Broadview Press Fair Value Raised to C$0.42; YE2003 Results Beat Expectations Says Investrend Affiliate Fundamental Research


NEW YORK, April 12, 2004 (PRIMEZONE) -- (Investrend Research Syndicate) Investrend affiliate Fundamental Research Corp. analyst Brian Tang, CFA, has raised his fair value estimates of Broadview Press Inc. (TSX Venture Exchange:BDP) to C$0.42 from $0.24. It is maintaining its "Buy - 3 (Average Risk)" rating.

According to Tang, the company's sales revenues exceeded expectations, increasing 20% from $3.1 million in 2002, to $3.7 million in 2003. Fundamental expected 2003 revenues of $3.5 million. Similarly, net income increased to $184,839 in 2003, from $169,004 in 2002. Fundamental expected net income of $99,114 in 2003.

Other investment highlights mentioned in the initial report, available free at www.fundamentalresearchcorp.com, include: a 31% increase in sales to the U.S. (in US$ terms or 15% in C$ terms) despite a strengthening C$, and the company posted strong margins.

Due to the strong 2003 results, Fundamental revised its textbook unit sales growth estimates upward. The analyst had previously modeled only 10% unit sales growth versus 2003 actual growth of 23%. Historical unit sales growth (1988-2003) was a CAGR of 15%. The report does a fairly comprehensive analysis of the C$'s impact on operations and concludes that it is not a large concern as the impact per book is not large, and increased costs due to a higher C$ could easily be passed on to students by university bookstores. Tang estimates the increase per book to be roughly US$2.65. Based on the company's solid performance, strong fundamentals, and strong team, Fundamental believes BDP represents a "compelling investment opportunity." Their fair value estimates were derived from a DCF model and valuation by multiples.

Fundamental Research Corp. is an affiliate of Investrend Research and both subscribe to the "Standards for Independent Research Providers" at http://www.firstresearchconsortium.com, and adhere to the Guidelines for independent providers jointly endorsed by the National Investor Relations Institute (http://www.niri.org) and the Association for Investment Management and Research (http://www.aimr.org).

The fee for Fundamental's standard coverage is $25,000, and a fee is being paid by the company.

Complete information about this company is available at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes, and the full report is available at: http://www.fundamentalresearchcorp.com/PDF/bdp2003.pdf and www.investrendresearch.com, and investors are advised to read disclosures carefully before trading in the equities of any enrolled company.

Anyone interested in receiving alerts regarding Broadview Press Inc. research should email info@investrend.com and distribution@fundamentalresearchcorp.com with "BDP" in the subject line.



            

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