Message #31 From:
Stock News Bot Date: November 20, 2006 09:15:00 AM
CLRI News Dutton Associates Announces Investment Opinion: Clearant Maintained At Neutral Rating In Update Coverage By Dutton Associates
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Dutton Associates updates its coverage of Clearant Inc. (OTCBB:CLRI)
maintaining its rating at Neutral and no target price. The 10-page
report by Dutton senior analyst Sally H. Wallick, CFA is available at www.jmdutton.com
as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and
other leading financial portals.
Clearant’s third quarter results were
highlighted by an 32% year-over-year increase in licensing fee revenue
and a $76,000 revenue contribution from the direct distribution of 52
CLEARANT PROCESS sterile implants to surgeons, hospitals and clinics in
some large markets. The third quarter was the first full quarter since
the Company’s new direct distribution strategy
was initiated in late June. Total revenue came in ahead of our estimate.
The Company’s third quarter net loss was $0.07
per share, in line with last year’s $0.07 per
share loss. We are maintaining our full-year 2006 loss estimate for
Clearant of $0.25 per share, down from a $0.47 per share loss in 2005.
As of November 3, 2006, Clearant had approximately $1.4 million in cash.
In light of Clearant’s dwindling cash balance,
we believe that it is imperative that the Company raise additional
capital before year-end. There is no certainty that it will be able to
do so on favorable terms, if at all. Therefore, despite the initial
success and apparent future promise of Clearant’s
direct distribution strategy, we believe that the Company faces
significant near-term financial risk if it is unable to raise needed
funds. It has hired an investment bank and is aggressively pursuing
financing alternatives. However, in light of this financial risk, we
rate the Company’s shares Neutral.
About Dutton Associates
Dutton Associates is one of the largest independent investment research
firms in the U.S. Its 31 senior analysts are primarily CFAs and have
expertise in many industries. Dutton Associates provides continuing
analyst coverage of over 140 enrolled companies, and its research,
estimates, and ratings are carried in all the major databases serving
institutions and online investors.
The cost of enrollment in our one-year continuing research program is US
$39,500 prepaid for 4 Research Reports, typically published quarterly,
and requisite Research Notes. Dutton Associates received $63,000 from
the Company for 8 Research Reports with coverage commencing on
8/05/2005. We do not accept payment of our fees in company stock. Our
principals and analysts are prohibited from owning or trading in
securities of covered companies. The views expressed in this research
report accurately reflect the analyst's personal views about the subject
securities or issuer. Neither the analyst's compensation nor the
compensation received by us is in any way related to the specific
ratings or views contained in this research report or note. Please read
full disclosures and analyst background at www.jmdutton.com
before investing.
