This document initiates coverage of Essar Oil Ltd as a buy recommendation. It notes that Essar Oil doubled the capacity and complexity of its Vadinar Refinery in less than 4 years. This allows it to process heavier crude oils at lower costs and produce more valuable products like gasoline and diesel. The analyst estimates earnings per share could grow 140% between FY2012-2013 due to improved margins. With the stock currently trading at 5x forward earnings, it recommends buying Essar Oil at 52 rupees per share with a target price of 78 rupees over the next 12-15 months.

1. Date - 6th June, 2012Date - 6th June, 2012Date - 6 June, 2012
Essar Oil Ltd.Essar Oil Ltd.Essar Oil Ltd.Essar Oil Ltd.Essar Oil Ltd.
CMP - INR 52.00 TP - INR 78.00CMP - INR 52.00 TP - INR 78.00CMP - INR 52.00 TP - INR 78.00
TH - 15 to 18 Months Up Side - 52.94 %TH - 15 to 18 Months Up Side - 52.94 %
We initiate investment note on Essar oil Ltd. as a BUY withWe initiate investment note on Essar oil Ltd. as a BUY withWe initiate investment note on Essar oil Ltd. as a BUY with
(target 6.87x FY13 P/E). At CMP of 52.00 the stock is trading(target 6.87x FY13 P/E). At CMP of 52.00 the stock is trading(target 6.87x FY13 P/E). At CMP of 52.00 the stock is trading
estimated earnings for FY13E & FY14E representing a potentialestimated earnings for FY13E & FY14E representing a potentialestimated earnings for FY13E & FY14E representing a potential
over a period of 15 to 18 months. Key drivers of this growthover a period of 15 to 18 months. Key drivers of this growth
refinery capacity and improvement in complexity structure,refinery capacity and improvement in complexity structure,refinery capacity and improvement in complexity structure,
thought put cost and Yield to shift towards high grade productsthought put cost and Yield to shift towards high grade productsthought put cost and Yield to shift towards high grade products
Investment RationalesInvestment RationalesInvestment Rationales
Doubled the capacity and complexity of refineryDoubled the capacity and complexity of refineryDoubled the capacity and complexity of refinery
Essar oil almost doubled their capacity and complexity of fromEssar oil almost doubled their capacity and complexity of fromEssar oil almost doubled their capacity and complexity of from
mmtpa and 6.1 to 11.8 respectively in less than 4 years with projectmmtpa and 6.1 to 11.8 respectively in less than 4 years with project
Due to this expansion project Vadinar Refinery becomes secondDue to this expansion project Vadinar Refinery becomes secondDue to this expansion project Vadinar Refinery becomes second
refinery in India and one of most complexes in global marketrefinery in India and one of most complexes in global marketrefinery in India and one of most complexes in global market
optimization project, to increase the capacity to 20 mmtpa, onoptimization project, to increase the capacity to 20 mmtpa, onoptimization project, to increase the capacity to 20 mmtpa, on
by Sept, 12by Sept, 12by Sept, 12
Improvement in complexity reduces the throughput costImprovement in complexity reduces the throughput costImprovement in complexity reduces the throughput cost
Vadinar Expansion Project to enable the refinery to process aroundVadinar Expansion Project to enable the refinery to process aroundVadinar Expansion Project to enable the refinery to process around
ultra heavy crude thus reduce the overall cost of crude basketultra heavy crude thus reduce the overall cost of crude basketultra heavy crude thus reduce the overall cost of crude basket
produce higher grades (Euro-IV&V) products to cater the demandproduce higher grades (Euro-IV&V) products to cater the demand
international markets.international markets.international markets.
