NEW YORK, NY--(Marketwire - February 20, 2008) - Consulting For Strategic Growth 1, Ltd.
("CFSG1"), an investor and public relations firm specializing in domestic
and international companies new to American financial markets, today
continued its tradition of naming "Stock Picks" of selected clients for
which CFSG1 anticipates strong positive results in the coming year.
Stock Picks for 2008: U.S. Dry Cleaning (
OTCBB:
UDRY) and vFinance, Inc.
#1. For the year 2008, CFSG1's leading stock pick is U.S. Dry Cleaning
Corporation (
OTCBB:
UDRY) ("U.S. Dry Cleaning"), the first mover in
consolidating the nation's $9-billion dry cleaning industry. U.S. Dry
Cleaning is well on its way to creating the premier national chain in the
dry cleaning industry. Led by a management team with extensive experience
in retail consolidations and premier dry cleaning operations, the Company
has completed 4 acquisitions with combined annual revenues of over $16.5
million and is poised to acquire additional profitable dry cleaning chains
throughout the United States. Additional chains have signed Purchase
Agreements and Memorandums of Understanding. They are expected to add
millions in revenues.
In December 2007, UDRY closed on an initial convertible debt financing of
approximately $3.5 million to advance its acquisition strategy. This
followed an Initial Public Offering which raised $6.2 million in July
2007. Between the end of 2005 and mid 2007, the Company raised $8.7
million of private capital.
CFSG1 believes that the commitment of UDRY management will drive the
Company to accomplish its goal of achieving a $100 million run rate within
the coming 12 to 18 months, thus becoming the premier dry cleaning business
in the United States. The Company's current stock value is comparable to
the early stage of such successful consolidators as Blockbuster, VCA Antech
and Waste Management, Inc. UDRY has the opportunity and ambition to emulate
these earlier success stories. More information about U.S. Dry Cleaning is
available at
www.usdrycleaning.com and at
www.cfsg1.com.
#2. vFinance, Inc. has expanded its activities and services throughout
2007, repeatedly reporting increasing quarterly revenues. Its consistent
success has led to its recent agreement to merge with National Holdings
Corporation ("National"), announced November 7, 2007.
The new combined company will be one of the largest publicly traded
financial service firms targeting the middle market. The combined revenues
of the two companies will place the new National in a new tier among
publicly traded brokerage firms. For the quarter ended June 30, 2007, the
two firms generated over $30 million in revenues reflecting an annual run
rate in excess of $120 million. Post merger the combined firms will have
more than 50,000 client accounts representing approximately $3 billion in
direct assets and $1 billion in indirect assets.
National's wholly owned subsidiary, National Securities Corporation,
conducts a full service national brokerage and investment banking business.
A second wholly owned subsidiary, National Insurance Corporation, provides
a full array of fixed insurance products to its clients. The Boards of
Directors of both companies unanimously approved the merger, which is
expected to close during the first half of calendar year 2008.
National will issue shares of common stock in National for all outstanding
vFinance common shares. Mark Goldwasser will continue to serve as the
Chairman and CEO of National and Leonard Sokolow, Chairman and CEO of
vFinance, will become Vice Chairman and President of National.
More information about vFinance, Inc. is available at
www.vfinance.com and
at
www.cfsg1.com.
Updates on Stock Picks for 2007
In 2007, CFSG1 named three companies as its Stock Picks: (1) Marketing
Worldwide Corporation ("MWW Automotive"), (2) NeoStem Inc. ("NeoStem") and
(3) HQ Sustainable Maritime Inc. ("HQ").
#1. MWW Automotive: In 2007, Marketing Worldwide Corporation (now doing
business as MWW Automotive) made a major acquisition that expanded its
current and future market share; it also introduced two new divisions
advancing the Company's vertical integration.
