RIDGELAND, Miss., Oct. 4, 2005 (PRIMEZONE) -- Knobias, Inc. (OTCBB:KNBS) announced today that it has selected Eternal Technologies Group Inc. (OTCBB:ETLT) as the SPOT of the week in the Knobias Small-Cap "ClipReport."
Eternal Technologies Group Inc. is an agricultural genetics and animal husbandry company operating in China with the support of the Chinese Government. The company uses advanced breeding techniques and markets fine breed animal embryos, breeding stock and breeding services to develop larger, stronger and healthier livestock. The company began to sell lamb meat and transfer dairy cattle embryos in 2003.
The Bulls say:
-If ETLT were a U.S. company, you'd expect it to be trading at 15-20 times earnings, or $2.40-3.20 per share. Surely ETLT would be trading, at the very least, equal to "cash" or $0.75 per share. Instead, despite double-digit growth, ETLT trades at an unheard of 2.99 trailing P/E and is valued at nearly half of cash on hand.
The Bears say:
-ETLT reports a cash balance of $21.3 million, 1.46x its market cap. The only problem is that over 95% of it is "arbitrarily restricted by management for certain uses within the People's Republic of China." Therefore, expansion plans outside the PRC must be funded through stock sales (dilution) or borrowing.
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 five 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.
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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.