) Income & Expense charts do not include Compass Diversified
Source: SNL Financial and SEC filings
3.1%
3.8%
4.7% 4.6%
3.0%
4.9%4.7%
2.6%2.3%
2.9%
2.4%2.2%
3.6%
4.6%
NA
1.9%
3.5%
0%
1%
2%
3%
4%
5%
4.5%
6.2%5.9%
6.9%
9.1%
6.5%
5.7%
7.1%
6.1%
0%
2%
4%
6%
8%
10%
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Morgan Keegan & Co., Inc.
Yield / Dividend Charts For All BDC's / Investment Companies
Current Dividend Yield Tax-Adjusted Dividend Yield
Dividend Payout Ratio 52-Week Total Return
0.0%
13.1%
9.7%
12.6%
11.3%
13.7%
11.1%
9.3%
0.0%
9.9%10.4%
7.6%
11.1%
9.0%
15.7%
4.5%
10.8%11.2%
14.7%
11.2%
4.9%
10.3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
49%50%
60%
0.0%
8.7%
6.3%
8.2%
9.6%
8.9%
7.2%
6.1%
0.0%
6.5%6.7
0%
2%
4%
6%
8%
10%
12%
800%
800%
900%
Source: SNL Financial and SEC filings
-6%
2%
-14%
1%
-24%
11%
-1%
2%0%
-30%
-20%
-10%
0%
10%
20%
30%
40%
0%
113%103%114%84%
124%97%
78%
0%
95% 107% 94%100%105%119%
94% 89%107%103%
49%
91%
0%
100%
200%
300%
400%
500%
600%
700%
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Morgan Keegan & Co., Inc.
Competitive Yield Charts For BDC Industry
2001-2010 BDC Dividend Yield vs. 10 Year & 5 Year Note (%) 1 Year BDC Dividend Yield vs. 10 Year &
2001-2010 BDC Dividend Yield vs. U.S. REIT Yield (%) 1 Year BDC Dividend Yield vs. U.S. REIT Y
0
5
10
15
20
25
30
35
Jan-01
May-01
Sep-01
Jan-02
May-02
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
BDCs 5 Year 10 Year
9
10
0
1
2
3
4
5
6
7
8
9
10
9/2/2010
9/16/2010
9/30/2010
10/14/2010
10/28/2010
11/11/2010
11/25/2010
12/9/2010
12/23/2010
1/6/2011
1/20/2011
2/3/2011
2/17/2011
3 / 3 / 2 0 1 1
BDCs 5 Y
35
Source: SNL Financial and SEC filings
0
1
2
3
4
5
6
7
8
Sep-10
Sep-10
Sep-10
Oct-10
Oct-10
Nov-10
Nov-10
Dec-10
Dec-10
Jan-11
Jan-11
Feb-11
Feb-11
M 1 1
REITs
0
5
10
15
20
25
30
Jan-01
May-01
Sep-01
Jan-02
May-02
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
REITs BDCs
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Morgan Keegan & Co., Inc.
Yield Spread Charts For BDC Industry
2001-2010 BDC Dividend Yield Spread over 10 Year & 5 Year Note (%) 1 Year BDC Dividend Yield Spread over 1
2001-2010 BDC Dividend Yield Spread over U.S. REIT Yield (%) 1 Year BDC Dividend Yield Spread over U
-5
0
5
10
15
20
25
30
35
Jan-01
May-01
Sep-01
Jan-02
May-02
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
vs. 5 year vs. 10 Year
6
0
1
2
3
4
5
6
7
8
9
9/2/10
9/15/10
9/28/10
10/11/10
10/24/10
11/6/10
11/19/10
12/2/10
12/15/10
12/28/10
1/10/11
1/23/11
2/5/11
2/18/11
3 / 3 / 1 1
vs. 5 year
25
Source: SNL Financial and SEC filings
0
1
2
3
4
5
9/2/10
9/16/10
9/30/10
10/14/10
10/28/10
11/11/10
11/25/10
12/9/10
12/23/10
1/6/11
1/20/11
2/3/11
2/17/11
3 / 3 / 1 1
-5
0
5
10
15
20
Jan-01
May-01
Sep-01
Jan-02
May-02
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
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Morgan Keegan & Co., Inc.
