Research Disclosures
Analyst Certification
The Hilliard Lyons research analyst(s) named on the front page of a research report certifies that the views expressed in the report accurately reflect their personal views about the subject. They also certify that they have not been, are not, and will not be receiving direct or indirect compensation in exchange for expressing the specific points of view in this report.
Important Disclosures
Hilliard Lyons’ analysts or members of their households typically have positions in the companies they follow, which may include, but are not limited to, common stock, options, rights, warrants, or futures contracts. They may not engage in buying or selling securities contrary to their recommendation.
Hilliard Lyons' analysts receive bonus compensation based on Hilliard Lyons' profitability. They do not receive direct payments from investment banking activity.
Investment Ratings
Buy: We believe the stock has significant total return potential (over 20%) in the coming 12 months.
Long-term Buy: We believe the stock is an above average holding in its sector, and expect solid total returns to be realized over a longer time frame than our Buy rated issues.
Neutral: We believe the stock is an average holding in its sector, is currently fairly valued, and may be used as a source of funds if better opportunities arise.
Underperform: We believe the stock is vulnerable to a price decline in the next 12 months.
Suitability Ratings
- A large cap, core holding with a solid history
- A historically secure company which could be cyclical, has a shorter history than a “1” or is subject to event-driven setbacks.
- An above average risk/reward ratio could be due to small size, lack of product diversity, sporadic earnings or high leverage.
- Speculative, due to small size, inconsistent profitability, erratic revenue, volatility, low trading volume or a narrow customer or product base.
Price Charts
In accordance with FINRA Rule 2711, Hilliard Lyons has made available price charts which depict our stock recommendations and price targets over the most recent three year period for each subject company under coverage which has been assigned a rating for more than one year.
To view a price chart of a particular stock, please click here.
The following are/were a client of Hilliard Lyons in the past 12 months, received non-investment banking securities-related services and Hilliard Lyons received compensation for those services:
- Ashland, Inc.
- Comerica
- Community Trust Bancorp
- First Financial Bancorp
- German American Bancorp
- HopFed Bancorp, Inc.
- Huntington Bancshares
- Old National Bancorp
- SY Bancorp
- Tower Financial
- US Bancorp
- Vectren
Hilliard Lyons acted as a manager or co-manager of an offering of securities of the following in the past 12 months:
- Artesian Resources Corp.
- First Potomac Realty Trust
- Gladstone Commercial Corp.
- LTC Properties
- Whitestone REIT
Hilliard Lyons has participated as an underwriter of an offering of securities of the following in the past 12 months:
Hilliard Lyons has participated in a selling group for an offering of securities of the following in the past 12 months:
Hilliard Lyons received investment banking compensation from the following in the past 12 months:
- Artesian Resources Corp.
- First Potomac Realty Trust
- Gladstone Commercial Corp.
- LTC Properties
- Whitestone REIT
Hilliard Lyons expects to receive investment banking compensation from the following in the coming 3 months:
Hilliard Lyons and/or related persons may be deemed a director and an affiliate of:
Gladstone Commercial Corporation (GOOD) and Gladstone Investment Corporation (GAIN) share the same board and management.
As of January 9, 2012, Hilliard Lyons’ customers owned at least 5% of the outstanding common stock of:
- Community Trust Bancorp
- Delta Natural Gas
- German American Bancorp
- Gladstone Commercial Corp.
- Gladstone Investment Corp.
- HopFed Bancorp, Inc.
- MHI Hospitality Corp.
- National Health Investors
- Whitestone REIT
As of January 9, 2012, Hilliard Lyons and/or its affiliates beneficially own (as defined for purposes of Section 13d of the 1934 Act) 1% or more of the common stock of:
- First Trust Consumer Discretionary AlphaDEX
- South Jersey Industries, Inc.
- WGL Holdings, Inc.
As of January 9, 2012, Hilliard Lyons or its affiliates beneficially own (as defined for purposes of Section 13d of the 1934 Act) 1% or more of SY Bancorp Capital Trust II pfd 10%.
