KTEL competition for selling custom CD's
Just passing this along, FYI:
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Thursday December 17, 11:52 am Eastern Time
Company Press Release
SOURCE: Joseph Charles & Associates, Inc.
Joseph Charles & Associates, Inc. Upgrades CustomTracks from Special Situation to
Buy...6-Month Price Target $17
BOCA RATON, Fla., Dec. 17 /PRNewswire/ -- The following is being issued by Joseph Charles & Assoc., Inc., a member of the National Association of Securities Dealers, CRD number 3949:
Joseph Charles & Assoc., Inc. research analyst David Weinstein upgraded CustomTracks (Nasdaq: CUST - news) from a Special Situation to a buy recommendation with a 6-Month Price Target of
$17. Mr. Weinstein has published a research report dated 12-17-98.
CustomTracks Corp. is developing a large-scale custom music reproduction distribution system. This system will enable consumers to select songs from different artists and labels, and CustomTracks
will burn these songs onto a personalized CD. Alternatively, CustomTracks intends to offer individual songs for sale via download over the Internet. The Internet is changing the way music is purchased,
and we believe that CustomTracks is pursuing a business plan that, if successful, will eliminate all meaningful competition for custom music. CustomTracks is the brainchild of David Cook. Mr. Cook
founded and ran Blockbuster Video from inception until 1987. On February 27, 1998, he was elected chairman, president, and CEO of CustomTracks (formerly known as AMTC Corp.).
CustomTracks is debt free with over $80 million in cash to pursue the custom music business.
We view CustomTracks as a rather unique speculation. If the company successfully breaks into the music business with a music content agreement, then the stock is likely to rise quickly and sharply in
the near term. If unsuccessful, we feel the stock will fall to the level of its cash position of $5.33 per share. If this negative scenario occurs, it will then be incumbent upon David Cook to redefine the
company's future and steer it toward a new market. With over $80 million of cash on-hand and the potential addition of nearly $30 million from incentive stock options, we believe the shares will
appreciate to $17, or three times the implied book value of $5.70.
Information and statements contained herein, other than historical information, should be considered forward-looking, which involve risk and uncertainties. Joseph Charles & Assoc., Inc., its officers,
directors and affiliates may maintain positions in the securities referenced which may change at any time without notice. The securities referenced are speculative in nature and may not be suitable for your
investment objective. Additional information is available upon request.
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