Shakti Met-Dor Ltd - 210.00 Rs

Incorporated in 1988, Shakti Met-Dor Ltd (SMDL) has established itself as India’s leading manufacturer of Performance Steel Doors. It offers a total door set solution, which includes design manufacturing, supply and installation of steel door sets. It primarily caters to infrastructure industry, information technology, power, textile, hotel, ITES, BPO, pharma, food processing and healthcare sector. Company’s product line includes complete range of general doors, scientific doors, fire doors, pure stainless steel doors, commercial doors and other special application doors that have been developed in consultation with leading architects, consultants and specifiers. By offering effective use of vision panels, hardware, ironmongery and unlimited range of paint finishes, SMDL products are far superior to other doors using traditional materials. Its special stainless steel doors are designed to meet harsh environmental exposure to chemicals, water, steam, laboratories, bottling plants, food processing plants, hospital surgery rooms and all humid environments. On the other hand their scientific door surpasses the most stringent requirements associated with industries like pharmaceuticals, hospitals and at the same time being aesthetic also. This is proven by the fact that Shakti doors are installed in the plants/offices of corporate biggies like Pfizer, Cadilla, Shanta Bio, Dr. Reddy’s, Cipla, GE Shipping, Nuclear Power Corp, HSBC, Citibank, DLF group, British High commission, Oberoi Hotels, Holiday inn, Bank of America etc. Incidentally, it has also been exporting Shakti Doors to other countries in the Middle East, Sri Lanka, Madagascar, Kenya Cyprus etc.

SMDL’s manufacturing plant is located at Gagillapuram, Andhra Pradesh. The company began operations with technical assistance from Martin Roberts of UK, however, since 1999, it has charted its own independent course. Today it possesses the technical expertise, innovative design capability and manufacturing facilities to fully satisfy every customer requirement. To maintain its leadership, company is regularly expanding its manufacturing capacity. After doubling the capacity to 40,000 units in FY06, company further augmented its installed capacity by 50% to 60,000 units in FY07. Notably, this ISO 9001: 2000 certified company is stream lining its operations by implementing ERP from SAP business software. Last fiscal it also commissioned the R&D centre and facilities training centre. On the export front, company is looking at South Asia, among other regions, as a possible growth area for its product and is actively exploring it. For future, SMDL is examining the feasibility of introducing new products to cater to the building industry which are wood substitutes and would also compliment the current products. Moreover, after getting expertise in various projects, company now provides consultancy for recommending suitable ironmongery and accessories to others.

The government’s special emphasis on infrastructure and the increase in FDI investments expected in this area as well as other industry segments, would result in a large market for company's products. Secondly, the aggressive growth plans of the pharma, healthcare and Information Technology industries will also help company in maintaining its growth over the next few years. Considering its half yearly nos, it is expected to clock sales of 80 cr and PAT of 13.50 cr for FY08 which works out to an EPS of 49 Rs on a very tiny equity of 2.75 cr. Ironically, company hasn’t raised or diluted the capital since its public issue in 1994. At the CMP of 210 Rs, scrip is trading at P/E ratio of merely 4x times. With 52 week H/L as Rs 305/160 and expected book value of Rs 125, scrip can move up to Rs 290 (i.e. 40% return) in a years time. However in long term, investor can expected much better returns.

Crew BOS Products Ltd - 78.00

Incorporated in 1988, Crew BOS Products Ltd (CBPL) designs and manufactures leather and leather-based fashion accessories and footwear. So its primarily engaged in exporting lifestyle fashion accessories & home decoration products made from fabrics, leather, metal, wood etc. Over the years, company has successfully transformed itself from being just a bags and belt manufacturer to a multi-product company. Today, its niche product profile can be broadly segmented into four divisions: fashion bags and wallets division, belts and footwear division, home goods division and the recently started - watch strap division. The fashion bag and wallet division is the largest, contributing more than 40% of revenue followed by belts and straps which accounts for 25%. The fashion footwear division, which started in 2003-04 is growing at a scorching pace and presently adds 20% to the top line. The balance comes from export of finished leather and from home good division. CBPL is constantly looking to broad base its product portfolio in order to keep itself abreast with the latest changes in fashion trends around the world. Recently, it has also entered into production of close shoe footwear. To summarize, company’s business model is based on catering to the outsourcing requirements of the leading international brands in U.S. and Europe.

