WHY USE WALL STREET ADVISOR RESEARCH

Wall Street Advisor's Research Philosophy

From its beginnings, Wall Street Advisor's philosophy has been that every fundamentally sound company should be able to have analyst coverage. While there is no assurance that a company's shares will trade in any pattern, or according to any historical reference, or even that a report will be bullish, the instances of those companies, recognized as truly undervalued by Wall Street Advisor analysts, trading to new highs and achieving sharp market-cap growth and substantive increases in trading volume can be independently referenced by comparing charts to research announcements and reports.

Information about public companies is generally viewed with healthy skepticism when the data comes from the companies' executives. Thus, the stocks of companies without analyst coverage generally trade to a discount to perceived present value. The stocks of covered companies, by contrast, generally trade to a discount to a future professionally-derived valuation. This means that, in general, companies with credible third-party validation of their business plans and historical data are often rewarded with a higher market capitalization, and often increased volume and liquidity with which to leverage cheaper and more readily available capital. This capital then can be used for acquisitions and other activities that further add to shareholder value, which in turn warrants even more credible research validation.

Former SEC Chairman Comments on Research

Former SEC Chairman Arthur Levitt gave his endorsement of the independent research model in an interview with the Bloomberg news service, published May 8, 2002. Discussing the need to reduce analyst conflicts of interest in the wake of news surrounding Merrill Lynch, Levitt said, "I think what we're looking for in this new world, in this new environment, which is very different from what it was six months or a year ago, is a research function that is totally pure, in terms of both conflicts of interest and perceived conflicts of interest….and part of the answer is the development of independent research boutiques that sell their research to the very firms that they're researching in the same way that the rating agencies, such as Standard & Poor's, sell their ratings."

Thomson Financial Survey on Research

A survey conducted by Thomson Financial Publishing reveals that 76% of all investors say they are "most influenced" by an analyst report. Yet, until six years ago, few professional analysts covered Nasdaq, AMEX or OTCBB public companies, making it even more difficult for such public companies to attract financing or institutional ownership, or to enhance shareholder value. The market response to Wall Street Advisor's Research has been overwhelmingly supportive, attracting volume and price support. Wall Street Advisor is pioneering the concept of providing independent unbiased coverage of under-followed public equities.

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