NEW YORK, Oct. 25, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Investrend Research analyst Frank J. Prezelski, CFA, has initiated Criterion Research coverage on Catalyst Lighting Group, Inc. (OTCBB:CYSL), rating it a "Speculative Buy/4"
Prezelski said valuation versus the closest comparison, Valmont Industries (NYSE:VMI), suggests a minimum of double-digit appreciation, but Catalyst Group could outpace its industry group even if the company falls short of its objectives.
"The company's wholly-owned subsidiary, Whitco Company, LP has a 32-year history of successful service to the outdoor lighting industry. While Catalyst is currently not profitable, this can mainly be attributed to the significant investments that the Company has recently made to dramatically upgrade its sales distribution network, move fabrication of select products in-house, add an engineering department, and become publicly-traded. There is a strong probability of the Company returning to profitability in fiscal 2005," said the analyst.
The outdoor lighting pole market in the U.S., in which the company participates, is estimated at $500 million. The company has achieved and even exceeded its milestones and now has the customer and distribution foundation to become the fastest growing company in the fragmented outdoor lighting pole segment.
Revenues grew from $10.7 million in 2001 to over $15.5 million in 2003, an increase of 45% over two years. During this period, the Company has been awarded key contracts for the Port of Los Angeles, Home Depot, Wal-Mart, San Diego Padres Ballpark and many other installations in sporting venues, parking lots, major ports, prisons and large industrial applications.
On September 30, Catalyst refinanced its credit facilities. The re-financing consists of a $3 million revolving line of credit, and a $2 million secured convertible term note. Proceeds from the $2 million convertible note, which will be held in a restricted account, are to be used for acquisitions.
The analyst's credentials are at http://www.investrend.com/articles/secondlevel.asp?level=238
Enrollment in standards-based research is an important measure of a company's commitment to transparency and Good Governance. Investrend Research's pioneering program facilitates independent analysts to provide coverage for shareholders in companies that otherwise would have little or no analyst following. Investrend subscribes to the "Standards for Independent Research Providers" at http://www.firstresearchconsortium.com. Enrollment fees for Benchmark coverage are $19,800, and the fees were paid by the company. Analysts are paid in advance of initial reports by Investrend Research to eliminate pecuniary interest, and neither the analyst nor employees of Investrend Research may own or trade stocks of companies under coverage.
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