NEW YORK, May 12, 2004 (PRIMEZONE) -- (Investrend Research Syndicate) The Project Group, Inc. (OTCBB:PJTG) has been rated "Speculative Buy/4" by Investrend Research analyst Piyali Chakravarty, in an initiating report.
"The Project Group's field-proven business model, seasoned management team, impressive array of Fortune 1000 companies such as Wal-Mart Stores (NYSE:WMT) and Kerr McGee (NYSE:KMG) to its client list, and increase in consulting revenues are positives for the company. The Project Group's status as Microsoft (Nasdaq:MSFT) Gold Certified Partner and Microsoft Managed Partner is expected to enhance the company's competitive position in the Enterprise Resource Planning (ERP) and consulting industry."
Meanwhile, Chakravarty said the company is carrying negative working capital, negative operating cash flow and negative stockholders equity, and operating losses are increasing; although it expects to generate positive earnings by the third quarter of this year.
"Management believes it can double revenues from 2004 to 2005, from $6 million to over $12 million. Although enterprise software is only the fourth or fifth largest segment of Microsoft's business, it is the fastest growing. The Project Group is rapidly growing into one of the world's leading integrators of Microsoft Project Software and related products," she said.
The company has developed modules to address the five fastest segments of project management: 1) Enterprise Improvement, 2) Product Development Constant business innovation by companies, 3) Connect - Collaborative Commerce, 4) Post-Merger Integration, and 5) Launching New Ventures.
"Management believes that its strategic plan, including proprietary methodologies, technology and infrastructure is highly modular and easily scalable for its Fortune 500 clients, who depend on rapid, accurate execution," concluded Chakravarty. "But we would not expect to see any concrete evidence of marked improvement in The Project Group's operating performance until the third quarter of this year."
The complete report is at http://www.investrendresearch.com.
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