SARASOTA, Fla., Nov. 16, 2004 (PRIMEZONE) -- The following is an investment opinion issued by eLocity Inc.: Day Spas of America, Inc., (Pink Sheets:DYSP), MBA Holdings (OTCBB:MBAH), SuperGen Inc. (Nasdaq:SUPG) and MobilePro Corp. (OTCBB:MOBL).
Aggressive stock traders and investors will want to look at Day Spas of America, Inc., (Pink Sheets:DYSP). On Monday the company announced a Letter of Intent to acquire New Faces of Brandon, Inc. New Faces of Brandon has owned and operated a Merle Norman Cosmetics Studio (retail outlet) in the same location for the past 20 years. Merle Norman is a leading manufacturer of high-end cosmetics. Merle Norman has been in business since 1931. There are approximately 2,100 Merle Norman Studios across the United States and Canada.
The terms of the purchase are as follows: Day Spas of America has agreed to pay $115,000 in cash on or before December 31, 2004. The (unaudited) financial records of New Faces have demonstrated 20 years of profitable operations with revenues over the $150,000-per-year range. The retail inventory is included in the purchase price and cannot fall below $40,000 at cost at the time of closing. Day Spas will assume no debt, but will assume the existing lease of 722 square feet at the present location in Brandon, Florida, for the two remaining years of the lease term. Past tax returns have shown an average of 40% net profit per year.
Jim Bass, owner of New Faces of Brandon, said, "I have owned and operated this store for the past twenty years. My parents are getting up in age and need me virtually on a daily basis. Day Spas presented me with a fair deal at the right time and the right place in my life. I'm honored that a quality team like Day Spas will take over the business I spent the last 20 years building."
Marsha B. Whitman, Chairman and CEO of Day Spas of America, said, "We have been looking for the right line of cosmetics to offer our customers. To date we have not offered our spa customers qualified make-up specialists, let alone a product line of cosmetics with the national branding and quality of Merle Norman. Our acquisition of this Merle Norman Studio will allow us to open 500 square foot Merle Norman Studios in each of our Day Spas with no additional franchise fees due to Merle Norman Corporate. Our revenue and profit per location will increase dramatically with this new division."
Day Spas of America, Inc. (Pink Sheets:DYSP) was formed for the purpose of expanding the four-year proven concept established by Marsha B. Whitman with her Apollo Beach Florida Day Spa. Mrs. Whitman built Apollo Beach Day Spa to serve the community she lived in with resort quality Spa services at prices affordable to the average person. Her spa is debt free and has been profitable from day one. Her vision is to duplicate herself in communities throughout Florida and then the nation, including a roll up strategy in the day spa business, the first of its kind. Expansion will come from three areas: First, new company-owned startups; second, acquiring existing spas that meet strict criteria for conversion to Day Spas of America guidelines and finally, selling license agreements to companies and individuals who desire to own a spa but want the power and branding that Day Spas of America can provide.
Day Spas of America will have three distinctive market sizes. In a small market, our spas will be between 1,750 and 2,100 square feet. In a medium market, our spas will run between 2,100 and 2,500 square feet. Our large market store will run between 2,500 to a maximum of 3,000 square feet. Look at Day Spas of America as the 7-11's of the spa world.
Services include: massage, acupuncture, facials, body wraps, pedicures, manicures, non-surgical face lifts, hair care, permanent make-up, paraffin treatments, waxing and tanning. Retail facial, hair and tanning products are available for sale at each location. The Company is currently formulating private label products as well.
DYSP is currently trading around 14 cents a share.
Other Stocks of Interest on Monday were;
MBA Holdings (OTCBB:MBAH)
MBA Holdings announced Monday that it will pay its shareholders a stock dividend equal to one share of its common stock for each 100 shares of MBA Holdings Inc. held, payable to shareholders of record Friday, Nov. 26, 2004.
MBAH closed Monday up 11 cents, or 61.11 percent, at $0.29 on volume of 6.5 million shares.
SuperGen Inc. (Nasdaq:SUPG)
Monday, SuperGen Inc. announced that it has received approval from the FDA of its Abbreviated New Drug Application, referred to as ANDA for Paclitaxel Injection, 6 mg/mL, packaged in 30 mg/5 mL and 100 mg/16.7 mL multiple-dose vials. The company said that the Paclitaxel belongs to the group of medicines called antineoplastics and is equivalent to Bristol-Myers Squibb's Taxol Injection, an antitumor agent that has become one of the most widely used anti-cancer products.
SUPG closed Monday's regular trading session at $6.43, up 55 cents, on above average volume of 3.6 million shares.
MobilePro Corp. (OTCBB:MOBL)
MobilePro Corp. and Davel Communications, Inc. (OTCBB:DAVL) announced Monday that the transaction provided for under the previously announced agreement with the secured creditors of Davel has closed. The company added that in connection with the transaction, MobilePro has acquired 100% of Davel's senior secured debt and over 95% of Davel's issued and outstanding common stock from Davel's former senior creditors.
MOBL closed Monday at $0.194, up .022 on volume of 5.7 million shares.
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