LFZA: PennyStock pick a few minytes ago:
The current PennyStock Pick for Tuesday, April 21, 1998 is:
Laforza Automobiles, Inc.
(OTC BB: LFZA)
Ask - Bid: 3.06 - 2.97
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Newsbreaks
1. LAFORZA AUTOMOBILES, INC. SECURES $600,000 IN PRIVATE FUNDING
FOR MAJOR ASSET ACQUISITION
March 20, 1998, SAN DIEGO, PR Newswire -- Laforza Automobiles, Inc.
announced that they have secured $600,000 in funding to finalize the
purchase of all remaining inventory from the 1989-90 Model Year Laforza
SUV's, currently being stored at over $1.5 million once all vehicles are
assembled and sold.
Other Significant News Releases:
March 6, 1998, Laforza Automobiles, Inc. Signs Third Exclusive
Franchise and Dealers Agreement.
February 24, 1998, Howard Stillman, Investment Analyst Initiates
Coverage of Laforza Automobiles, Inc. with a STRONG BUY
Recommendation and a $10 PRICE TARGET.
February 9, 1998, Laforza Automobiles, Inc. Finalizes Purchase of
New Production, Administrative and Distribution Facility.
January 14, 1998, Laforza Automobiles and Ford Motor Company
Finalize Strategic Equipment Agreement.
Details of these news releases can be found at
newsalert.com, then enter "LFZA".
Mission Statement: Our mission shall be to produce and distribute the most
luxurious, exclusive sport utility vehicles. We shall always maintain the
highest benchmark of superior quality and superior service. Furthermore, we
pledge a total commitment to fiscal responsibility for the benefit of our
shareholders and
our employees.
Business of the Company: Laforza Automobiles, Inc. (the Company) is
comprised of two separate business focuses within the automotive industry:
(1) Laforza Automobiles is an importer and distributor of a luxurious,
Italian-made sport utility vehicle (SUV) called LAFORZA.
Pre-Order 1998 Model
(2) Monster Motorsports (a wholly-owned subsidiary) is an after
market customizer of high end, high-performance automobiles. Visit
their website at: monstermotorsports.com
The Company has secured the worldwide rights to assemble, market and
distribute the LAFORZA (SUV) from its Italian manufacturer, Magnum
Industriale. Monster Motorsports (MMS) has gained international notoriety
for dropping V-8 powered Ford engines into the Mazda Miata and marketing
them as "Monster Miatas." Over the years MMS has worked with Ferrari's,
Lamborghini's, Cobras, as well as their famous Miatas.
The LAFORZA (SUV) is imported into the U.S. as a complete interior and
exterior body "shell." The Company then installs a new Ford V-8 engine and
drive train into the vehicle. Once final assembly is completed, the Company
can also provide the buyer with complete after market customization through
its subsidiary corporation, Monster MotorSports, to ensure that the LAFORZA
buyer is getting a truly one-of-a-kind automobile. Although only
approximately 250 LAFORZA's have been sold in the U.S. to date, it has been
featured in such notable national publications as Car and Driver, Motor
Trend, and Autoweek. Car and Driver called it, "A new force with which to
reckon," adding that "the Laforza is indeed Italian. It has a suspension
derived from a Fiat-built army truck, a sumptuous leather interior, and an
all-steel body".
The Laforza is manufactured and produced by Magnum Industriale, based in
Cherasco, Italy. Magnum has been producing custom Italian-crafted vehicles
since the 1940s. The amenities? Perhaps Road & Track said it best:
"Laforza's full leather interior features electrically adjustable bucket
seats in front, a bench seat in the middle and 40.5 cubic feet of cargo
space in the rear. Power
everything, air conditioning, a sunroof, a top-notch sound system and any
other imaginable opulence are standard, including lots of head and legroom.
There are no mechanical or amenity options (none needed). The ride and
handling are superb for a vehicle of this heft and size. Laforza has an
impressively low center of gravity and very little body roll. This vehicle
can handle all the bumps off road and on the highway, Laforza is
impressively quiet and feels luxurious."
Laforza means The Force in Italian. Laforza, the automobile, means a
limited edition, rugged and versatile, ultra-luxury vehicle for the most
discriminating SUV buyer.
2. LAFORZA AUTOMOBILES ANNOUNCES SIGNIFICANT CORPORATE UPDATE
April 17, 1998, LAFORZA Automobiles, Inc. (OTC BB: LFZA) Corporate
Update LAFORZA Automobiles, Inc. (LAI) has had a very positive first
quarter 1998. The Company has taken advantage of several business
opportunities to ensure future success, as follows:
First, the purchase of the Corporate Headquarters building was
completed early this quarter. A 62,000 square foot facility was
purchased for $3.2 million at 2037 Mission Road in Escondido,
California. This 5.31 acre property will house the Corporate Offices,
manufacturing facility, parts storage and provide ample future growth
potential.
