BlueStone Capital Partners Announces Investment Opinion on Alloy Online, 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 Partners NEW YORK--(BUSINESS WIRE)--July 28, 2000 BlueStone Capital Partners, L.P. Initiates Coverage on Alloy alloy (ăl`oi, əloi`) [O. Fr.,=combine], substance with metallic properties that consists of a metal fused with one or more metals or nonmetals. Online, Inc. (ALOY) with a 1-1 Rating Senior Analyst Kathleen Heaney and Analyst Olga Urgiles of BlueStone Capital initiated coverage on Alloy Online, Inc. (WOMN; NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on - $11.00) with a 1-1 Outperform-Outperform investment rating with Intermediate-term and Long-term price target of $18 and $28, respectively. ANALYST SUMMARY We are initiating coverage of Alloy Online, Inc., a leading direct marketer and online network for teens and young adults, with a 1-1 (Outperform-Outperform) rating. Alloy differentiates itself from the competition by providing end-to-end coverage under a single brand. We believe that the company's strong brand name, extensive reach, offline and online distribution, leading strategic partners, and rapidly growing user base positions the company as the leading online destination for Generation Y (ages 10-24). Moreover, we believe that given its leadership position, Alloy could benefit disproportionately dis·pro·por·tion·ate adj. Out of proportion, as in size, shape, or amount. dis  pro·por from consumer products, apparel, media and other companies looking to effectively reach the Gen Y See generation X. consumer. We believe that the current stock price offers investors an attractive entry point as we expect revenue to increase dramatically over the next 12-18 months and for the company to be profitable on a cash basis in fourth quarter 2000. Our intermediate price target of $18.00 is based on a price to revenue multiple of 4.5 times, while our long-term price target of $28.00 is based on a blended P/S P/S See: Price to sales and P/E P/E See: Price/earnings ratio multiple predicated on the company's online and offline initiatives. BlueStone Capital is a full service investment banking and brokerage firm focused on identifying investment opportunities in the emerging growth sector. BlueStone Capital assists clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve clients' strategic, operating and financial goals. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion