NEW YORK, April 12, 2004 (PRIMEZONE) -- (Investrend Research Syndicate) Investrend affiliate Fundamental Research Corp. analyst Brian Tang, CFA, has raised his fair value estimates of Broadview Press Inc. (TSX Venture Exchange:BDP) to C$0.42 from $0.24. It is maintaining its "Buy - 3 (Average Risk)" rating.
According to Tang, the company's sales revenues exceeded expectations, increasing 20% from $3.1 million in 2002, to $3.7 million in 2003. Fundamental expected 2003 revenues of $3.5 million. Similarly, net income increased to $184,839 in 2003, from $169,004 in 2002. Fundamental expected net income of $99,114 in 2003.
Other investment highlights mentioned in the initial report, available free at www.fundamentalresearchcorp.com, include: a 31% increase in sales to the U.S. (in US$ terms or 15% in C$ terms) despite a strengthening C$, and the company posted strong margins.
Due to the strong 2003 results, Fundamental revised its textbook unit sales growth estimates upward. The analyst had previously modeled only 10% unit sales growth versus 2003 actual growth of 23%. Historical unit sales growth (1988-2003) was a CAGR of 15%. The report does a fairly comprehensive analysis of the C$'s impact on operations and concludes that it is not a large concern as the impact per book is not large, and increased costs due to a higher C$ could easily be passed on to students by university bookstores. Tang estimates the increase per book to be roughly US$2.65. Based on the company's solid performance, strong fundamentals, and strong team, Fundamental believes BDP represents a "compelling investment opportunity." Their fair value estimates were derived from a DCF model and valuation by multiples.
Fundamental Research Corp. is an affiliate of Investrend Research and both subscribe to the "Standards for Independent Research Providers" at http://www.firstresearchconsortium.com, and adhere to the Guidelines for independent providers jointly endorsed by the National Investor Relations Institute (http://www.niri.org) and the Association for Investment Management and Research (http://www.aimr.org).
The fee for Fundamental's standard coverage is $25,000, and a fee is being paid by the company.
Complete information about this company 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/bdp2003.pdf and www.investrendresearch.com, and investors are advised to read disclosures carefully before trading in the equities of any enrolled company.
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