Second, Laforza Automobiles has received thirteen rolling chassis from
Italy. The fit and finish of these 1998 vehicles is fantastic and clearly
support Laforza's position in the upscale sport utility vehicle (SUV)
market. Four of these Laforzas have been sold to private individuals, the
remaining nine and the next 61 have been sold or promised to dealers.
It should be noted that all Laforza Dealers have been kept informed of the
production and certification status. As an indication of their support and
confidence in the Laforza, all dealers have reaffirmed their one or two
year commitments to purchase a minimum of two vehicles per month. LAI
expects to start delivery in April of the first all new 1998 Laforza.
Third, the purchase of the remaining 1989 Laforza inventory in Detroit has
been initiated. $150,000 in cash has been applied toward the purchase price
of $500,000. It is projected that $350,000, plus
$150,000 for transportation and related expenses still needs to be
identified. This inventory will result in sixty completed vehicles with
projected revenue of approximately $1,800,000 in addition to a
tremendous parts inventory. Corporate consideration is being given to
update these vehicles and sell them as 1998 export model Laforzas. To this
end, there has been significant interest from parties in Egypt, Canada,
Saudi Arabia, UAE, Mexico, and Switzerland inquiring about multiple vehicle
purchases.
The current corporate financial position is under-funded due to the
slowdown in LAI's ability to complete and deliver 1998 Laforza
vehicles as described above. Therefore, LAI is seeking interim funding for
the following requirements:
1) Three months operating funds to cover overhead and certain
fixed cost are required as delineated below (per month):
A) Facility operating costs (including utilities) $13,000
B) Worker wages $25,000
C) Miscellaneous $2,000, Total A, B, & C = $40,000
2) $100,000 is needed to accelerate the purchase of all the parts
required to complete ten 1998 Laforza vehicles. This will put the
Laforza sales projection plan back on schedule.
3) The total interim funding sought is $220,000 to meet corporate
requirements for a 90-day period.
LAFORZA Automobiles first quarter 1998 has been very positive. As
stated above, several business opportunities are available and will be
pursued depending on funding available. With regard to the primary business
of LAI, all production and manufacturing problems have been identified and
solutions are being incorporated that will ensure future success. The
support and professionalism of the Laforza Dealer network will allow LAI to
distribute and sell vehicles quickly, recouping lost revenue and time.
The Product: The Company is currently producing and marketing the last of
the 1989-body style Laforza's. These have been purchased in small lots from
a one 150 vehicle inventory in Detroit. These 1989 vehicles have been sold
in the retail price range of $35,000 - $48,000 over the last 24 months.
The Laforza is imported into the U.S. as a complete interior and exterior
body "chassis". The Company then installs a new Ford 5.0 Liter, V-8 engine
and drive train as final assembly. Once final assembly is completed, the
Company can provide the buyer with complete aftermarket customization
through its subsidiary corporation, Monster MotorSports (MMS), to ensure
that the
Laforza buyer is getting a one-of-a-kind automobile. MMS is a five-year old
company based in Escondido, California that specializes in aftermarket
customization of up-scale vehicles. Over the years MMS has worked with
Ferrari's, Lamborghini's, Cobras, and their most famous production, the
Monster Miata.
Finalized Negotiations: The Company has concluded negotiations with the
Italian manufacturer Magnum Industrialies on a new 1998 chassis with
updated styling and other expanded features. The suggested retail price for
the 1998 Laforza, after modification and final assembly by the Company,
will start at $59,500. Other various options will increase this suggested
retail price. The elite upper echelon of SUV buyers will get the best
possible package without
compromise in comfort, image, performance or luxury.
Corporate Capitalization: This information is based on the year end April
30, 1997 audited financial statement.
Shares Authorized 5,000,000
Par Value .001
Shares Outstanding 2,444,000
Shares Held By Officers & Directors 1,750,000
Other Restricted Shares 130,000
Shares Held By Public 665,000
The Company is authorized to issue 5,000,000 shares of its Common Stock,
$.001 par value. Each share of Common Stock is entitled to share pro rata
in dividends and distributions with respect to the Common Stock when, as
and if declared by the Board of Directors from funds legally available
therefor. No holder of any shares of Common Stock has any pre-emptive right
to subscribe for any of the Company's securities. Upon dissolution,
liquidation or winding
up of the Company, the assets will be divided pro rata on a share-for-share
basis among holders of the shares of Common Stock after any required
distribution to the holders of the preferred stock. All shares of Common
Stock outstanding are fully paid and non-assessable and the shares will,
when issued upon payment therefore as contemplated hereby, be fully paid
and non-assessable.
Each shareholder of Common Stock is entitled to one vote per share with
respect to all matters that are required by law to be submitted to
shareholders. The shareholders are not entitled to cumulative voting in the
election of directors. Accordingly, the holders of more than 50% of the
shares voting for the election of directors will be able to elect all the
directors if they choose to do so.
Visit website: pennystockpicks.com for
graph on Financial Projections and table on Sales Projections.
