Thursday February 3, 11:07 am Eastern Time
Company Press Release
A Buy Rating is Issued on Stockgroup.com Holdings, Inc. by PAR analyst Darren E. Robinson, CFA, in Initial Research Report
A twelve-month target price was set at $12. The PAR Report, distributed by Investrend Research, is available online at www.investrend.com.
NEW YORK--(BUSINESS WIRE)--Feb. 3, 2000-- An initial PAR Report on Stockgroup.com Holdings, Inc. (OTC BB: SWEB - news) by PAR analyst Darren E. Robinson, CFA was issued by Public Analysis & Review (PAR), the unique professional independent analyst program administered by the non-profit Investors Research Institute, Inc. Investrend Research distributes PAR reports. A copy of the PAR research report is available at www.investrend.com.
In the February 2 PAR Stockgroup.com report, Mr. Robinson sets a 12-month target price of $12, versus a current price of $3. The report notes that Stockgroup.com, as the leading supplier of financial information on small and micro cap companies, is enjoying substantial revenue growth. In addition to operating the top small cap center at www.smallcapcenter.com, the Company has also entered an established joint venture to develop and launch 14 websites to supply financial information for the Asian markets. The Company has a fast growing internet based corporate services division. The report further details the factors that are driving the projected 100+% annual revenue growth projected through at least 2004. In his earnings model, Mr. Robinson projects that Company revenues should reach US $27 million in 2001, up from an estimated $6.7 million and $1.9 million in 2000 and 1999 respectively. The Company is projected to achieve profitability in Q3 of 2001.
Despite favorable business and fundamental comparisons to five other comparable companies, Mr. Robinson notes that Stockgroup.com sells at a substantial discount to the six company group's average price/sales ratio, the key industry valuation benchmark. On trailing four quarters revenues, the mean price/sales ratio for the six companies is 59x versus 16x for Stockgroup.com. Mr. Robinson believes recognition of Stockgroup's strong comparable fundamentals, and strong management should lead it to sell at least at the group's mean multiple. The price target of $12 assumes only a 25x multiple on 2000 revenues. Mr. Robinson concludes from his comparable analysis detailed in the report that there is no reason for the stock to sell at a discount to this mean price/sales multiple.
Public Analysis & Review (PAR) is a program of the Investors Research Institute, Inc. (IRI), a non-profit membership organization for individual investors and others advocating higher standards of ''accessibility'', ''scrutiny'' and ''disclosure'' for public companies. Anyone, including a company, may enroll a company for coverage. PAR reports are performed on behalf of the members of the Institute, and are not a service to any company. PAR analysts are responsible only to the public, and are qualified and assigned solely by the Institute, separate from the fiduciary entity, which is Investrend Communications, Inc. (IRIK), a public company in registration and financial administrator for the non-profit Institute. PAR analysts are paid in advance to eliminate pecuniary interests and insure independence. PAR enrollment fees are $17,500 per annum. Mr. Marcus New, CEO of Stockgroup.com Holdings is a director of Investrend Communications, Inc., distributor of the PAR reports. Stockgroup.com also distributes PAR reports through its website and represents PAR enrollment to its corporate clients under a recent agency agreement with Investrend Communications.
--------------------------------------------------------------------------------
Contact:
Stockgroup.com
Marcus New
CEO
800/650-1211
marcus@stockgroup.com.
or
Investrend Research
John M. Dutton
President and PAR Supervisory Analyst
213/929-2616
jmdutton@mediaone.com
www.investrend.com
|