By acquiring Modelworxx GmbH, a premier automotive design firm in Munich,
Germany, with close ties to BMW, MWW Automotive became an international
designer, manufacturer and supplier of high quality OEM accessories to the
global automotive industry. The combination of the two businesses propelled
the company to the top ranks of international automotive designers and
customizers known for work of outstanding quality. To advance its vertical
integration and further expand market share, MWW Automotive also acquired
Colortek, Inc., a leading mid-size Class A automobile painting facility,
located in Baroda, Michigan. As a result of these acquisitions, the
Company's list of clients now includes Toyota, KIA, Hyundai, BMW,
Volkswagen, MINI, Rolls Royce, Ford, Chrysler, Mitsubishi, Mazda, and
International Harvester.
Responding to market demand, MWW Automotive and Colortek created AutoFX, a
new facility providing Class A custom painting and graphics to the
$15-billion Recreational Vehicle (RV) industry. Clients already signed up
include RV market leaders such as Fleetwood, Forest River and Gulfstream.
MWW Automotive's U.S. base opens new sales channels for Modelworxx products
while Modelworxx provides immediate access to Europe and beyond, supported
by the dollar's favorable exchange rate with the Euro. First fruits of this
were evident in January 2008, as MWW Automotive announced new orders from
Toyota Europe and distribution of products throughout the continent.
Management expects these moves will positively impact the Company's revenue
and profit generation in 2008. Further strategic acquisitions with
companies offering strong complementary skill sets and management teams
could take place if appropriate.
CFSG1 believes that the achievements of MWW Automotive, coupled with its
exceptional management and its quality products, mark it as a growing force
in the expanding market of the original equipment (OE) automotive industry
and will create strong results for shareholders going forward. More
information about MWW Automotive is available at
www.mwwautomotive.com and
at
www.cfsg1.com.
#2. NeoStem Inc: NeoStem, Inc. grew substantially in 2007, meeting all of
its milestones for the year. The Company is pioneering the pre-disease
collection processing and long-term storage of adult stem cells for future
medical needs -- eliminating the concerns surrounding embryonic stem cells
and the problem of finding a compatible donor. Currently NeoStem collects
the stem cells from adult peripheral blood through a safe, minimally
invasive process called aphaeresis, which can take place in any doctor's
office, clinic, academic medical center or hospital.
The Company's business model is non-capital intensive, does not depend on
risky biopharmaceutical R&D, and is a service model that is completely
scalable and can be implemented immediately. All fees flow directly to
NeoStem and do not require third-party payment.
Following its strategic business plan for 2007, NeoStem:
-- Strengthened its financial base through a 1-for-10 reverse stock
split, a listing on the American Stock Exchanges and a full subscribed
public offering of $6.35 million.
-- Opened three new collection centers (in California, Pennsylvania, and
Nevada) and signed for two more - one in the New York Metropolitan area in
partnership with ProHEALTH, and one in Beverly Hills as part of a multi-
territory agreement with Stem Collect LLC.
-- Formed alliances with four nationwide and regional bio-service
companies: Stem Collect LLC, New England Cryogenic Center Inc., HemaCare
Corporation, and CareCredit.
-- Added outstanding business and scientific talents to Management and
the Advisory Board.
The idea of using an adult's own stem cells to treat diseases such as
leukemia, lupus, multiple sclerosis, and numerous age-related and
congenital health issues is new and growing. The National Institutes of
Health list more than 750 clinical trials under way relating to adult stem
cells. Frost & Sullivan, one of the world's premier medical research firms,
says the global market for stem cell therapy is expected to be $20 billion
by 2010.
Despite the growing market and the Company's achievements, the stock took a
big hit late in 2007, following news reports of a breakthrough in obtaining
stem cells from human skin cells. Although this development is not
conclusive and will not be in practice for years to come, the market
wrongly perceived that NeoStem's reliance on peripheral blood cells was
suddenly obsolete. Investors need intensive education to understand that
the newer discovery is many years from common use, and that the banking and
storing of stem cells collected when an adult is healthy can be an enduring
business model regardless of the type of the cells collected. CFSG1
believes the Company's stock is undervalued at present. We will work
aggressively with NeoStem in the coming year to increase investor
understanding of the Company's strong continuing viability, and we expect
to see the stock revive to its previous levels. Further information is
available at
www.neostem.com and at
www.cfsg1.com.
