NEW YORK, June 3, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Investrend Research affiliate Fundamental Research Corp. is maintaining its fair value estimates of Broadview Press Inc. (TSX Venture Exchange:BDP) at C$0.42 and its "Buy -- 3 (Average Risk)" rating after reviewing the company's first quarter results.
The following is a summary of the full research note, which is available free at www.fundamentalresearchcorp.com and http://www.investrendresearch.com.
The analyst notes that the results reflected the seasonal nature of BDP's business. In the first two quarters of the year, the company makes expenditures which do not result in significant sales until the third and fourth quarters when university bookstores place orders for classes starting in September and January.
Margins were lower than the same period last year though the analyst did not adjust his estimates as projections based on the first quarter are difficult to make due to the seasonal nature of the business. The analyst notes that the company continues to be positioned for growth.
"In the nearer term, we see increased inventories over the same period last year as a sign that management is confident that demand will remain strong for the company's books later in the year during the crucial third and fourth quarters. In the longer term, the company is well positioned for growth. The company's book form of the Internet Shakespeare Editions should start to add incrementally to revenues starting in 2007. The Broadview Anthology of British Literature should also start to add to revenues around that time. Over a ten year period, these two projects could eventually add between $1MM to $1.5MM to BDP's revenues each year in addition to other titles in the works."
Fundamental Research Corp. is an affiliate of Investrend Research and a member of the FIRST Research Consortium, and both subscribe to the "Standards for Independent Research Providers" at http://www.firstresearchconsortium.com.
A fee of $4,000 was paid by BDP to Fundamental for research coverage.
Complete information about this company is available at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes, and the full report is available at: http://www.fundamentalresearchcorp.com/PDF/bdpq12004.pdf and www.investrendresearch.com. Investors are advised to read disclosures carefully before trading in the equities of any enrolled company.
Anyone interested in receiving alerts regarding Broadview Press Inc. research should email contact@investrend.com and distribution@fundamentalresearchcorp.com with "BDP" in the subject line.