Message #22 From:
NewsBot Date: December 21, 2006 09:00:00 AM
SHMT News Dutton Associates Announces Investment Opinion: Shumate Industries Strong Speculative Buy Rating In Update Coverage By Dutton Associates
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Dutton Associates continues its coverage of Shumate Industries
(OTCBB:SHMT) maintaining a Strong Speculative Buy rating and its
12-month price target to $3.00. The 9-page report by Dutton senior
analyst Richard R. Wolfe, CFA, is available at www.jmdutton.com,
and at First Call, Bloomberg, Reuters, Zacks, Knobias, and other leading
financial portals.
Shumate Industries is an oilfield equipment and services company with a
stable business base in machining operations and a high-potential,
proprietary new technology for valve manufacturing now being
commercialized. Our estimates indicate a 10-fold cash-flow increase over
the next three years if the new valve technology achieves expected
levels of market penetration in targeted
flow-control/replaceable-cartridge installations and still faster growth
if recently announced initiatives succeed in opening up subsea, downhole
and other high-end applications. Since our previous update report
(September 18, 2006), the Company’s machining
operations have continued to benefit from very high levels of drilling
activity in the oil and gas industry, making it possible to raise prices
and pushing cash flow ahead of our estimates. We maintain our Strong
Speculative Buy rating. As is always the case with a new-product
startup, there is a speculative element to the valve technology,
including a risk of non-acceptance.
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. The cost of enrollment in the Dutton
Associates one-year continuing research program is US $39,500 prepaid
for 4 Research Reports, typically published quarterly, and requisite
Research Notes. 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. Dutton Associates received $35,000 from the Company for 4
Research Reports with coverage commencing on 6/13/2006.
Dutton Associates does not accept payment of any of its fees in company
stock. Its 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.