#3. HQ Sustainable Maritime Inc: CFSG1 worked with HQ Sustainable from 2004
into 2007 and saw the Company's enterprise value grow from less than $5
million to over $100 million. Although we no longer serve as their agency
of record, we stay in touch and follow the Company's growth closely. We
believe that HQ will continue to grow and that its stock value will rise to
new levels. Why? Because the Company has strong management that has deep
understanding of both their markets and the shareholders that their
business addresses. HQ is not only an integrated aquaculture and aquatic
product processing company. It has also focused on building a sustainable
aquaculture business long before "sustainable" and "toxin-free" became
recognized as drivers of growth. During our years serving the Company, we
communicated these unique strengths along with the Company's fundamental
business integrity to its expanding audiences of investors, shareholders,
and business partners.
In May 2007, HQ moved to the American Stock Exchange, and its stock value
has remained remarkably steady despite the larger stock market
fluctuations. Global demand for fish products continues to reach new
highs. Average consumption per person has more than doubled and the U.S.
has an $8 billion seafood trade deficit.
In anticipation of growing demand for its products, the Company doubled its
cooperative farm capacity and began building a 100,000-ton per year
toxin-free organic feed mill. In December 2007 the Company's processing
plant operations were certified by the Aquaculture Certification Council
Inc. (ACC), a non-governmental body that certifies social, environmental
and food safety standards at aquaculture facilities around the world.
HQ's goal is to become the world market leader in zero-toxin organic
aquaculture, and CFSG1 believes the Company will continue to advance
vigorously toward that goal. More information is available at
www.hqfish.com and at
www.cfsg1.com.
About Consulting for Strategic Growth 1, Ltd.
CFSG1 has decades of hands-on corporate development experience combined
with broad personal outreach in the private equity market and Wall Street
broker/dealer communities. In the rapidly changing world of corporate
finance, CFSG1 is a leader in reverse mergers, investor and public
relations and corporate development for small-cap companies and private
enterprises, both domestic and foreign. In addition to U.S. clients, the
company's portfolio includes businesses based in such countries as China,
South Africa and Canada. CFSG1's long-term relations with investment
bankers and private equity investors allow it to quickly position its
clients in front of the decision makers, market makers and gatekeepers of
the financial world. CFSG1's strategic relationships include Rodman &
Renshaw, Inc., a full-range investment bank nurturing emerging growth
companies since 1951, and Wellfleet Partners, Inc., a boutique investment
and merchant banking, venture capital and financial services and consulting
firm founded in 1998. For more information about CFSG1 and its clients,
please visit
www.cfsg1.com.
Consulting For Strategic Growth 1, Ltd. ("CFSG1") provides consulting,
business advisory, investor relations, public relations and corporate
development services to public and private companies. In connection with
these services, CFSG1 prepares press releases, corporate profiles, and
other publications on behalf of and regarding its clients. Certain
statements contained in this press release that are not purely historical
are forward-looking statements for purposes of the safe harbor provisions
under The Private Securities Litigation Reform Act of 1995. Words such as
"believes," "expects," "anticipates," "plans," "estimates," "could" and
similar expressions that convey uncertainty of future events or outcomes
identify forward-looking statements. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of CFSG1 or its
clients to differ materially from those expressed or implied by these
forward-looking statements. CFSG1 receives cash and common and/or
restricted stock from all of the companies mentioned in this release.
Contact Information: CONTACTS:
Stan Wunderlich
CEO
Consulting for Strategic Growth 1
Tel: 1-800-625-2236
Fax: 1-646-205-7771
info@cfsg1.com
www.cfsg1.com
Dan Stepanek
Executive VP
Consulting for Strategic Growth 1
Tel: 1-800-625-2236
Fax: 1-646-205-7771
dstepanek@cfsg1.com