JAMAICA, N.Y., June 5, 2006 (PRIMEZONE) -- Pacific CMA, Inc. ("Pacific") (AMEX:PAM), an integrated provider of global freight forwarding and logistics services focused on the growing China and Asian trade, today announced that WallStreet Research has issued an analyst report on the company's stock with a Speculative Strong Buy rating. The complete report, together with attendant risk factors is available at www.WallStreetResearch.org.
The report summarizes by saying, "The current (stock) valuation does not seem to fully reflect the Company's large revenue base and its solid growth track record, which if continued at the rate of 19% from the first quarter of 2006, would yield approximately $150 million in revenues this year just from organic growth. The pending acquisition of HTL Logistics Ltd, assuming it is completed mid-year with a 70% stake, could add another $12 million or more, depending on the target's growth rate." The report goes on to say, "With the benefit of the acquired business for a full fiscal year and additional annual growth at current levels, the Company should be reporting revenues of $210 million to $230 million in 2007, which bodes well for improved profitability and stock price appreciation over the long term. Given the Company's potential in such a fast growth industry, its current valuation seems very attractive for accumulation, particularly based on the market capitalization multiples related to sales and book values when set versus many of its closest comparables."
In commenting on the report, Alfred Lam, Chairman and CEO of Pacific CMA states that, "We are very pleased with the continued and favorable support from WallStreet Research and Alan Stone & Company, LLC. With revenue reaching $125 million in 2005 and a five-year compounded annual growth rate of nearly 55 percent, we certainly feel that the report's outlook for our company's growth accurately reflects our true potential." Mr. Lam further stated that "Pacific CMA is well capitalized and positioned for success in the rapidly growing global freight logistics industry."
About Pacific CMA
Pacific CMA is an international, non-asset based supply chain management company, providing air and ocean freight forwarding, contract logistics, and other logistics-related services. The Company's large and diverse global and local customers operate in industries with unique supply chain requirements, such as the apparel and technology industries. Its AGI Logistics (HK) Ltd. operating unit is based in Hong Kong and focuses on integrated logistics, freight forwarding and warehousing services in the Far East region and Mainland China. Its Airgate International operating unit, founded in 1995, is based in New York and primarily handles import air and ocean shipments from the Far East and Southwest Asia to the United States. The newest division, Paradigm Global Logistics, is located in Los Angeles. For more information, please refer to the Company's Web site: www.pacificcma.com.
Forward Looking Statement
This press release may contain statements which constitute forward looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, including statements regarding the intent, belief or current expectations of the Company, its directors, or its officers with respect to the future operating performance of the Company. These forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "plan," "estimate," "approximately," "intend," and other similar words and expressions, or future or conditional verbs such as "should," "would," "could," and "may." In addition, the Company may from time to time make such written or oral "forward-looking statements" in filings with the Securities and Exchange Commission (including exhibits thereto), in its reports to shareholders, and in other communications made by or with the approval of the Company. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. Important factors that could cause such differences are described in the Company's periodic filings with the Securities and Exchange Commission.
Note: The information presented in the WallStreet Research report is not to be construed as an offer to sell, nor a solicitation of an offer to purchase, any securities referred to herein or otherwise. Readers are encouraged to conduct their own due diligence and review all of the Company's financial statements and risks statements on file with the SEC. Pacific CMA Inc. has paid a fee to Alan Stone & Company, LLC in conjunction with preparation and distribution of this report. Alan Stone & Company, LLC may own shares, for investment purposes, in its corporate accounts, and may increase or decrease its positions at any time, without notice.