HUMT.. new yr high.. one to watch, and check out
Symbol- HUMT
Shares Outstanding- 8,405,000
Float (est.)- 500,000
52 Week High/Low- 0.13- 1.43
6 mo. Target- 7
HumaTech Inc. (OTC BB: HUMT), our newest pick here at Investors' Alert, we
adamantly believe will be our big winner of the year. HumaTech is a manufacturer and
distributor of humate-based nutrients for both plants and animals. Its products are
classified as High Technology Organic Solutions. Its products are created from a
proprietary process known as Iso-Molecular Technology. HumaTech sells its
proprietary product lines to Growers of Agricultural Crops, Golf Courses and
Commercial Landscapers, Mass Merchandisers and Independent Nurseries for Lawns
and Gardens, Animal Feed Supplements to Feedlots.
The company has been manufacturing its products for over 20 years and is now
dramatically increasing its revenues at an explosive rate. In fact, we have no doubt that
HumaTech's revenues will surpass $8 million this year (a hair raising 1500% increase
from 1998.) Management's own projections are $3.5 million to $8 million for 1999.
HumaTech experiences extremely high gross and net margins. Net margins are 30% this
fiscal year; and as soon as the company surpasses $50-60 million/year, margins will
drop to approximately 25%, which is still extremely high. On $8 million in revenue, that
gives the company a net profit of $2.4 million before tax. If the company trades at a
very conservative P/E of 15, the stock should trade between $4.50-$5, and we are
talking about only 6 months from now.
Now that's exciting, a stock going from $1.25 to $5 in six months. But we believe this
stock has the potential of $20 or higher in the next 8-10 months, and here is why:
1) HumaTech, on May 13th of this year, announced the signing of the services of Club
Marketing of Duncanville TX, with the intention of introducing its new product line
GreensKeeper
STRONG BUY / AGRRESSIVE GROWTH
(OTC BB: HUMT)
Secret, to Wal-Mart, (NYSE: WMT) Home Depot, (NYSE: HD) and other mass
market retailers for national distribution. We believe a contract will be signed with
Wal-Mart very soon. That contract alone we believe will be worth in excess of $10
million/year.
2) Who can ever forget Mad Cow Disease? HumaTech is the only approved,
worldwide solution. We believe HumaTech's solution will be highly publicized, and
HumaTech will become one of this year's hottest stocks. On June 22nd, HumaTech
announced it has received approval to import its entire line of natural feed ingredients
into the European Union. The company has received full approval from the Ministries of
Agriculture Fisheries and Food; HumaTech is the only company to receive this
approval. This is very significant. HumaTech's products replace artificial growth
hormones currently used in the animal feed market. These artificial growth hormones will
be banned as of July 1999 in the entire E U. Mad Cow disease has been found
attributable to the use of these artificial growth hormones. This is huge. The worldwide
market for artificial hormones is $4 billion annually. Management has stated that this
product line will generate $2 million in the following few months; but after interviewing
management we believe HumaTech will generate $50-100 million/year, or more, with its
natural feed ingredients in this market. Let us not forget about the United States. The
USDA has already stated it will phase out the use of artificial growth hormones in the
US.
That is why we are putting our 6 mo. Target at $7 over $5, because of the incredable
potential of this company we believe the stock will trade at a higher P/E multiple than
15.
Investors' Alert is an independent research firm with paid subscribers. Subscriptions are
$139.00/year for Investors' Alert newsletter service. This report is based on Investors'
AIlert independent analysis but relies on information supplied by sources believed to be
reliable, The information contained in this report is not intended to be, and shall not
constitute, an offer to sell nor solicitation of any offer to buy any security. Thomas Loyd
has purchased 45,000 shares of HUMT in the past 3 days, Thomas Loyd has also
helped HUMT with corporate finance issues and Loyd Financial Consulting was paid
$32, 000 of HUMT stock. Copyright © 1999 Loyd Financial Consulting. All rights
reserved. |
