Bridge Technology Group LLC Announces Investment Opinion on AMBI.NEW YORK--(BUSINESS WIRE)--Feb. 10, 1999-- Bridge Technology Group LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control Comments On AMBI's Fiscal Second Quarter Results Please Visit Bridge's Web Site at www.BridgeNYC.com for Detailed Report Bridge Technology Group LLC released comments today on AMBI AMBI Associação Médica Brasileira Iridologia Inc. (Nasdaq: AMBI) following the release of AMBI's fiscal second quarter results. The full text of this report can be accessed at Bridge's web site, at www.BridgeNYC.com. Excerpts from the report follow: We continue to be impressed with AMBI management's ability to deliver on their promises. As expected, AMBI reported strong fiscal second quarter results yesterday. When we first considered recommending AMBI, management had publicly announced that several transforming events should occur over the next six months or so: a major strategic partnership, continued financial turnaround, and one or more product/business acquisitions. AMBI has delivered on all these in a very short period of time. This second quarter was particularly indicative of AMBI's ability to deliver on its promises: o AMBI closed its deal with American Home For the American mortgage lender, see . The American Home is a center of intercultural exchange located in Vladimir, Russia. The home is designed to model a typical American suburban home and its main focus is the ESL school that provides lessons for Russian students. Products (AHP AHP Assistant House Physician. ) for the U.S. retail distribution of AMBI's CARDIA(R) Salt Alternative. As a result of the agreement, AHP made a $4.0 million equity investment in AMBI and paid a $1.0 million one-time license fee that is reflected in AMBI's fiscal 2Q99 results. AMBI management has indicated that AHP is planning a national launch of CARDIA Salt in July/August of this year. We believe that the increased brand awareness that should result from the AHP promotion of this CARDIA product should prove invaluable to AMBI as it rolls out additional CARDIA brand products. o At the end of November, AMBI announced that it had revised its agreements with the holders of its convertible Series C and D preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. to redeem a portion and convert the remainder to Series E and F preferred stock. Where the Series C and D had been at a floating conversion price, the newly issued Series E and F shares are both fixed at $1.25 and are convertible into a maximum of 1.66 million shares of AMBI common stock. We continue to believe this to be a very important event for AMBI, as it removed a negative technical factor as well as assuaged investor concerns about dilution. o We found it impressive that in its recent announcement of Optimum Lifestyle, Inc., it was mentioned that AMBI had repaid all of its debt associated with the August 1997 acquisition of Nutrition 21. This fact seems to have gone unnoticed. o Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: at AMBI have improved dramatically, up from 11% in fiscal 2Q98 to 26% in fiscal 2Q99. In addition, at the end of the second fiscal quarter, AMBI had generated $2.1 in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (ex the $1.0 million one-time payment from AHP). Although they may prove conservative, we are maintaining our current sales and earnings estimates for the fiscal year 1999 of $28 million in sales and $0.16 per share. (N.B. Our 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. estimate is fully diluted and fully taxed, although AMBI has NOLs remaining.) As AMBI stock is currently trading at only 1.4 times projected sales, just 4.5 times projected EBITDA and at a P/E P/E See: Price/earnings ratio multiple of 5 times projected Net Income, we continue to believe that AMBI shares are grossly 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. . By taking advantage of the multitude of distribution channels (retail, wholesale, Internet, television and media), we believe AMBI is well positioned to launch additional nutrition products over the coming year, as well as being able to continue its success in the acquisition of growing nutritional businesses and products. We recommend purchase of AMBI shares for those investors tolerant of the risks associated with higher-risk, micro-cap equity investments. Bridge Technology Group LLC is focused on identifying emerging growth companies in the healthcare and information technology sectors that offer compelling investment opportunities over the long term. By providing comprehensive 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. , including corporate finance, M&A advisory, strategic partnering and communications consulting, the company positions itself to provide a fully integrated package of value-added services A value-added service (VAS) is a telecommunications industry term for non-core services or, in short, all services beyond standard voice calls and fax transmissions. to emerging growth companies. The information in this press release has been obtained from sources that Bridge Technology Group LLC believes to be reliable, but the Company does not guarantee its accuracy or completeness. Neither the information nor any opinion expressed constitutes a 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 by Bridge Technology Group LLC for the purchase or sale of any securities. Bridge Technology Group LLC has performed investment banking, consulting or other services for or may solicit investment banking, consulting or other business from, AMBI Inc. Bridge Technology Group LLC or persons associated with Bridge Technology Group LLC may at anytime be long or short any of the securities referred to herein and may make purchases or sales thereof while the Company's reports are in circulation or posted on the Bridge Technology Group LLC web site at www.BridgeNYC.com. This material, or any portion thereof, may not be reproduced without prior permission from Bridge Technology Group LLC. Bridge Technology Group LLC is not responsible for the contents of this document that is intended for electronic transmission and could be thus subjected to tampering tampering The adulteration of a thing. See Drug tampering. or alteration. Copyright 1999 by Bridge Technology Group LLC. All rights reserved. |
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