BlueStone Capital Partners, L.P. Announces Investment Opinion on KFX, Inc.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by BlueStone bluestone, common name for the blue, crystalline heptahydrate of cupric sulfate called chalcanthite, a minor ore of copper. It also refers to a fine-grained, light to dark colored blue-gray sandstone. Capital NEW YORK--(BUSINESS WIRE)--Feb. 9, 2000 Senior Analyst Scott Baily Baily is the name of more than one person:
["Polymorphic Effect Systems", J.M. Lucassen et al, Proc 15th Ann ACM Conf POPL, ACM 1988, pp.47-57]. , Inc.(a) (KFX-AMEX-$3.38-1-1) reiterates his intermediate and long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. price targets of $5 and $9, respectively.
Analyst's Summary
-- Earlier today, KFX announced that its strategic partnership with
Kennecott Energy Company (KEC) -- a subsidiary of Rio Tinto PLC
(RTP-NYSE-$71.13-Not Rated) -- will be expanding and that KEC
will be making an equity investment in Pegasus Technologies,
Inc., KFX's wholly owned subsidiary. Although contract terms were
not disclosed, we believe that KEC's equity investment is
probably within a range of $2-$5 million. The agreement is
expected to close by April 1, 2000. We view today's announcement
as a major positive for KFX and, as a result of this development
and the company's excellent outlook, we are upgrading our rating
on KFX's stock to 1-1 from 2-1. We also reiterate our
intermediate and long-term price targets of $5 and $9,
respectively.
-- KFX also announced this morning that it will seek to improve its
balance sheet by restructuring its $17.0 million 6% convertible
debentures. Although nothing definite was indicated, management
said it would onsider all of its options, including a possible
conversion of debentures, as well as additional equity
alternatives. At this juncture, we would view either a
restructuring or a conversion of the debentures as a positive,
because it could possibly save KFX roughly $1.0 million in annual
interest charges.
-- Our fiscal 2000 revenue and per-share loss estimates of $5.5
million and a loss of $0.20, respectively, remain unchanged. We
also maintain our fiscal 2001 revenue and EPS estimates of $16.0
million and $0.06 per share, respectively. We view our revenue
and per-share estimates for fiscal 2000 and 2001 as conservative,
because we believe that both KFX's Pegasus subsidary and its
K-Fuel business are well positioned to take advantage of their
market-leading technologies as their markets continue to develop
and grow.
(a)BSCP BSCP Brotherhood of Sleeping Car Porters BSCP Base Subnet Communications Processor(s) BSCP Birkett Stevens Colman Partnership (UK architects) has managed / co-manage a public offering for this company in the past three years. BlueStone Capital is a full service investment banking and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. firm focused on identifying investment opportunities in the emerging growth sector. BlueStone Capital assists clients in maximizing max·i·mize tr.v. max·i·mized, max·i·miz·ing, max·i·miz·es 1. To increase or make as great as possible: their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. |
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