Investrend Announces Investment Opinion on EquityAlert.com, Inc.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by Investrend NEW YORK--(BUSINESS WIRE)--September 13, 2000 Investrend analyst lowers rating to NEUTRAL in face of pricing pressures expected to continue for several quarters. The new September 2000 Investrend Update Report on EINC EINC Equivalent Input Noise Current is available at www.investrend.com. An Update Report on EquityAlert.com, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : EINC) by PAR Analyst Richard Bliss, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. was released today by Investrend Research under its Public Analysis & Review (PAR) program. A copy of the update report is available from the Investrend web site www.investrend.com. A summary of Mr. Bliss's report conclusions follows: Equityalert.com continued to be profitable in the second quarter but reported slower revenue growth, a sharp increase in expenses and therefore dramatically lower profit margins. EINC had revenue of $0.402 M (a quarter over quarter increase of 4%) and, on a pretax basis, earned $0.117M ($0.00/share), a decline of 54% from the prior quarter. Pre tax margins for the quarter were a respectable 29% but also sharply down from the prior quarter's spectacular level of 65%. Guidance from the Company suggests that the next few quarters are expected to be similar. Our revised forecast has the Company earning $0.480M ($0.01/ share) for the full year. We are changing our rating to Neutral. We had assumed that some degree of stabilization in valuing Internet companies would emerge this quarter and also that EINC would continues to grow at least as rapidly as its larger competitors. Nether has occurred. The Internet arena remains a quick sand of changing metrics and appropriate multiples and, while the Company has continued to expand its mailing service, pricing pressure on email advertising has dampened revenue growth. The Company's strengths remain the same: a) a pragmatic simple business model, b) a focus on an attractive demographic group and c) low cost efficient operations. However, the current environment with its general pullback from dot.com enterprise, the increased skepticism about Internet advertising Delivering ads to Internet users via Web sites, e-mail, ad-supported software and Internet-enabled cellphones. Also called an "ad network," Internet advertising organizations act as a middleman between the advertiser and the Web sites and software publishers that display the ads. , the growing size and strength of its competitors and a negative bias towards small enterprises that lack critical mass is very hostile. We are therefore lowering our rating to Neutral. Mr. Bliss, CFA is a principal with BAM Bam (bäm), town (1996 pop. 70,100), Kerman prov., SE Iran, on the intermittent Bam River. Located on the western edge of the Dasht-e Lut, Bam is a trade center in a henna-growing region. Dates and other fruits are also grown; camels are raised. Asset Management. He previously worked with the Semi-Tech Group, Asian Oceanic Capital Corp, and Travelers Insurance. He holds an MA from Stanford, and was graduated from Princeton University Princeton University, at Princeton, N.J.; coeducational; chartered 1746, opened 1747, rechartered 1748, called the College of New Jersey until 1896. Schools and Research Facilities . He has over ten years experience in investment analysis and financial engineering. He is a member of the Association for Investment Management and Research and the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Society of Security Analysts. Please read PAR disclaimers found on Investrend web site (www.investrend.com) before investing. Public Analysis & Review (PAR) is a program of Investrend Research. Anyone, including a company, may enroll a company for coverage. PAR reports are performed on behalf of the members of the Institute, and are not a service to any company. PAR analysts are responsible only to the public. PAR analysts are paid in advance to eliminate pecuniary Monetary; relating to money; financial; consisting of money or that which can be valued in money. pecuniary adj. relating to money, as in "pecuniary loss. interests and insure independence. PAR enrollment fees are $17,500 per annum Per annum Yearly. , and rise to $19,700 on October 1, 2000. |
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