Being an ISO 9001:2000 certified company, CBPL has six state-of-the-art manufacturing units including a world-class leather finishing unit located at Manesar (Haryana) equipped with hi-end Italian machineries and Italian leather processing technology. It also has a tannery at Jalandhar (Punjab) and is also fast developing an exclusive footwear manufacturing unit at the Mahindra SEZ in Chennai (Tamil Nadu). Notably, it has setup an outsourcing and marketing office in Hong Kong (China), marketing office in Milano (Italy) and a resourcing office in Cairo (Egypt). Company has to its credit the unique distinction of producing cost-effective, international-grade, Italian quality leather which has been very well appreciated in the foreign market. Its product range represents the international pulse of fashion as it supplies to some of the world’s best and most renowned international brands and retail chains such as Accessorize, Monsoon, Fossil, Marks & Spencer, Esprit, Next, GAP, Old Navy, Zara, Banana Republic, Tesco, H&M, Chico’s, Fat Face, Debenhams, J Jill, AEO, Armani to name just a few. To compliment this it has a highly scalable business model and there is tremendous scope for ramping up every individual client account. As CBPL derives 100% revenue thru export, it has formed a subsidiary called Crew Style Works to penetrate Indian market under its own brand name to encash the ongoing domestic retail boom. Company has already formulated strategic marketing plans and is all set to launch two brands ‘TEMPESTA’ and ‘CREW REPUBLICA’ initially by early 2008. It also intends to initiate a multi brand concept i.e. different brands for youth, executives, women, etc.

Being very optimistic on the footwear segment, CBPL has entered into a 51: 49 JV with Leather Crafts - a respected Chennai-based leather exporting house servicing the renowned American brand ‘Hush Puppies’, to manufacture and export all kinds of footwear and footwear components. Accordingly company has purchased 6 acres of land at Mahindra World City SEZ at Chennai where it is setting up a new plant to produce 10,000 pairs of full shoes per day. Part production from this new facility is likely to begin by December 2007 and to be fully operational by December 2008. At the same time, it is also looking to enhance its Manesar shoe unit capacity to 5,000 pairs of full shoes per day form 1800 pairs currently. Moreover for future growth company has acquired 30 acres of land at Neemrana in Rajasthan for the expansion of its capacities for fashion accessories and for the development of state-of-the-art manufacturing plant for closed shoe footwear.

To fund its expansion plan, CBPL is looking to raise 100 cr thru equity route in near future. Besides it has already allotted 12.50 lakh warrants, convertible into equity shares @ 178 Rs on preferential basis to the promoters / private business investors. Because of the continuous rupee appreciation, company’s share price has tumbled down sharply to hit new lows of 77 Rs from 290 Rs in Feb’07. Although rupee appreciation will hit company’s bottomline to some extent but importantly, neither the companys product nor its clients are price sensitive. However company is expected to register lower profit for FY08 since it is consolidating and expanding its operation. But from FY09 it will on a strong growth trajectory and won’t be looking back. It is estimated to clock a turnover of little less than 200 cr and PAT of around 19 cr. Still this translates into EPS of 14 Rs on diluted equity of 14 cr. That means scrip is currently trading at a P/E ratio of less than 6x times making it a screaming buy. Investors are strongly recommended to buy at current levels with a price target of 120 Rs (50% return) in a year’s time.

STOCK WATCH

PBA Infrastructure (82.00) is engaged in execution of civil engineering projects and specializes in construction of highways, dams, runways and heavy RCC structures, bridges and other infrastructure projects of various govt bodies. It is executing projects from Kashmir to Kanyakumari and has taken up new works like toll collection and quarrying to augment its income. For the Sept qtr its revenue grew by 45% to 79 cr whereas NP increased by 20% to 4.20 cr. Half yearly figures are much more encouraging. Notably, company has been regularly bagging new orders and its current order book position is around 650 cr. Fundamentally, company is having a huge debt of 170 cr due to which its interest cost is very high. However, to fund its working capital requirement and reduce the high cost debt, it is looking to raise capital thru equity route in near future. Meanwhile it is estimated to clock a turnover of 375 cr and PAT of 17 cr for FY08. This translates into EPS of 13 Rs on current equity of 13.50 cr. Hence scrip is trading at a P/E ratio of approx 6x times. Considering the 52 week H/L as Rs 157/72, this is one of the safest & cheapest bet in the high growth infrastructure sector.

