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Missouri Valley Partners believes that stocks purchased at the
most reasonable price relative to future earnings and cash flow
provide the best opportunity for future appreciation with the least
amount of risk. MVP believes internally generated research is the
best source of unbiased industry and company fundamentals. The firm
seeks the best relative values within emerging growth industries
and also seeks out the best values in specialized segments of more
mature industries.

Missouri Valley Partners investment process is driven by internal
research generated by its industry specialized analysts. The
initial universe from which its analysts make stock selections consists
of small cap stocks from $100 million to $1.5 billion in size. The
nine analysts provide detailed fundamental analysis on approximately
400 companies. Each analyst has direct contact with the companies
and also seeks information from their customers, suppliers and competitors.
Using a bottom-up stock selection process, stocks are analyzed
to seek the highest total return based upon the analysts' projected
earnings over the next one-year and three-year periods. These earnings
projections, together with an analysis of the current versus the
historical relative price/earnings multiple, are the basis of MVP's
relative value ranking process. Stocks are ranked by decile (1-10)
and stocks ranking in the top 4 deciles are considered buy candidates.
Stocks that fall into the lower 4 deciles due to criteria such as
negative change in the analyst's outlook for the company, price
objective is met, or negative earnings surprise, are considered
sale candidates. Some of the other factors that could cause a sale
include a change in management, financial condition, or industry
deterioration. Based on MVP's internal ranking process, analysts
recommend buy and sell ideas to the firm's small cap portfolio management
team. Once an agreement is reached among the small cap co-portfolio
managers and research analyst to buy or sell a security, the stock
is purchased or sold from all small cap discretionary portfolios.
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