Have you heard of AWLT? Whoever wrote this article sure knows something. The stock is trading at 20c and they think it can go to $7.00?????
stockstowatch.com
Profile
Araldica Wineries, Ltd. is a primary importer and direct marketer of
premium Wines, Olive Oils, Pastas and other specialty products from
Italy. The New York based company is headed by a seasoned
entrepreneurial team, and has a total of three subsidiaries that all provide
strong net profit. The company also presently has four additional profit
making ventures under contract to buy.
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. For about $10 dollars a bottle, 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 the roughly 23 million Italian Americans in the US.
A tremendous profit center for Araldica, this business is capable of
generating roughly 50% gross profit.
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.
Araldica's complementary array of businesses is therefore
specialized, yet diversified. They are positioned to take
advantage of a particular segment of the market without the risk
of downturns for specific products or services.
Significantly, the company has just acquired $5,000,000 dollars
worth of television advertising throughout the United States to
promote its wines, olive oils, pastas, and other products through
30, 60 , 90 second spots, as well as thirty minute infomercials.
Increased awareness of the company on a national scale will
generate both profits and an increase in the value of the
company, with the potential of transforming Araldica into a
national household name.
Although primarily based in the US, Araldica is meeting demand
from countries as far away as Hong Kong. The company
recently announced that it had 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.
Foreign sales and distribution promise to generate a growing
product line and large profits for the future.
At present, Araldica is severely undervalued and is trading at all
time lows. Based on its competitors values, this company should
be trading at over $7.00. On October 24, it closed at $0.19 a
share. For purposes of comparison, Gweerlings and Wade
(NASDAQ: GEER) has an average price to earnings multiple of
60.
If you were to take Araldica and multiply its earnings, at a
projected FY ending 1998, at a conservative $0.12 fully diluted,
this stock should be trading at $7.20 cents per share. The
Company has over $5,941,000 in assets and long term debt of
roughly $1,000,000. Clearly, the stock is undervalued. There are
13,110,072 shares issued and only 7,479,107 in the float as of
9/30/97. Over 5,630,000 shares are restricted by insiders. This
means that the book value of the shares is roughly $.38 cents
per share fully diluted. 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. Instead, Araldica is
trading well below its book value, a rarity in the market.
There are a number of active market makers in the stock and
the ownership of the securities, according to the most recent
DTC report reads like a who's who of top line firms, including
Bear Stearns, Charles Schwab, Citicorp, Oppenheimer, Paine
Webber and Dean Witter. These firms and their investors must
realize a Good Company when they see one.
With a balance sheet of strong assets, superior products and a
sizeable budget for television advertising, this company is
certainly poised for substantial gain.
If you are interested in learning more about the Company,
please view the press releases and other information included on
this site. We have also provided a link to their web site, and a
link to get up-to-the minute stock information. You can also call
their Public Relations firm of L.G. Zangani, Inc., Investor
Relations at 908 - 788 - 9660; or call the Company directly and
speak to either Bruce Kloss, or Frank Landi, CEO at
914-636-0500
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Mr Metals |