Stock Performance Charts For BDC Industry
2001-2010 BDC Index Performance vs. S&P 500 & REIT Index (%) 1 Year BDC Index Performance vs. S&P 5
2001-2010 BDC Index Total Return vs. S&P 500 & REIT Index (%) 1 Year BDC Index Total Return vs. S&P 5
-100
-50
0
50
100
150
200
Jan-01
May-01
Sep-01
Jan-02
May-02
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
REITs S&P 500 BDCs
35
40
-15
-10
-5
0
5
10
15
20
25
30
35
9/2/10
9/16/10
9/30/10
10/14/10
10/28/10
11/11/10
11/25/10
12/9/10
12/23/10
1/6/11
1/20/11
2/3/11
2/17/11
/ /
REITs S&
250
300
Source: SNL Financial and SEC filings
-10
-5
0
5
10
15
20
25
30
9/2/1
0
9/16/1
0
9/30/1
0
10/14/1
0
10/28/1
0
11/11/1
0
11/25/1
0
12/9/1
0
12/23/1
0
1/6/1
1
1/20/1
1
2/3/1
1
2/17/1
1
/ /
REITs S&
-100
-50
0
50
100
150
200
Jan-01
May-01
Sep-01
Jan-02
May-02
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
REITs S&P 500 BDCs
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Morgan Keegan & Co., Inc.
Yield Spread Comparison Charts for BDC, Banking, & Industrial Indu
2001-2010 Yield Spread over 5 Year Note - BDC's, Industrials, Banks 1 Year Yield Spread over 5 Year Note - B
2001-2010 Yield Spread over 10 Year Note - BDC's, Industrials, Banks 1 Year Yield Spread over 10 Year Note -
0
500
1,000
1,500
2,000
2,500
3,000
Jan-01
May-01
Sep-01
Jan-02
May-02
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
5yr Bank 5yr Industrial BDCs
700
800
0
100
200
300
400
500
600
700
800
900
9/3/10
9/17/10
10/1/10
10/15/10
10/29/10
11/12/10
11/26/10
12/10/10
12/24/10
1/7/11
1/21/11
2/4/11
2/18/11
5yr Bank 5y
3,000
Source: SNL Financial and SEC filings
0
100
200
300
400
500
600
9/3/1
0
9/17/1
0
10/1/1
0
10/15/1
0
10/29/1
0
11/12/1
0
11/26/1
0
12/10/1
0
12/24/1
0
1/7/1
1
1/21/1
1
2/4/1
1
2/18/1
1
10yr Bank 10
-500
0
500
1,000
1,500
2,000
2,500
Jan-01
May-01
Sep-01
Jan-02
May-02
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
10yr Bank 10yr Industrial BDCs
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Morgan Keegan & Co., Inc.
Select Financial DataManagement
Company Ticker Structure IPO Assets Inv. Debt Equity
American Capital Strategies, Limited ACAS Internal 9/4/1997 6,333,000 5,917,000 1,642,000 4,541,000
Apollo Investment Corporation AINV External 4/6/2004 3,259,302 3,123,260 1,249,203 1,911,232
Ares Capital Corporation ARCC External 10/5/2004 4,911,531 4,643,163 1,620,142 3,134,281
Blackrock Kelso Capital Corp. BKCC External 6/26/2007 1,032,523 947,656 275,000 717,617
Compass Diversified Holdings CODI External 5/10/2006 976,368 976,368 88,000 454,905
Fifth Street Finance Corp. FSC External 6/18/2008 1,093,768 1,053,479 302,000 775,649
Gladstone Capital Corporation GLAD External 8/27/2001 314,130 299,279 92,700 217,536
Gladstone Investment Corporation GAIN External 6/22/2005 242,132 165,295 40,000 200,035
Harris & Harris Group, Inc. TINY Internal 8/23/1988 173,384 164,086 2,550 168,426
Hercules Technology Growth Capital, Inc. HTGC Internal 6/10/2005 691,253 475,193 258,562 423,901
Kayne Anderson Energy Development Company KED External 9/20/06 331,719 322,290 67,000 235,443
Kohlberg Capital Corporation KCAP External 12/12/2006 260,779 254,266 60,000 194,592
Main Street Capital Corporation MAIN Internal 10/4/2007 617,253 592,028 260,637 334,627
MCG Capital Corporation MCGC Internal 11/29/2001 1,066,056 849,101 511,210 534,033
MVC Capital, Inc. MVC External 3/28/2000 488,659 414,590 50,000 414,337
NGP Capital Resources Co. NGPC External 11/10/2004 289,906 230,298 70,000 208,287
PennantPark Investment Corporation PNNT External 4/19/2007 817,593 778,944 230,650 504,939
Prospect Capital Corporation PSEC External 7/28/2004 1,549,317 1,463,010 406,700 1,114,357 TICC Capital Corp. TICC External 11/24/2003 329,552 308,773 0 321,776
Tortoise Capital Resources Corp. TTO External 2/2/2007 99,512 97,619 0 97,633
Triangle Capital Corporation TCAP Internal 2/14/2007 486,732 409,400 224,150 256,800
Low
Mean
Median
High
Source: SNL Financial and SEC filings
Balance Sheet Information ($000)
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Morgan Keegan & Co., Inc.
