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The following profile of subject areas
and questions are a guideline for investigation into
companies particularly when conducting on-the-ground
research. These questions can be accomplished primarily
through phone calls to the company and should be put to the
company representative having the knowledge and authority to
speak on the company's behalf, with followup in areas where
the initial question uncovers revealing information. It is
important that all published information, news and message
board information on the company be carefully reviewed
before initiating any calls to or on the company. The
company representative or others contacted should be advised
that you are a member of the Hannaian Stock Research Analyst
Group looking for information directly from the company in
preparation for either initial or updated coverage of their
company. If you already own shares in the company, also
identify yourself as a shareholder.
In conducting your interview with the company's
representative it is important to keep in mind that you are
attempting to get both the comapny's view and the
individual's view if different on the subject matter of your
question. in asking about competitors, it is important to
attempt to get the representatives opinion of their the
competition, and what they understand or believe the
competition feels about the situation. Obviously you will
not be able to get certain responses from the representative
but it is always important to try, since sometimes the
information you are seeking will come out indirectly.
The interview should be done in a friendly cooperative
manner.
QUESTIONS TO THE
COMPANY
Company
Is the company the parent
company
Does the company have any subsidiary companies
Who are the major shareholders in the company or its
subsidiaries
What other companies does the company own any equitable
holdings in
What other companies does the company hold any debt based
holdings in
What subsidiaries are the most successful
What subsidiary(ies) is the company currently more
focused on
Management
Experience Generally
Experience in specific area of operations
Shortages in management
Plans to add management & staff
Any members of management or insiders with prior
criminal, SEC or NASDAQ violations or enforcement
actions
What percentage of shares owned by management
What is management's track record with other
companies
What other companies does management hold equitable
holdings in
What other companies has management have debt based
holdings in
Number of employees
Product
Current product description
Pending products, description, due date
What's unique about your product
Risk Exposure & Potential
Comparison to competitors product
Current reviews of product & company and where they
can be found
Can a copy of important promotional material be sent for
review
Intellectual Property
Type & description, patent,
copyright, trade or service mark, industrial secret
etc.
How old is the I.P.
I.P. patent or other I.P. registration number
Owned or licensed, full or partial, limited purpose or
use etc.
If licensed, is it exclusive, territorial, time limited,
what other contingencies of license
If license non exclusive, who else has license and on
which terms
If licensed who is primary owner or licensing agent.
How I.P. acquired
Competitors I.P.
Current & potential I.P. challenges
Financial Fundamentals
Who are private financiers,
& debt versus equity allocation
Past year revenue generation
Projected revenue generation and substantiation
Current Profits (Earnings)
Amount of cash on hand
Are there any Reg-S deals, offerings of convertible
preferred stock or convertible debentures
Are there any Plans for company buy back of its stock
If an OTCBB issue, are there any plans for a NASDAQ
listing, if so what plans
Are there any plans of a reverse split in the offing, if
so why
Are there any plans for a forward split, if so why
Are there any lockup periods in force, and if so when
will they expire
Are there any stock options held by insiders or others
which have not yet been exercised, if so on what terms
can they be exercised
Marketing Efforts
Description
Which markets targeted
Which markets actually infiltrated
Marketing Budget
Current % of success of the marketing plan
Collaborators, Alliances, Merger &
Acquisition Activity
Who are the collaborators and
alliance partners
How collaboration structured
Why, what do collaborators get from alliance
What does company get from alliance
Details of agreements, strength, length, formal etc.
Number of institutional investors
Most recent institutional investors, public and
private
Is the company aware of any large positions in equity or
debt held or controlled by marketmakers
Has the company been approached by parties interested in
a merger or take over in the past year, if so with who
and when
Has the Company approached any other company or entity
about the possibility of merging or acquiring assets
within the past year, if so with who and when
Are there any ongoing merger and acquisition activity
being conducted at this time or planned within the next 6
months
If merger and acquisition activity is ongoing or planned
what is the primary reason for such activity and how will
it benefit shareholders
Competitors
Who are competitors
Strength of competitors
Companies strategy to compete with competitors
What does the competition feel about the competitive
situation
Market Notice
History & details of
analysts coverage
Available copies of recent major news stories
Available copies of Analysts reports
Institutional investors & interest
Law Suit & Regulatory Action
History
History of Lawsuits by the
Company & against the Company
History and current awareness of any SEC or NASDAQ
investigations or actions
Important Future or Pending
Activities
What are future plans
generally
What are future plans to increase shareholder
value
Availability of Information for
Investors
Current reviews of product &
company and where they can be found
Scheduled investor related conference calls or other
upcoming investor related reports
Can a copy of important promotional material be sent for
review
Get placed on a mailing list to receive important
company, product, and investor update info.
Followup Review
Get and record name and position
of company contact providing information
Get agreement to call back for followup, and updating
information
QUESTIONS FOR
INDEPENDENT TECHNICAL EXPERT
ANALYSIS
The Technology should be independently investigated by
questioning of technology and industry experts in the
particular subject matter. The investigation should look at
the following:
Efficacy of the technology
Competitors technology
Future of the industry
QUESTIONS FOR
INDEPENDENT INTELLECTUAL PROPERTY
ANALYSIS
An independent analysis of the Intellectual Property
holdings of the company needs to be made. While this is an
area where HBN affiliates should have the expertise, it is
still important to attempt to get independent verification
of the efficacy and competitive capacity of the involved
I.P.
Uniqueness of the Intellectual
property
Type & description
How old is the I.P.
Owned or licensed, full or partial
Competitors I.P.
I.P. challenges
Dependence of Business on the I.P. holding
History of sale, lease, license or merger acquisition
value of similar I.P.s.
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