NEW YORK, March 20, 2002 (PRIMEZONE) -- Barrow Street Research, Inc., an independent research firm headquartered in New York City, today advised its institutional database that it had initiated coverage of Innovo Group Inc., (Nasdaq:INNO), with a strong buy recommendation.
Innovo Group Inc., through its subsidiaries Innovo Inc., Innovo Azteca Apparel, Inc. and Joe's Jeans, is a sales and marketing organization designing and selling craft, accessory and apparel products to the retail and premium markets. The company's craft products include canvas and denim tote bags and aprons. The company's accessory product line is comprised of such products as licensed and non-licensed backpacks, tote bags, waist packs and handbags.
Craft and accessory products, the report noted, are sold through mass retail, department stores, private label companies and premium organizations, including Wal-Mart, Goody's, Sears, Target, Michaels, Rag Shops, Joannes and American Eagle. Its apparel products consist of knit shirts and high-end denim jeans, and knit shirts featuring the upscale Joe's brand, found in such special boutique retailers as Barney's, Neiman Marcus, Nordstrom's and Fred Segal.
"Our research suggests that Innovo Group Inc. (www.innovogroup.com) is poised to embark on a period of rapid sales growth," the Barrow Street report said. "This projected increase in the company's future revenues will reflect an increased contribution from existing operations and the planned acquisition of new businesses."
During 2001, the report noted: "the company greatly increased the quality of its products, made significant advancements in the design of them, and greatly increased its customer base as a result of acquisitions and licensing agreements."
The Barrow Street analysts noted that: "For any company, but especially small ones with big plans, the quality of management is a very important element in achieving success. In our opinion, we believe that INNO's management is well equipped to lead the company to the next level of growth."
Noting that the company estimates that its products are now carried in more than 8,000 retail outlets in the United States, the report, available at www.barrowstreet.com, concluded:
"If revenues grow as we indicate, profitability should be apparent by the end of fiscal 2002, and investors will then recognize the potential inherent in the INNO shares."
Since its inception in 1994, Barrow Street has published investment research reports on more than 100 public companies, and has become a continuing source of investment analysis for micro-cap stocks. The firm was founded by the former director of research of Argus Research, the oldest independent research firm on Wall Street, as well as the research director of Sherwood Capital, a subsidiary of Sherwood Securities Corp.
Disclaimer
Barrow Street Research, Inc. (hereafter referred to as BSR) is an independent research firm that produces a comprehensive range of financial-oriented publications, including research reports such as the one on Innovo Group Inc. This report is based on BSR's independent analysis and judgment but relies on material supplied by the Subject Company and other sources believed to be reliable. The information contained in this report is subject to change without notice, and BSR assumes no responsibility to update information contained in this report. The information contained in this report is not intended to be, and shall not constitute, an offer to sell or solicitation of any offer to buy any security. Investors are advised to consult their personal broker or investment advisor before making any investment decision concerning the Subject Company. In addition, investors are urged to complete their own due diligence on the Subject Company. Investment in INNO entails the assumption of a high degree of risk. Access to additional information is available on the BSR Web site -- www.barrowstreet.com -- including links to sites that have additional information on Innovo Group Inc. BSR has received a fee of $6,000 from Innovo Group Inc. for the production and distribution of this report.