Yield to shift towards high grade productsYield to shift towards high grade productsYield to shift towards high grade products
In terms of product yield, the Vadinar Refinery now has theIn terms of product yield, the Vadinar Refinery now has theIn terms of product yield, the Vadinar Refinery now has the
higher value, high-quality products, including gasoline (petrol)higher value, high-quality products, including gasoline (petrol)higher value, high-quality products, including gasoline (petrol)
conforming to Euro IV and Euro V norms, that have growingconforming to Euro IV and Euro V norms, that have growingconforming to Euro IV and Euro V norms, that have growing
domestic and international markets. Close to 80% of its productiondomestic and international markets. Close to 80% of its productiondomestic and international markets. Close to 80% of its production
valuable light and middle distillates, and 50% of the productionvaluable light and middle distillates, and 50% of the production
gasoline (petrol) will meet Euro IV and Euro V specifications.gasoline (petrol) will meet Euro IV and Euro V specifications.gasoline (petrol) will meet Euro IV and Euro V specifications.
markets such as Australia, New Zealand and north-west Europemarkets such as Australia, New Zealand and north-west Europemarkets such as Australia, New Zealand and north-west Europe
a Price target of 78.00a Price target of 78.00a Price target of 78.00
trading at 4.58x and 1.89x its Market Datatrading at 4.58x and 1.89x its Market Data
Sctor Integrated Oil & Gas
trading at 4.58x and 1.89x its
potential upside of 52.94%
Sctor Integrated Oil & Gas
potential upside of 52.94%
Sctor Integrated Oil & Gas
Sensex 16454.30
potential upside of 52.94%
growth are a expansion in
Sensex 16454.30
Equity Shares (Cr) 138.23growth are a expansion in
structure, drastic reduction in
Equity Shares (Cr) 138.23
structure, drastic reduction in
Equity Shares (Cr) 138.23
Face Value (INR) 10structure, drastic reduction in
products.
Face Value (INR) 10
52-wk HI/LO (INR) 99/45products. 52-wk HI/LO (INR) 99/45products. 52-wk HI/LO (INR) 99/45
O/S shares (Cr) 138.23O/S shares (Cr) 138.23O/S shares (Cr) 138.23
Market Cap (Cr) 7187.80Market Cap (Cr) 7187.80
Beta 1.46Beta 1.46Beta 1.46
from 10.5 mmtpa to 18 Y/E Mar Cr FY10A FY11A FY12E FY13Efrom 10.5 mmtpa to 18 Y/E Mar Cr FY10A FY11A FY12E FY13Efrom 10.5 mmtpa to 18
project cost of Rs 8300 cr.
Y/E Mar Cr FY10A FY11A FY12E FY13E
Net Sales 37318 47905 54111 68777project cost of Rs 8300 cr.
second largest single location
Net Sales 37318 47905 54111 68777
OP 1066 2425 2352 4442second largest single location OP 1066 2425 2352 4442second largest single location
market. On the other hand
OP 1066 2425 2352 4442
Net Profit 29 654 500 1569market. On the other hand Net Profit 29 654 500 1569market. On the other hand
on schedule to complete
Net Profit 29 654 500 1569
GRM $ 5.56 6.87 6.97 8.67
on schedule to complete
GRM $ 5.56 6.87 6.97 8.67
EPS 0.24 4.73 3.61 11.35
on schedule to complete EPS 0.24 4.73 3.61 11.35EPS 0.24 4.73 3.61 11.35
CEPS 6.22 10.02 9.61 19.98CEPS 6.22 10.02 9.61 19.98
P/E 572.1 26.3 14.4 4.6P/E 572.1 26.3 14.4 4.6
around 80% of heavy and
P/E 572.1 26.3 14.4 4.6
P/BV 3.61 2.63 1.02 0.84around 80% of heavy and P/BV 3.61 2.63 1.02 0.84around 80% of heavy and
basket and make capable to
P/BV 3.61 2.63 1.02 0.84
EV/EBITDA(x) 13.34 10.36 7.22 4.28basket and make capable to EV/EBITDA(x) 13.34 10.36 7.22 4.28
M Cap / Sales 0.45 0.35 0.13 0.10
basket and make capable to
demand of domestic & M Cap / Sales 0.45 0.35 0.13 0.10
demand of domestic & M Cap / Sales 0.45 0.35 0.13 0.10
EV/CE(x) 1.26 1.11 0.69 0.62EV/CE(x) 1.26 1.11 0.69 0.62
Holding FY12Q4 No Of Shares (%)
the flexibility to produce
Holding FY12Q4 No Of Shares (%)
Promoter Group (A) 218020941 61.39the flexibility to produce Promoter Group (A) 218020941 61.39the flexibility to produce
(petrol) and gas oil (diesel)
Promoter Group (A) 218020941 61.39
(1) Institutions 48334264 13.61(petrol) and gas oil (diesel) (1) Institutions 48334264 13.61(petrol) and gas oil (diesel)
growing acceptance in both
(1) Institutions 48334264 13.61
(2) Non-Institutions 88789109 25.00growing acceptance in both (2) Non-Institutions 88789109 25.00
Total 1365667086 100.00
growing acceptance in both
production will now be of
Total 1365667086 100.00
production will now be of
Total 1365667086 100.00
production will now be of
production of gas oil (diesel) and Analyst Detailsproduction of gas oil (diesel) and
EOL is targeting newer
Analyst Details
EOL is targeting newer
Analyst Details
Pushkaraj JamsandekarEOL is targeting newer
Europe.
