TRIAD SEMI-ANNUAL IPO REPORT

GLOBAL PROBLEMS

Still, the dominant theme of the first half has to be the dearth of IPO activity. Overall in the US, only 31 companies, including six blank-check companies, were taken public in the period, whereas last October, 27 companies were taken public in that month alone. So far this year, more companies were withdrawn - 57 - than were launched. And the second quarter was the first in 30 years without a venture-capital backed IPO in the U.S., according to industry sources.

The phenomenon was not confined to the United States. According to Dealogic, the amount of money raised globally in June fell to $10 billion from $34 billion a year earlier.

By now, you probably get the picture.

UPCOMING SECOND HALF

Looking ahead, the IPO market over the next six months will likely reflect the outlook for the overall economy and the stock market. Currently, corporate profits are declining and credit is tight. The environment is not conducive for companies to raise money, as the financial institutions that sponsor and promote IPOs struggle for their own survival.

By year end, however, we expect the economy to be fully benefitting from the Federal Reserve’s aggressive rate cuts, which have brought the fed funds rate down to 2%. Further, we expect corporate profits to begin to grow again in mid-year 2009. The markets should anticipate this upcoming inflection point, providing a further degree of support.

Lastly, as the election approaches, we think the outlook for potential changes in the tax code should clear up. Given the current challenges to raising capital, we find it hard to imagine that a new administration would add to the burden of becoming a public company.

In conclusion, while the first half was light on activity and the summer may be quiet as well, we look for the IPO market to revive as the economy and stock market gain strength toward year-end.

DISCLAIMER INFORMATION

Copyright Argus Research Company. This report has been prepared for Triad Securities by Argus, an independent investment research company. This report has no regard to specific investment objectives, financial situations or the particular needs of any recipient. It should not be considered an individualized recommendation. All investors are encouraged to use multiple sources of investment information and to actively monitor their holdings. The security or industry discussed may not be suitable for everyone.

THIS REPORT IS BASED ON INFORMATION FROM A VARIETY OF SOURCES AND STATISTICAL DATA BELIEVED TO BE RELIABLE, BUT IN NO WAY ARE WARRANTED AS TO ACCURACY, TIMELINESS, COMPLETENESS OR RELIABILITY.

Any opinions expressed are statements of judgment by Argus as of the published date of this report and are subject to change without notice. We do not undertake to advise you, nor are we under any obligation to advise you, as to any changes in our estimates or views. This report is published for informational purposes only and is not to be construed as a solicitation or an offer to buy or sell any security. Argus, its affiliates, officers, directors, employees, stockholders or members of their families may have long and/or short positions in and may purchase or sell from time to time any of the above-mentioned or related securities.

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