NEW YORK, July 6, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Providential Holdings (OTCBB:PRVH) (Berlin Stock Exchange: PR7, WKN 935160) is maintained at a "Speculative Buy/4" rating in a Research Update issued by Mohammad Sharifzadeh, MBA, CFA, although the analyst said the company and its subsidiaries "have been aggressively continuing their endeavors to improve business and enhance potentials for future profitability."
"For the quarter ended March 31, 2004, total revenues were $2.1 million as compared to $9,784 for the similar quarter in 2003. The major portion of current quarter's revenue, about $1.99 million, was due to sales and tuitions generated by the subsidiaries," said the analyst, noting that "the company's consolidated financials are expected to improve dramatically as a result of the closing of the Tangshan Yutian Saw Corporation."
Providential Holdings acquired 60% of the company, sufficient to enable Providential Holdings to recognize its revenues and profits, which the company said was $81,584,225 and $17,937,317, respectively, in 2003, representing a 19.51% revenue growth and 24.76% growth in net profit compared to the year 2002.
The company has also announced an impending acquisition of Hefei Iron & Steel Group Company, Ltd, Hefei, Anhui Province, China, which it said had revenue of $257,000,000 and gross profit of $36,125,000 for the year 2003. The current steel making capacity is 1.4 million metric tons per year.
Providential Holdings also announced that its subsidiary ATC Technology Corp. is selling its products into Wal-Mart (NYSE:WMT), and will distribute 20 million shares of its stock to shareholders on a one for five basis; and its Entec Software subsidiary is expected to merge July 12 with Creative Vistas, Inc. (OTCBB:CVSA), after which Providential will own 13%.
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Credentials for analyst Mohammad Sharifzadeh, MBA, CFA, is at http://www.investrend.com/articles/secondlevel.asp?level=238.
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