George T. Schlieben,
Publisher
SPECIAL RESEARCH
REPORT
c1998. GLOBAL PENNY STOCKS, PO Box 372, Yardley PA 19067. Information contained herein is based on sources we believe
to be reliable but we do not guarantee its accuracy. Prices and opinions concerning the composition of market sectors included in this
report reflect the judgments as of this date and are subject to change without notice. This report is for information purposes only and is
not intended as an offer to sell or a solicitation to buy securities. Global Penny Stocks or persons associated with it may own
securities of the issue described herein and may make purchases or sales while this report is in circulation. The publisher, George
Schlieben, received a fee from the company to write this report. The publisher WILL NOT take a postion in a recommended security
featured in this report.
NEVTAH CAPITAL MANAGEMENT CORP.
Price: OTC BULLETIN BOARD:
NTAH)
US 50›
BALANCE SHEET (12/31/97)
Yearly Range:
US $2.16 - 18›
Net Working Capital
$1.2 million
Shares Outstanding:
14.8 million
Long Term Liabilities
None
Instituational Holdings:
9,738,750
Shareholders Equity
N/A
Insider Holdings:
3,893,750
Estimated Float
1,167,500
Suitability:
Speculation
Market Cap:
$7.4 million
Recommendation
BUY
Book Value Per Share:
Nil
Estimated Growth Rate:
100%-300%
One-Year Target:
$2.00 to $3.00
Dividend:
Nil
Two-Year Target:
$3.50 to $5.00
Return on Equity:
Nil
Marginable:
Nil
Average Daily Volume:
65,000
Location:
Palm Beach Gardens,
Florida
INVESTMENT CONCLUSION
Back in March, 1997, we penned a report on a gold exploration company called LS Capital. Within
a week of posting it on our web site, the stock soared from 88› to $2.18. Why? In all candor, LS
had the good fortune of being promoted by KJM Capital, a highly-visible investor relations
agency that knows how to give a company great exposure. Now, KJM has teamed up with
Canyon Financial Group, a high profile and experienced public relations firm to launch an
explosive campaign on this junior energy company.
During the last several years, energy stocks have rivaled the hi-techs in market dominance, and
for good reason. The former "Third World" is playing catchup and its energy needs, by some
estimates, have almost doubled in the last decade, alone. Rocketing share prices of the larger
energy titans, such as Exxon and Mobile, best reflect this global trend. Not to be overlooked in
what is still a bargain-hunter's paradise for promising oil and gas plays are the junior energy
companies.
To be successful, a Junior cannot spread itself all over the planet. Instead, its quest for new
energy sources must be concentrated in select areas where there are proven reserves or positive
geological indications of reserves. Of course, a critical element for a Junior's survival is securing
needed funds in order to fulfill its production goals.
One company that falls into these parameters is NEVTAH CAPITAL MANAGEMENT CORP.
(OTC BULLETIN BOARD: NTAH).
Not only is Nevtah an energy play, but, as we alluded above, it is also a promotional play, and the
PR people have a pretty good story to tell. With offices in Palm Beach Gardens, Florida and
Vancouver, British Columbia, Nevtah is focusing on exploration projects in North America which
have the potential of being a "company maker". With this objective, Nevtah recently agreed to
acquire a 60% interest in certain assets of Tower Oil, LLC, of Nashville, Tennessee. The two
companies have formed Tower Oil International, LLC, in which Nevtah retains its 60% ownership.
Nevtah intends to put six areas, in which Tower Oil owns oil and gas leases and wells, into
production over the next six months. The projects in five of these areas contain known reserves
and constitute certain oil production which can be brought on line, and are expected to yield from
1000 to 1500 barrels of oil daily. The sixth area is a gas property, which also should be on line by
year's end.
Accordingly, we rate the shares of Nevtah Capital Management Corp. a BUY with
SPECULATION. By their own projections, the company anticipates, based on current oil prices,
that net profits will reach $1.6 million by year one, or earnings of 10› per share, from the five
oil producing areas. Upon full completion of all the projects, including the gas property, net
profits are expected to reach $6 million to $7 million annually, or 40› earnings. These per
share earnings estimates are predicated on current stock dilution. Given these net profit
projections and assuming a modest PE multiple of 20, our one-year target on share price is
$2.00 to $3.00; two-year target is $3.50 to $5.00. |