Datamatics Technologies (35.00) is a premier provider of business process outsourcing (BPO) and knowledge processing outsourcing (KPO) solutions with specialization in accounting, claims, payroll, tax services, legal matters, content management, abstracting & indexing, document & workflow management, data warehousing, and business intelligence solutions. It delivers reliable services to a host of international clients, including six of the top 25 Fortune 500 companies and having its consulting services practice certified at CMM Level 5 by the Software Engineering Institute. Due to sharp rupee appreciation coupled with rising salary levels, it reported pathetic nos for the last two quarters. Hence its share price crashed from a high of Rs 86 in Feb’07 to Rs 35 now leading to the current market cap of 140 cr. Ironically, company is holding liquid cash to the tune of 105 cr out of which nearly 100 cr is invested in mutual funds which will be generating more than 10 cr of other income. Being a debt free, company is actually available for 10 Rs per share. Moreover company has finalized to merge Datamatic Ltd - a group company with itself which apart from making its balance sheet stronger, will also de-risk its business model as well. To conclude it’s a screaming buy with negligible downward risk.

Shilp Gravures (55.00) is undisputed leader in electro-mechanical engraving, with a substantial market share of around 40% for flexible packaging industry in India. In simple terms it manufactures electronically gravure/engraved cylinders which are eventually used for rotogravure printing. It has a 300-strong client list which includes India's most reputed names like HLL, Britannia, Amul, Nestle, Cadburys, Tata Tea, Pepsi Foods, Haldiram, P&G, Reliance, ITC, Colgate, Mcdowells etc thereby having a pan India presence. It reported fantastic set of nos for the Sept qtr. Sales improved by 50% to Rs 9.15 cr and profit jumped up 60% to Rs 2 cr. It was also successful in improving its OPM by 200 basis point to 46% against 44% last fiscal. Importantly, its half yearly profit stands at 3.50 cr which is 20% higher than the entire FY07 net profit of 2.90 cr. Hence accordingly it may end FY08 with sales of 38 cr and NP of 6.50 cr which leads to an EPS of 11 Rs on equity of 6.15 cr. just buy and relax as the share price can easily appreciate by 50% in 9-12 months.

Presently, IT sector is totally out of flavor with most of the scrips hitting new lows. And Helios & Matheson (100.00) is no exception with its share price tumbling down to 100 Rs from the high of 190 Rs in June’07. However, on a consolidated basis it announced decent set of nos for the Sept qtr. Total revenue grew by 35% to Rs 110 cr but PAT remained flat at Rs 15 cr. More importantly, company was able to maintain its profit margin due to proactive hedging strategy, offshore leverage, better pricing and cost management. It has also expanded its facilities in Mahindra world city, a multi product special economic zone and international tech park, Chennai, in addition to competency centres in califorma, newyork and newjersey. Notably, its subsidiary “The A Consulting Team Inc” now renamed as “Helios & Matheson North America” has completed ten successful years of listing in the NASDAQ. Financially, against its market cap of 275 cr, company is holding cash equivalent worth of Rs 80 cr and its consolidated gross block stands at 220 cr. Out of the total debt of Rs 150 cr, Rs 115 cr is towards FCCB which will be converted into equity share @ Rs 130 and hence actual debt is only Rs 35 cr. To conclude, it may end FY08 with topline of Rs 450 cr and NP of Rs 55 cr on consolidated basis i.e. EPS of Rs 19 on fully diluted equity of approx Rs 29 cr. A good bet in mid cap IT space.

