Capital Brands, Inc. common shares recommended for potential above average appreciation.NEW YORK--(BUSINESS WIRE)--May 14, 1996--LT Lawrence & Co., Inc., the New York-based investment banking and brokerage firm, strongly recommended accumulating positions in the common stock of Capital Brands, Inc. (CAASD- traded Nasdaq) for potential much-above-average appreciation in a report dated May 10, 1996 by analyst Kemp n. 1. Coarse, rough hair in wool or fur, injuring its quality. Fuller Jr. "Any way we look at Capital Brands, Inc. selling around $8.00 a share we conclude 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. ." In his new research report, Fuller said Capital Brands, Inc. has evolved into an emerging growth company following the April 25, 1996 Share Exchange Agreement with CompScript, Inc., a comprehensive provider of pharmacy management services uniquely equipped to both lower costs and improve the quality of care. It is expected that CompScript, Inc. will become the surviving company surviving company The company that emerges in control following a business combination. The surviving company is generally one of the firms entering the combination but may be a new company formed by the combination. , and a formal name change and a new stock symbol are expected to evolve over coming weeks. The new Capital Brands, soon to become CompScript, Inc. is headed by Brian A. Kahan. Fuller indicates in his research report that CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Kahan intends to focus growth in four areas. These are: 1) long-term/sub acute care (over 65 population), 2) workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. , 3) group health, and 4) the home infusion/post-acute therapy sector. From a base of revenues of about $15 million currently, the company looks to make a number of acquisitions in coming months in the long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. and pharmacy benefit management A Pharmacy Benefit Manager (PBM) is a third party administrator of prescription drug programs. They are primarily responsible for processing and paying prescription drug claims. areas. Capital Brands, through CompScript, will increase revenues rapidly through the acquisitions. The company is driving to have revenues near a $50 million annual run rate within six months, and within two years CompScript plans to grow revenues to between $80 million and $100 million. Fuller notes the current earnings power is about $0.15 a share on an annual basis, and if the several planned acquisitions are completed it is possible 1997 earnings could approach $0.40 a share, based on the 9.8 million shares currently outstanding. Fuller concludes that comparable health-care companies are selling between one and one-and-one-half times revenues. If Capital Brands gains peer company valuations, Fuller concludes the stock could rise to over $12 a share in the short run and potentially to levels between $18 and $20 per share over the longer term. CONTACT: Kemp Fuller Jr. Managing Director 212/361-6011 |
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