Headliners Entertainment Rated 'Speculative Buy/4,' Target Reduced to $0.50 by Investrend Analyst Robert J. Vile, CPA, CFA


NEW YORK, June 14, 2004 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:

Headliners Entertainment (OTCBB:HLNR) has been assigned a "Speculative Buy/4" rating, with a reduced target of $0.50 due to an increase in shareholder dilution, by Investrend Research analyst Robert J. Vile, CPA, CFA.

Vile's Update states:

Rascals International changed its name to Headliners Entertainment Group effective June 1, 2004. We are reducing our 2004 earnings per share estimates to (0.07) from $0.10, and our 2005 earnings per share estimate to $0.05 from $0.20, for two reasons:

First, the Company's new business plan has been slower in developing than previously expected. Second, dilution from the significant increase in the amount of common shares outstanding. The increase in the amount of shares is the result of the Company's Equity Credit Line financing arrangement with Cornell Capital Partners.

As a result, we are lowering our 12-month price target to $0.50 per share, representing 10x our 2005 earnings estimate of $0.05 per share.

Headliners' growth strategy involves a mixture of organic growth in diversified venues, such as stand-alone restaurant/clubs, joint hotel ventures/co-locations, and high traffic, entertainment destination venues, with acquisitions.

As of March 31, 2004, the consolidated balance sheet shows current assets of $994,542 and $3,514,018 in current liabilities. Prepaid consulting accounts for $1.4 million or 51% of the assets. A significant part of the Company's operating cash flow requirements continue to be funded by equity sales. At the end of the quarter, there was a stockholders' deficit of $753,000.

Currently, the Company plans to build-out three new clubs during 2004 (Palisades, Montclair, and Shreveport) in addition to funding the acquisition of nine night clubs. Management's plan is to use the proceeds from its equity line of credit to reduce accounts payables and to fund its building plans.

The complete report is at http://www.investrendresearch.com.

The company is enrolled in Investrend Research's pioneering professional research program, which facilitates independent financial coverage for shareholders in companies that otherwise would have little or no analyst following. Enrollment fees for Institutional coverage are $28,300, and the fees are being paid by the company. Analysts are paid in advance of initial reports by Investrend Research to eliminate pecuniary interest, and neither the analyst nor anyone associated with Investrend Research may own or trade in the stocks of a company under coverage.

The analyst's credentials are at http://www.investrend.com/articles/secondlevel.asp?level=238. Complete information about any company enrolled in an Investrend shareholder empowerment platform is available at the company's InvestorPower page at http://www.investrend.com/company/list.asp?sPathParam=yes, and investors are advised to read those disclosures carefully before trading in the equities of any enrolled company.

Anyone interested in receiving alerts regarding Headliners research should email contact@investrend.com with "HLNR" in the subject line.



            

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