Dutton Associates Announces Investment Opinion: American Mold Guard Strong Speculative Buy Rating in Update Coverage by Dutton A
May 29 2007 - 4:25PM
Business Wire
Dutton Associates continues its coverage of American Mold Guard
(Nasdaq: AMGI) maintaining a Strong Speculative Buy rating and a
$4.22 target price. The 8-page report by Dutton senior analyst Mike
Loughran is available at www.jmdutton.com as well as from First
Call, Bloomberg, Zacks, Reuters, Knobias, and other leading
financial portals. American Mold Guard reported Q1FY07 EPS of
($0.27) versus our estimate of ($0.18). Revenues fell 24%
year-over-year, but rebounded 15% sequentially. The Company
continued to show sequential SG&A improvement, with SG&A
falling 3% sequentially despite the 15% improvement in revenue. A
significant bright spot in the quarter was a 680 basis point
improvement in the gross margin from 42.2% in Q1FY06 to 49% in
Q1FY07. Increasing levels of multi-family projects in the mix will
continue to drive improvement in this metric. Importantly, AMG
Scientific is expected to achieve significantly higher gross
margins than the company�s current housing market. A significant
bright spot is the company�s multi-family division, which booked
$1.7 million of new orders in Q1, representing a significant
improvement given total multi-family revenues were $2 million in
FY06. Encouraging still was that $1 million of these orders were
from existing customers, and $700 thousand were from new,
first-time clients. Also encouraging, was that the company achieved
new orders from several different regions, indicating that
awareness of the company�s anti-microbial process is becoming well
recognized throughout the nation, and well beyond the company�s
original California market. At current loss rates, the company will
likely require additional capital in FY07. 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
$3459,000 prepaid for 4 Research Reports, typically published
quarterly, and requisite Research Notes. Dutton Associates received
$35,000 from the Company for 4 Research Reports with coverage
commencing on 9/26/2006. We 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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