NEW YORK, June 10, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Investrend affiliate Fundamental Research Corp. has released an update on Resin Systems Inc. (TSX Venture Exchange:RS). Fair value and ratings have been lowered to $1.72 (from $2.00) and to Hold (from Buy).
Risk ratings have been maintained at 5 -- Highly Speculative. The following is a summary of the 6-Page research note, which is available free at www.fundamentalresearchcorp.com and http://www.investrendresearch.com
According to analyst Brian Tang, CFA, Resin Systems is up over 100% since Fundamental initiated coverage in February. Also, the company's most recent financials and news revealed delays in production, and sales; and increased costs. This led to a revision of Fundamental's models resulting in the above ratings actions.
For 2004 and 2005, Fundamental is estimating revenues of $11 million and $38.4 million respectively. EPS estimates are ($0.05) and ($0.08) for 2004 and 2005 respectively. Fundamental notes that while it has "...no doubt in the strength of the company's technology and market potential," it feels that given the price appreciation and delays, the stock is fully valued at these levels (June 9, 2004 close: $1.63).
Fundamental Research Corp. is an affiliate of Investrend Research and a member of the FIRST Research Consortium, which sets the standards and ethics for independent research agreed to by all members of the association.
The company has paid Fundamental a research fee of $12,000 upfront to ensure independence.
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/rs060904.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 Resin Systems Inc. research should email contact@investrend.com and distribution@fundamentalresearchcorp.com with "RS" in the subject line.