Expense DataGross Inv. Interest Management Net Inv.
Company Ticker Assets Income (GII) Expense (IE) Fees (ME) Income (NII) GI
American Capital Strategies, Limited ACAS 6,258,500 586,000 113,000 193,000 280,000 9
Apollo Investment Corporation AINV 3,211,195 375,123 54,082 123,034 198,007 11
Ares Capital Corporation ARCC 3,861,944 575,472 102,636 237,680 226,334 14
Blackrock Kelso Capital Corp. BKCC 871,002 112,128 11,106 40,941 59,783 12Compass Diversified Holdings CODI 976,368 306,692 11,060 13,979 34,536 31
Fifth Street Finance Corp. FSC 638,188 106,836 10,724 38,213 57,899 16
Gladstone Capital Corporation GLAD 285,310 33,788 2,144 13,164 18,480 11
Gladstone Investment Corporation GAIN 269,830 24,115 559 8,054 15,502 8
Harris & Harris Group, Inc. TINY 142,784 609 14 7,679 -7,088 0
Hercules Technology Growth Capital, Inc. HTGC 523,482 72,424 9,868 25,494 37,062 13
Horizon Technology Finance Corp. HRZN 167,917 21,575 3,405 7,879 10,291 12
Kayne Anderson Energy Development Company KED 250,061 8,878 1,777 6,485 -41,387 3
Kohlberg Capital Corporation KCAP 348,131 26,670 3,715 8,003 14,952 7
Main Street Capital Corporation MAIN 377,357 55,130 11,119 10,761 29,568 14
MCG Capital Corporation MCGC 1,155,948 91,566 15,853 28,196 45,883 7
MVC Capital, Inc. MVC 501,698 19,455 3,053 10,951 5,465 3
NGP Capital Resources Co. NGPC 304,760 27,976 1,409 10,871 17,105 9
PennantPark Investment Corporation PNNT 667,060 82,281 4,604 30,975 46,508 12Prospect Capital Corporation PSEC 882,479 169,492 17,598 57,657 NA
TICC Capital Corp. TICC 267,512 39,114 0 15,763 23,351 14
Tortoise Capital Resources Corp. TTO 88,926 1,666 0 1,694 -4,921 1
Triangle Capital Corporation TCAP 314,746 49,437 8,303 10,993 30,040 15
Low 0
Mean 11
Median 11
High 31
(1) Gross Investment Income, Interest Expense, Management Fees, & Net Investment Income values are calculated on a TTM basis; Total Assets are calculated by averaging the quarter
Source: SNL Financial and SEC filings
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Morgan Keegan & Co., Inc.
