Sidoti's Company Sponsored Research Program Demonstrates Significant Demand for and Continued Investor Acceptance of Commissioned Research
*NEW YORK, NY / ACCESSWIRE / July 13, 2023 /* Sidoti & Company, LLC ("Sidoti") recently launched coverage on the 60th participant in the firm's Company Sponsored Research ("CSR") program. In its seventh year, Sidoti's CSR program now accounts for approximately 40 percent of the firm's universe of about 160 small- and micro-cap stocks, with its commissioned research coverage more than doubling in the past 12 months. Companies under CSR coverage comprise a broad array of industries and have an average market capitalization of approximately $500 million.
"We are seeing significant demand for commissioned research as an increasing number of companies, including those with market capitalizations in excess of $1 billion, have lost or are unable to obtain critical research coverage in the face of very challenging brokerage industry dynamics - coupled with the fact that there has been substantial growth in investor acceptance of company sponsored research," said President and CEO Peter T. Sidoti. "Because issues surrounding equity research availability are particularly acute in the small-cap arena, it is only natural that Sidoti, with its nearly 25-year history as a renowned authority on small- and micro-cap stocks, has become a preferred choice of CEOs who wish to reap the many benefits of equity research coverage, but are finding access to it ever more challenging."
Mr. Sidoti credits the success of the CSR program to the credibility, quality and independence of research that remains a Sidoti trademark since 1999. In the face of the changing economic, research market and regulatory environment, he noted that half of CSR clients added in the past 12 months transitioned away from Sidoti's "traditional" (ratings-based) coverage model and now compensate Sidoti for coverage and broader distribution.
The success of the CSR program is also reflected in investor meeting interest in the CSR companies that participate in Sidoti's eight annual small- and micro-cap conferences hosted by its sister company Sidoti Events. In the past four conferences, CSR companies averaged 10 one-on-one meetings with some of the leading investors focused on small- and micro-cap equities.
"Many of the companies that have commissioned research from us first learned of our institutional reach by participating in one of the eight virtual investor events each year," continued Mr. Sidoti. "We believe management teams were impressed by the one-on-one meeting schedules that Sidoti Events was able to arrange, so commissioning research from us was a natural extension of the value proposition."
The CSR program is virtually indistinguishable from Sidoti's "traditional" product, with the only significant difference being the absence of a BUY or NEUTRAL rating. This facilitates the firm's ability to make CSR generally available to all investors, not just its 1,500 institutional relationships. All other elements of equity research offerings are alike, including investment commentary, EPS estimates in the Wall Street consensus, price targets and full financial models and projections. Sidoti's 13 analysts have 200 years of combined experience, publish periodic reports on CSR companies, and regularly discuss their investment merits on the daily sales calls.
For a full list of CSR companies or for more information on Sidoti's Company Sponsored Research program, please visit www.sidoti.com/csr. CSR research can also be accessed on Sidoti's Twitter and LinkedIn pages.
*About Sidoti & Company, LLC*
For nearly 25 years, Sidoti & Company, LLC (www.sidoti.com) has been a premier provider of independent securities research focused on small- and micro-cap companies and the institutions that invest in their securities, with most of its coverage in the $200 million-$5 billion market cap range. Sidoti's coverage universe comprises approximately 160 equities, of which around 40 percent participate in the firm's rapidly growing Company Sponsored Research ("CSR") program. Sidoti, through its sister company Sidoti Events, LLC, is also a leading provider of corporate access through the eight investor conferences it hosts each year. Our small- and microcap-focused nationwide sales force, which has relationships with 1,500 institutional relationships in North America, enables the firm to provide multiple forums for meaningful interaction for small and microcap issuers and investors specifically interested in companies in the sector.
*MEDIA CONTACT:*
Ally Cecil
Sidoti & Company, LLC
*acecil@sidoti.com* or (212) 453-7031
*FOR COMPANIES INTERESTED IN MORE INFORMATION ABOUT SIDOTI'S CSR PROGRAM:*
John DeBono
Director, Corporate Relationships
*jdebono@sidoti.com* or (212) 894-3313
*SOURCE:* Sidoti & Company, LLC
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