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Anybody ever hear of them? Any opinions? CATALYTICA, INC. (NASDAQ: CTAL) Recommendation: BUY - $4 3/4 x $5 1/4 Report originally written: May 8, 1996 Analyst recommendation remains intact as of: July 22, 1996 Opportunity In Catalyst Technology Initiating Coverage With A BUY Recommendation Catalytica today announced an agreement with Pfizer, Inc. in which Pfizer will invest $15 million in Catalytica's Fine Chemical unit. This is a milestone announcement in that it validates Catalytica's technology for developing unique processes used for manufacturing major pharmaceuticals. We believe that this announcement may lead to other joint ventures with major pharmaceutical companies to develop drug manufacturing processes using Catalytica's proprietary technologies. We are confident that Catalytica has the capital available to fully develop their process for eliminating the production of nitrogen oxide (NOX) pollutants, a byproduct of natural gas turbines. The company has been working closely with General Electric, the world's leading producer of large scale natural gas turbines. Commercialization of this technology, potentially a $1 billion market, is scheduled for 1998. We see an excellent opportunity for investors to get in on the ground floor of a company that has the potential of reaching $200 million in sales by the year 2000. We are initiating coverage with a BUY recommendation and a one year price target of $7. 1997 EPS EST: $(0.05) Fiscal Year: December 1996 EPS EST: $(0.30) Shares Outstanding 19.2 Million 1995 EPS: $(0.55) 52 Week Price Range: $5 3/4 - $3 1/8 Market Cap (Mil) $96 Insider Holdings: 40% Book/Share: $1.15 Institutional Holdings: 56% Additional information is available upon request. Van Kasper & Company makes a market in the common shares of Catalytica, Inc. The author of this document maintains an investment position in the shares of Catalytica, Inc. HOME IN STREETNET | ABOUT | COMMENTS | RESEARCH The study on these pages is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed herein reflect the judgement of the author at this date and are subject to change without notice. Facts have been obtained from sources considered to be reliable, but are not guaranteed. Van Kasper & Company, its directors and their families may have a position in the securities of the companies described herein, and may make purchases or sales while this report is in circulation. Additional information is available upon request. © 1996 Van Kasper & Company © Streetnet, 1996. All rights reserved. | ||||||||||||||
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