Current Pricing SummaryDividend Effective Tax-Adjusted Avg. Div. 52 Week
Company Ticker 9/6/2011 High Low Yield Tax Rate Div. Yield Payout Ratio Actual Div
American Capital Strategies, Limited ACAS $8.02 10.85 7.10 0.00% 33.3% 0.00% 0.0% 0.00
Apollo Investment Corporation AINV $8.52 12.46 7.32 13.15% 34.2% 8.65% 113.1% 1.12
Ares Capital Corporation ARCC $14.40 17.97 12.75 9.72% 34.8% 6.34% 102.9% 1.40
Blackrock Kelso Capital Corp. BKCC $8.28 12.97 7.05 12.56% 34.9% 8.17% 114.3% 1.04
Compass Diversified Holdings CODI $12.70 18.50 11.46 11.34% 15.0% 9.64% 84.3% 1.40
Fifth Street Finance Corp. FSC $9.32 13.95 8.38 13.73% 35.0% 8.92% 124.2% 1.28
Gladstone Capital Corporation GLAD $7.60 12.17 7.23 11.05% 34.9% 7.20% 96.6% 0.84
Gladstone Investment Corporation GAIN $6.43 8.55 6.22 9.33% 35.0% 6.07% 77.9% 0.60
Harris & Harris Group, Inc. TINY $3.94 6.30 3.85 0.00% 15.0% 0.00% 0.0% 0.00
Hercules Technology Growth Capital, Inc. HTGC $8.85 11.55 8.12 9.94% 35.0% 6.46% 94.6% 0.88
Horizon Technology Finance Corp. HRZN $15.44 16.45 12.24 10.36% 35.0% 6.74% 107.4% 1.60
Kayne Anderson Energy Development Compan KED $19.98 21.42 17.25 7.61% 15.0% 6.47% 93.8% 1.52
Kohlberg Capital Corporation KCAP $6.10 8.71 3.42 11.15% 35.0% 7.25% 100.0% 0.68
Main Street Capital Corporation MAIN $17.97 19.98 15.98 9.02% 31.3% 6.20% 104.5% 1.62
MCG Capital Corporation MCGC $4.34 7.62 3.50 15.67% 31.5% 10.74% 119.3% 0.68
MVC Capital, Inc. MVC $10.75 15.18 10.60 4.47% 30.1% 3.12% 800.0% 0.48
NGP Capital Resources Co. NGPC $6.65 10.89 6.21 10.83% 35.0% 7.04% 93.5% 0.72
PennantPark Investment Corporation PNNT $9.65 13.19 8.79 11.19% 34.9% 7.28% 89.3% 1.08
Prospect Capital Corporation PSEC $8.25 12.38 7.41 14.74% 27.9% 10.62% 106.7% 1.22
TICC Capital Corp. TICC $8.93 13.11 7.71 11.20% 35.0% 7.28% 103.1% 1.00
Tortoise Capital Resources Corp. TTO $8.20 9.27 7.25 4.88% 15.0% 4.15% 49.4% 0.40
Triangle Capital Corporation TCAP $17.04 20.97 15.01 10.33% 27.9% 7.44% 90.7% 1.76
0.00% 15.00% 0.00% 0.00% $0.00
9.65% 30.03% 6.63% 121.17% $0.97
10.59% 34.47% 7.12% 98.28% $1.02
15.67% 35.00% 10.74% 800.00% $1.76
Source: SNL Financial and SEC filings
High
52 week
Low
Mean
Median
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Morgan Keegan & Co., Inc. Specialty Financ
ADDITIONAL INFORMATION AVAILABLE UPON REQUEST
IMPORTANT DISCLOSURESThe research analyst responsible for the preparation of this report does not hold investment positions of any nature in thesecurities of this issuer. The research analyst responsible for the preparation of this report is compensated in part on thefirm's investment banking revenue but is not compensated based upon specific investment banking services transactions
As of the date of this report, Morgan Keegan & Co., Inc. makes a market in CODI, FDUS, HRZN, MAIN, PSEC and TCAP
Morgan Keegan & Co., Inc. has received compensation for investment banking services from CODI, FDUS, HRZN, MAIN
and TCAP in the past 12 months.Morgan Keegan & Co., Inc. expects to receive or intends to seek compensation for investment banking services fromCODI, HRZN, MAIN, PSEC and TCAP in the next 3 months.
Morgan Keegan & Co., Inc. managed or co-managed a public offering for CODI, FDUS, HRZN, MAIN and TCAP in thepast 12 months.
