Dutton & Associates Announces Investment Opinion: Axesstel Speculative Buy Rating Issued By Dutton & Associates.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by Dutton & Associates EL DORADO El Dorado, legendary country of South America El Dorado (ĕl`dərä`dō, –rā`–) [Span.,=the gilded man], legendary country of the Golden Man sought by adventurers in South America. HILLS, Calif.--(BUSINESS WIRE)--Sept. 17, 2003 J.M. Dutton & Associates continues coverage of Axesstel, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AXES axes [L., Gr.] plural of axis. The straight lines which intersect at right angles and on which graphs are drawn. Usually the horizontal axis is the x-axis and the vertical one the y-axis. Called also axes of reference. ), maintaining a Speculative Buy rating but increasing our target price to $6.80. The 5-page report by J.M. Dutton senior analyst Michael Rindos is available at www.jmdutton.com, and at Bloomberg, First Call, Zacks, Multex, and other leading financial portals Financial Portal A website that provides a variety of financial data and information, acting as an information hub for clients who are individual investors requiring timely financial news and data to make their investment decisions. . We are raising our 2003 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 for Axesstel, Inc. For the second time this year, the Company's results beat our estimates, and we now believe a continuation of recent trends should allow the Company to earn EPS of $0.27 and $0.40 in 2003 and 2004, respectively. Consequently, we are raising our price target to $6.80 based on a market multiple of 17x our 2004 EPS estimate. Our revenue estimates remain relatively unchanged. Additionally, we continue to believe that the Company's relationship with Verizon Avenue in developing a hybrid cordless/wireless handset that we believe will have great mass appeal, may have explosive upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar . We discuss this development in our report. Axesstel posted strong Q2 results that largely benefited from tight expense management. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $4.9 million were slightly below our estimate of $5 million, but up 51% on a sequential basis. About Dutton & Associates Dutton & Associates is one of the largest independent investment research firms in the U.S., with over 60 companies under coverage. Its 21 analysts, primarily CFAs, have expertise in many industries. Dutton & Associates provides continuing analyst coverage of enrolled companies, and its institutional-quality research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $28,000 prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. before commencement of our research activities. We
received $25,000 from the Company for coverage for the year, and do not
accept payment of our fees in company stock. Our principals and analysts
are prohibited from owning or trading in securities of covered
companies. The views expressed in this research report accurately
reflect the analyst's personal views about the subject securities
or issuer. Neither the analyst's compensation nor the compensation
received by us is in any way related to the specific ratings or views
contained in this research report or note. Please read full disclosures
and analyst background at www.jmdutton.com before investing.
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