Big, maybe this will help you get a little more rest tonight. It is pretty much stuff you probably already know but packaged a little neater. I posted the following a few days ago on the AOL boards.
I received the following today from Gold Ridge Corp. Another well respected news letter for those of you who don't know. They are sending out this recommendation on AWLT to 5 million e-mail addresses over the next 4 weeks.
THE COMPANY.
Araldica Wineries, L.T.D. is a primary importer and direct marketer of premium Wines, Olive Oils, Pastas and other specialty products form Italy. The New York based company is headed by a seasoned entrepreneurial team, and has a total of three subsidiaries that all will provide strong net profits. The company is also exploring two additional profit making ventures that will double the size of AWLT.
Araldica has established a special reputation in the market by combining a unique form of packaging to complement the quality of its goods. The company researched public and private archives throughout Italy's 95 provinces and obtained the authentic family coats-of-arms of Italy's most famous 500 families in America, and further researched over 300 Italian surnames. Araldica will produce a bottle of wine with the purchasing family's name and crest
on the label. Using targeted direct mailings to reach its customers, Araldica has focused on selling its products to roughly 23 million Italian Americans in the US. A tremendous profit center for Araldica, this business is capable of generating roughly 50% gross profits.
In addition to its wine retailing and specialty foods distribution, Araldica owns the Mediterranean Diet Club. Not to be confused with a weight loss program, this promising operation combines a healthy lifestyle philosophy with products such as pastas, breads, wines and oils, packaged attractively together. The products are made from the freshest ingredients and combine culinary specialties with nutritious fundamentals.
Although primarily based in the US, Araldica is meeting demand from countries as far away as Hong Kong. The company recently has secured a contract to sell caviar in bulk, through one of its subsidiaries, which alone will contribute a minimum of $2 million dollars per year in revenue.
"Araldica Expands Internet Exposure"
NEW ROCHELLE, N.Y.--(BUSINESS WIRE)--May 29, 1998--ARALDICA WINERIES, LTD. (NASD-BB:AWLT)
Louis D. DeSantis, President announces today that Araldica has exceeded expectation for initial internet sales. "Araldica had projected Mediterranean Diet
Club, our exclusive line of Italian gourmet products to have respectable sales. However, due to the immediate response to our website, we have determined to aggressively expand our exposure on the World Wide Web. We will utilize all of the major search engines including Yahoo, Infoseek, Lycos, Altavista and Excite for the greatest exposure on the internet. DeSantis continued, " We are
confident that this program will have a positive impact on the company's sales and earning."
The tremendous success that companies like K-Tel Records, Amazon.com and many others have received from the internet has prompted Araldica to focus a large portion of its marketing and sales effort onto the internet.
DeSantis said, "We have entered a new chapter in our ongoing effort to become a dynamic force in the direct marketing of imported and domestic gourmet foods and Italian wines. We have started internet sales with Mediterranean Diet Club, our exclusive line of Italian gourmet products. Also, Italian wine is now offered initially in New York State with other states to follow. Finally, we are featuring the finest imported Russian caviar available
anywhere."
Already Araldica has received 'hits' on the internet site from over 45 countries around the world and from almost every state in America. Araldica is committed to providing customers the best possible prices and superior customer service, expanded offerings, while improving operating margins.
At present, Araldica is severely undervalued (US $0.25c a share). Based on its competitors values, this company should be trading at over $2.50 a share.
If you were to take Araldica and multiply its earnings, at a projected FY ending 1998, at a conservative $0.12c fully diluted, the stock should be trading at $3.00 a share. The company has over $6,000,000 in assets and long term debt of $1,000,000. Clearly, the stock is undervalued.
There are 16,635,072 shares issued and only 7,479,107 in the float as of 9/30/97. Over a whopping 5,630,000 shares are restricted by insiders (a very good sign for investors).
Most companies trade at a multiple of 10 to 12 times the book value, which for Araldica would mean a value between $3.80 and $4.56 per share (a far cry from their $0.25 they're trading at now).
With a balance sheet of strong assets, superior products and a sizeable budget for television advertising, this company is certainly poised for substantial gains.
Araldica Wineries, L.T.D.
2 HAMILTON AVENUE
NEW ROCHELLE, NY 10801
TEL: (914) 636-0500
FAX: (914) 636-0518
E-MAIL araldica@idsi.net
WEB SITE: www.araldica.com
TRADING SYMBOL: AWLT (NASDAQ BB)
SHARES OUTSTANDING 16,635,000
LOW/HIGH $.09 - $2.37
CURRENT PRICE 25c
EST EPS FISCAL YEAR END: $0.10
Please contact Chris for more information at (914) 636-0500.
DISCLAIMER
The materials contained here from Gold Ridge Corp. have been culled from sources deemed reliable and are for the sole purpose of providing general information. Gold Ridge Corp makes no representations or warranties as to its factual content. Furthermore, Gold Ridge Corp. is not a brokerage firm or securities dealer, and, therefore, nothing contained on this site shall constitute an offer to sell, solicit, or buy and securities or investment advice.
Investment in any security mentioned herein involves a very high degree of risk and should not be considered without first reading the company's most recent financial statements and any other information deemed appropriate and consulting one's financial, tax, and legal advisors. Officers, directors, editors, writers or employees ofÿ Gold Ridge Corp. may from time to time purchase, sell or have a position in the securities of a company discussed
in this report, and these positions may be increased or decreased in the future.ÿ In some cases, Gold Ridge Corp. or its employees may have a consulting arrangement with some of the companies and may provide a host of services for a fee. |
