Great News about LaForza!
LaForza
LAFORZA PRESS RELEASE UPDATE
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Howard Stillman, research analyst, initiates coverage on Laforza
Automobiles with a STRONG BUY RECOMMENDATION WITH A TARGET PRICE OF $10.00
PER SHARE
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LAFORZA AUTOMOBILES UPDATE
(OTC BB:LFZA)
On January 2, 1998 we profiled a company for our Privileged E-Mail
Subscribers called LAFORZA AUTOMOBILES, Inc (OTC BB:LFZA). At that time,
the stock was trading around $3.875 per share. Since that time, the stock
has traded as high as $5.00.
On February 24, 1998, Howard Stillman, a securities analyst, released a
research report. The report will be released in one week on our web site
www.superstockpick.com, and will be available in print very soon.
The author, Howard Stillman, is a special situation analyst with over 25
years experience. Formerly director of research for two NYSE member
firms, he has been approved as a supervisory analyst by the New York Stock
Exchange. His phone number is 760-737-9580. Mr. Stillman has spent
considerable time over the last two months meeting with and studying
Laforza Automobiles. I know he has been to their office at least 3 times
including the new building in the last 45 days.
In doing some of our own homework we found that over the last two years,
Mr. Stillman has covered numerous public companies. Some notable
recommendations include Infinity, Inc. (IFNY) which he covered at $.80 in
January of 1996. By October of 1997 the stock hit a high of $4.00 for a
return of 500%. He also covered Derma Sciences (DSCI) in March of 1996 at
$2.375. Within two months, the stock traded to $4.75. NAL Financial
(NALF) was covered at $10 in December of 1995. Two months later the stock
hit $16.
Mr. Stillman has initiated coverage of LAFORZA AUTOMOBILES (LFZA),
releasing the attached report on February 24th, with a STRONG BUY
RECOMMENDATION, and a TARGET PRICE of $10.00 per share.
The following is a full text of the report. Due to the e-mail the format
has been altered so that all our subscribers can receive this report in
legible form. We strongly recommend that you visit the LAFORZA
AUTOMOBILES web site www.laforza.com to view pictures of the new 1998
Laforza, a video interview from the LA Auto Show where the new models were
introduced, the most current news releases, and full investor profile of
the company.
FEBRUARY 24th,1998
LAFORZA AUTOMOBILES,INC.
OTC BB SYMBOL: LFZA
RECOMMENDATION: STRONG BUY
TARGET PRICE: $10 PER SHARE
CURRENT PRICE: $3 7/8
PRICE RANGE: 5 1/2 HIGH 2 1/2 LOW
CAPITALIZATION: (UNAUDITED)
Est. Long Term Debt: $2.15 million
Common Stock Outstanding (fully diluted): 2,744,000
Public Float: 665,000 shares
OPERATION PROJECTIONS
Est. 1998 Sales: $8,000,000 Est. EPS $0.60
Est. 1999 Sales: $15,000,000 - $20,000.000 Est. EPS $1.00 - $1.50
CORPORATE STRATEGY
The company has carved a niche as an assembler and marketer of luxury
class Sports Utility Vehicle known as the "LAFORZA." The company can
produce net profit margins of between 20%- 30% compared to only a 7%
average return for the big three auto manufacturers in the United States.
HIGHLIGHTS
1) As a provider of a unique upscale Sports Utility Vehicles (SUV's)in a
red hot market for SUV's, Laforza has the potential to generate earnings
of $0.60 per share on sales of $8 million in its first full year of
operations. Based upon projections our price target is $10 per share.
2) The Italian designed and built chassis features the classic luxuries
found in cars like the $150,000-to $200,000 Lamborghini and Ferraris, yet
is priced at around $60,000 per vehicle.
3) Consumer preferences for these vehicles have made SUV's among the most
profitable car sold by auto manufacturers today.
