CLASSIC 1996 EDWARD WILLIAMSON
Fifth Avenue Stock Report
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Everyone will be talking about, “November of 1996” (unless December turns out to be even better). The Dow Jones Industrial Average had the largest one-month point gain in its history, rising 492 points or an increase of 8.2% as it closed Friday at 6,521.70. The Standard & Poor’s 500 Index rose more than 51-points, an increase of 7.3%. Mr. Richard McCabe, a market analyst with Merrill Lynch said, “The best thing about this record month is that it is a leading indicator. Historically, it kicks off the best six months of the year for stocks. And December and January are among the top three.”
Mr. Scott Bleier, Chief Investment Strategist at Prime Charter, was quoted by Dow Jones & Company as saying, “In my 10-years in the business I have never seen a year that was as good for Wall Street as it was for Main Street. Business is good, people are working and happy, banks are doing fine, and farmers aren’t suffering.” Mr. Alfred E. Goldman, Director of Technical Research at A.G. Edwards & Sons, however, said investors should treat the market as if the current trend in place will last forever. He said, “The height of the market doesn’t kill bulls. It’s the unexpected event, like a rise in interest rates or an unexpected upside orgy, that spells its demise.”
Market insiders expect stock prices to climb through the fourth quarter and into early 1997.
Company Updates
Telecomm Industries Corp. (OTC: TCMM)
The Company announced November 19th that in its third quarter, ending September 30, 1996, it earned $161,944 or 2-cents per share on revenue of $2,588,107, an increase of 117-percent in revenue and an increase of 316-percent in earnings, compared to revenue of $1,189,047 and earnings of $4,959 in the year ago quarter. The Company said for the nine-months ending September 30, 1996 it earned $445,604 or 5-cents per share on revenue of $6,834,289, an increase of 76-percent in revenue and an increase of 72-percent in earnings compared to the earnings of $259,259 or 3-cents per share on revenue of $3,876,394 for the same period last year. The Company also said that at September 30, 1996 its total assets were $4,791,663, and its total shareholders’ equity was $2,371,835. Telecomm Industries Corporation is Ameritech’s (NYSE: AIT) largest voice and data distributor, selling voice, data, cellular, video, and telephone information solutions in Illinois, Ohio, Indiana, Michigan and Wisconsin. TCMM closed Friday at $1.75, up 12.5-cents. Due to its earnings and revenue growth rate we rate TCMM a strong buy and have set a $5.00 target sell price.
OMAP Holdings Incorporated (OTC: OMHI)
We really blew it when we recommended OMHI as a strong buy during September and again in early October. You may remember that the stock had dropped from a high of $5.00 to a low of 12.5-cents. We issued a strong buy at that time and the stock jumped to 50-cents bid, 75-cents asked in a matter of days. Then, just as quickly, it sank to 4.5-cents and then rallied back to 10-cents, where it is now. What happened? We wanted to know too, as we had acquired a large position ourselves. According to the Company, it sold about 3.5 million shares of Regulation S stock back in May, 1996 to some off-shore investors at 12.5-cents per share. About 2.0 million additional shares were also sold to a different group of off-share investors a few months ago at 7.5-cents per share. It seems these shares found their way back into the market. Trouble was, they found their way back all at once, and that’s why the stock dropped so much so fast. The market could not absorb that many shares in a matter of days, so the market makers simply lowered their bids and bought the stock at lower and lower prices until the selling stopped a few days ago. The Company’s shares still have a book value of more than 22-cents and, in our opinion, should be trading at 75-cents. The stock closed Friday at 9-cents bid, 11-cents asked. Last trade was at 11-cents. We continue our strong buy rating and continue our target selling price of 75-cents.
Advanced Plant Pharmaceuticals (OTC: APPI)
The Company completed its one-for-one common stock dividend November 25th. APPI is the first and only company ever to receive investigational new drug (IND) status from the FDA on a plant pharmaceutical. The Company’s new drug, ABAVCA, for AIDS, is currently beginning Phase I-II studies in human clinical trials. The Company is also developing whole plant drugs for leukemia and general cancers. APPI closed Friday at 22-cents, down 1-cent. We rate this stock highly speculative and therefore only suitable for those who can afford to lose their entire investment. The AIDS drug will be a huge hit or a complete flop. Due to the involvement of the physicians at The Albert Einstein College of Medicine, we hope for the “huge hit”.
Tianrong Building Material Holdings, Ltd.
(OTC Bulletin Board: TNRG)
announced on November 14th that it has agreed to acquire International Construction Technologies (ICT), an Alberta, Canada-based private company specializing in advanced masonry construction technology. Tianrong is acquiring ICT to further complement its ongoing construction activities in China and India. Tianrong will assume existing licensing contracts of ICT with IMSI, Inc., Scottsdale, Arizona, for the patented IMSI Block system. IMSI (Insulated Masonry Block System) manufactures masonry building block used for loadbearing and non-loadbearing blocks for single or multi-story building construction. TNRG stock closed Friday at 31-cents. We rate the stock a strong buy for long-term investors only and have set a target selling price of $3.00.
Integrated Healthcare Systems (OTC:IGHS)
In a conference call with analysts October 24th, the Company’s Chairman, Michael Black said, “The Company expects to see significant revenue and earnings increases for calendar year 1997 and a positive earnings per share number. The Company expects to operate profitably in the first quarter of 1997”. We rate IGHS a strong buy and have set a target sell price of $6.00. The stock closed Friday unchanged at $1.75 but up 50-cents for the week. The 52-week trading range has been $1.25 to $10.50.
New Situations
CEA LAB, Inc
This public-owned company was inactive until October, 1996 when it acquired Williamson & Associates, Fifth Avenue Communications (publisher of this report), Rose Hill Golf Resorts, Andros Island Hotel & Casino, and stocks in about 70 public companies. The Company’s unaudited financials at October 31, 1996 reflect total assets of $3,142,927 and shareholders’ equity of $2,703,036. The Company expects its stock to begin first trading on the OTC Bulletin Board in December, and later move to the NASDAQ SmallCap System. No trading symbol had been assigned at press time. The Company is making an offering of 300,000 common shares, priced at $3.00 per share, in a Regulation D(504) offering. The Company is making the offering only to accredited investors in states where the offering has been approved for sale. The Company’s telephone number is 800-992-6616. The Company’s fax number is 316-688-0998.
Financial Focus Online, Inc.
The Company (f/n/a Mutual Fund Information Services) is making an offering of 300,000 common shares, priced at $3.00 per share, to accredited investors only in the states where the offering has been approved, via a Reg D(504) offering. The Company delivers access to financial information via the Internet for equities, mutual funds and Initial Public Offerings (IPO’s). The Company’s telephone number is 212-968-8700. The fax number is 212-968-8793.
Requests For Information
Call Fifth Avenue Communications at 800-992-6616 to receive free Corporate Profiles via fax and/or complete due diligence packages via mail on companies mentioned in this report.
You can also contact us via e-mail at willstocks@juno.com
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Recommended Company Profiles
Advanced Plant Pharmaceuticals (APPI)
OMAP Holdings, Inc. (OMHI)
International Nursing Services, Inc. (NURS)
Tianrong Building Material Holdings (TNRG)
Recycling Industries (RECY)
Telecomm Industries (TCMM)
Enviro Voraxial Technology, Inc. (EVTN)
Leasing Edge Corp (LECE)
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