(PR NEWSWIRE) FS Van Kasper Initiating Coverage on Mustang.com With a Strong
FS Van Kasper Initiating Coverage on Mustang.com With a Strong Buy Rating
SAN FRANCISCO, Jan. 27 /PRNewswire/ -- The following is being issued by FS
Van Kasper, a member of the National Association of Securities Dealers, CRD
number 7665:
Jennifer Jordan**, Internet/IT Services analyst at FS Van Kasper, has
initiated coverage on Mustang.com. (Nasdaq: MSTG) ($12 1/4) with a Strong Buy
Rating and a 6-month price target of $25.
Below are direct quotations from Jennifer Jordan's research report:
-- "Mustang.com is a leading provider of enterprise class eService
solutions for inbound e-mail management software with more than 330 clients
and a run-rate of about 50 new clients per quarter.
-- "IDC estimates that the market for worldwide customer service and
support applications will increase from $160 million in 1999 to $2 billion by
2003.
-- "We believe that Mustang.com is currently significantly undervalued
with a price-to-sales multiple (PSR) of 7.2x FY00 revenue estimates compared
to 43.0x for its peer group. As the company continues to land additional
clients and increases its revenue base, we expect the discount to narrow.
-- "Since Mustang.com launched its first version of MMC in September 1997,
revenues have increased from $331,000 during 3Q97 to $1.03 million during
3Q99, a 75% annual increase. We expect this revenue growth to continue due to
the company's larger sales force, national expansion efforts, and the
increasing market demand for e-mail management software. We estimate CY 2000
revenues to reach $10.1 million, up from our $3.6 million estimate for 1999
-- a 178% increase -- as a result of these initiatives.
-- "We are initiating coverage of Mustang.com with a Strong Buy rating and
a six-month price target of $25 based on 15.0x our FY00 revenue estimates, a
187% discount to its peer group."
First Security Van Kasper makes a market in the shares of Mustang.com.
First Security Van Kasper has managed an offering of this company's stock
within the past three years and has provided financial advisory services to
this company's management within the last two years.
First Security(R) Van Kasper is a private brokerage and investment banking
firm. Since its founding in 1978 as Van Kasper & Company, the firm has been
providing exceptional services and original investment advice to a select
group of investors and businesses. The firm's offices are located in
San Francisco, Fresno, Los Angeles, San Diego, Newport Beach, San Jose,
Sacramento, and Walnut Creek, California, as well as Phoenix, Arizona and New
York City, New York.
Investments made through First Security Van Kasper: (1) are not insured
by the FDIC; (2) are not deposits or other obligations of, or guaranteed by
FSVK, First Security Bank or any of its affiliates; (3) are not guaranteed by
any Federal governmental agency (excluding U.S. Government and federal agency
securities); (4) and are subject to investment risks, including possible loss
of principal amount invested.
The study on these pages is not a complete analysis of every material fact
regarding any company, industry or security. The opinions expressed herein
reflect the judgment of the author at this date and are subject to change
without notice. Facts have been obtained from sources considered reliable, but
are not guaranteed. Van Kasper & Company, its directors and employees and
their families may have a position in the securities of the companies
described herein, and may make purchases or sales while this report is in
circulation. Additional information is available upon request.
** First Security Van Kasper publishes researches authored by Ms. Jordan,
independent consultants, by special arrangement.
SOURCE First Security Van Kasper
-0- 01/27/2000
/CONTACT: Muller Luo of FS Van Kasper, 415-391-5600/
/Web site: fsvk.com
(MSTG)
CO: First Security Van Kasper
ST: California
IN: FIN MLM
SU: RTG
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