New Buy Recommendation
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Dutchess Advisors, Ltd. Announces Investment Opinion on C-3D Digital
Tue Feb 15 08:37:00 EST 2000
BOSTON, Feb 15, 2000 (BUSINESS WIRE) --
Dutchess Advisors, Ltd. Initiates Coverage of C-3D Digital With a Buy
Recommendation and 12-Month Price Target of $36
Boston-based Dutchess Advisors, Ltd. announced today it initiated coverage of
C-3D Digital (AMEX: DDD), a technology-driven 3D entertainment company, with a
buy recommendation and a 12-month projection of $36 per share.
C-3D Digital is a leading innovator in the manufacture and development of 3D
imagery and virtual reality entertainment for television and the Internet. The
report summarized the Company's operating divisions, including C-3D Television,
the world's first and only broadcast network to offer 24-hour 3D programming;
3D.COM, its Internet subsidiary and home to a forthcoming virtual reality/3-D
portal/e-commerce community; Strata Software; and the Hotel Movie Network, a
private broadcast network focused on the hospitality industry.
The report based its price target on key developments, including: "The recent
licensing agreement with Trimark Pictures, a division of Trimark Holdings Corp.
(NASDAQ: TMRK); an equity investment from I-O Display, LLC a joint venture
between Illixo, Inc. and Liberty Media Group (a division of AT&T; NYSE:T); the
enrollment of additional cable system Telepro, a national DirectTV account, to
provide distribution of the 3D Television Network to its subscribers; and the
expected launch of the 3D.COM Virtual Reality Portal(TM) in June 2000."
Dutchess Advisors projected future growth, stating, "Management is making all
the right moves by licensing content, increasing distribution through the
enrollment of cable systems, building its internal team of seasoned and highly
skilled professionals while reshaping its Board of Directors. With the expected
launch of 3D.COM VIRTUAL REALITY PORTAL later this year and the continued
non-stop pace at which the C-3D Television Network appears to be moving, we
believe puts C-3D Digital on the fast track. By capturing just 1% of both the
U.S. cable and hospitality markets, together with Strata's current revenue, we
project total revenues of $36 million in 2001 and applying a 7x multiple, we
forecast a 12 month price target of $36 per share."
Dutchess noted particular growth in C-3D's Internet division 3D.COM, "We believe
that 3D.COM is poised for explosive growth and may contribute up to as much as
25% of C-3D Digital's total revenues by 2003. The hidden gem here is the fact
that 3D.COM also doubles as the self supporting, dynamic R & D arm of the
Company."
A comparative analysis in the report commented on C-3D's virtual lack of
competition, "Although several companies currently offer 'simulated' or 'shadow'
3D e-tailing web sites, to date there are no known direct competitors of the
Company involved in either stereoscopic "pop out" e-commerce or network
broadcast of 3D programming to the home. Imax Theaters and Universal Studios
currently offer a stereoscopic 3D experience within a controlled environment,
but the viewer must make an actual paid visit to the venue in contrast to a 3D
experience in the comfort of one's home, for a fraction of the cost. Nonetheless
the rapid growth of these 3D outlets is only further evidence of the vast market
potential that awaits those ready to service the public's insatiable appetite
for new and unique virtual entertainment."
To view the Dutchess Advisors report online, visit
www.nfnonline.com/ddd/dutchess.html. For a copy by mail, please contact Dutchess
Advisors, Ltd. directly at 617-375-6747.
Dutchess Advisors, Ltd. and its affiliates maintain an investment banking
relationship with C-3D Digital, Inc. ("Company"), and have been, and will in the
future be compensated in the Company's stock, issued under Rule 144. This report
has been prepared from Company data and other sources believed to be reliable,
but we have not verified this information and we make no representation as to
its accuracy or completeness. Any statements non factual in nature constitute
only current opinions, which are subject to change without further notice. We
disclaim any obligation to update, revise or correct this report. This report is
published solely for informational purposes and is not to be construed either as
an offer to sell or the solicitation of an offer to buy any security or the
provision of an offer to provide investment services. Dutchess Advisors, Ltd.,
its affiliates and/or subsidiaries and employees may from time to time acquire,
hold or sell a position in the Company's securities. Any investor seeking to
make an investment should first consult with their advisor to make certain that
such an investment meets their investment objectives and is suitable for such an
investor. Transactions in the securities of the Company are considered
speculative and involve a high degree of risk. |
