Avid Bioservices Inc (CDMO)

[RRdog]

Below is the summary of Roth report. More on this later.

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RRdog




MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
Peregrine Pharmaceuticals, Inc.
(NASDAQ: PPHM)
Buy | Target: $10.00
Joseph Pantginis, Ph.D.
[phone]
Price: $0.93
Mkt. Cap.(mil): $80.7
4
3
2
2
2
1
0
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
8.0
6.67
5.33
4.0
2.67
1.33
0.0
Price
PPHM One-Year Price and Volume History
EPS Prev. P/E
2011A (0.56) NM
2012E (0.48)­ (0.53) NM
2013E (0.50)­ (0.56) NM
PPHM: Top 2012 Biotech Pick - "Bavi" Ready For Prime Time; Key Data Soon
We reiterate Peregrine as a top pick for 2012, with upcoming study results anticipated to
generate excitement in the coming year: randomized Phase II data for bavituximab in secondline
NSCLC, followed by the survival results of a randomized Phase II study in NSCLC
(front-line), several ISTs and FDA guidance on the registration path for Cotara in recurrent
glioblastoma (GBM).
Event - Reiterate Top 2012 Pick
We are reiterating Peregrine as a top biotech pick for 2012 (Analyst - Pantginis). We base
our expectation of success on the lead candidate bavituximab with 1) recent positive results
from a randomized Phase II study in front line NSCLC as well as on positive data from several
single arm trials in metastatic breast cancer (mBC) and NSCLC which showed meaningful
improvement in clinical responses and survival, in our belief and 2) a string of meaningful
catalysts in 2012.
Impact
We believe the current valuation does not reflect the clinical data in hand surrounding the
bavituximab opportunity. Below we present our case for this disconnect with sensitivity analysis
around our valuation method. We expect the recent positive randomized Phase II bavi data
in front-line NSCLC to be followed up with multiple additional data catalysts (see expanded
discussion below). Peregrine has also indicated that partnering interest has increased as
several were waiting for the randomized data to start reading out. We expect final ORR
data from the front line randomized Phase II NSCLC study, along with PFS and OS later in
the year. The second randomized study in second line NSCLC is projected to read out in
1H12 (ORR data) and PFS and OS data when reached. Data from the randomized study in
pancreatic cancer is also expected in 2012 as well as preliminary results from several ISTs.
The registrational path for Cotara in recurrent glioblastoma is currently defined with a recent
written response from the FDA which the company views as positive.
Action
We reiterate our Buy rating and $10 price target and Peregrine represents a top biotech pick.
We believe that Peregrine is attractive for near term catalyst investors as well as a long term
attractive play. Our positive opinion is based on 1) broad spectrum therapeutic potential with
bavituximab, 2) positive clinical oncology results in hand with multiple clinical data catalysts
ahead, 3) broad externally funded collaborations and 4) a contract manufacturing subsidiary
(Avid) which helps to offset the company's cash burn.
Page 4 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
Company Comments
AsiaInfo Linkage, Inc.
(NASDAQ: ASIA)
Neutral | Target: $12.00
Kun Tao, CFA
[phone]
Price: $9.92
Mkt. Cap.(mil): $713.7
30
25
20
15
10
5
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
5.0
4.0
3.0
2.0
1.0
0.0
Price
ASIA One-Year Price and Volume History
EPS P/E
2010A 1.46 6.8x
2011E 1.52 6.5x
2012E 1.33 7.5x
ASIA: Receives Going Private Proposal from CITIC Capital
On Jan 20, ASIA announced that it received a non-binding Going Private proposal from CITIC
Capital China Partners II, L.P. to acquire all of its outstanding shares in cash at premium to its
current price. A special committee of BoD was formed to consider the proposal.
While pricing was not disclosed, we note that recent deals have typically been priced at a
15-25% premium over the prior day’s close. Since this is not an MBO, we speculate that the
pricing could be at the high end of this range. We acknowledge that pricing in these transactions
has varied widely. Given management owns approx. 31% of the total outstanding shares, the
going private process will be relatively easy if management agrees to sell.
