SARASOTA, Fla, Nov. 12, 2004 (PRIMEZONE) -- The following is an investment opinion issued by eLocity Inc.: Gateway International Holdings, Inc. (Pink Sheets:GWYI), Kent Financial Services, Inc. (Nasdaq:KENT), Amgen Inc. (Nasdaq:AMGN), BEA Systems, Inc. (Nasdaq:BEAS).
Aggressive traders and investors will want to watch Gateway International Holdings, Inc. (Pink Sheets:GWYI), a company expanding throughout the United States in the Aerospace and Defense Precision Manufacturing Industry. Thursday afternoon, the company issued a press release announcing that the two largest shareholders in the Company, CEO Larry Consalvi and COO Joseph Gledhill, have each decided to cancel 6,000,000 shares of their Gateway International Holdings stock. The total shares being retired equals 12,000,000 shares, or approximately 36.4% of the outstanding common stock. Gateway said that neither Mr. Consalvi nor Mr. Gledhill received any consideration for the cancellation of their shares. After the retirement of the 12,000,000 shares, the total outstanding shares will be 20,966,000, down from 32,966,000 currently outstanding.
Gateway International's CEO, Larry Consalvi, commented on the share retirement, "We decided to retire these shares to allow the Company to be in an advantageous position in the implementation of our acquisition schedule. Our goal is to acquire companies that add value to our enterprise and that will be accretive to earnings. Using these shares for acquisitions will help us meet these goals and also allow for growth in earnings without dilution to current shareholders. By giving these shares back to the Company to use for future acquisitions, we feel that we can accelerate earnings growth and create significant shareholder value."
He concluded by saying, "Reducing the number of outstanding shares, coupled with the strong profitability at Elite Machine Tool Company and Eran Engineering, which we recently reported in our year-end results, will allow the Company to increase its earnings per share. Additionally, with the recent addition of All American CNC Sales and A-Line Capital and the earnings that they will add in future reports, I believe that we are well positioned to increase earnings per share at an accelerated rate in the future."
Earlier in the week, Gateway posted record annual sales for the fiscal year totaling $7,445,240. Net income before taxes for the year was also a record, coming in at $726,990, a pre-tax margin of 9.8%. The results reported were from only two of their present companies, Elite Machine Tool and Eran Engineering. Results for newly acquired All American CNC Sales and newly formed A-Line Capital will be reported beginning with October 2005 financials.
Gateway International currently has operating subsidiaries including: Eran Engineering, Inc., Elite Machine Tool Company, Inc., All American CNC Sales, Inc. and A-Line Capital Corporation.
GWYI is currently trading at around $1.02 a share.
Other Stocks to Watch Friday;
Kent Financial Services, Inc. (Nasdaq:KENT)
Financial services company Kent Financial Services, Inc. released third quarter financial results Thursday, reporting net income for the quarter of $739,000, or $0.26 per share, compared to a net loss of $204,000, or $0.06 per share, in the same period last year. Revenues for the quarter rose to $972,000, the company revealed, up from $351,000 posted in the year-ago quarter.
KENT closed Thursday's regular trading session at $3.26, up 96 cents on volume of 1.45 million shares.
Amgen Inc. (Nasdaq:AMGN)
Biotechnology company Amgen Inc. announced Thursday that it has formed Amgen Ventures, a corporate venture capital fund designed to provide emerging biotechnology companies with resources to develop pioneering discoveries focused on human therapeutics, offering early stage companies access to its extensive capabilities.
AMGN closed Thursday's regular trading session at $59.88, up 54 cents on volume of 4.6 million shares.
BEA Systems, Inc. (Nasdaq:BEAS)
Enterprise infrastructure software provider, BEA Systems, Inc., released third quarter financial results after the bell Thursday, reporting pro forma net income for the quarter of $36.5 million, or $0.09 per share, compared to $34.1 million, or $0.08 per share, in the same period last year. On a GAAP basis, the company posted net income of $33.5 million, or $0.08 per share, compared to $29.0 million, or $0.07 per share last year. Revenues for the quarter rose to $264.4 million, up 5 percent from $252.1 million posted in the year-ago quarter.
BEAS closed Thursday's regular trading session up 8 cents at $8.19, on volume of 17 million shares.
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