Schneider Securities, Inc. Submits the Following Changes
And or Reiterations of Selected Existing Research DENVER, June 26 /PRNewswire/ -- Headwaters, Inc. (Nasdaq: HDWR)
We are maintaining our Strong Buy rating of HDWR. Recognizing that the stock has eclipsed our previous target of $3.00 initiated in January 2001, we are establishing a new 12 to 18 month price target of $20.00 per share. In addition, we are raising our earnings estimates for the current fiscal year (fiscal 2001; ending Sept. 30, 2001) from $0.77 to $0.81. We are also raising our estimates for fiscal years 2002 through 2004 based on what we believe is significant acceleration in the ramp up of licensee projects beyond our original projections. We are maintaining our Strong Buy rating because we believe the prospects for continued accelerated expansion of licensee facilities remains high. We also believe the prospects for binder sales to non-licensees appear to be improving, which represents an additional revenue line item that we have not fully modeled.
Frontier Airlines (Nasdaq: FRNT)
We are maintaining our Buy rating of FRNT. FRNT's number have clearly been compromised by the economic environment, however, the Airbus transition has also created some extraordinary costs that we do not believe are indicative of the company's future cost structure. We expect the transition to create measurable efficiencies beyond completion. In light of the difficult operating environment, we are lowering our EPS estimates for the current fiscal year (fiscal 2002; ending March 31, 2002) to $1.77, including $0.26 for the current quarter ending June 30, 2001. We are also establishing a new 12 to 18 month price target of $27.00 per share, which is a 10% discount to the previous target. We believe the recent sell off in the stock represents a significant buying opportunity for investors capable of seeing beyond the current economic slowdown.
Impco Technologies, Inc. (Nasdaq: IMCO)
We are reiterating our Strong Buy rating on IMCO shares, as well as our 12 to 18 month price target of $80.00 per share. We believe the spin off of the company's Quantum fuel cell division will allow the markets to better evaluate the company's core business and fuel offerings separately. We believe this will lead to valuations more commensurate with our target. We continue to expect the core business to operate substantially profitably going forward, and a better growth rates than we have seen in the past. Additionally, we believe that Quantum along with its new partner General Motors (NYSE: GM) will achieve a significantly higher market capitalization than is currently reflected in the bundled companies. We also believe that the recently announced secondary offering lead by Raymond James will address the company's fuel cell research and development capital needs over the intermediate term.
Pentastar Communications Inc. (Nasdaq: PNTA)
While the company's March 2001 quarter reflected lower revenue and EPS numbers than we had estimated, this shortfall was generally related to a lack of acquisition activity which we had modeled but did not materialize. The acquisition pace has clearly been slowed by the precarious nature of the equity markets leading to apprehension amongst potential sellers in terms of taking equity as part of the buyout. We have argued that one of the great things about PNTA is their guarded acquisition approach, which we don't expect them to change simply in order to hit quarterly street estimates. We now believe the old model is probably 3 or 6 months behind in terms of our acquisition assumptions. On the other hand, the company has shown markedly better numbers in terms of operating expenses. Consequently, we are reiterating our Buy rating of PNTA shares, as well as our 12 to 18 month price target of $45.00 per share.
Drugmax.com (Nasdaq: DMAX)
DMAX's fiscal 2001 year-end results were in line with our estimates. The exception was the write down of assets, which we indicated might take place. These write downs will create a better EPS picture going forward as non-cash charges will now be levied off of a smaller asset base. Going forward, we expect DMAX's efforts to increase its distribution of generic drugs, both in the aggregate and as a percentage of overall sales to result in accelerated margins and earnings, as well as increased revenue growth. While we expect the impact of these approaches to become most visible in the second half of calendar 2001 and beyond, we also believe the current June quarter has the potential to show some inklings of these strategies. In addition, given the recent positive results reported by other wholesale pharmaceutical distributors, we believe the prospects for the current June quarter to outrun our revenue estimates are improving. We are reiterating our Buy rating of Drugmax.com shares, as well as our 12-month price target of $12.00 per share.
Information and statements contained herein, other than historical information, should be considered forward looking, which involve risk and uncertainties. Schneider Securities Inc., its officers, directors and affiliates may maintain positions in the securities referenced, which may change at any time without notice. Schneider Securities, Inc. is a Market Maker in these securities. The securities referenced are speculative in nature and may not be suitable for your investment objective. Additional information is available upon request.
Schneider Securities, Inc., is a member of the National Association of Securities Dealers, CRD number 16434.
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SOURCE Schneider Securities, Inc.
/CONTACT: David Lavigne, Director of Equity Research of Schneider Securities, Inc., 888-957-8890/
/Web site: http://www.schneidersecurities.com/
(HDWR FRNT IMCO GM PNTA DMAX)
CO: Schneider Securities, Inc.; Headwaters, Inc.; Frontier Airlines; Impco
Technologies, Inc.; Pentastar Communications Inc.; Drugmax.com ST: Colorado IN: FIN SU: RTG
-0- Jun/26/2001 16:36 GMT