What we do.
Securities Research
Sidoti publishes on about 150 equities between our “traditional” ratings-based coverage and our rapidly growing Company Sponsored Research (CSR) platform, which provides broader distribution of our product beyond our proprietary 500 institutional investor clients who take positions in small- and micro-cap issuers. Most of our analysts have over 10 years of experience in the business, meaning issuers and investors interface with our most senior staff. We focus predominantly on companies with market capitalizations up to $5 billion in a broad array of industries.
Securities Research (Company Sponsored)
Changing industry dynamics magnify the hardships on small companies without (or with limited) analyst coverage to gain investor attention and for securities firms to economically research them. This is particularly true for companies, even those with outstanding theses, that have market capitalizations below $2 billion and small trading volumes. Sidoti’s Company Sponsored Research (CSR) program affords these corporations the potential benefits of securities research (e.g. market efficiency, visibility, liquidity) by commissioning our firm’s highly experienced and fully licensed analysts to cover their equities. Click here for Sidoti’s Company Sponsored Research program participants.
In 2024, Sidoti & Company, LLC launched Lighthouse Equity Research to service the specific research needs of companies with stocks not conducive to traditional valuation metrics such as earnings and cash flow or that have difficulty obtaining analyst coverage due to perceived political risk or other factors. Lighthouse leverages Sidoti’s 25 years of experience in covering and providing corporate access to small and micro-cap companies to address a vastly underserved market through a widely accepted, independent sponsored research platform introduced in 2016. Click here for Lighthouse’s program participants.
Recent IB Deals
Syndicate
Sidoti has recently been asked by an increasing number of its covered companies to serve as a co-manager in their debt and equity financings. Since 2021, Sidoti participated in offerings involving over $2.8 billion in debt and approximately 1 billion in equity. Sidoti’s institutional sales force can be particularly helpful in placing securities with certain institutions which are less well covered by the large book running managers but with whom we interact with on a regular basis.
Conferences and Corporate Access
Sidoti promotes meaningful interaction between small- and micro-cap issuers and investors, primarily through virtual conferences and non-deal roadshows (virtual or in-person) that we host each year. Our 2020 shift to virtual conferences allows for a broad geographic representation from both companies and our ~1,500 institutional investor counterparts who can more readily participate in our events – no matter where participants happen to be located or are traveling. In recent years, our outreach has expanded to include an increasing number of family offices, hedge funds, high-net-worth individuals and registered investment advisors. Click here for the full list of companies that have presented at Sidoti conferences since June 2020.
Sidoti’s event are differentiated in several important ways:
· Unlike most small- and micro-cap conference providers, Sidoti is a registered broker-dealer that employs licensed securities analysts and institutional salespeople. We are governed by the SEC and FINRA and therefore meet the highest of industry standards.
· Sidoti meets both the presenters’ and investors’ needs. Often when a presenting company attends a conference, the host dictates the investor clients with whom the presenter can meet, with the expectation that the investor will compensate the host through trading commissions. At Sidoti, while we give investors the ability to request meetings, ultimately the company presenters decide which investors to engage with 1-on-1.
· All investors are welcome, both Sidoti clients and non-clients. Many conferences restrict investor attendees to those institutions that conduct business with the conference host. At Sidoti, we believe that it is critical to provide presenting companies with the broadest array of quality investors to meet, meaning that all investors may attend our events without the expectation that they will compensate Sidoti for that privilege.
