ORLANDO, Fla., Aug. 28, 2008 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc. has issued a second quarter 2008 research update for Alternative Construction Technologies, Inc. (OTCBB:ACCY), a company which produces structural insulated panel systems (SIPs) used in the construction of institutional, residential and commercial buildings.
Surya Gautam, MBA, RedChip Research Analyst, reported:
"While ACCY had been profitable for the four consecutive quarters prior to 1Q08, a year-over-year decline in gross profit of 82%, declining revenue, and obscene operating expenses contributed to the Company's $1.9 million net loss this quarter, a huge swing from the Company's $532,549 net income in same period of 2007."
"With no guidance on future revenue by the Company, it has become very difficult for us to remain optimistic about ACCY's future revenue growth. By and large, we are seeing slimmer chances of the Company meeting the two conditions necessary for its survival: exponential growth in revenue and procurement of additional funding," he continued.
"We no longer accept ACCY as a going concern. The Company has been unable to make payments to its lenders, and although ACCY is working to restructure its debt, at least one lender has announced that it will commence collection efforts, to include foreclosure on assets securing the debenture. We are issuing a 'Sell' recommendation and believe the stock offers an unattractive risk/reward profile at this time," Gautam concluded.
To receive a complimentary copy of the RedChip Visibility Research Report for ACCY, please visit:
http://www.redchip.com/visibility/about.asp?page=vreport&reportid=132&from=08282008pr.
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Disclosure
None of the profiles issued by RedChip Companies, Inc., constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. Alternative Construction Technologies, Inc. paid RedChip Visibility, a division of RedChip Companies, Inc., $36,000 for RedChip Visibility Program services, which included the preparation of this equity research report. To the fullest extent permissible under applicable law, RedChip Companies, Inc. will not be liable to you or anyone else for the quality, accuracy, completeness, reliability, or timeliness of this information. To the fullest extent permitted by law, RedChip Companies, Inc., will not be liable to you or anyone else under any tort, contract, negligence, strict negligence, strict liability, products liability, or other theory with respect to this presentation of information.