MUHURAT PICKS

BSEL Infrastructure (64.00) is currently developing a whopping 5.30 million sq ft of land across real estate verticals including residential, hotel & hospitality, retail, commercial, & shopping malls, IT Parks etc and has acquired another 6.50 million sq ft of developable area for future projects. It has entered into strategic alliances with Unity Infraprojects for development of six shopping malls at various locations in Nagpur. It’s another project in Nagpur called “Buty Palace” a state of the art mall is expected to become operational by Dec 2007. In Pune, along with Kamat hotels and Unity Infra it has been awarded a project for constructing, operating and maintaining a hotel and a commercial project on 60 years renewable concessional agreement. Under its BSEL Narmada Nihar project – Gujarat, company is developing 260 hotel rooms of four star category with a club house and a restaurant expected to complete by Dec 07. Again in a joint venture with Unity Infra, it has been allotted land for developing 1 million sq ft IT Park at Dona Paula, Goa in which company’s share will 0.50 million sq ft. And most importantly, it’s wholly owned subsidiary BSEL Infrastructure Realty (FZE) has acquired seven plots approximating 7.9 million sq. ft. in Ajman, Main Emirates City, UAE and is constructing BSEL Pearl tower – a 50 storied storied state-of-the-art architecture tower. On a consolidated basis for FY08, it may register total revenue of 450 cr and PAT of 120 cr i.e. EPS of 18 Rs on fully diluted equity of 65.20 cr.

Mazda Ltd (74.00) is among the few engineering companies in the world, manufacturing very specialized, high technology and critical equipments for various industries like power, refineries, fertilizers, chemicals, nuclear, sugar, paper, food, pharma etc. Broadly its product profile is segmented into Vacuum system, Valve division, Air pollution control equipment, Crystallizers and Evaporators. Hence its product range includes various types of vacuum jet ejectors, turbine bypass valve, desuperheaters, condensers, pressure reducing stations, pneumatic actuators, steam jet thermo compressors, process control equipments, scrubbers etc. Besides, company also has a biotechnology division dealing in carbohydrates, rare sugars & miscellaneous bio-chemicals and hence it recently diversified into business of manufacturing food and drink concentrates in a small scale under brand name “BCooL”. Importantly, company has a technical collaboration with world renowned Croll-Reynolds Inc. USA, who holds 12% stake in the company. To cater the increasing demand, it is setting up a third unit with an investment of approximately 5 to 6 crores. With an expected EPS of 13 Rs for FY08 and 52 week H/L as 236/58 Rs, its one of the cheapest scrip in the engineering space.

Micro Technologies (220.00) is a global provider of security, safety and life-support solutions with its very unique, hi-tech, first of its kind and innovative products like Lost Mobile Tracking System, Secure-Bank Black Box, Vehicle Black Box, Disaster Management System, Home Security System, Intelligent Black Box, Access Control Solution etc which have huge demand world wide. Further, it has launched couple of dynamic products like Office Black Box for office security, Shop Security System for commercial premises and Electric Black Box for power industry. Ironically with over 80 IPR’s, its technology has been patented in 123 countries, giving it exclusive rights in these markets. To strengthen its marketing and distribution network it has appointed more than 2000 dealers/distributors all over India, opened more than 50 Micro Shoppe franchise outlets, and has also increased the advertisement budget substantially for brand building and product awareness. Besides India, company has huge plans for export especially to China, Japan, U.S., Middle East, South Africa and adjoining countries etc. As China has the largest GSM mobile subscribers, it introduced the Chinese version of its internationally acclaimed product MICRO LMTS (Lost Mobile Tracking System). With company expected to grow at CAGR of more than 50% for next few years, it’s a screaming buy at current levels

Rohit Ferro Tech Ltd (53.00) is a leading producer of high carbon ferro chrome apart from manufacturing ferro manganese and silico manganese through submerged arc furnace route. Its product are primarily used in steel making as an additive to add strength and quality required in a particular grade of steel like stainless steel etc. During last fiscal only, company has set up a greenfield plant in Orissa thereby taking its total capacity to 165,000 MT from 55,000 MT. It is further setting up a fifth furnace with 15000 MT capacity which will start operation by end of this calendar year. Besides it has applied for mining lease to the state government of Orissa for chrome ore as well as manganese ore which will make it an integrated player to some extent. It also intends to form a joint venture with Iranian partners, to explore the possibilities of marketing as well as sourcing of raw-materials. To reduce its power cost company has now chalked out a plan to setup a 110 MW captive power plant in the state of Orissa. To fund this, it made a pref allotment of 80 lac convertible warrants @ 43 Rs per share to promoters as well as strategic investors like Kampani Finance, Foster Capital etc. Considering the estimated EPS of 11~12 Rs for FY08 and future expansion plan scrip can easily shoot up to 75 Rs in medium term. Accumulate at sharp declines only.