J.J.B. Hilliard, W.L. Lyons, LLC (Hilliard Lyons) Research Department and Unit Investment Trust Department (UIT) assisted First Trust Portfolios LP (sponsor of First Trust Consumer Discretionary AlphaDEX Fund, First Trust Consumer Staples AlphaDEX, First Trust ISE Global Engineering and Construction Index Fund, First Trust NYSE ARCA Biotech Index Fund, First Trust Healthcare AlphaDEX ETF and First Trust Technology AlphaDEX) in the development of Hilliard Lyons proprietary Unit Investment Trusts (UITs).
Hilliard Lyons leases office space in a Simon Property Group joint venture lifestyle center.
For a discussion of valuation method and risks to target price, please see our stand-alone research reports, call us at 800-444-1854 ext. 8820, or send a request via e-mail to RsLib@hilliard.com.
| Hilliard Lyons Recommended Issues | Investment Banking Provided in Past 12 Mo. | |||
| Rating | # of Stocks Covered | % of Stocks Covered | Banking | No Banking |
| Buy | 56 | 29% | 4% | 96% |
| Long-term Buy | 40 | 21% | 8% | 93% |
| Neutral | 94 | 49% | 0% | 100% |
| Underperform | 1 | 1% | 0% | 100% |
| Figures may not add due to rounding. | ||||
| As of January 9, 2012. | ||||
Other Disclosures
Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. Employees of J.J.B. Hilliard, W.L. Lyons, LLC or its affiliates may, at times, release written or oral commentary, technical analysis or trading strategies that differ form the opinions expressed in its research reports.
J.J.B. Hilliard, W.L. Lyons, LLC is a multi-dsiciplined financial services firm that regularly seeks investment banking assignments and compensation from issuers for services including, but not limited to, acting as an underwriter in an offering or financial advisor in a merger or acquisition, or serving as placement agent in private transactions.
The information herein has been obtained from sources we believe to be reliable but is not guaranteed and does not purport to be a complete statement of all material factors. This is for informational purposes and is not a solicitation of orders to purchase or sell securities. Reproduction is forbidden unless authorized. All rights reserved.
Hilliard Lyons Closed-End Fund Disclosures
Important Disclosures
Hilliard Lyons' analysts receive bonus compensation based on Hilliard Lyons' profitability. They do not receive direct payments from investment banking activity.
Risk factors vary from fund to fund. Not every risk factor below will pertain to each fund. Based on these risk factors, not every fund may be suitable for all investors. Investors must make their own decisions based on their specific investment objectives and financial circumstances.
A closed-end fund has both a net asset value (NAV) and a price, and these two values may differ. A closed-end fund's NAV is the total value of the securities in the portfolio minus any liabilities, divided by the fund's number of common shares outstanding. The fund's price is the market value at which the fund trades on an exchange. Changes in investor demand for a particular closed-end fund may cause the fund to trade at a price greater (lower) than the NAV; in that case the fund is trading at a premium (discount) to its NAV. Since a funds' premium or discount to its NAV may narrow or widen, a closed-end funds' price return may differ from its NAV return.
Investments that are concentrated in a specific sector or industry may be subject to a higher degree of market risk than investments that are more diversified. Investments concentrated in specific industries or sectors increases risk associated with any single economic, political or regulatory development. This may result in greater price volatility.
The use of leverage may cause a Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or to meet segregation requirements. This may cause a Fund to be more volatile, which may increase the risk of investment loss.
Investing in fixed income securities involves certain risks such as market risk if sold prior to maturity and credit risk especially if investing in high yield bonds, which have lower ratings and are subject to greater volatility. All fixed income investments may be worth less than original cost upon redemption or maturity. Income from municipal securities is generally free from federal taxes and state taxes for residents of the issuing state. While the interest income is tax-free, capital gains, if any will be subject to taxes.
HIgh-yield bonds typically have a lower credit rating than other bonds and generally involve a greater risk to principal than higher rated bonds.