CITIC Capital is high profile private equity firm in China with over $4 billion USD in assets and
has extensive relationship base and deep understanding of the SOE sector and engages in
buyouts and strategic investments in leading Chinese companies.
We await details of the proposal to be announced given that the press release contained limited
information and then have a closer look at the proposal and its impact on shares of ASIA.
Intraday Price: $ 11.90 at 10:22am ET 1/20/2012
Page 5 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
Bally Technologies, Inc.
(NYSE: BYI)
Buy | Target: $55.00
Todd Eilers
[phone]
Price: $41.97
Mkt. Cap.(mil): $1,819.2
50
45
40
35
30
25
20
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
7.0
5.83
4.67
3.5
2.33
1.17
0.0
Price
BYI One-Year Price and Volume History
EPS P/E
2011A 1.85 22.7x
2012E 2.47 17.0x
2013E 3.17 13.2x
Bally Technologies’ (BYI) Group Lunch
ROTH Capital Partners and Todd Eilers, Senior Research Analyst - Gaming invite you to
join us for a private lunch with Bally Technologies’ (ticker: BYI) CEO, Richard Haddrill.
Bally Technologies is a leading gaming equipment and technology supplier to the
global gaming industry. The lunch will include a brief overview of Bally’s business and
important growth opportunities and will include an interactive Q&A session over lunch.
DETAILS
Date: Wednesday, January 25, 2012
Time: 11:45 am - 1:30 pm GMT
Format: Lunch Presentation with Q&A
Presenter: Richard Haddrill, CEO of Bally Technologies (BYI)
Location: Mandarin Oriental Hyde Park
Bar Boulud Restaurant
66 Knightsbridge, London SW1X 7LA
[phone]
This event is for institutional clients of ROTH and is by invitation only. Please RSVP via
email to [e-mail] or call your ROTH sales representative at +(1) 949 720
5700.
Page 6 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
Depomed Inc.
(NASDAQ: DEPO)
Buy | Target: $8.00
Scott R. Henry, CFA
[phone]
Price: $6.16
Mkt. Cap.(mil): $341.3
12
10
8
6
4
2
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
14.0
11.2
8.4
5.6
2.8
0.0
Price
DEPO One-Year Price and Volume History
EPS P/E
2010A 0.07 88.0x
2011E 1.23 5.0x
2012E (0.55) NM
DEPO: Gralise Tracker - Week ending 1/13/2012 (Positive Week)
This report is a weekly update tracking the launch of Gralise (from Depomed) to treat pain due
to post herpetic neuralgia (shingles). We view this week's Gralise data as positive given that
prescriptions again reached a new high (up about 150 over the pre-holiday weeks).
• Weekly Gralise Tracker. Gralise (gabapentin) works similar to other gabapentin-based
products in that it relieves pain from shingles. The differentiating factors includes 1X/day
dosing and potentially improved side effects (lower dizziness and lower somnolence).
• This week's data. New and total prescriptions for Gralise were 809 and 932 (versus 636
and 712 last week - New Year's holiday week). At ~$150/script, this translates into a ~$7.3
million annualized run rate. Total share of gabapentin-like products increased to 0.11% from
0.08% the prior week. The product launched in October 2011. We view this week's Gralise
data as positive given that prescriptions again reached a new high (up about 150 over the
pre-holiday weeks).
• Our expectations. We expect a slow, steady launch for this product given the gradual
acceptance of new products by managed care. We target 2011-12 Gralise revenues of
~$900K and $21 million. To reach our 2011 forecast, we target weekly prescriptions to
approach 1,500 by the end of March 2012. This requires average gains of ~60 scripts per
week.
• What to watch for? It's all about the prescriptions and the early trajectory of the Gralise
ramp. We should start to get a clearer picture in the coming months. Unrelated, a Glumetza
(diabetes drug on market) patent settlement could also be a positive catalyst for the shares.
• Maintain Buy rating. We maintain our Buy rating and $8/share price target on DEPO shares.