Corporate Executive Summary: Laforza Automobiles, Inc. was originally
formed as Celebrity Network, Inc. ("THE COMPANY"), Nevada
corporation, in October 1996. The Company was in the business of Internet
related development and marketing. In July of 1997 all of the assets and
business of the Company were sold to 1st Net Technologies, Inc., owner and
operator of a large Internet mall. On July 22, 1997 the Company executed a
Binding Letter of Intent to acquire Monster Motorsports, Inc. ("MMS") and
the rights to import and market the Laforza Sport Utility Vehicle ("SUV").
Celebrity Network, Inc. has since changed its name to Laforza Automobiles,
Inc. in order to reflect the new business of the corporation.
The Future: The following tasks must be completed in order for the
Company to launch the 1998 Laforza:
Finalize agreements between the Company and the factory in Italy
Re-certify the 1998 Laforza per governmental requirements Re-tool
Acquire, set up, and move into new facility
Create marketing, and other promotional material
Purchase and maintain an average inventory of ten (10) vehicles
Begin completing 1998 Laforza's
Present 1998 model at the LA Auto Show
Begin delivering 1998 Laforza's to dealers and other buyers
Management Bio's: Laforza has assembled a highly talented group of
automotive professionals. The management team has more than a five (5) year
track record in the Company's proposed business. With many more years of
combined experience in design, engineering, marketing, sales, distribution,
and general operations, the Company is poised for future growth and
expansion.
The Company has adopted a management philosophy, which, in practice,
empowers subordinates to use good judgement in taking immediate action to
identify and produce results. Regular meetings with all employees ensure
that everyone is involved and informed. The implementation of
top-down/bottom-up planning and budgeting, and weekly reporting serves to
keep all members of the team accountable.
Management:
Mr. David S. Hops, Founder, President of the Corporation, and CEO
Richard "Skip" Braden, Vice President/General Manager
Linda Drury, Secretary/Treasurer of the Corporation/Director
Trevor Haywood, Vice President Marketing and Sales
Robert Bell, Director
Gene Stinson, Director
Photo Gallery: A peek at the brand new 1998 Laforza SUV. Click on each
photo at laforza.com to see an enlarged picture of
the various Laforza vehicles featured.
New Car Options can be found at: http:www.laforza.com/options.html
Vehicle Specifications:
Successful 1998 Debut at the 1998 Greater LA Auto Show:
Article Reprints: The following excellent article reprints can be found at:
laforza.com
Car and Driver
AutoWeek
Road & Track
North Country Times
Adobe Acrobat/PDF Viewer
San Diego Business Journal
The San Diego Union-Tribune
Orlando Sentinel Online
All-Inclusive Message Board is located at:
1stnetmall.com
To Contact the Company with any Questions:
Company Office: 2312 Vineyard Avenue, Escondido, CA 92025.
Phone: (800) LAFORZA (523-6792) or (760) 738-1515
E-mail address: laforza@eillc.com.
Website: laforza.com.
Fax: 760-738-7593
Technical Position - PennyStock Picks
Our interpretation of the technical position of LFZA indicates that this
stock is moderately undervalued for the short-term outlook (1 to 3 months)
and should be a good long-term investment as well. Its 52-week high is 6
and 52-week low is 2.51. At the end of January, 1998, the stock reached
base-level prices at about $3. On February 24, 1998, a "Strong Buy"
recommendation was given when the stock was trading at around $4. This
caused the price to temporarily appreciate to almost $5 with a substantial
increase in volume.
However, since then it has depreciated by 20% after this announcement to
its pre-established base where it currently trades.
Two more very favorable news releases were issued after this announcement
on March 6 and on March 20, and the stock price did not respond.
Considering it has now declined in value for no apparent reason, we believe
it should rather easily hold at this level and begin an upward climb back
to $4 to 4 1/2 within the next month or so, where it may experience some
temporary moderate resistance.
Technical indicators support this interpretation, and the price should
begin to appreciate from this level back to the strong buy recommendation
levels. The strongest technical indicator is the Stochastics oscillator,
which shows the stock price to have reached an oversold condition. When
comparing the MoneyStream and BOP (Balance of Power) indicators to price,
both show a moderate positive divergence (a bullish interpretation). The
Moving Average
Convergence-Divergence (MACD) and Momentum have been decreasing as
the stock price depreciates. However, both show recent improvement.
Time-Segmented Volume (TSV) as well, has shown positive accumulation
during the past week.
In summary, we believe the new level of support is at the lower $3's. A
moderate level of resistance may be experienced at around $4 1/2.
PennyStock Picks places a short-term target price (3 months) at 4 1/2 $/sh
and a long-term target price (6 months to 1 year) at $5 to 8. These target
prices are based on the recent technical analysis and expected earnings per
share to be generated from the orders of the new 1998 model of the Laforza
SUV, and on ongoing orders for the new vehicle, as stated in PR Newswire of
February, 24, 1998.
Disclaimer
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