Dutton Associates Announces Investment Opinion: InkSure Technologies Speculative Buy Rating Maintained 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. -- Dutton Associates updates its coverage of InkSure Technologies (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : INKS) maintaining a Buy rating and a price target of $3.00. The 7-page report by Dutton senior analyst Rafael Kapelinski is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, 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. . Following a set of strong 4Q 2006 results, our call on the stock has not changed: the shares are not exactly a value play at EV/Sales 2007E of 8.5x, but the Company does have attractive growth potential and addresses an attractive market with a solution that delivers a very high ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). . Market sources estimate losses from counterfeiting counterfeiting, manufacturing spurious coins, paper money, or evidences of governmental obligation (e.g., bonds) in the semblance of the true. There must be sufficient resemblance to the genuine article to deceive a person using ordinary caution. and diversion range from $500 billion to $1 trillion annually, and are increasing at a 20% annual rate. Worldwide, counterfeit goods are thought to represent approximately 6-8% of global trade. Furthermore, existing security technologies such as holograms and watermarks are increasingly counterfeited, generating demand for newer, more effective security solutions. So the bottom line is that we like the Company's high-margin sales model, the significant operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. , and the market positioning. The clear negatives are the low visibility of the customer base and a relative high customer concentration. As a result of the strong momentum, and following in-line 4Q 2006 results, we upgrade our 2007E sales forecast Sales forecast A key input to a firm's financial planning process. External sales forecasts are based on historical experience, statistical analysis, and consideration of various macroeconomic factors. from USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 3.62 million to USD 4.14 million (+107% year-on-year). We view our forecast as rather aggressive; however, we believe that the Company's 2007E should benefit from the growing ink sales and some of the pilots with large OEMs turning into commercial orders. We also forecast 2007E 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. of USD (-0.18). About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts, primarily CFAs, have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 140 enrolled companies, and its 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 $35,500 prepaid before commencement of our research activities, consisting of 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $28,000 from the Company for 3 Research Reports with coverage commencing on 11/13/2006. The Firm does not accept any equity compensation. 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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