Rodman CAN.CN: Canaco advances key Handeni projects; Maintain Perform.
Canaco Resources Inc. (CAN.CN)
Canaco advances key Handeni projects; Maintain Perform.
Please see important disclosures at the end of this report
RODMAN & RENSHAW RATING SYSTEM: Rodman & Renshaw employs a three tier
rating system for evaluating both the potential return and risk
associated with owning common equity shares of rated firms. The expected
return of any given equity is measured on a RELATIVE basis of other
companies in the same sector, as defined by First Call. The price
objective is calculated to estimate the potential movement in price a
given equity could achieve given certain targets are met over a defined
time horizon. Price objectives are subject to exogenous factors including
industry events and market volatility. The risk assessment evaluates the
company specific risk and accounts for the following factors, maturity of
market, maturity of technology, maturity of firm, cash utilization, and
valuation considerations. Potential factors contributing to risk:
relatively undefined market, new technologies, immature firm, high cash
burn rates, intrinsic value weighted toward future earnings or events.
RETURN ASSESSMENT
* Market Outperform (Buy): The common stock of the company is expected to
outperform a passive index comprised of all the common stock of
companies within the same sector, as defined by First Call.
* Market Perform (Hold): The common stock of the company is expected to
mimic the performance of a passive index comprised of all the common
stock of companies within the same sector, as defined by First Call.
* Market Underperform (Sell): The common stock of the company is expected
to underperform a passive index comprised of all the common stock of
companies within the same sector, as defined by First Call.
RISK ASSESSMENT
* Speculative - The common stock risk level is significantly greater than
market risk. The stock price of these equities is exceptionally
volatile.
* Aggressive - The common stock risk level is materially higher than
market level risk. The stock price is typically more volatile than the
general market.
* Moderate - The common stock is moderately risky, or equivalent to stock
market risk. The stock price volatility is typically in-line with
movements in the general market.