May Davis Announces Investment Opinion on Environmental Solutions
5 August 1999
Steven W. Charest of May Davis Group Announces Investment Opinion on Environmental Solutions Worldwide, Inc.; Steven W. Charest of May Davis Group, puts out Analyst Report and Buy Recommendation on ESWW
TORONTO, Ontario--Aug. 4, 1999--Environmental Solutions Worldwide, Inc.(OTC-BB:ESWW) is pleased to announce that Mr. Steven Charest of New York, NY has issued an Analyst Report and Buy Recommendation on ESWW. Mr. Charest appears on Bloomberg News TV every Thursday morning.Excerpts from the report: OTC:BB: ESWW $ 4.06 BUY RECOMMENDATION ---------------------------------------------------------------------- Steven W. Charest 1-212-775-7400 52 Week High/Low: $4.25 - $0.0625 August 2, 1999 Shares Outstanding: 27,000,000 Dividend: $0.00 ----------------------------------------------------------------------
Recommendation: We recommend purchase of common stock for aggressive accounts. The company's new technology eliminated precious metal coatings in catalytic converters, expanding profit margins dramatically. Price reduction and compatibility with diesel and leaded-fueled vehicles (representing 50% of the world's market), effectively doubles worldwide market potential. ESWW is in transition to an operating company, thus our speculative rating Pending favourable alliance with Corning, and increased institutional sponsorship, a 15X P/E multiple is possible.
Summary: Two companies dominate the manufacturing of ceramic honeycomb "cakes" for converters, Corning, with 70% global market share, and NGK of Japan (under license from Corning) with 30%. Approximately 125 million converters are manufactured annually, for approximately 45 million new vehicles plus the retrofit market and other applications. Over 700 million autos and 250 million trucks are in use today, with diesel and leaded-fuel vehicles representing 50% of this market. ESWW will focus on diesel and leaded-fuel vehicles for the first 3 years of expansion.
Environmental Solutions Worldwide, Inc.
Revenue and Expense Projections ($Millions)
Year 1 Year 2 Year 3
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Units Sold 1,000,000 2,500,000 7,500,000
Unit Price $ 50 $ 50 $ 50
Revenue $ 50,000,000 $125,000,000 $375,000,000
Cost of Goods Sold $ 15,000,000 37,500,000 112,500,000
Gross Margin 70% 70% 70%
SG&A $ 5,000,000 12,500,000 37,500,000
Operating Income $ 30,000,000 75,000,000 225,000,000
Operating Margin 60% 60% 60%
Other Income (Expenses) -- -- --
Net Income $ 30,000,000 75,000,000 225,000,000
Net Margin 60% 60% 60%
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For a copy of the complete report or any other information on Environmental Solutions Worldwide, Inc. please contact: Investor Relations, Steve Basra @ Tel: 905-763-7773, Fax: 905-763-7774
The statements contained in this news release which are not historical facts contain forward-looking information with respect to plans, projections or future performance of the company, the occurrence of which involves certain risks and uncertainties that could cause the company's actual results to differ materially from expected results. Such risks include the timing of implementation and the scope and success of the program described here.