RIDGELAND, Miss., Oct. 10, 2005 (PRIMEZONE) -- Knobias, Inc. (OTCBB:KNBS) announced today that it has selected ACR Group Inc (OTCBB:ACRG) as the SPOT of the week in the Knobias Small-Cap "ClipReport."
ACR Group, Inc, headquartered in Houston, is one of the nation's largest independent wholesale distributors of heating, ventilation, air conditioning and refrigeration (HVACR) equipment, parts and supplies. Customers include service and construction contractors. ACRG's growth has been accomplished through acquisitions and expansions. Since 1990, ACRG has acquired or started 7 additional HVACR distribution companies and now has 6 geographical business units with 48 branch operations in 9 states (CA, CO, FL, GA, LA, NV, NM, TN, TX). Because a large and diverse inventory base is an important element in company sales, ACRG stocks over 11,000 parts, supplies and equipment pieces, made by over 150 different manufacturers.
The Bulls say . . .
-- Strategic Transition Penalty: In Q405, ACRG decided to discontinue selling Goodman branded equipment in favor of a new distribution agreement with Haier brand HVAC equipment. Currently there are no competing distributors of Haier in ACRG's markets, unlike the competition faced as a Goodman distributor. As predicted in May, this long-term strategic decision has had a negative impact on early 2006 results. ACRG management is confident that this move gives the company great competitive advantages and "outstanding" long-term growth opportunities. Since the May release, ACRG has fallen -42% and may signal a value to those who believe the company will successfully transition inventory, educate customers and recapture market share over the next few quarters.
The Bears say . . .
-- Good Call? According to statements made by management, the decision to switch equipment suppliers in Q4 is meant to capitalize on long-term growth opportunities by making short-term sacrifices. Admittedly, fiscal 2006 financial results will be impacted by this move. This impact was evidenced in ACRG's July 15th Q1 financial report headline, ". . . Sales and Income Impacted By Change in Equipment Supplier". Expect continued pressure on the stock if more disappointments are announced due to this strategic decision.
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 5) 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.