Bluefire Research Initiates Coverage of Daktronics, Inc.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by BlueFire Research MINNEAPOLIS--(BUSINESS WIRE)--May 23, 2000 Daktronics Receives Outperform Rating, 12-Month Target Price Of $18/Share BlueFire Research, an SEC registered investment adviser affiliated with BlueFire Partners, today initiates coverage of Daktronics, Inc. (Nasdaq: DAKT - $10) with an Outperform rating and a 12-month target price of $18 per share, based on a multiple of 20 times estimated earnings per share for the April 2001 fiscal year. Daktronics is a leading supplier of computer programmable electronic display systems. Based in Brookings, S.D., the company is particularly well known for its large scoreboards, including supplying more than 60 displays to the 2000 Olympic games Olympic games, premier athletic meeting of ancient Greece, and, in modern times, series of international sports contests. The Olympics of Ancient Greece Although records cannot verify games earlier than 776 B.C. in Australia. "We are initiating coverage of Daktronics with an Outperform rating," said BlueFire Research Managing Director Lee Schafer. "In spite of Daktronics's leading market position and an excellent track record of revenue growth, the company remains mostly undiscovered as a public investment vehicle. Moreover, the company intends to increase gross margins and operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , which, if successful, will lead to accelerating earnings growth. Based upon the company's excellent growth prospects and our forecast of 30 percent earnings per share growth for the April 2001 fiscal year, we believe DAKT shares are 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. ." The initial research report on Daktronics will be made available to BlueFire's proprietary database of investment professionals and through a number of the nationally recognized services that currently provide equity research online or by traditional subscription means. For more information and a copy of the Daktronics report, please send an electronic mail message to tbart@bluefirepartners.com or telephone (612) 344-1000. BlueFire Research was formed in January by Minneapolis-based BlueFire Partners to provide investment research on small capitalization growth companies in health care, technology, financial institutions, consumer, and industrial growth sectors. BlueFire Research prepares and provides research reports and periodic updates to investment professionals and the investment community on mid-cap, small-cap and micro-cap companies who, in most cases, are clients of BlueFire Partners. The reports include earnings estimates and recommendations based on fundamental and relative valuation models. BlueFire Partners is an independent, privately held professional firm providing strategic consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" focused on enhancing the enterprise value of its clients. With headquarters in Minneapolis, BlueFire has a national reputation for expertise in advising growing companies in the areas of corporate strategy, investor relations Investor relations The process by which the corporation communicates with its investors. , public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most and graphic design services, media relations, product launch campaigns, performance improvement initiatives, and leadership development. BlueFire Research, an affiliate of BlueFire Partners, is an SEC-registered investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and providing investment research on small-capitalization growth companies and other investment advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal . The research report on Daktronics was prepared by BlueFire Research, a Registered Investment Adviser, and an affiliate of a company that provides a variety of professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. for the subject company of this report. Those services can include, but not be limited to, investor relations and public relations counsel, media consulting, graphic design, and management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects . However, the subject company of this report has paid no direct compensation to the investment adviser or its affiliate for the preparation, distribution, and dissemination of this report. This report is for information purposes only and does not constitute an offer or solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy or sell any securities. The information provided, while not guaranteed as to accuracy or completeness, has been obtained from sources believed to be reliable. An officer, director or employee of BlueFire Research, or its affiliate, owns securities in the subject company of this report. |
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