NEW YORK, May 17, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Investrend affiliate Fundamental Research Corp. has reiterated its fair value estimates of CON-SPACE Communications Ltd. (TSX Venture Exchange:CCB) at C$1.43, and its "Buy -- 2 (Below Average Risk)" rating.
The following is a summary of the full report, which can be found at www.fundamentalresearchcorp.com and http://www.investrendresearch.com.
According to analyst Othello Tuason, Q3 set a record for monthly sales of $1.95 million, a 3% increase over the same period last year. Sales for the nine-month period ending March 31, 2004, were $3.9 million, a 3.2% increase over the same period last year.
The analyst notes that profitability did not follow sales higher as the company is currently investing for future growth. For example, the company expanded its workforce 20% during the period. The analyst expects a lag before profits catch up with the added expenditures. He notes, "This increase in staffing allocation is in line with Management's growth plan, and is a required upfront cost to expand sales and production capabilities. We expect to see continued returns/benefits from Management's investment in people, as the Company's revenues are forecasted for continued growth."
Future growth, according to Tuason, should be driven by increased spending on public safety products, which receive increased attention especially during times of political uncertainty. 2004 Sales and EBITDA projections were raised due to the most recent results though EPS was held constant from previous estimates on dilution from the recent exercise of employee stock options.
Fundamental Research Corp. is an affiliate of Investrend Research and both subscribe to the "Standards for Independent Research Providers" at http://www.firstresearchconsortium.com.
CCB has paid Fundamental a fee of $5,000 to research and monitor 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/ccbq3.pdf and www.investrendresearch.com, and investors are advised to read disclosures carefully before trading in the equities of any enrolled company.
Anyone interested in receiving alerts regarding CON-SPACE research should email contact@investrend.com and distribution@fundamentalresearchcorp.com with "CCB" in the subject line.