This includes ~$2.25/share related to Gralise although it is clearly the near-term catalyst in
either direction. We upped revenue targets in this note to reflect strong December monthly
prescription data for Glumetza, but offset this increase with higher SG&A targets.
Premarket 1/23/2012
Page 7 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
Heckmann Corporation
(NYSE: HEK)
Buy | Target: $7.00
Brian W. Post, CFA
[phone]
Price: $5.72
Mkt. Cap.(mil): $713.4
887666544
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
12.0
10.5
9.0
7.5
6.0
4.5
3.0
1.5
0.0
Price
HEK One-Year Price and Volume History
EPS P/E
2010A 0.02 NM
2011E 0.05 NM
2012E 0.17 33.6x
HEK: Misconception Creates Opportunity
We believe there is misconception that HEK's business model is very sensitive to the overall
level of new drilling and water use in fracking. We are comfortable with HEK's market potential
and believe informed investors should take advantage of price weakness to capitalize on the
disconnect.
Selloff overdone. Lingering concerns regarding earthquakes, a significant decline in gas
prices and public comments made by environmental officials regarding the outlook for the
fracking industry have unduly weighed on HEK shares, in our opinion. We argue some investors
haven't fully grasped the difference between "produced" water and "flowback/fracking" water
and this misconception had led them to question the viability of HEK's growth model.
New drilling doesn't dictate HEK's fortune. HEK is not dependent on new drilling or the
continued use of large volumes of when fracking new wells, in our view. We contend the
company's business model depends on the overall size of the shale gas ecosystem. We point
to the mix of revenue from HEK's core Haynesville market as an example; an overwhelming
majority of the company's revenue in the region comes from wells that have already been placed
in service and not from new wells added in the past year.
Consolidation remains the story. Shale gas is now a permanent part of our country's energy
infrastructure, in our view. As the absolute number of wells expands, we expect there will be
an increasing need for water handling services conducted on a large scale. We anticipate HEK
to continue its roll-up of business industry in 2012 and a new acquisition would be a catalyst
for shares. We encourage investors to take advantage of recent weakness to capitalize on any
future acquisition(s).
Intraday price: $5.59 at 2:51 PM ET 1/20/2012
Page 8 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
International Game Technology
(NYSE: IGT)
Buy | Target: $21.00
Todd Eilers
[phone]
Price: $16.72
Mkt. Cap.(mil): $4,975.9
22
20
18
16
14
12
10
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
16.0
13.33
10.67
8.0
5.33
2.67
0.0
Price
IGT One-Year Price and Volume History
EPS P/E
2011A 0.93 18.0x
2012E 1.03 16.2x
2013E 1.23 13.6x
IGT: 1Q12 Earnings Preview
IGT is scheduled to release its 1Q FY12 results before the market opens on Tuesday with a
conf call at 5am PT (Dial-in 1-800-369-3368). Our estimates call for revenue of $489M and
EPS of 21c (Street at 22c).
• Thoughts on the qtr. After posting strong 4Q11 numbers, we look for 1Q12 results to be
a bit soft driven by light game sales. Confirming this view we note participants in the most
recent ROTH-FANTINI slot survey purchased only ~33% of their games from IGT during the
qtr, which is -1% pt below its trailing avg. We also look for new opening shipments to be
a little light in the qtr as IGT recorded the majority of the two Kansas casino shipments in
4Q11. Furthermore, while some competitors will record Revel Casino shipments in the qtr,
IGT will not recognize Revel units until the property opens as it is also providing the system
for the property.
• Gaming Ops should improve. While game sales are expected to be soft, we look for the
company's gaming ops segment to be relatively healthy with a pickup in regional gaming
revenue (+4% y/y) and strong initial Resorts World NY performance where the company now
has 1,800 games installed earning roughly $20/day (6.375% of net win). We note ROTHFANTINI
survey participants also added +2,000 (net) games in the qtr (~200 ex Resorts
World NY), while IGT's share of Top 3 games expanded from 48% to 56% in the qtr with
strong contributions from the company's WOF franchise and its new Ghostbuster game.
