SWRI Seawright Holding Inc (CE)

Dutton Associates updates its coverage of Seawright Holdings (OTCBB:SWRI) maintaining a Speculative Buy rating and a lower price target of $0.45. The 6-page report by Dutton senior analyst Jonathan H. Ziegler, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. Seawright shares recently closed at $0.24 per share, which effects a company enterprise capitalization of approximately $5.2 million. While this number does not appear to be inexpensive premised upon our current estimate of 2007 and 2008 EBITDA of ($1.2 million) and ($74,000) respectively, it represents to us a relative bargain in view of the putative asset values of the Company. The Company�s strategy is to monetize the 300 million gallon per annum spring in rural Virginia, which is within short driving distance of 2/3 of the vast east coast population. The Company has managed to distribute its branded bottled water to local Whole Foods stores and just got into Balducci�s, both upscale operators. However, to become really successful as a major bottler/marketing/merchandising company, we believe the Company will require far more resources in personnel, facilities and capital than it has now. The Company sold a couple of thousand cases during the quarter and generated revenue of only $4,183 up from $522 in the same quarter a year ago. With our view that fresh-water, an inexhaustible supply, represents a major asset which could grow in importance as fresh-water-supplies could conceivably rank up there with energy reserves today, we believe that the Company boasts major asset values which are under-stated by the Company�s current market. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and 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 $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. The Firm does not accept any equity compensation. We received $35,000 from the Company for 4 quarterly Research Reports with coverage commencing on 12/13/2006. 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. For more information on this release, or on enrolling a company for research coverage, please contact John Dutton at 916-941-8119.