Pushkaraj Jamsandekar
Contact - +09869139507Europe. Contact - +09869139507Europe. Contact - +09869139507
Mail ID - pushkarajjamsandekar@yahoo.comMail ID - pushkarajjamsandekar@yahoo.comMail ID - pushkarajjamsandekar@yahoo.com
Perception Research & AdvisoryPerception Research & Advisory

2. Crude Mix & Sourcing StrategyCrude Mix & Sourcing StrategyCrude Mix & Sourcing Strategy
The capacity expansion and complexity enhancement gives theThe capacity expansion and complexity enhancement gives the
capability to process much heavier crude diet. The share of ultracapability to process much heavier crude diet. The share of ultracapability to process much heavier crude diet. The share of ultra
currently constitute 20% of crude basket, will go up to 60%; andcurrently constitute 20% of crude basket, will go up to 60%; andcurrently constitute 20% of crude basket, will go up to 60%; and
share of heavy and ultra heavy crude will go up to 80% of theshare of heavy and ultra heavy crude will go up to 80% of theshare of heavy and ultra heavy crude will go up to 80% of the
basket. The company has already entered into long-term crudebasket. The company has already entered into long-term crudebasket. The company has already entered into long-term crude
global suppliers, including several national oil companies from Latinglobal suppliers, including several national oil companies from Latinglobal suppliers, including several national oil companies from Latin
ValuationValuationValuation
We expect that the improvement in complexity reduce theWe expect that the improvement in complexity reduce the
shoot-up the GRM and EBITDA by 26% and 73% respectively over
We expect that the improvement in complexity reduce the
shoot-up the GRM and EBITDA by 26% and 73% respectively overshoot-up the GRM and EBITDA by 26% and 73% respectively over
to FY13E. Presently stock is traded at 5x to FY13 EPS. On theto FY13E. Presently stock is traded at 5x to FY13 EPS. On theto FY13E. Presently stock is traded at 5x to FY13 EPS. On the
model we expect that the top and bottom line numbers will growmodel we expect that the top and bottom line numbers will growmodel we expect that the top and bottom line numbers will grow
respectively on yoy bases (FY12 to FY13) . We recommend to BUYrespectively on yoy bases (FY12 to FY13) . We recommend to BUYrespectively on yoy bases (FY12 to FY13) . We recommend to BUY
52rs with the target price of 78rs for the time horizon of 12 to52rs with the target price of 78rs for the time horizon of 12 to52rs with the target price of 78rs for the time horizon of 12 to
the Vadinar Refinery thethe Vadinar Refinery the
ultra heavy crude, whichultra heavy crude, whichultra heavy crude, which
and as a result the overalland as a result the overalland as a result the overall
the refinery's total crudethe refinery's total crudethe refinery's total crude
crude sourcing contract withcrude sourcing contract withcrude sourcing contract with
Latin AmericaLatin AmericaLatin America
through put cost andthrough put cost and
over the period of FY11
through put cost and
over the period of FY11over the period of FY11
the basis of our financialthe basis of our financialthe basis of our financial
grow at 44% and 140%grow at 44% and 140%grow at 44% and 140%
BUY Essar oil at CMR ofBUY Essar oil at CMR ofBUY Essar oil at CMR of
15 months.15 months.15 months.