• Key 1Q assumptions. For the qtr, our product sales estimate assumes 9,500 total games
shipped (5.5k domestic) w/ an ASP of $15,000 ($14.3k domestic). Our Gaming Ops estimate
assumes an avg install base of 54,700 games (40.7k domestic) w/ a domestic revenue yield
of $59/day (+1% y/y) and international yield of $34.50/day. Finally, we assume a GM of 56.4%
and an operating margin of 24.4% to arrive at our 21c EPS estimate.
• Maintain Buy rating & $21 PT. Despite our expectations for a relatively light qtr, we remain
confident in our positive thesis on the stock and we look for IGT's quarterly results to gain
momentum throughout FY12. As such, we retain our BUY rating and $21 PT.
Page 9 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
Western Alliance Bancorporation
(NYSE: WAL)
Buy | Target: $9.00
Edward Timmons
[phone]
Price: $7.49
Mkt. Cap.(mil): $616.7
10
9876543
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
3.0
2.57
2.14
1.71
1.29
0.86
0.43
0.0
Price
WAL One-Year Price and Volume History
EPS Prev. P/E
2011A 0.19¯ 0.22 39.4x
2012E 0.57 13.1x
2013E 0.80 9.4x
WAL: Another Strong Quarter; Reiterating Buy Rating and $9 Target
WAL remains a Focus Pick and one of our favorite names given the continued top-line growth
and credit recovery. In our view, the company is poised to post meaningful earnings growth
over the next two years, which is not being fully reflected in the current valuation.
The company reported 4Q11 EPS of $0.07, two cents below the consensus estimate. The miss
was driven largely by higher than expected credit costs, including OREO valuation adjustments.
Core trends however, continue to impress, with a 6.5% Q/Q increase in spread income and a
10% increase in pre-credit income, excluding OREO-related charges.
Net interest margin expansion of 22 basis points was driven by impressive 5.6% linked quarter
loan growth. While the increase exceeded our estimate of 1.8%, much of the growth came
at year-end from a pull-forward of credits. We expect 1Q loan growth to return to a range of
2%-3%. The company also deployed excess cash into securities, which added another 7 basis
points to the NIM. Lower deposit costs helped the NIM by another 7 bps, but depressed growth
somewhat.
Credit quality continued to show improvement, as both classified and non-accruing loans fell
Q/Q. OREO balances remained mostly flat despite $20 million in new additions. We continue
to think lower valuation adjustments combined with slowing inflow will result in material lower
OREO costs in 2012 and 2013, removing what has been a meaningful drag on the bottom-line.
A higher than expected loan loss provision was a combination of the strong loan growth, and
continued write-downs of Nevada credits. We are modeling a decline in the provision through
2013 as losses come down and the company right-sizes its allowance.
We are not changing our annual EPS estimates, expecting $0.57 in 2012 and $0.80 in 2013,
coming off $0.19 in 2011. In our view, the impressive earnings growth will be the result of
continued outperformance on the top-line, as well as a diminished drag on earnings as credit
costs subside. Longer-term, we think the company’s improved competitive position as one of
the few remaining local alternatives serving the middle market should support above average
growth and profitability as the macro environment improves. We are reiterating our Buy rating
and $9 target price on the shares. While our target price is based on our DCF, it equates to just
1.35x our projected YE2012 TBV value and 11.3x our 2013 EPS estimate.
Intraday Price of $7.95 as of 2:20 p.m. EST 1/20/2012
Page 10 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
YM BioSciences Inc.
(AMEX: YMI)
Buy | Target: $6.00
Joseph Pantginis, Ph.D.
[phone]
Price: C$1.69
Mkt. Cap.(mil): C$197.2
444322210
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Price
YMI One-Year Price and Volume History
EPS P/E
2011A (0.32) NM
2012E (0.33) NM
2013E (0.35) NM
YMI: Top 2012 Biotech Pick; See Partner and Breakout Year for CYT387
We are highlighting our top pick for 2012. YM delivered compelling data at ASH in December
2011, in our belief, showing differentiated efficacy data, especially with regard to positive
anemia responses. We believe that YM is poised to enter a major partnership in 1H12 ahead
of the start of pivotal studies in mid-2012.