Being a 78% subsidiary of Technip S.A of France, the largest oilfield engineering, construction and service group in Europe, SEAMEC Ltd (195.00) operates multi-purpose support vessels (MSV) for diving and provides underwater/subsea engineering and construction, maintenance, inspection of under-water structures, rescue-operations and fire-fighting and other support services for offshore oil/gas installations located in India or abroad. Hence it is a pure play of charter hiring of MSVs, which are more specialized vessels than Offshore Supply Vessels (OSV) as they are equipped with Dynamic Positioning (DP) system and can go underwater for repair & maintenances of underwater pipelines. Ironically, there are only 6 MSV in India; out of which four belongs to SEAMEC and the rest two are with ONGC. However, the recently acquired fourth vessel - Seamec Princess is presently abroad for conversion to diving support vessel and is expected to be ready in next few weeks. Meanwhile the dry dock for vessel I have already completed and vessel II will complete within this fiscal only. So, FY08 will be a bumper year for the company with continuous deployment of all its four vessels coupled with higher charter rates. It can report a topline of 250 cr and bottomline of 80 cr i.e. EPS of 24 Rs on current equity of 33.90 for the year ending Dec 2008. Being a debt free MNC it deserves much better valuation and its share price can move up to 350 Rs in 15 months time.

Ansal housing (165.00) has been the pioneer to introduce the concept of large integrated residential townships in the country and also the first to enter Tier - II & III cities like Ghaziabad, Noida, Allahabad, Lucknow, Ludhiana, Agra, Bhopal, Haridwar etc. Till now company has constructed massive 67.6 million square feet of commercial and residential project across India. Currently, it has lined up gigantic 56.10 million sq. ft of development (80% in the residential segment) spread over 22 cities in the next five years. Recently, it has launched residential townships branded as “Ansal Town” across seven cities namely Agra, Indore, Jammu, Rewari, Karnal. Meerut and Ghaziabad which are spread over 1400 acres. It will also be developing an I.T. Park in Bangalore apart from venturing into construction of budget hotels and serviced apartments. Currently, company has a rich land bank of 2500 acres with about 50% under its own name while the rest under firm collaborators agreement. Notably, the total value of the projects with the company and under joint ventures is massive 6000 crores. It is also among the very few real estate companies that are consistently registering a healthy operating margin of above 30%. On an expected EPS of around 30 Rs for FY08, this is one of the most undervalued or poorly discounted scrip on the bourses. Scrip has the potential to double in medium to long term.

