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Innovative Research Associates

Innovative Research Associates, Inc. (IRAI) founded in March 1992, provides institutional quality investment research to a far reaching network of corporate and institutional investors. Our objectives for our clients include a broadening of the shareholder base, a boost in share liquidity, and fair valuation of their stocks (our analysis involves complete equity and corporate transaction analyses).

  • The reports strive to improve the efficiency of investors’ decision making:
    • A focus on investment themes and critical variables
    • In-depth financial analysis
    • An overview of management and outside directors
    • Information valuable to corporate, institutions and substantial investors in forming their own valuation judgments; however, the reports do not contain stock rating.
  • Our reports are distributed to an extensive network:
    • Individual investors
    • Nelson's Institutional Research
    • Corporate investors for internal evaluations
    • Institutional investors
    • Reports may also be utilized by client companies for their own channels of distribution and internal use.

Considerations of Alternative Research Analysis

  • Difficulty in establishing research relationships. Research relationships are difficult to establish without the promise of an imminent banking fee.
  • Top analysts are driven by economics. A brokerage firm's top analysts concentrate on investment banking targets or stocks that trade large daily volume.
  • Junior-level analysts assigned to the smaller, less actively traded stocks are generally inexperienced and overburdened. The result is low-quality research product.
  • Reports are written on an erratic basis. This leaves holders with long gaps between updates.
  • A corporate and investment firm’s accessibility and distribution is usually limited.

Consulting Services

Special project consulting is an ongoing requirement when companies need an incisive and accurate analysis to constructively evaluate their markets and position within their own industry.

IRAI, in conjunction with its proven network of professional consultants, provides investigative/research analysis on a contract-consulting basis. Working from public and documented information, IRAI’s staff comprehensively researches all available information sources, overseeing "onsite" inspections and carefully assessing the competition and the industry to correctly value the best business opportunity. Our conclusions are primary and strictly confidential. Secondary data and published studies are provided only as an adjunct to our own reports.

Research and Analysis Statement

IRAI reports are not intended to be used in the offering of securities. Accordingly, clients must agree to each of the points listed below and to indemnify IRAI for any breach of these representations and covenants.

  • The client is not presently engaged in a private or public offering of securities, including any continuing distribution, whether or not exempt, that will not be concluded prior to the issuance of an IRAI research report on such client, and client has no intention of making such an offering within the next 90 days. An "evergreen" prospectus for employee stock option and other plans will not preclude issuance of IRAI research reports.
  • The client will notify IRAI if it intends to make any private or public offering of securities.
  • The client will not use IRAI reports in connection with any offering of securities without the prior written consent of IRAI.

IRAI relies on information provided by its clients for a substantial part of its reports. Clients must represent that such information is neither false nor misleading, and agree to indemnify IRAI for any breach of these representations and covenants. Client also agrees to indemnify IRAI for any claims relating to the purchase and/or sale of client securities occurring out of or in connection with IRAI’s relationship with client, including, without limitation, reasonable attorneys’ fees and other costs arising out of such claims.

IRAI shareholders, officers, employees, and/or members of their families may hold a position in and engage in transactions with respect to client securities. IRAI imposes restrictions on such transactions to guard against trading on the basis of material non-public information.

Fee for Services – Research Analysis

Reports are available in three lengths. All initial reports must be 14-20 pages to provide an in-depth introduction of the company to our investor network. Decisions regarding the timing and length of subsequent reports are made by the client.

Fourteen to twenty page reports: All initial reports must be this length to provide a comprehensive introduction of the company to our investor network. These reports may also be appropriate for follow-ups that require in-depth analysis of earnings releases and/or news developments.

Six-Page Reports: Quarterly updates that do not require extensive analysis, or news developments between quarterly earnings releases that require more than a bulletin.

Two-Page Bulletins: Bulletins keep the investor network apprised of news developments between quarters. Not sufficient for analysis of quarterly earnings.

  • Fees are all inclusive; excluding mailing charges.
  • Production of reports (1000 copies).
  • Distribution of reports to IRAI’s proprietary investor network (approximately 600 names).
  • Client receives for free, 200 copies of each IRAI report on his company. For wider distribution, clients may duplicate the reports or purchase additional original copies from IRAI. Clients also receive complimentary copies of all other IRAI reports issued to give them a sense of the market environment, valuations, and competing investment ideas.