Remember this: Strong Buy Recommendation and Confirms
Year 2000 $6 Target Price for Advanced Lumitech, Inc. (ADLU)
UPDATE
Advanced Lumitech, Inc. (ADLU) continues to capitalize upon its virtually unlimited lucrative
business opportunities that exist due to the unique nature and limitless product applications of
the Company’s luminescence technology – marketed under the name Brightec™. ADLU
awards application- and geographic-specific licenses of this technology, which can be utilized in
numerous high-growth industry sectors and sold to geographic markets worldwide. Revenues
are generated from the sale of Brightec products through licensees and directly by the
Company.
ADLU’s European Road Show for Institutional Investors was a tremendous success. The trip
resulted in the Company forging strong contacts with large foreign investors, significantly
increasing the European investment community’s awareness of and interest in Advanced
Lumitech stock, and – best of all – generating substantial institutional investment in the
Company’s common shares through two large transactions.
As a result of the road show that highlighted ADLU’s $5 million private placement, last week the
Company reported that RMF – Funds, Luxembourg bought one million shares of Advanced
Lumitech’s common stock (or approximately 4% of the Company’s issued and outstanding
common shares). The primary client of this $80 million aggressive high-growth fund is a large
European insurance group based in Germany.
Another European player also took a sizable stake in the Company’s stock, with ADLU placing
a $375,000 unit of its shares and warrants private placement offering with an influential
investment group based in Frankfurt, Germany.
Given the tremendous investment opportunity that ADLU represents, especially at current
trading levels, we expect that the stock’s heightened exposure within the European investment
community (resulting from the road show and last week’s two transactions) will generate a
sustained interest in Advanced Lumitech shares. Since the Company boasts significant
competitive advantages and a prudent yet very aggressive expansion plan, we foresee
considerable trading of the stock in Europe and greater coverage by overseas analysts and
brokerage firms.
We are also very excited to say that even more widespread coverage of Advanced Lumitech
among the financial sector has resulted from 20 five-minute spots that aired on Bloomberg
television during the weekend of November 12th. This programming highlighted the Company,
its current operations, its successful growth history, its exciting expansion plans as well as the
applications and competitive advantages of its Brightec products. The Bloomberg spots showed
an interview with a representative of Advanced Lumitech who also discussed the current stock
valuation as well as his forecast of considerable demand for the stock in the near future.
By tapping into the highly regarded Bloomberg television audience and achieving greater
European interest and coverage, we expect a substantial upward movement in ADLU’s share
price during the next few months. Over the long-term, we foresee continued improvements in
the stock’s valuation levels given a number of factors – the most pertinent of which include:
? The fundamental strengths of Advanced Lumitech’s operating strategy
? The explosive growth in ADLU’s target markets for product sales and licenses
? The Company’s firm commitment to achieving greater recognition and coverage among the
world’s investment communities
These factors should enable ADLU to achieve a broader shareholder base, which in turn should
support the stock’s considerable upside pressure that we have identified. We expect this
environment to result in steady stock appreciation in the next few months and over the
long-term.
EVALUATION
Stockreporter is very bullish on Advanced Lumitech and continues to see dynamic profit
opportunities for investors, especially at the stock’s current undervalued trading levels of less
than $1 per share. We anticipate exceptional top and bottom line growth from the Company, as
illustrated by the following projections for the year 2000 and 20001.
Gross Revenues:
Year 2000: $15,269,673
Year 2001: $175,877,625
Gross Profit Margin:
Year 2000: $1,607,334
Year 2001: $38,241,840
Even if we take our very conservative year 2000 revenue estimate of roughly $15,300,000 and
a revenue multiple of only 12, we consider that a market capitalization of $184,000,000 is
clearly justified for Advanced Lumitech, even on a conservative basis. Hence, we reiterate our
price target for ADLU stock at a minimum of $6 per share for the year 2000 (with
approximately 30,200,000 shares issued and outstanding).
According to these estimates, the Company’s recent coverage on Bloomberg television, and the
significant equity stakes taken in ADLU shares last week by leading European financial players,
we conclude that Advanced Lumitech stock is drastically undervalued at a current price of less
than $1 per share. Stockreporter recommends that investors who are interested in above
average returns over the short, medium, and long terms establish and/or increase their holdings
in the Company. We believe that Advanced Lumitech is currently one of the most exciting and
promising investment opportunities for both retail and institutional investors, and that ADLU
shares will be one of the best performing telecommunications stocks in the next few weeks,
months, and years to come.