Event - Top 2012 Biotech pick
With differentiated efficacy data for CYT387 in hand and rapid progress in MF expected in 2012,
we are reiterating YM as a top biotech pick for 2012 (Analyst - Pantginis). With the expected
start of the first Phase III in mid-2012, we believe the most likely scenario for YM for the first
half of the year is the delivery of a major partnership to further drive the clinical and regulatory
process.
Impact
We believe that the positive data at ASH showing differentiated efficacy (anemia) and a
favorable safety profile, has not yet been priced into YM's valuation. The reason for recent
pressure on the stock, in our opinion, is the perception of a financing overhang and with
investors assigning a discount to '387 as an "early" candidate, ~2 years behind Incyte's (INCY
- Not Rated) Jakafi. We highlight that the anemia response represents a key differentiating
factor, in our view, for CYT387 compared to the currently approved Jakafi. Therefore, we believe
that the '387 data are attractive to a major partner with favorable terms as the program enters
pivotal stage in mid-2012. Recall that the INCY/NVS deal in 2009 delivered a $150 million
upfront payment to INCY, ~$1 billion in milestones and tiered double-digit royalties for ex-U.S.
rights to NVS. We believe YM is well positioned to deliver similar terms as it looks to launch
its pivotal program this year. Potential suitors are in play, in our view, and could include Sanofi,
Genzyme or Takeda.
Action
We reiterate our Buy rating and $6 price target. We believe YM is a compelling story especially
with the updated '387 data in hand and potential partnering catalysts in the future. While
CYT387 might not be the first to market, it may be the best to market and we recommend that
investors build positions ahead of upcoming catalysts.
Page 11 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
Industry Comments
China Edge
Mark Tobin
[phone]
ROTH CHINA EDGE: January 13, 2012 to January 20, 2012
ROTH's China Research Coverage Universe (including 52 Chinese companies) gained
+5.7% in the past week as the S&P gained +2.0%, the Nasdaq gained +2.8%, and
the Russell 2000 gained +2.7%. The Shanghai Composite Index, Shenzhen Composite
Index, Shenzhen SME Composite Index and the Hong Kong Hang Seng Index (HSI)
gained +4.8%, +4.8%, +1.5% and +4.1%, respectively, in the past week. Year-to-date,
ROTH's China Research Coverage Universe has gained +16.9% and the following
indices have gained/lost: S&P +4.6%; Nasdaq +7.0%; Russell 2000 +5.9%; Shanghai
Composite+5.4%; Shenzhen Composite -0.6%;Shenzhen SME Composite -2.0%;and
HSI +9.1%.
ROTH's China Research Coverage Universe, currently trading at a median of 7.8x
ROTH 2011 EPS estimates, remains at a significant discount versus peers, i.e. 9.5x
for Shanghai Composite, and 10.2x for HSI. Among US-listed China stocks, financials
(+17.2%), consumer staples (+13.5%) and material (+10.9%) stocks outperformed
other sectors during the past week.
For a copy of the full report, including macro-economic tables and ROTH’s China
Research Coverage Universe tables, please access the pdf or contact your ROTH
Capital Partners institutional sales representative.
Page 12 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
Conference
Roth Capital Research
[phone]
24th Annual ROTH Conference
Please join ROTH for its annual three-day conference (24th Annual ROTH Conference)
that brings together executives from over 400 growth companies, one of the largest of
its kind in the US. This event is designed to provide investors with a unique opportunity
to gain insight into small and mid-cap growth companies across a variety of sectors,
including Business Services, Cleantech, Consumer, Electronics, Financial Institutions,
Global Energy & Industrials, Gaming, Healthcare, Media, Retail and Software. We
combine company presentations, Q&A sessions, expert panels and management oneon-
one meetings to provide our institutional clients with extensive interaction with senior
management to gain in-depth insights into each company.