Performance - 2007 Reccomendation

Performance Scorecard as on Nov 2007

Sr.	Date	Scrip Name	Recco	High		Return
			Price	Price		in %
	Appreciated	more than 5x
	Appreciated	2x to 5x times
1	18-Jun-07	Ganesh Forging	29	135		366%
2	2-Apr-07	Sunil Hitech	74	323		336%
3	30-Apr-07	Kavveri Telecom	54	220		307%
4	9-Apr-07	TIL Ltd	186	583		213%
5	16-Apr-07	Patels Airtemp	34	97		185%
6	26-Mar-07	Vadilal Ind	36	101		181%
7	13-Aug-07	Indag Rubber	38	105		176%
8	30-Jul-07	XL Telecom	130	349		168%
9	9-Jul-07	Rohit Ferro	35	93		166%
10	26-Feb-07	Andhra Petro	14	37		164%
11	14-May-07	Hind Aluminium	40	97		143%
12	16-Apr-07	Hari Chemicals	30	72		140%
13	29-Jan-07	LIC Housing	169	389		130%
14	23-Apr-07	IMP Power	104	233		124%
15	11-Jun-07	TANFAC	39	86		121%
16	18-Jun-07	Hydro S&S	30	64		113%
17	1-Jan-07	Alufloride	18	38		111%
18	28-May-07	Lakshmi Electrical	265	548		107%
19	10-Sep-07	Numeric Power	439	889		103%
20	3-Sep-07	Bodal Chemical	57	115		102%
	Appreciated	50% to 100%
21	7-May-07	ICSA *	213	402		89%
22	21-May-07	Flat Products	302	563		86%
23	2-Apr-07	Mobile Tele	14	26		86%
24	30-Jul-07	Jindal Polyfilms	155	278		79%
25	5-Mar-07	VST Tiller	132	233		77%
26	26-Feb-07	LT Overseas	44	76		73%
27	10-Sep-07	Kamanwala	123	205		67%
28	13-Aug-07	Orient Paper	430	715		66%
29	4-Jun-07	Seshasayee Pap	129	213		65%
30	15-Oct-07	Phillips Carbon	155	254		64%
31	12-Mar-07	Gayatri Prject	238	388		63%
32	12-Mar-07	Lloys Electric	138	224		62%
33	6-Aug-07	Shilp Gravures	47	75		60%
34	19-Mar-07	Goodyear India	140	215		54%
35	29-Jan-07	Rajoo Engineers	54	81		50%
36	19-Mar-07	Fronteir Springs	16	24		50%
37	25-Jun-07	Artson Eng	42	63		50%
	Appreciated	25% to 50%
38	27-Aug-07	El Forge	58	86		48%
39	27-Aug-07	Accurate Transf	127	187		47%
40	12-Feb-07	Ricoh India	34	50		47%
41	26-Mar-07	Visu International	13	19		46%
42	9-Apr-07	Accel Frontline	61	89		46%
43	11-Jun-07	Jupiter Bioscience	166	242		46%
44	16-Jul-07	JHS Svengaard	35	51		46%
45	22-Jan-07	Zen Tech	63	91		44%
46	9-Jul-07	Tricom India	109	156		43%
47	19-Feb-07	Anjani Portland	33	47		42%
48	28-May-07	Manugraph	145	204		41%
49	19-Feb-07	Murudeshwar Cer	112	157		40%
50	20-Aug-07	Roto Pumps	55	76		38%
51	1-Jan-07	Helios & Math	137	189		38%
52	20-Aug-07	Ansal Buildwell	78	107		37%
53	23-Jul-07	TNPL	100	137		37%
54	21-May-07	SEAMEC	190	260		37%
55	14-May-07	Hind Rectifier *	150	205		37%
56	22-Oct-07	Lokes Machine	94	128		36%
57	23-Apr-07	Shri Lakshmi Cots	111	150		35%
58	25-Jun-07	Mazda	71	95		34%
59	30-Apr-07	Pitti Lamination	69	92		33%
60	12-Nov-07	Crew Bos	78	104		33%
61	3-Sep-07	ABC Bearing	100	128		28%
62	5-Feb-07	Agro Dutch	33	42		27%
63	19-Nov-07	Stone India	135	169		25%
	Appreciated	below 25%
64	15-Oct-07	Honda Siel	240	296		23%
65	8-Oct-07	Oreint Ceramics	51	62		22%
66	12-Nov-07	Skati Met-dor	210	255		21%
67	24-Sep-07	ORG Info	103	125		21%
68	4-Jun-07	Micro Technology	231	274		19%
69	6-Aug-07	Tera Software	82	96		17%
70	29-Oct-07	Blue Bird	55	64		16%
71	2-Jul-07	Jenburkt Pharma	37	43		16%
72	17-Sep-07	Micro Forge	32	37		16%
73	15-Jan-07	IG petro	72	83		15%
74	17-Sep-07	Veejay Lakshmi	97	110		13%
75	23-Jul-07	Thirumalai Chem	175	195		11%
76	22-Jan-07	FCS Software	91	101		11%
77	8-Jan-07	Aro Granite	111	122		10%
78	8-Oct-07	Uni Abex Alloys	115	125		9%
79	15-Jan-07	Transpek Ind	93	101		9%
80	16-Jul-07	Rane Madras	95	103		8%
81	1-Oct-07	ANG Auto	179	194		8%
82	2-Jul-07	Sukhjit Starch	147	159		8%
83	5-Feb-07	Ind Swift Ltd	37	40		8%
84	12-Feb-07	Raunaq Auto	29	31		7%
85	7-May-07	Panoramic Univ	148	158		7%
86	5-Mar-07	Visesh Info	36	38		6%
87	8-Jan-07	RS Software	88	92		5%
88	19-Nov-07	Vakrangee	155	161		4%
89	29-Oct-07	Allsec Tech	135	139		3%
90	1-Oct-07	Ansal Housing	201	205		2%

* ---> Recco price adjusted for Split

$ ---> Recco price adjusted for Bonus

# ---> Recco price adjusted for Rights

@ ---> Demerger / Merger Adjustment

Disclaimer: These are not the actual profit figures booked by any investor but a compilation to indicate the potential/quality of analyst’s recommendations.