RALEIGH, N.C., Sept. 8, 2004 (PRIMEZONE) -- HydroFlo, Inc. (OTCBB:HYRF) today announced that an independent research report on the Company has been published by Spelman Research, Ltd., which initiated coverage with a report that included a "Speculative Buy" rating and a 28-month $0.47 share price target, well above its current trading price. The research report can be viewed on the HydroFlo website, www.hydroflo.us, or on the Spelman Research website, www.spelmanresearch.com.
Included in the rationale for the rating and share target price were factors such as the growing public interest and governmental focus on the removal of arsenic in drinking water, which HydroFlo is addressing with the acquisition of subsidiary company, Metals & Arsenic Removal Technology, Inc., the immense market for water treatment technologies to which HydroFlo can focus its sales and marketing efforts, and the low cost of HydroFlo's wastewater treatment technologies when compared to the cost of building entirely new facilities or upgrading ineffective existing facilities currently in use across the United States.
HydroFlo, Inc. CEO, Dennis L. Mast, commented, "While management has long been confident that the Company has been building significant value in its investment portfolio and maximizing the market potential of its subsidiaries, it is heartening to see that independent analysis of HydroFlo by Spelman Research has led them to conclude that there is clear disparity between the Company's current and its intrinsic value."
Spelman is a boutique equity research firm providing un-biased research for significantly under-followed small cap companies. Spelman distributes its research to a broad audience of institutional and individual investors seeking information on under-followed small cap stocks.
The HydroFlo research report was issued by Senior Analyst Kipley J. Lytel CFA, and senior partner with money management firm Montecito Capital Management. For over three years, Mr. Lytel served as the lead securities analyst for M.L. Stern & Company. Previously, he performed portfolio management and analyst coverage during his employment with two hedge funds, Pacific Strategic Fund Group and DD Capital Management. His background has been marked by his experience as a Generalist, with analyst coverage spanning numerous industries, including: telecommunications & wireless, health care, retail, consumer products, technology, gaming and energy (E&P). Mr. Lytel has over fifteen years of investment finance experience, with expertise in equity valuation, credit analysis, private placements, and buy/sell recommendations. He received his Masters of Business Administration (MBA) with Honors from the Peter F. Drucker School of Management at Claremont Graduate University, where he also received his undergraduate Bachelors of Arts (BA) degree in Economics. Mr. Lytel is a Chartered Financial Analyst (CFA) and an active member of the Association of Investment Management and Research (AIMR/ICFA). He has frequently served as a Senior Grader for AIMR's (ICFA) CFA Examination and has been a Regional Expert for AIMR's (ICFA) advisory panel on investment management.
About the Company
HydroFlo, Inc. (http://www.hydroflo.us) is a Business Development Company, as defined by the Investment Act of 1940. Headquartered in Raleigh, North Carolina, HydroFlo's core focus is to seek out synergistic acquisitions that will provide capital appreciation and income from its portfolio companies. Its first portfolio investment company, HydroFlo Water Treatment (http://www.hydroflo-inc.com) is in the business of providing aeration equipment used for the pre-treatment of wastewater. Using the patented Pressure Line Up-Stream or PLUS pre-treatment system, HydroFlo Water Treatment provides customers a treatment process at their pumping stations, prior to the wastewater reaching a treatment plant. The company also provides a full range of related services to companies and municipalities to treat their wastewater at the treatment plant by the use of the energy efficient aeration systems in treatment lagoons.
About Spelmen Research
Spelman Research Associates, ltd is an independent fee based research, publishing and distribution firm whose contract analyst adhere to the ethics and standards of the Association for Investment Research Management. The view expressed in the research report reflects the analyst's personal views about the issuer and its securities. Opinions and recommendations contained in the report are submitted solely for advisory and information purposes and are not intended as an offering or a solicitation to buy or sell the securities. The analysts are responsible only to the public and the report is not a service to the company. Spelman receives a fee of $23,500 from the company for one year's coverage. Spelmen does not inform the company in advance of the nature or conclusions of the analysts' reports in advance of paying the fee nor can a company withdraw from coverage before the expiration of the one year term. Neither the Analysts nor the company own equity or debt securities of the companies on which the contract analysts report.
Safe Harbor
Statements regarding financial matters in this press release other than historical facts are "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 as that term is defined in the Private Securities Litigation Reform Act of 1995. The company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results.