BlueStone Capital Partners Announces Investment Opinion on Candela Corporation.NEW YORK--(BUSINESS WIRE)--April 20, 1999-- 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 Initiates Coverage on Candela candela (kăndĕ`lə), in weights and measures: see candle. A unit of measurement of the intensity of light. Part of the SI system of measurement, one candela (cd) is the monochromatic radiation of 540THz with a radiant intensity Corporation With a Strong Buy Recommendation Acting Director of Equity Research, Scott A. Baily at BlueStone Capital Partners, L.P. initiates coverage on Candela Corporation (NASDAQ-CLZR-$8 3/16) with a STRONG BUY recommendation and $15-$17 price target. Analyst's Summary -- We are initiating coverage of CLZR with a STRONG BUY recommendation. Selling at only 8.6x and 7.1x our FY99 and FY00 (June) EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. estimates of $0.95 and $1.15, we believe the stock is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. relative to its 30% plus growth rate and comparable valuations. If CLZR's P/E P/E See: Price/earnings ratio achieved even a modest 13x-15x our FY00 EPS of $1.15, the stock could achieve our target of $15-$17 in the next 12-18 months. -- CLZR's recent excellent performance is mainly due to the strong demand it is experiencing for its flagship aesthetic lasers, the GentleLASE for hair removal and the ScleroPLUS for vascular lesions, two products that are clearly market leaders. -- CLZR recently signed a 3-year distribution agreement with Physician Sales and Service, Inc. (NASDAQ-PSSI) for PSSI PSSI Persatuan Sepak Bola Seluruh Indonesia (Football Association of Indonesia) PSSI Performance Salary Step Increase PSSI Peninsula Sanitary Service, Inc. to market CLZR's two main aesthetic lasers -- GentleLASE and ScleroPLUS -- to over 100,000 office-based physicians, a customer base that would take CLZR years to penetrate. -- CLZR's current business is excellent and the company is experiencing a record FY99. For the 2Q and six months FY99, CLZR's sales rose 56.5% to $13.3 million from $8.5 million last year, and EPS increased to $0.24 per share, up from a loss of $0.33 (excluding a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. ). In 2Q FY99, gross margins increased for the 4th straight quarter and rose to 51.1% versus 43.4% last year. BlueStone Capital Partners, L.P. is a full service investment banking and brokerage firm that delivers financial services to emerging growth and medium size companies worldwide. BlueStone Capital assists Clients in maximizing their growth by providing sophisticated investment strategies that are designed to achieve client's strategic, operating and financial goals. |
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