Branscombe Capital of Toronto has just released an update to it's Eiger research, the highlights are as follows:
Reccomendation: AGGRESSIVE BUY
12 month target: $12.00 U.S.D.
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The following is highlights of a report from Raymond L. Dirks of Dirks & Company from Madison Avenue in New York.
?h Strong Purchase Recommendation with an 18-month target of $25 US.
?h Strong research and new product development capabilities.
?h The company is able to offer a diverse and growing line of computer peripheral and Internet related products that appear to have significant growth potential.
?h Very shortly the company will be offering an ADSL product that will enable users to access the Internet much faster and more cost effectively than the conventional 56K modems currently in use.
?h Products can be found in many leading retail outlets such as Best Buy, Comp USA, Computer City, and Wal-Mart. As well on web sites such as Amazon.com, Egghead.com, Onsale.com, and its own web site.
?h Strong business relationships with many OEMs including Hewlett Parkard, Samsung, and Xerox.
?h MOU signed to acquire 25% of Nixxo Technologies for $10 M. Nixxo has developed a GSM Baseband Chip and additional chip technologies that have significant growth potential in the telecommunications industry.
?h Management believes that the company has the structure in place to achieve sales of about $100 M in the current fiscal year ending Sept 30, 2000, and sales of more than $200 M in the following fiscal year. These sales could produce fully diluted earnings of $0.22 and then $0.47.
?h Eigers Korean subsidiary announced a $35 M contract with 2 OEM companies for their MP3 player.
?h Relative to the current values being accorded to a selected diverse group of other publicly Computer Peripheral Equipment stocks (derived from Bloombergs data base) the company is considerably undervalued.
?h A valuation more in line with its publicly traded peer group would suggest a near-term stock price of $12 per share. Going forward if the companies strategic growth plan is successfully pursued, and 18-month price target of $25 would appear reasonable.
?h Eiger negotiating to become and ADSL supplier for a large overseas telecommunications company.
?h Eiger plans to use the proceeds from the issue of the Special Warranty to aggressively expand its OEM, MP3, and DSL modem business operations.
?h The company now has the financial substance necessary to qualify for listing on the NASDAQ and intends to do so as rapidly as possible. This will enhance EigerÝs US investment visibility.
?h Eigers management team is top notch including its CEO Mr. Walter Keyser, a founding director of AGF Management Ltd. |
