RIDGELAND, Miss., Aug. 8, 2005 (PRIMEZONE) -- Knobias, Inc. (OTCBB:KNBS) announced today that it has selected Butler National Corp. (OTCBB:BUKS) as the SPOT of the week in the Knobias Small-Cap "ClipReport."
Butler National Corp. has six diversified reporting segments: 1) Business-size aircraft modification (70.5 percent); 2) Avionics manufacturing, sale and service (13.1 percent); 3) Monitoring/repair of water and wastewater remote pumping stations (5.2 percent); 4) Indian gaming business management services (4.7 percent); 5) Corporate and professional services, including design and engineering (4.6 percent); 6) Aircraft acquisition, modification & sales (1.9 percent).
The Bulls say:
Impressive Growth and Valuation: FY-05 revenues hit an all-time high of $23.4 million +131 percent from 2004 and +272 percent from 2003. Net income hit record level of $2.5 million, +233 percent Y/Y, and a 92-fold increase from 2003. Discounting this impressive growth, BUKS trades at a mere 9.9 trailing P/E, compared to a 21.48 P/E average from 19 other stocks in the "Aerospace Parts and Components" sub-sector.
The Bears say:
Insider Options and Control: BUKS shows an unusual decrease in shares from 48.3 million (Apr-04) to 40.3M (Apr-05). This sounds positive for shareholders, but the same 10-K also reports 52.6 million shares as of Jul-05. The document describes the 12 million share difference as "stock owed but not issued". It appears that 11.8 million exercised options were converted from unissued options to unissued stock in a "cashless exercise". Recently, BUKS executives acquired, but have not sold, some 3.6 million shares through option exercises. Factor in 11.8 million shares earmarked for compensation, 1.5 million issued, but unexercised, options and a $500,000 stock buyback. Insiders could own nearly 50 percent. The "eternal optimist" could let his imagination run wild and say, "possible 'go-private' offer ahead?". Until intentions are clear, this could spell dilution, selling pressure or diminished shareholder control.
The "ClipReport" is a daily newsletter distributed FREE to anyone interested in proprietary news and insight concerning small-, micro- and nano-cap stocks. Each week Knobias independently chooses one company to be highlighted in the SPOT. To qualify for selection, each company must: 1) trade on the Nasdaq National Market, Nasdaq Smallcap Market, Amex, OTCBB or Pink Sheets; 2) have a Market cap of less than $250 million; 3) have annual revenues greater than $1 million, 4) have a closing share price greater than 5 cents, and 4) have average daily volume of at least 10,000 shares. Knobias is never compensated for SPOT selections, and NO position will be held in SPOT stocks by Knobias, its management or staff while the stock is being highlighted.
To subscribe to the FREE Knobias Small-Cap "ClipReport", click below: http://www.knobias.com/clipreport
For advertising information concerning the Knobias Small-Cap "ClipReport", submit requests to: sales@knobias.com.
For information concerning Knobias Issuer Services Program, submit requests to: sales@knobias.com.
About Knobias, Inc.
Knobias, Inc. provides complete financial information solutions for institutional market participants, corporations and industry professionals. By receiving early and accurate proprietary information, our clients are allowed to monitor and trade more successfully. Actionable data is delivered via high-quality applications consisting of proprietary products; analytics; streaming information; financial data; fundamental research; and third-party research. Whether you are interested in small-cap or the broader markets, we have the tools, information and knowledge you need. For more information about Knobias, Inc. products, please visit www.knobias.com
Forward Looking Safe Harbor Statement
To the extent that this release discusses any expectations concerning future plans, financial results or performance, such statements are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and reflect only management's belief and expectations based upon presently available information. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties. Knobias assumes no obligation to update any of the forward-looking statements in this release.