There are special risks associated with investing in preferred securities. Preferred securities generally offer no voting rights with respect to the issuer. Preferred securities are generally subordinated to bonds or other debt instruments in an issuer's capital structure, subjecting them to a greater risk on non-payment than more senior securities. In addition, the issue may be callable which may negatively impact the return of the security. Preferred dividends are not guaranteed and are subject to deferral or elimination.
Income for some investors may be subject to the federal Alternative Minimum Tax (AMT).
Certain funds may use derivative instruments for hedging purposes or as part of their investment strategy. Use of these instruments may involve certain costs and risks such as liquidity risk (the risk that illiquid securities may not be able to be sold at an advantageous time or price), interest rate risk (the risk that the value of fixed-income securities will decline if interest rates rise), market risk (the risk that the market price of securities may go up or down, sometimes rapidly or unpredictably), credit risk (the risk that the counterparty to a derivatives contract, repurchase agreement or a loan of portfolio securities, may be unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations), management risk (the risk that investment management decisions may not produce the desired results) and the risk that a fund could not close out a position when it would be most advantageous to do so. Portfolios investing in derivatives could lose more than the principal amount invested in those instruments.
Total returns assume reinvestment of all distributions, including dividends and capital gains. Reinvestment does not assure a profit or protect against a loss in declining markets. Total returns do not include commissions, fees, other transaction variables or the effects of taxation. Past performance does not guarantee or predict future results.
Certain funds may use options. Options investing involves a number of inherent risks and is not suitable for everyone.
Dividends are not guaranteed and are subject to change or elimination.
All figures are subject to market fluctuation and change.
Suitability Ratings
- Conservative: Fund invests solely in or in a combination of what are believed to be diversified, financially stable common stocks and/or high-quality Government/Municipal/Corporate fixed income securities, both U.S. and/or foreign.
- Average Risk: Fund invests in a broad mix of equity and/or fixed income instruments, both U.S. and/or foreign. Asset classes weighted toward higher quality issues, though lesser quality issues may be present.
- Above Average Risk: Fund invests in wide range of assets with respect to quality and/or capitalization. Asset classes may be single or multiple and represent a wide range in asset quality.
- Speculative: Fund investments may be sector-, quality-, or capitalization-focused. Equity investments tend to be of lesser quality, while fixed income instruments typically rank below investment grade.
All funds may employ leverage to enchance returns. Derivatives may be used to hedge risk and/or generate current income.
Ratings are based on a fund's holdings; see "Discussion" for additional fund specific information.
Investment Ratings
Buy: We believe the closed-end fund has significant total return potential in the coming 12 months.
Long-term Buy: We believe the closed-end fund is an above average holding in its sector, and expect solid returns to be realized over a longer time frame than our Buy rated issues.
Neutral: We believe the closed-end fund is an average holding in its sector, is currently fully valued, and may be used as a source of funds if better opportunities arise.
Underperform: We believe the closed-end fund is vulnerable to a price decline in the next 12 months.
Other Disclosures
Hilliard Lyons sells mutual funds that may be part of the same fund families as the closed end funds described. In addition to the compensation received from the sale of mutual funds, distributors, investment advisers or other entities affiliated with mutual funds ("sponsors") may make payments to Hilliard Lyons to support our training, back office operations, educational presentations and sales support activities provided to our Financial Consultants. These payments are generally referred to as revenue sharing payments. The following mutual fund sponsors have made revenue sharing payments to Hilliard Lyons as of December 31, 2009: American Funds, Federated Funds, Franklin Templeton, Columbia Funds, John Hancock and Hartford Funds. Other service providers not listed here may pay directly for educational seminars for Financial Consultants and/or clients.
Hilliard Lyons may earn compensation for providing the following services: acting as an investment adviser; providing fund accounting, transfer agency, and custody services; or providing omnibus record keeping and associated shareholder or administrative services to various mutual funds. Most of these fees are earned on a percentage-of-assets or number of positions basis and paid by the mutual funds or their affiliates. Please refer to the specific mutual fund's prospectus for more detailed disclosure concerning these payments.