NEW YORK, Feb. 4, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Investrend Research affiliate Fundamental Research Corp. has initiated coverage of Resin Systems Inc. (TSX Venture Exchange:RS); (OTCBB:RSSYF) with a "Buy/5 (Highly Speculative)" rating and fair value of C$2.00.
According to analyst Brian Tang, CFA, Resin is undervalued based on discount cash flow valuation using what Fundamental believes to be conservative assumptions.
Other investment highlights mentioned in the initial report, available free at www.fundamentalresearchcorp.com and www.investrendresearch.com, include the competitive advantages the company's patented Version resin possess relative to other resins, including higher strength and lighter weight. The company is focused on successfully commercializing end-products manufactured with Version such as utility poles and hockey sticks.
The report estimates that the North American pole market alone is worth some US$27.2 billion with about 4% of poles needing to be replaced each year. Resin's composite poles possess superior qualities relative to steel, concrete, and wooden (which currently make up 80% of the market) poles which allows utilities to install the poles using less manpower and lower life-cycle costs. They have already received two orders.
Resin's competitive advantage over existing composite pole manufacturers is that its poles are up to half the weight of existing composite poles. The report also mentions that the company has entered the US$600 million hockey stick industry. According to the analyst, it is now common to see composite sticks break during crucial moments in hockey games. In a study conducted by the University of Ohio, on Resin's composite sticks made with Version, the researchers found that Resin's sticks were up to 5 times stronger than of some of the composite sticks currently in use by professional hockey players.
The analyst assigned the stock a risk rating of 5 (Highly Speculative) as success is dependent on management's ability to successfully market end-products it currently does not have a history of producing.
Fundamental Research Corp. is an affiliate of Investrend Research and a member of the FIRST Research Consortium listed at http://www.firstresearchconsortium.com, which contains the standards and ethics agreed to by all members of the association.
The fee for Fundamental's standard coverage is $25,000, and the fee is being paid by the company.
Complete information about any company enrolled in an Investrend Research affiliate platform, including disclosures and disclaimers, is available at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes , and the full report is available at: http://www.fundamentalresearchcorp.com/PDF/rs020404.pdf as well as www.investrendresearch.com, on each report and press release, investors should read disclosures carefully before trading in the equities of any enrolled company.
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