3. Financials And ProjectionsFinancials And ProjectionsFinancials And Projections
P&L Account FY10A FY11A FY12E FY13E Cash FlowP&L Account FY10A FY11A FY12E FY13E Cash Flow
Net Sales 37318 47905 54111 68777 Profit Before TaxNet Sales 37318 47905 54111 68777 Profit Before TaxNet Sales 37318 47905 54111 68777 Profit Before Tax
Growth - 28.4% 13.0% 27.1% AdjustmentGrowth - 28.4% 13.0% 27.1% Adjustment
Raw Material Consumed 34562 44093 50038 61837 Changes In WCRaw Material Consumed 34562 44093 50038 61837 Changes In WCRaw Material Consumed 34562 44093 50038 61837 Changes In WC
Other Refining Expenses 1691 1386 1721 2498 CF after changes in WCOther Refining Expenses 1691 1386 1721 2498 CF after changes in WC
Operating Profit 1066 2425 2352 4442 CF - Operating ActivitiesOperating Profit 1066 2425 2352 4442 CF - Operating ActivitiesOperating Profit 1066 2425 2352 4442 CF - Operating Activities
Other Income 872 354 354 354 CF - Investing ActivitiesOther Income 872 354 354 354 CF - Investing Activities
EBITDA 1938 2779 2706 4796 CF - Financing ActivitiesEBITDA 1938 2779 2706 4796 CF - Financing ActivitiesEBITDA 1938 2779 2706 4796 CF - Financing Activities
EBITDA Margin 4.6% 5.2% 4.6% 6.3% Net Cash In/OutEBITDA Margin 4.6% 5.2% 4.6% 6.3% Net Cash In/Out
Interest 1181 1220 1252 1591 Closing CashInterest 1181 1220 1252 1591 Closing Cash
PBDT 757 1559 1454 3205PBDT 757 1559 1454 3205
PBDT Margin 1.8% 2.9% 2.4% 4.2%PBDT Margin 1.8% 2.9% 2.4% 4.2%
Depreciation 728 731 829 1193 Ratios & AssumptionsDepreciation 728 731 829 1193 Ratios & AssumptionsDepreciation 728 731 829 1193 Ratios & Assumptions
Profit Before Tax 29 828 625 2011 Adjusted EPS (Rs.)Profit Before Tax 29 828 625 2011 Adjusted EPS (Rs.)
PBT Margin 0.1% 1.6% 1.1% 2.7% Adjusted PE (x)PBT Margin 0.1% 1.6% 1.1% 2.7% Adjusted PE (x)PBT Margin 0.1% 1.6% 1.1% 2.7% Adjusted PE (x)
Provision for Tax -1 175 125 442 Gross Refining MarginProvision for Tax -1 175 125 442 Gross Refining Margin
Profit After Tax 29 654 500 1569 PCE(x)Profit After Tax 29 654 500 1569 PCE(x)Profit After Tax 29 654 500 1569 PCE(x)
PAT Margin 0.1% 1.2% 0.8% 2.1% Price / Book Value(x)PAT Margin 0.1% 1.2% 0.8% 2.1% Price / Book Value(x)
EV/Net Sales(x)EV/Net Sales(x)EV/Net Sales(x)
EV/EBITDA(x)EV/EBITDA(x)
Balance Sheet FY10A FY11A FY12E FY13E EV/EBIT(x)Balance Sheet FY10A FY11A FY12E FY13E EV/EBIT(x)
Net Fixed Assets 12309 11744 12588 15636 EV/CE(x)Net Fixed Assets 12309 11744 12588 15636 EV/CE(x)
Capital Work in Progress 4319 8423 8423 8423 M Cap / SalesCapital Work in Progress 4319 8423 8423 8423 M Cap / Sales
Investments 203 103 103 103 ROA (%)Investments 203 103 103 103 ROA (%)Investments 203 103 103 103 ROA (%)
Current assets ROE (%)Current assets ROE (%)
Inventories 3969 5749 6541 8314 ROCE (%)Inventories 3969 5749 6541 8314 ROCE (%)Inventories 3969 5749 6541 8314 ROCE (%)
Sundry Debtors 1957 2367 2769 3520 Asset Turnover(x)Sundry Debtors 1957 2367 2769 3520 Asset Turnover(x)
Cash and Bank 1351 2959 3633 3954 Inventory Turnover(x)Cash and Bank 1351 2959 3633 3954 Inventory Turnover(x)Cash and Bank 1351 2959 3633 3954 Inventory Turnover(x)
Other Current Assets 721 574 595 756 CEPS (Rs)Other Current Assets 721 574 595 756 CEPS (Rs)
Loans and Advances 414 662 785 998 Core AssumptionsLoans and Advances 414 662 785 998 Core AssumptionsLoans and Advances 414 662 785 998 Core Assumptions
Total Current Assets 8413 12311 14323 17541 Capacity bbl/dTotal Current Assets 8413 12311 14323 17541 Capacity bbl/d
Current Liabilities Capacity UtilizationCurrent Liabilities Capacity Utilization
