ORLANDO, Fla., March 23, 2007 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, Inc., announced today that it has reissued a research update on Drinks Americas, Inc. (OTCBB:DKAM).
Lisa Springer, MBA, CFA, RedChip Research Analyst, wrote in the report:
"Drinks Americas is on-track to report substantial revenue gains and significant progress towards profitability in fiscal 2007 as a result of the launch of a new product, Trump Super Premium Vodka, which is also driving sales of its other spirit products. The Company is also expanding distribution of its Newman's Own beverages and extending the Newman's Own product line.
For the third quarter ended January 31, 2007, Drinks Americas reported an 875 percent increase in revenues to $2.7 million from $0.3 million for the same period last year. The January quarter was the first full quarter that included sales from Trump Super Premium Vodka, which the Company launched in mid-October. Trump Vodka is now available in 28 states. Over the last 100 days, the Company has shipped 40,000 cases of Trump Vodka, generating sales of $4.3 million. Over the next several weeks, Drinks Americas anticipates Trump Vodka will become available in an additional 14 states.
We initiated coverage of Drinks America shares in October 2006 with a Buy rating and a $1.40 one year price target, based on a seven times multiple of projected FY 2008 EPS. These shares are currently trading above our target price but we would be buyers on share price weakness."
To receive an abbreviated copy of the RedChip Research Update for DKAM, please visit: http://www.redchip.com/independent/subscriber.asp?page=requestDKAM_Q3_2006s.
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RedChip Independent Research Disclosure
The analysts contributing to this report do not hold any shares of DKAM. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. DKAM is not a client of RedChip Companies, or any of its affiliates.