Page 13 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
Conference
Roth Capital Research
[phone]
Group Lunch with Dr. Arthur B. Laffer
ROTH Capital Partners invites you to join us for a group lunch with Dr. Arthur B.
Laffer, former Chief Economic Advisor to the Reagan administration and founder of
Laffer Associates. Dr. Laffer will discuss macroeconomic trends, and how political and
demographic changes are affecting global financial markets. Specifically he will touch on
the US 2012 presidential elections, the Euro crisis as well investment ideas in the current
market environment. The luncheon will include a 45 minute presentation, followed by
an interactive Q&A session over lunch.
Date: Tuesday, January 24, 2012
Time: 12:00– 2:00 PM GMT
Presenter: Dr. Arthur B. Laffer
Format: Lunch presentation followed by Q&A.
Location: Dukes London
St. James’s Place
London SW1A1NY
Room: Marlborough Suite
RSVP: Please email [e-mail] or contact your ROTH Salesperson at +1
949 720 5700.
Page 14 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012
Disclosures
ROTH and/or its employees, officers, directors and owners own options, rights or warrants to purchase shares of YM BioSciences Inc. and Heckmann
Corporation stock.
Within the last twelve months, ROTH has received compensation for investment banking services from Peregrine Pharmaceuticals, Inc., Callidus Software,
Inc. and Galena Biopharma, Inc..
ROTH makes a market in shares of Peregrine Pharmaceuticals, Inc., AsiaInfo Linkage, Inc., Western Alliance Bancorporation, Depomed Inc., Callidus Software,
Inc., Galena Biopharma, Inc. and Scientific Games and as such, buys and sells from customers on a principal basis.
A Research Analyst and/or a member of the Analyst's household own(s) equity options of Depomed Inc..
Shares of Peregrine Pharmaceuticals, Inc. and Galena Biopharma, Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules,
which may set forth sales practice requirements for certain low-priced securities.
Within the last twelve months, ROTH has managed or co-managed a public offering for Callidus Software, Inc. and Galena Biopharma, Inc..
A Research Analyst and/or a member of the Analyst's household own(s) shares of Depomed Inc. stock.
On September 28, 2010, ROTH changed its rating system in order to replace the Hold rating with Neutral.
On May 26, 2011, ROTH changed its rating system in order to incorporate coverage that is Under Review.
Distribution of IB Services Firmwide
IB Serv./Past 12 Mos.
as of 01/23/12
Rating Count Percent Count Percent
Buy [B] 196 70.5 56 28.6
Neutral [N] 74 26.6 9 12.2
Sell [S] 0 0.0 0 0
Under Review [UR] 7 2.5 3 42.9
Our rating system attempts to incorporate industry, company and/or overall market risk and volatility. Consequently, at any given point in time, our investment
rating on a stock and its implied price movement may not correspond to the stated 12-month price target.
Ratings System Definitions - ROTH employs a rating system based on the following:
Buy: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return of at least 10% over the next 12 months.
Neutral: A rating, which at the time it is instituted and or reiterated, that indicates an expectation of a total return between negative 10% and 10% over the
next 12 months.
Sell: A rating, which at the time it is instituted and or reiterated, that indicates an expectation that the price will depreciate by more than 10% over the next 12
months.
Under Review [UR]: A rating, which at the time it is instituted and or reiterated, indicates the temporary removal of the prior rating, price target and
estimates for the security. Prior rating, price target and estimates should no longer be relied upon for UR-rated securities.
Not Covered [NC]: ROTH does not publish research or have an opinion about this security.
For important disclosure information regarding the companies in this summary report, please contact: The Director of Research at [phone] or write to:
ROTH Capital Partners, LLC, Attention: Director of Research, 888 San Clemente Drive, Newport Beach, CA 92660
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered
companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding
ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report
should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is
not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in
the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment
in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express
written permission of ROTH. Copyright 2012. Member: FINRA/SIPC.
Page 15 of 15
MORNING SUMMARY | EQUITY RESEARCH | January 23, 2012