Research Capital's Rating System

BUY:

The total annualized return from the investment is expected to be 20% or more.

SPECULATIVE BUY:

The total annualized return from the investment is expected to be greater than 20%; however, there are risks in the fundamentals of the security which could cause price volatility and the potential for a significant loss exists.

ACCUMULATE:

The total annualized return from the investment is expected to be between 10% and 20%. The recommendation is to purchase shares at times of weakness in the price.

HOLD:

The total annualized return is expected to be plus or minus 10%.

REDUCE:

The investment is expected to decline such that an annualized return between -10% to -20% is expected. The recommendation is to sell shares at times when favourable prices can be obtained.

SELL:

The total annualized return is expected to be -20% or more.

UNDER REVIEW:

The analyst is reconsidering the rating. This may be due to significant new information or events.

Percentage Distribution Of Research Ratings

The Investment Dealers Association of Canada requires that its member firms provide a summary of the percentage of our recommendations which fall into each category of our ratings. The summary below shows the percentage as at the last day of the previous month.

It should be noted that the primary objective of our analysts is to find opportunities for our clients to make profits from purchasing investments. Typically, we do not initiate coverage on companies unless they meet this objective. Consequently, under most market conditions one should expect that more of our recommendations will fall into the buy or accumulate categories than those in the hold/reduce/sell categories.