Creditors 10161 11288 12218 15530 DollarCreditors 10161 11288 12218 15530 DollarCreditors 10161 11288 12218 15530 Dollar
Other 56 197 214 272 Working DaysOther 56 197 214 272 Working Days
Total Liabilities 10217 11485 12432 15802 Avg Crude BasketTotal Liabilities 10217 11485 12432 15802 Avg Crude BasketTotal Liabilities 10217 11485 12432 15802 Avg Crude Basket
Net Current Assets -1804 826 1891 1739 Product Clash - MMTPANet Current Assets -1804 826 1891 1739 Product Clash - MMTPA
Long Term debt 10354 14547 15967 17295 Light distilleriesLong Term debt 10354 14547 15967 17295 Light distilleriesLong Term debt 10354 14547 15967 17295 Light distilleries
Minorities & Deferred Tax 1 -11 0 0 Meddle distilleriesMinorities & Deferred Tax 1 -11 0 0 Meddle distilleries
Net Worth 4674 6538 7038 8606 Heavy distilleriesNet Worth 4674 6538 7038 8606 Heavy distilleriesNet Worth 4674 6538 7038 8606 Heavy distilleries
Finance Through Throughput - MMTPAFinance Through Throughput - MMTPA
Share Capital 1218 1382 1382 1382 Light CrudeShare Capital 1218 1382 1382 1382 Light CrudeShare Capital 1218 1382 1382 1382 Light Crude
Total Reserves 2302 5156 5655 7224 Heavy CrudeTotal Reserves 2302 5156 5655 7224 Heavy Crude
Net Worth 4674 6538 7038 8606 Ultra Heavy CrudeNet Worth 4674 6538 7038 8606 Ultra Heavy Crude
Source: Perception ResearchSource: Perception ResearchSource: Perception Research
FY10A FY11A FY12E FY13EFY10A FY11A FY12E FY13E
Profit Before Tax 29 828 625 2011Profit Before Tax 29 828 625 2011Profit Before Tax 29 828 625 2011
1379 1477 2081 27851379 1477 2081 2785
-645 -926 -263 788-645 -926 -263 788-645 -926 -263 788
CF after changes in WC 762 1379 2442 5584CF after changes in WC 762 1379 2442 5584
Operating Activities 769 1219 2317 5142Operating Activities 769 1219 2317 5142Operating Activities 769 1219 2317 5142
Investing Activities -2075 -5756 -1673 -4241Investing Activities -2075 -5756 -1673 -4241
Financing Activities 1331 4484 -132 -1253Financing Activities 1331 4484 -132 -1253Financing Activities 1331 4484 -132 -1253
24 -53 512 -35324 -53 512 -353
215 162 674 321215 162 674 321
Ratios & Assumptions FY10A FY11A FY12E FY13ERatios & Assumptions FY10A FY11A FY12E FY13ERatios & Assumptions FY10A FY11A FY12E FY13E
Adjusted EPS (Rs.) 0.24 4.73 3.61 11.35Adjusted EPS (Rs.) 0.24 4.73 3.61 11.35
572.06 26.32 14.39 4.58572.06 26.32 14.39 4.58572.06 26.32 14.39 4.58
Gross Refining Margin - $ 5.56 6.87 6.97 8.67Gross Refining Margin - $ 5.56 6.87 6.97 8.67
22.24 12.43 5.41 2.6022.24 12.43 5.41 2.6022.24 12.43 5.41 2.60
Price / Book Value(x) 3.61 2.63 1.02 0.84Price / Book Value(x) 3.61 2.63 1.02 0.84
0.69 0.60 0.36 0.300.69 0.60 0.36 0.300.69 0.60 0.36 0.30
13.34 10.36 7.22 4.2813.34 10.36 7.22 4.28
21.38 14.06 10.40 5.7021.38 14.06 10.40 5.70
1.26 1.11 0.69 0.621.26 1.11 0.69 0.62
0.45 0.35 0.13 0.100.45 0.35 0.13 0.10
0.16 3.14 2.00 5.160.16 3.14 2.00 5.160.16 3.14 2.00 5.16
0.71 11.66 7.36 20.060.71 11.66 7.36 20.06
6.44 8.04 6.44 10.286.44 8.04 6.44 10.286.44 8.04 6.44 10.28
Asset Turnover(x) 3.12 3.82 4.01 4.25Asset Turnover(x) 3.12 3.82 4.01 4.25
Inventory Turnover(x) 13.63 10.93 9.68 10.18Inventory Turnover(x) 13.63 10.93 9.68 10.18Inventory Turnover(x) 13.63 10.93 9.68 10.18
6.22 10.02 9.61 19.986.22 10.02 9.61 19.98
Core AssumptionsCore AssumptionsCore Assumptions
289342 300530 300000 375000289342 300530 300000 375000
Capacity Utilization 129% 141% 126% 100%Capacity Utilization 129% 141% 126% 100%
47.43 45.55 49.50 49.0047.43 45.55 49.50 49.0047.43 45.55 49.50 49.00
