ORLANDO, Fla., April 18, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., announced today that it has issued a research update on Earth Biofuels Inc. (OTCBB:EBOF).
Clay Mahaffey, CFA, RedChip Research Analyst, wrote in the report:
"The Company revealed sales of $44.8 million for 2006. Subtracting the nine months sales of $15.1 means sales in Q4 were $29.7 million, $13.6 million greater than our December estimate of $12.8 million. The Company's September 30, 2006 10Q states that the LNG plant will add $25 million in sales, or $6.2 million per quarter, so the difference is in biodiesel resales. This is a substantial increase and very favorable on the surface, but we had assumed zero margin on resales, so we will wait and see what the Company reports in its 10K. RedChip issues a 12-month target price of $1.00 and a Speculative Buy rating."
To receive a complimentary copy of the RedChip research update for EBOF, please visit: http://www.redchip.com/visibility/about.asp?page=requestEBOF_Q4_2006.
About RedChip Visibility(tm)
RedChip Research, a division of RedChip Companies Inc., writes fundamental research on small-cap companies. RedChip's success has been documented in Forbes, Barron's and the Wall Street Journal. RedChip Visibility(tm) provides small-cap companies' access to both professional and individual small-cap investors by holding conferences throughout the United States, producing online corporate visibility programs, and writing company sponsored research.
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RedChip Visibility Research Disclosure
This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. RedChip Companies Inc. is an affiliate of the Aurelius Consulting Group, Inc. Earth Biofuels, Inc. is a client of the Aurelius Consulting Group, Inc. and of RedChip Visibility, a division of RedChip Companies. EBOF paid RedChip Visibility $36,000 for the RedChip Visibility Research Program, which includes this report. RedChip Visibility, a division of RedChip Companies, Inc., and the Aurelius Consulting Group Inc., in a joint marketing agreement, have been contracted by Earth Biofuels, Inc. to increase investor awareness of EBOF to the small-cap equity community. These services may include investor conferences and digital and print distribution of EBOF investor related materials. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that the Aurelius Consulting Group is an investor relations firm hired by the Company and receives a monthly fee of $7,500 and 11,000 shares of Rule 144 stock per quarter for Aurelius services.