ORLANDO, Fla., June 5, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., announced that it has initiated research on Mizati Luxury Alloy Wheels, Inc. (Pink Sheets:MZTI).
Tony Telan, MBA, and Holmes Osborne, CFA, RedChip Research Analysts, wrote in the report:
"The Company is projecting 2008 sales of approximately $13.5 million. This is an aggregate amount based on three revenue channels: wholesale distribution, international sales and the Rent-to-Own segment. We are giving MZTI a Buy rating and a twelve month price target of $1.73 based on a multiple of 5x forward revenues, which would afford investors nearly a 45 percent return above current price levels. Assuming a net profit margin of 10 percent, the $13.5 million in revenue would generate earnings of $1.35 million. This translates into earnings of $0.035 a share in 2008. In establishing a 30 month price target, we assumed a 4x estimated revenues of $25 million in 2010 for a target price of $3.03 which would provide patient investors with a 200 percent return above current price levels.
"We expect Mizati to become a fully reporting company by third quarter 2007. We will continue to monitor the Company quarterly and adjust our estimates accordingly."
To receive a complimentary copy of the RedChip Visibility initial research for MZTI, please visit http://www.redchip.com/visibility/about.asp?page=requestMZTI_initial.
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RedChip Visibility Research Disclosure
The analysts contributing to this report do not hold any shares of MZTI. Any opinions expressed herein are subject to change. RedChip Companies Inc. is an affiliate of the Aurelius Consulting Group, Inc. Mizati Luxury Alloy Wheels, Inc. is a client of the Aurelius Consulting Group, Inc. and of RedChip Visibility, a division of RedChip Companies. MZTI paid RedChip Visibility a monthly fee of $10,000 for investor relations, and $36,000 for the RedChip Visibility Research Program, which includes this report.