342 360 325 360342 360 325 360
Avg Crude Basket 70.01 85.53 98.57 88.06Avg Crude Basket 70.01 85.53 98.57 88.06Avg Crude Basket 70.01 85.53 98.57 88.06
MMTPAMMTPA
2.96 3.75 3.49 3.942.96 3.75 3.49 3.942.96 3.75 3.49 3.94
Meddle distilleries 6.40 6.37 5.30 8.95Meddle distilleries 6.40 6.37 5.30 8.95
Heavy distilleries 3.32 3.78 3.65 5.47Heavy distilleries 3.32 3.78 3.65 5.47Heavy distilleries 3.32 3.78 3.65 5.47
MMTPAMMTPA
3.62 5.21 3.70 2.763.62 5.21 3.70 2.763.62 5.21 3.70 2.76
6.87 6.53 7.56 4.796.87 6.53 7.56 4.79
Ultra Heavy Crude 3.01 3.03 1.94 10.87Ultra Heavy Crude 3.01 3.03 1.94 10.87

4. Investment Criteria & DisclaimerInvestment Criteria & DisclaimerInvestment Criteria & Disclaimer
Rating Low RiskRating Low RiskRating Low Risk
Buy Over 15 %Buy Over 15 %
Accumulate 10 % to 15 %Accumulate 10 % to 15 %
Hold 0% to 10 %Hold 0% to 10 %Hold 0% to 10 %
Sell Negative Returns Negative ReturnsSell Negative Returns Negative Returns
Risk Description Predictability of Earnings / Dividends / Price VolatilityRisk Description Predictability of Earnings / Dividends / Price VolatilityRisk Description Predictability of Earnings / Dividends / Price Volatility
Low RiskLow Risk
Medium RiskMedium RiskMedium Risk
High RiskHigh Risk
Analyst DetailsAnalyst DetailsAnalyst Details
Pushkaraj JamsandekarPushkaraj Jamsandekar
MMS - FinanceMMS - FinanceMMS - Finance
Contact - +09869139507Contact - +09869139507Contact - +09869139507
Email ID - pushkarajjamsandekar@yahoo.comEmail ID - pushkarajjamsandekar@yahoo.com
Perception Research & AdvisoryPerception Research & AdvisoryPerception Research & Advisory
DisclaimerDisclaimerDisclaimer
This document is for private circulation and information purposes onlyThis document is for private circulation and information purposes onlyThis document is for private circulation and information purposes only
taxation or legal advice. Investors should seek financial advice regarding thetaxation or legal advice. Investors should seek financial advice regarding the
investment strategies discussed or recommended in this publication andinvestment strategies discussed or recommended in this publication andinvestment strategies discussed or recommended in this publication and
future prospects may not be realized. In no circumstances it be used or consideredfuture prospects may not be realized. In no circumstances it be used or considered
offer to buy or sell the securities mentioned in it. We and our affiliates, officers,offer to buy or sell the securities mentioned in it. We and our affiliates, officers,offer to buy or sell the securities mentioned in it. We and our affiliates, officers,
involved in the preparation or issuance of this material may: (a) from time toinvolved in the preparation or issuance of this material may: (a) from time to
sell the securities thereof, of company(ies) mentioned herein or (b) besell the securities thereof, of company(ies) mentioned herein or (b) besell the securities thereof, of company(ies) mentioned herein or (b) be
securities and earn brokerage or other compensation or act as a marketsecurities and earn brokerage or other compensation or act as a marketsecurities and earn brokerage or other compensation or act as a market
company(ies) dis-cussed herein or act as an advisor or lender or borrower tocompany(ies) dis-cussed herein or act as an advisor or lender or borrower to
interest with respect to any recommendation and re-lated informationinterest with respect to any recommendation and re-lated informationinterest with respect to any recommendation and re-lated information
