Article mentioning HM: etrade.com@NEWS-P1&NewsWire=BZ
10/12 05:17 Beloyan Investment Securities, Inc. Announces Investment Opinion
on European
Beloyan Investment Securities, Inc. Announces Investment Opinion on European American Resources Inc., Frontline Communications Corp., and Canterbury Information Technology Inc.
DAVIE, Fla.--(BUSINESS WIRE)--Oct. 12, 1999-- Beloyan Investment Securities, Inc. Reiterates Investment Opinion
Recommendation of European American Resources Inc. (OTCBB:EPAR),
Frontline Communications Corp. (Nasdaq:FCCN) and
Canterbury Information Technology Inc. (Nasdaq:CITI)
Beloyan Investment Securities, Inc. President Mark Beloyan reiterates a STRONG BUY on European American Resources Inc. (OTCBB:EPAR 1 3/16) The target price of $5.50 to $8.00 is warranted for the following reasons.
Our former recommendation with a target price of $5.00 to $5.50 has now been increased to $5.50 to $8.00, because of the former value of gold at around $255/ounce. With gold now trading around $320+ per ounce, the value of gold mining companies is greatly enhanced. My previous analysis was based on an overwhelming short position in gold worldwide - it seems, the current price of gold has confirmed my theory.
With gold trading around $320+ per ounce, I believe even more that gold will once again be a safe haven as we get closer to Y2K. Historically gold has been a safe haven for investors and institutions alike. As you might know, in the resent past I have visited EPAR's Prospect Mountain Gold Project in Eureka, Nevada. There I had the opportunity to discuss at length with onsite geologists from both EPAR and Homestake Mining Inc. (NYSE:HM) the project development and opportunities for both the Ruby Hill (HM) and Prospect Mountain (EPAR). It seems to be apparent that there is an enormous synergy to these properties and that this junior mining company (EPAR) has what it takes to joint venture its Prospect Mountain project with a major mining company.
With only 1% of the property drill-tested, and to an average depth of only 300 feet, the initial results indicate 18,500 ounces of gold. When you calculate the acreage and depth to only 2400 feet this brings the total to 14.8 million ounces of calculable resources. The operating cost to recover gold in this area has been as low as around $100 +/- per ounce for open pit production and respectively less considering possible high volume underground mining could be expected to equal Homestake's reported open pit costs (one of the lowest in the world) of less than $105 per ounce (just a stone-throw away from EPAR's border). Especially with the price of gold around $320+ per ounce, it is obvious that the company's profit potential is enormous. These numbers do not take into effect any amounts of silver that will eventually be mined along with gold on this property, which may be up to 13 times the amount of gold.
Nevada's Eureka mining district, located in the Battlemountain Trend, now represents one of the lowest costs per ounce for open pit mining operations in the world. The existence of Homestake's low cost open pit mine and heap leaching process right adjacent to EPAR's project has indirectly added premium values to any legitimate claims in Nevada, including the claims controlled and owned (62 patented claims) by EPAR. I believe the low cost and abundant resources makes EPAR an attractive joint venture or acquisition candidate for a larger mining concern.
I also reiterate our strong buy on Frontline Communications Corp (Nasdaq:FCCN 5 1/4) with a short term target of $10.00 per share for the following reasons: 1. The ISP marketplace is consolidating and strong growth is still
expected. 2. Strong business region in which FCCN has a foot hold, New York,
New Jersey, Pennsylvania, Washington DC, Connecticut, Delaware
along with a national presence. 3. Very little debt ($150,000). 4. Has developed an E-commerce site that has been operating since
April 1999 (WOW Factor). 5. 15,000 subscribers and growing. 6. DSL technology. 7. CLEC status (Competitive Local Exchange Carrier) in New York and
Pennsylvania with New Jersey still pending. 8. The market is growing rapidly, with 23 million small businesses
in the US and 2 million expected online by 2002. These businesses
will spend about $7,000 per year on technology. 9. The niche is women owned businesses; there are about 9.1 million
women owned businesses in the US. 10. Online revenue growing enormously with $13 billion online in
retail revenue in 1998.
In the past 12 months FCCN has: A. Closed 8 acquisitions, B. Increased customer base from 1,500 to 15,000 C. Increased monthly revenue from $25,000 to $300,000 D. Completed National coverage and expanded geographic footprint E. Secured CLEC status in 2 states with 1 still pending F. Closed 20 business development deals G. Launched WOWFactor with leads increasing daily H. Partnership with Iclickcharge and other entities I. The launch of ChanneliShop scheduled for January 2000.
In addition, FCCN has completed the acquisition of WebPrime, a web service company which is an "International Business Machine (IBM: NYSE) Premium Business Partner." With all of the acquisitions FCCN has done they have reduced their costs by 50%. FCCN is the only National Internet and Ecommerce Company providing end to end services to small and medium sized businesses through a combined National niche marketing and regional geographic expansion strategy. With much more growth in their future I believe FCCN has no place to go but up.
In April 1999 I recommended Canterbury Information Technology Inc. at 1 5/8, (Nasdaq:CITI 3 1/8) The stock is currently trading around $3.00 per share. This represents a technical breakout, with CITI growth potential and a positive earnings pattern I continue to believe this company has the potential to trade around $5.00 per share. With the stock price well above its' book value of $2.05 per share, the company can now move forward with its' business plan of making acquisitions for stock. With potential acquisitions the company should be able to increase its' EPS by about 40%+. In addition the company has continued to pay down its long-term debt which will only add to the company's earning.
For further information please call Mark Beloyan at 800-365-1553 or 954/916-3899.
With respect to the above you should be advised that: 1. Beloyan Investment Securities, Inc. (BIS) may trade for its' own
account any securities/options of the issuer(s). 2. BIS, its' affiliates, directors and officers may have a long or
short position in any securities mentioned herein. 3. The material herein has been obtained from sources believed
reliable and accurate, however, its accurate and completeness
cannot be guaranteed. Any recommendation contained therein may
not be suitable for all investors.
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CONTACT: Beloyan Investment Securities, Inc., Davie
Mark Beloyan, 800-365-1553 or 954/916-3899 Today's News On The Net - Business Wire's full file on the Internet
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