Dutton – a paid-for, independent, investment research firm – received $25,000 from MBKR for two research reports with coverage commencing on Jan. 16, 2007. Many flags go up when companies go out and pay firms for “independent” research reports, especially when the results are positive and coordinate with a 52-week low.
How can a research report be independent if it’s paid-for? I wonder how many negative company reports Dutton publishes for its annual fee of $39,500 … my guess is not too many mainly because what CEO in his right mind would pay that amount of money for negative publicity.
Dutton states that its principals and analysts are prohibited from owning or trading in securities of covered companies, and the views expressed in each research report accurately reflect the analyst’s personal views about the subject securities or issuer. Neither the analyst’s compensation nor the compensation received by Dutton is in any way related to the specific ratings or views contained in this research report or note.