BlueStone Capital Partners Announces Investment Opinion on Ceradyne.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)--Aug. 7, 2000 BlueStone Capital Partners, L.P Initiates Coverage on Ceradyne with 1-1 Rating Analyst Steve Loewengart initiated coverage on Ceradyne (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 : CRDN CRDN Certified Restoration Drycleaning Network $7.50) with a 1-1 rating. The intermediate (12-month) price target is $12, and the 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. (>12 months) price target is $14. Analyst's Summary - We are initiating coverage of Ceradyne with a 1-1 rating. We believe that Ceradyne is a company with excellent prospects and represents a significant play in the market for ceramic components. The key product line provides protective armor to the armed forces. - Ceradyne develops, manufactures, and markets advanced technical ceramics for industrial, electronic, defense, and consumer applications. In our view, Ceradyne shows every indication of successfully transitioning from marginal profitability into a profitable niche player, which is demonstrated by its improving EPS over the past five quarters. We forecast 2000 EPS to improve to $0.57 from $0.20 a year ago. Our 2001-2003 EPS estimates of $0.64, $0.67, and $0.72, respectively, represents a 53% compound annual growth rate. The company's NOLs will be fully utilized by 2001. - With rapid sales growth, 27% gross margin, and consistent control over operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , we forecast a rise in profitability measured as return on sales Return on sales A measurement of operational efficiency equalingnet pre-tax profits divided by net sales expressed as a percentage. return on sales The portion of each dollar of sales that a firm is able to turn into income. of over 10% in 2000 (when there is a tax benefit from NOLs) declining gradually to 8.6% (when Ceradyne is fully taxed starting in 2001 after NOLs are fully utilized.) 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. are projected to be $0.57 in 2000, increasing to $0.64 the following year. Our opinion is that with the change in tax status, the EPS growth is still a respectable average annual gain of 53% between 1999 and 2003. -- BlueStone Capital Partners, L.P. makes a market in this security. BlueStone Capital Partners, L.P. is a full-service investment banking and brokerage firm that delivers financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. 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 clients' strategic, operating and financial goals. |
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