Brendan Wood International Announces 2010 TopGun Analyst Teams

Macro Trend Raises Confidence in TopGun Analysts

TOPGUN PRESS: TORONTO — (October 12, 2010) – Performance consultants, Brendan Wood International (BWI) today announced the results of the 30th annual compilation of domestic and international investor views, for the first time pairing shareholder ratings with those of transactionally active Canadian corporations.

This enhanced 360° views the analysts, sales and trading teams reflects the current markets and signal a re-integration of dealer research with the interests of both investors and corporations, despite modern regulations which discourage the relationship between the two. “Investors and corporates both feel very differently in the current markets,” says Brendan Wood, Chairman of Brendan Wood International.

Index investing and other macro trends leave investors, especially value investors in a tough and uncertain world. Companies are having a difficult time separating themselves from the pack, amongst investors. Stocks are presently moving in tandem with the markets as opposed to their own particular attributes. Investors are looking for analysts and sales professionals to distinguish corporate stories which have the ability to rise above macro market themes.

Likewise corporations are connecting analysts with the task of communicating the relevance of their corporate story in a heavily market centric investment climate. Corporate finance mandates are being aligned with dealer firms whose analysts are perceived to be able to make their corporate story relevant to investors.

Canadian small/mid-cap corporations follow the trend, in that their selection of investment banks during 2010 was heavily influenced by research coverage.

The relationship/dialogue with investors provided by TopGun analysts continues to play a key role in the ‘vote to pay’ polls and the commission flows. This also points to a business increasingly dependent on the quality of coverage and relevance, therefore a declining demand for written reports of a general or generic nature on sectors.

Historically, institutional investors have paid 39% of their commission dollars for research on average over the last five years. This figure shot up to 48% in 2010. Canadian analysts, TopGuns in particular, are here to stay.

TopGun analysts, while comprising only 15% of the analyst population covering Canadian stocks, generate approximately 50% of commissions allocated for research.

Individuation of stocks is the key theme in 2010. Investors are looking for insight on “names” (companies) which will not just outperform in earnings or value appreciation but to whom investors will react in their stock selection. Analysts are now more relevant for their “bellweather” roles, speaking not just on a company’s inherent qualities but also as a pollster for the attitudes of investors toward a name which may outperform the neutralizing effect of the macro market.

In 2011 Brendan Wood partners expect the alignment of TopGun Analyst accreditations from both corporates and investors to be a dominant economic factor in the industry. Polls which only consider general investor opinion may miss the mark on where the money is. Analysts who create relevance on specific names will play an increasing role in generating banking fees and commissions for their employer firms. Today’s regulatory themes and rituals discourage those connections but industry economics make the TopGuns who connect both ways much more viable. Corporates and investors are connecting through TopGun researchers in very important ways. Is history repeating itself, again?

The 2010 TopGun Analysts and Teams As Ranked by Investors Are:

*Moved to Cormark Securities Sept 7, 2010.

**Tied ranking for #2.

The 2010 TopGun Analysts and Teams As Ranked by Corporates Are:

*Denotes SuperLeague Analysts, those who are TopGuns among both investors and corporates.

The 2010 SuperLeague and TopGun Teams Ranked by Institutions and Corporates:

www.topgunpress.com

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