MK Performance Ratings:O = Outperform (Expected to outperform the S & P 500* over the next 12 months)M = Market Perform (Expected to perform in line with the S & P 500* over the next 12 months)U= Underperform (Expected to underperform the S & P 500* over the next 12 months)*REITs' performance benchmark is total return relative to the NAREIT Equity Index.
For regulatory purposes, our ratings of Outperform, Market Perform and Underperform most closely correspond to BuHold and Sell, respectively.
MK Suitability Ratings:S = Speculative (Business or balance sheet risk materially above that of the average U.S. public company)M = Market Risk (Business or balance sheet risk not materially different from the average U.S. public company)C = Conservative (Business or balance sheet risk materially below that of the average U.S. public company)
Morgan Keegan Companies Rated: Investment Banking Clients within last 12months:
Outperform / Buy 55% Outperform / Buy 16%
Market Perform / Hold 33% Market Perform / Hold 9%
Underperform / Sell 1% Underperform / Sell 50%
Not Rated 11% Not Rated 2%
For purposes of the NYSE and NASDAQ, rating distribution disclosure requirements, our rating of Outperform,Market Perform and Underperform closely correspond to Buy, Hold and Sell, respectively.
ANALYST CERTIFICATION
The research analyst responsible for the preparation of this research report certifies that; (a) the views expressed in thisresearch report accurately reflect the research analyst's personal views about any and all of the subject security(ies) andissuer(s), and (b) no part of the research analyst's compensation was, is, or will be directly or indirectly related to thespecific recommendations or views contained in this research report.
Twelve-month price targets for securities under coverage may be based upon various valuation metrics including withoutlimitation: price/earnings ratios, price/sales ratios, discounted cash flow (DCF), relative multiples, sum of the parts, etc.Price targets are, as of the date of the report in which they appear, subject to change, and imply no guarantee ofperformance.
Research reports may contain a short-term trading idea which highlights near-term catalysts or events affecting thecompany, its competitors or the market that should have a short-term price effect on the company's shares. Short-termtrading ideas are not related to a stock's performance rating, which focuses both on a longer-term return andattractiveness for investment relative to the relevant benchmark. Short-term trading ideas are different from performanceratings and, by their very nature, will be more positive or more negative than the performance rating. Research reports arnot intended to provide personal investment advice and do not take into account the specific investment objectives,financial situation, or particular needs of any specific person. No security or investment strategy can suit all investors.Investors should seek financial advice regarding the appropriateness of their investing in any security or implementing aninvestment strategy discussed in a report and should understand that any statement in a report regarding future prospectmay not be realized.
This research report is not intended to provide personal investment objectives, financial situation, or particular needs ofany specific person. No security or investment strategy can suit all investors. Investors should seek financial advice
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Morgan Keegan & Co., Inc. Specialty Financ
regarding the appropriateness of their investing in any security or implementing any investment strategy discussed in thisreport and should understand that any statement in this report regarding future prospects may not be realized.
ADDITIONAL DISCLOSURES: The information contained in this report is based on sources considered to be reliable buis not represented to be complete and its accuracy is not guaranteed.The opinions expressed reflect the judgment of theauthor as of the date of publication and are subject to change without notice. This report does not constitute an offer tosell or a solicitation of an offer to buy any securities. Morgan Keegan & Co., Inc., a subsidiary of Regions FinanciaCorporation, and its officers, directors, shareholders and employees, and affiliates and members of their families mayhave positions in these securities and may, as principal or agent, buy and sell such securities before, after oconcurrently with the publication of this report. Morgan Keegan & Co., Inc., member FINRA, SIPC, is a registered
broker-dealer subsidiary of Regions Financial Corporation. Investments are NOT FDIC INSURED, NOT BANKGUARANTEED and MAY LOSE VALUE.For more information about Morgan Keegan disclosures, please go tohttps://mk.bluematrix.com/sellside/Disclosures.action
To obtain a copy of the most recent disclosure information regarding the individual securities mentioned in thiscompendium report, please write to us at the following address:Equity Research Department
Attn: Director of ResearchMorgan Keegan & Co., Inc.50 N. Front Street - 13th floorMemphis, TN 38103
https://mk.bluematrix.com/sellside/Disclosures.actionhttps://mk.bluematrix.com/sellside/Disclosures.action