publication may have been taken from trade and statistical services and otherpublication may have been taken from trade and statistical services and other
does not guarantee that such information is accurate or complete and it shoulddoes not guarantee that such information is accurate or complete and it shoulddoes not guarantee that such information is accurate or complete and it should
pressed reflects judgments at this date and are subject to change withoutpressed reflects judgments at this date and are subject to change without
investment can be substantial. You should carefully consider whether tradinginvestment can be substantial. You should carefully consider whether tradinginvestment can be substantial. You should carefully consider whether trading
your experience, objectives, financial resources and other relevant circumstancesyour experience, objectives, financial resources and other relevant circumstances
Source: Perception ResearchSource: Perception Research
Medium Risk High RiskMedium Risk High RiskMedium Risk High Risk
Over 20% Over 25%Over 20% Over 25%
15% to 20% 20% to 25%15% to 20% 20% to 25%
0% to 15% 0% to 20%0% to 15% 0% to 20%0% to 15% 0% to 20%
Negative Returns Negative ReturnsNegative Returns Negative Returns
Predictability of Earnings / Dividends / Price VolatilityPredictability of Earnings / Dividends / Price VolatilityPredictability of Earnings / Dividends / Price Volatility
High predictability / Low volatilityHigh predictability / Low volatility
Moderate predictability / volatilityModerate predictability / volatilityModerate predictability / volatility
Low predictability / High volatilityLow predictability / High volatility
and should not be regarded as an investment,and should not be regarded as an investment,and should not be regarded as an investment,
the appropriateness of investing in any securities orthe appropriateness of investing in any securities or
and should under-stand that statements regardingand should under-stand that statements regardingand should under-stand that statements regarding
considered as an offer to sale or a solicitation of anyconsidered as an offer to sale or a solicitation of any
officers, directors and employees including personsofficers, directors and employees including personsofficers, directors and employees including persons
to time, have long or short positions in, and buy orto time, have long or short positions in, and buy or
engaged in any other transaction involving suchengaged in any other transaction involving suchengaged in any other transaction involving such
market maker in the financial instruments of themarket maker in the financial instruments of themarket maker in the financial instruments of the
to such company or have other potential conflict ofto such company or have other potential conflict of
and opinions. The information contained in thisand opinions. The information contained in thisand opinions. The information contained in this
other sources, which we believe are reliable. Weother sources, which we believe are reliable. We
should not be relied upon as such. Any opinion ex-should not be relied upon as such. Any opinion ex-should not be relied upon as such. Any opinion ex-
without notice. Caution: Risk of loss in trading &without notice. Caution: Risk of loss in trading &
trading & investment is appropriate for you in light oftrading & investment is appropriate for you in light oftrading & investment is appropriate for you in light of
circumstances.circumstances.