Analyst Initiates Coverage, Assigns GRLZ Speculative Buy, Target $4 TO $7 in IRI's Public Analysis & Review - PAR - Program
NEW YORK--(BUSINESS WIRE)--Jan. 6, 1999--Public Analysis & Review (PAR), the unique professional independent analyst program administered by the non-profit Investors Research Institute, Inc., announces that John N. Dutton, professional analyst qualified in the PAR program, has initiated coverage of Boystoys.com, Inc. (OTCBB: GRLZ - news), and has assigned the company --- which is enrolled in the PAR program along with Planet City Corp. (OTCBB:PINC - news), American Pacific Financial Services (OTCBB:AMPA - news), ALYA International (OTCBB:ALYA - news), Mortgage Bankers Holding Corporation (OTCBB:MBHC - news), LifeOne, Inc. (OTCBB:LONE - news), Remington Hall Capital Corp. (OTCBB:REMH - news), The Football Network (OTCBB: TFNK - news), Centenary S.A. (RRRI) and CorpHQ, Inc. (OTCBB:COHQ - news) --- a ''speculative buy'' rating, with a 12-month target of $4 to $7.
A summary of the report follows. PAR has authorized the company to post the full report at boysir.com , and in the interim the report may be obtained upon request from info@mawest.com or via fax upon request to 650-588-2678.
Date of Report: January 6, 1999 Stock Price: $1 Latest 12 mos. Price Range: 9/16 - 3 3/4 Industry Sector: Entertainment and Internet Shares Outstanding (1) : 3,638,262 Estimated Float (1): 1,484,749 Recommendation: Speculative Buy Taget Price (12 mos.): $4 - $7 (2)
(1) Management report of shares outstanding December 31, 1998, including 625,000 shares issued since June 30, 1998 for conversion of notes; After all remaining notes are converted, 4,436,000 shares would be outstanding. The Company's corporate name and stock symbol (GRLZ from BOYS) changed effective December 30, 1998.
(2) Assumes the Company closes the necessary financing described herein.
Boys Toys.com, Inc. (BB: GRLZ) (formerly Alternative Entertainment, Inc.) is a new entrant to a small but expanding list of public companies that address portions of the rapidly growing adult entertainment market. The U.S. adult entertainment industry presently generates over $9 billion of annual revenues. GRLZ will operate sophisticated, upscale gentlemen's clubs named BOYS TOYS in selected major US cities. Upscale gentlemen's clubs represent only 200 of the 2,000 existing U.S. adult clubs. San Francisco was chosen for the initial 14,000 sq. foot BOYS TOYS. The club is located near the Transamerica Building and the financial district and is anticipated to open March 1999. Also, GRLZ will sell the entertainment provided at its different BOYS TOYS clubs to over 45,000 adult internet sites, where new and differentiating content is in enormous demand. The Company anticipates operating its own internet adult entertainment sites as well as providing services for internet transaction processing and age verification.
Since its 1993 inception, GRLZ has raised $2 million for startup and development costs, as well as the costs of club permitting and initial construction for San Francisco. GRLZ is raising a necessary $1 million to complete its San Francisco club. The second GRLZ club, an existing 24,000-sq. ft. club in Detroit under purchase agreement expected to close this fall, is located three blocks from the new 2.2 million square foot Renaissance Center. The club is two blocks from one of the three casinos being constructed in downtown Detroit.
GRLZ revenues based only on operation of the two clubs, and internet sales of its club entertainment content, should exceed $8 million and $18 million in 1999 and 2000 respectively. The projected revenues translate into estimated earnings per share of $0.48E and $0.52E for 1999 and 2000. An aggressive internet sales strategy coupled with additional BOYS TOYS clubs should raise these and ensuing estimates. There are 4.4 million shares outstanding after conversion of the notes payable.
The Company's latest unaudited June 30, 1998 balance sheet reflects a negative net worth of ($ 817,000) before mandatory conversion of $1,423,000 of notes payable at a price of $1.00. This improves the June 30, 1998 net worth to $853,000.
Boystoys.com is rated a Speculative Buy with a one year target of $4 to $7 per share.
--- John N. Dutton, Analyst
John M. Dutton, a member of both the Boston and Los Angeles Security Analyst Societies, has been an analyst and director of research at several firms including Moseley, Hallgarten, Estabrook & Weedon and LH Friend, Weinress, Frankson & Presson. He was president of Corsair Asset Management, an asset management firm, for over 11 years. For seven years he was a senior executive at the international hospital company American Medical International. Mr. Dutton's present work includes development and execution of strategic and financial planning for small cap companies.
Public Analysis & Review (PAR) is a program of the Investors Research Institute, Inc. (IRI), a non-profit membership organization for individual investors and others advocating higher standards of ''accessibility'', ''scrutiny'' and ''disclosure'' for public companies. Information, opinions or recommendations contained in this report or study are submitted solely for advisory and information purposes. The information used and statements of fact made have been obtained from sources considered reliable but neither guarantee or representation is made as to the completeness or accuracy. This report or study is not intended as an offering or a solicitation of an offer to buy or sell the securities mentioned or discussed. The author of this report was paid for preparing the report by IRI, Inc. (IRIK), administrators for the non-profit Investors Research Institute, Inc. The Institute has sole responsibility for the qualification of PAR analysts and their respective assignments to enrolled companies for coverage. Any interested party may enroll a company for coverage. Per-annum enrollment fees are $15,000. LONE, AMPA, TFNK and REMH are currently temporarily suspended in the program, pending company developments permitting the assignment of an analyst.
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