NEW YORK, Oct. 18, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Investrend Research analyst Piyali Chakravarty has released a Benchmark update on The Project Group, Inc. (OTCBB:PJTG), rating it a "Speculative Buy."
Chakravarty said the company has just emerged net worth positive this quarter, and that management expects the Dolphin acquisition to be accretive to 2004 results.
"The Project Group purchased all the common stock of Dolphin Knowledge, Inc. for $70,000 in cash and 6,600,000 shares of restricted common stock. The company estimates that the acquisition will significantly increase gross revenue in year 2004 as well as contribute EBITDA estimated at $150,000 to the company's bottom line," she stated.
"The company continues to carry the same amount of working capital deficit on its books and has not yet hit profitability. It continues to burn cash at a high pace. The Project Group is at the development stage of its life cycle and its ability to grow over the next 12 months is contingent upon additional equity and debt financing. However, as mentioned in our initial report, management does expect to turn the corner at the end of the third quarter of this year.
"The Project Group continues to win new contracts and expand its client base, including Security Service Federal Credit Union, a $3 billion credit union with over 500,000 employees, a major oil and gas company in Houston, Texas, a grocery and general merchandise retailer in Michigan which operates 159 stores, and the largest funeral services provider in North America. The Project Group also entered into a Master Services Agreement with a London-based energy giant, and received a purchase order for additional project management advisory services in the amount of almost $250,000 from Microsoft," the analyst noted.
The analyst's credentials are at http://www.investrend.com/articles/secondlevel.asp?level=238
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Contacts: The Project Group, Inc., 333 N. Sam Houston Pkwy East, Suite 275, Houston, Texas 77060, Craig Crawford, 713/622-1100, E-mail: info@ projectgroup.com. Web site:http://www.projectgroup.com.
Investrend Research Div., Investrend Communications, Inc.: (718) 896-5060, R. Hempel, email: contact@investrend.com, Website: www.investrendresearch.com