Rating: BUY Target: $16 Sector: China AOB is one of our 2007 China small cap top picks based on its continuing growth potential and our December 2006 China diligence activities verifying the company’s plant-based pharmaceutical market position.

Rating: BUY Target: $7 Sector: China RAE is one of our 2007 China small cap top picks based on the company’s recent Fushun investment. We view the current share price weakness as a buying opportunity and are reiterating our Buy rating and $7 target price. The $10.8 million cash investment in RAE Coal Mine Safety Instruments (Fushun) Co., a joint venture with Liaoning Coal Industry Group Co. (Liaoning), solidifies the company’s China coal mining safety market presence and should strengthen its future cash position.

Rating: BUY Target: $14 Sector: China Driven by its Olevia brand’s swift rise and expansion into mainstream retail channels, Syntax-Brillian (SB) should continue its recent trend of outperforming analysts’ expectations, according to our research. Moreover, the company’s revenue and profits should continue to accelerate, benefiting from rapid shipment growth and strong gross margin. Yet, due to fears of declining LCD TV prices (which actually benefit SB’s low-cost/high-quality model) and SB’s prior lack of profitability (we project substantial net income and cash flow in each quarter of CY07), BRLC trades at 10-11x our conservative CY07 EPS estimate, which is a substantial discount to its projected 100%+ growth rate (for CY06 and CY07). Our target price of $14, based on 18x our CY07 EPS estimate, implies a 60%+ appreciation from the current price of $8.65 and, as such, BRLC is a top pick for 2007.

Rating: BUY Target: $16 Sector: Consumer Casual Male’s initial transformation to high-quality growth retailer from fitful turnaround, which began in 2H06 and validated our continuing Buy rating, should, in our view, play out further in 2007. It should lead to multiple expansion as well as 65%+ earnings growth from a non-nominal 2006 base and 20-25% annual growth thereafter. Visibility is strong, as the company is the increasingly dominant player in the big and tall men’s apparel market, which is burgeoning for deep-seated demographic reasons.

Rating: BUY Target: $25 Sector: Consumer Lifetime has maintained 20%+ organic wholesale revenue growth for two years and, in our view, has clear visibility going forward to similar top-line growth and 20%+ EPS growth per annum. Yet LCUT trades at a P/E of 9.6x based on our 2007 EPS estimate. The stock got crushed owing to disappointing 4Q06 results pre-announced toward year-end 2006, for short-term reasons already largely normalized (see our note of December 22, 2006), with the decline undoubtedly accentuated by year-end portfolio dressing and tax selling.

Rating: BUY Target: $38 Sector: Consumer Shuffle Master’s attractive valuation and improving outlook should drive impressive gains for the shares in 2007, while its leadership in a unique and expanding niche, free cash flow, and share repurchase activity should limit downside and contribute to a risk/reward proposition that is very compelling and warrants our top pick designation in gaming for 2007.

Rating: BUY Target: $22 Sector: Consumer We are anointing True Religion as one of our top picks for 2007. We believe in 2007 the company will prove its numerous naysayers wrong and register solid top- and bottom-line upside from a number of sources. We also believe in 2007 True Religion will begin to reap the fruits of its recent focus on increasing the depth of its designer pool and improving international operations to further diversify its level of offerings and reignite international growth. Given TRLG’s valuation of approximately 11.0x our 2007 EPS projection and the company’s net cash position of $1.46 per share as of the end of 3Q06, the risk/reward in TRLG is impressive, in our view.

Rating: BUY Target: $29 Sector: Healthcare We have selected AngioDynamics as the top pick in our MedTech universe for 2007. In our judgment, there are several catalysts converging that will ignite share price appreciation in the New Year. Specifically, the pending RITA acquisition affords the company opportunities, both in the U.S. and Europe, to fuel annual sales growth beyond our original 25% projection. RITA broadens AngioDynamics’ product assortment and leverages its formidable sales force, provides access to larger market opportunities with differentiated products, and AngioDynamics gains access to additional R&D with expertise in tumor ablation and port technology. In addition, we cite the ramp of Sotradecol sales in the U.S. largely driven by the sole distributorship arrangement, introduction of new products with higher margins, resolution of the Diomed case and entrance into new markets, including oncology.