Avcorp Industries Inc
AVP
Shares issued 13,873,623
1999-06-07 close $2
Monday Jun 7 1999
Mr. Jeff Baclet of Donner Corporation reports
Donner Corp. International, an investment banking firm headquartered in Santa
Ana, Calif., has issued a speculative buy recommendation on Avcorp Industries,
Inc., and started coverage on the Canadian company, which is a leader in turnkey,
lightweight product development for the global aerospace and high-technology
industries.
In the analysis, Donner Corp. said Avcorp Industries has experienced
extraordinary growth, reporting a 32-per-cent increase in revenues for the second
quarter ended March 31, 1999, and a 27-per-cent increase for the first six
months of the fiscal year. Fiscal 1998 sales increased 48 per cent and export sales
increased 158 per cent, the report said, while 1998 revenue growth was almost
four times the industry average in North America.
The Donner report emphasizes that Avcorp has major contracts with companies
such as Boeing, Bombardier and Bell Helicopter and has signed a 10-year,
$170-million contract with Bombardier, which will generate revenues worth
between $8-million and $15-million a year starting in 2000. The company also has
a $300-million sales backlog.
"An enormous market exists for the company's products, creating superior
potential for appreciation of this stock," the Donner report said. "We believe
Avcorp is undervalued, considering the contracts in place and the products that
are in development. In addition, the stock is trading near its historical lows," the
report said. |
