EnerTeck Corporation Announces Analyst Report
STAFFORD, Texas, Aug. 2, 2004 -- EnerTeck Corporation (BULLETIN BOARD: ETCK) (the "Company") announced today that analyst Howard N. Stillman has prepared a report on the Company, dated July 30, 2004. The complete, unedited text of the report is as follows:
July 30, 2004
Speculative Buy
Price Objective -- $3 - $5
EnerTeck Corporation
Nasdaq B.B. Symbol: ETCK
Price: $1.70 Range: $4.30 High $1.26 Low
Capitalization:
Common Stock: 7,793,025 shares outstanding
Float: 1,300,000 (approximately)
Warrants: 3,025,650 to purchase shares between $1 - $4 through 2008.
CORPORATE STRATEGY:
Sky high oil prices have become a fact of life today. Diesel fuel
alone has risen over 20% from a year ago. This has had a material
adverse effect on the transportation industry, particularly trucking
companies. The Company has provided a chemical additive to the industry
that improves fuel economy by 8%-15%; reduces engine wear by 30%-50%;
noxious emissions by 10%-20%; and decreases highway smoke up to 70%.
The product, called EnerBurn(TM), has demonstrated over a 3-1 cost
benefit savings to users, with fuel costs the second largest operating
expense to transportation companies. This EPA registered chemical
additive is a fuel borne combustion accelerator that is dispensed in a
precise formula when the vehicle is re-fueled. This formula has served
to enhance the profitability of trucking companies by reducing fuel and
maintenance costs. An added benefit is its contribution in cleaning up
the environment, an ongoing world problem as fossil fuel predominates
energy usage. Furthermore, a new version of its product, namely EC5931A,
to be introduced to diesel fuel stops across the country is expected to
enhance market penetration of its products. A staff of
19 individuals/and companies, including a distribution agreement with C&R
Distributing to market EnerBurn(TM) diesel fuel specific combustion
catalyst products, have launched an intensive marketing effort throughout
the United States. C&R has successfully used the product over 2 years in
its truck fleet reducing fuel costs by over 10%.
Keeping costs low, the management team has reshaped the Company
after recent transition years, through effective product testing, select
marketing tools and a program aimed at expanding sales to all users of
diesel equipment. Negotiations are underway with one of the largest
truck stop operators in the country as well as overseas expansion in
South America and other locales utilizing its exclusive product licenses
internationally. Cash requirements are expected to be provided from the
exercise of warrants and a small private placement of equity. Operating
revenues are forecast at just under $1 million this year with a rapid
jump to $4 million in 2005 when profitability is expected. At current
price levels, the shares are speculatively attractive for risk-oriented
investors seeking material capital gains.
Howard N. Stillman
Security Analyst
(This report is read at your own risk. It was prepared for a fee of $2,500. It is based upon information believed to be reliable, but cannot be guaranteed as to its accuracy or completeness.)
Howard N. Stillman was retained by CLX & Associates to conduct an independent analysis of the Company. He received a payment of $2500 for his services.
About EnerTeck Chemical Corp.
EnerTeck Chemical Corp. is the wholly owned, operating subsidiary of EnerTeck Corporation, a Company focused on the development and/or acquisition of combustion enhancement, emission reduction, and other environmentally friendly energy technologies. EnerTeck's diesel fuel specific combustion catalysts, EnerBurn and EC5931A form a non-hazardous nano-catalyst surface on the diesel combustion chamber and piston heads. This catalyst lowers the combustion temperature of carbon and accelerates oxidation, which enhances the burn rate of diesel fuel in engines. Current users of EnerBurn experience increased fuel economy of between 8-15%, reduced engine wear of 30-50%, and increased brake horsepower of approximately 4%. EnerBurn's verifiable impact on the environment includes decreased highway smoke of 25-70% and reduced NOx emissions of 10-20%. This technology was originally introduced commercially by Nalco/Exxon Energy Chemicals, L.P., a joint venture between Nalco Chemical Corporation and Exxon Corporation. Additional information can be obtained by contacting the Company's President, Parrish B. Ketchmark or the Company's CFO, Leon van Kraayenburg at (281) 240-1787 or by visiting the Company's web site at http://www.enerteck.net/ .
About EnerTeck Corporation
EnerTeck Corporation acquired EnerTeck Chemical Corp. in January 2003. With this first acquisition, EnerTeck Corporation intends to continue to pursue acquisitions within the energy technology arena. Further information about EnerTeck Corporation may be obtained by contacting the Company's President, Parrish B. Ketchmark or the Company's CFO, Leon van Kraayenburg at (281) 240-1787.
Statements in this news release contain certain forward-looking statements within the meaning of the Federal Securities Laws. Such statements are based on assumptions that EnerTeck Corporation believes are reasonable, but which are subject to a wide range of uncertainties and business risks. Factors that could cause actual results to differ from those anticipated are discussed in EnerTeck Corporation's filings with the Securities and Exchange Commission ("SEC")(at http://www.sec.gov/ ), including its Annual Report on Form 10-KSB for the year ended December 31, 2003 and its Registration Statement on Form SB-2, as amended, that was declared effective by the SEC on February 11, 2004.