4) Laforza Automobiles has already signed two independent sports car
dealership's in San Francisco, Ca and Orlando, Fl, who have placed initial
combined minimum orders for 50 cars this year. Conclusion of a similar
deal with a Long Island, N.Y. dealership is imminent. Negotiations are
underway with a Bellevue, WA dealership located in the heart of Microsoft
country.
5) A young, aggressive management team that is experienced in the
automotive and marketing fields manages the company.
6) A 65,000 square foot production and distribution plant was just
purchased in Escondido, CA. for $3.2 million. This will provide corporate
offices and manufacturing facilities for more than adequate near term
business expansion.
7) A Ford Motor power train featuring a 5-liter V8 engine is added to the
chassis to finish off the vehicle. Thus, mechanical service to the vehicle
can be provided under warranty by any Ford dealership in this country.
Laforza Automobiles will also maintain a service facility for its
exclusive southern California dealership from which the SUV can be
marketed throughout North America.
SUMMARY AND CONCLUSION
Joining the ranks of legendary sports cars out of Italy, is the Laforza
SUV. This luxury sports utility vehicle encompasses the sumptuous fine
grained leathers and wood paneling affluent sports car owners are
accustomed to, yet priced no higher than the Land Rovers' upscale SUV. By
producing and marketing just a few hundred vehicles per year the company
is well poised for superior growth. With 53 vehicles ordered to date,
annual volume of $8 million is attainable for 1998, which could translate
into net income of $0.60 per share. Two well known, high volume, exotic
car dealerships recently gave the company a vote of confidence by
committing to purchase 25 cars each over the coming year. Another 2
dealerships are expected to be added shortly. Approaching a market place
just itching with conspicuous consumption from a wealthy and growing
Yuppie population, the road ahead appears clear for considerable operating
growth. The shares are attractively priced for risk oriented investors see
OPERATIONS
The company has the exclusive North American import, distribution and
marketing rights to the Italian made Laforza Sport Utility Vehicle. This
automobile is a limited edition rugged and versatile ultra luxury vehicle
for discriminating buyers seeking both class and performance. The current
l998 model is being produced and sold directly by the company and through
dealerships. The chassis is made under contract by Magnum Industries of
Italy, in business for 40 years. The vehicle seats 5 passengers
comfortably with two powered bucket seats up front and a wide bench seat
in the rear. Currently Laforza can assemble five cars per week. Also under
consideration is a working version of the Laforza, which could be offered
as early as June 1998 without the added luxury features and sold for under
$50,000. An option to assemble and market a classic 1989 Laforza model
for sale is also under serious consideration. This represents unused
chassis and power trains built, but never assembled. This c
FINANCES
Management believes finances and expected cash flow will satisfy near term
capital requirements. A need for additional equity capital may be required
if sales exceed expectations. The company completed an offering raising
approximately $800,000 last fall. Its acquisition of its new facilities
were for consideration of $500,000 cash, $500,000 worth of restricted
common stock, and a $2.1 million mortgage. About 70% of the facility is
currently leased to tenants, easing monthly mortgage payments.
MANAGEMENT
Dave Hops, Founder and President, has over 15 years experience in the
automotive industry. He made Laforza into a public company in the fall of
1997. He is knowledgeable in both management and operations and has
assembled a fine supporting staff. Linda Drury, Secretary/Treasurer has
over 15 years experience in office administration maintaining financial
records and assisting Mr. Hops in sales and service. Trevor Haywood, VP
Marketing, has over 20 years experience in sales management and
distribution and OEM sales in executive capacities at several companies.
OUTLOOK
The company has positioned itself to be a custom assembler and marketer to
the fastest growing and most profitable segment of the automobile
business. With just a small market share compared with the 20,000 Land
Rovers sold each year, Laforza can enjoy substantial sales and earnings
growth in the years ahead. American consumers have voted with their pocket
books in making SUV's the rage in auto sales. Based upon these factors,
the shares are an attractively priced investment for positive future
market performance.
HOWARD STILLMAN
SECURITY ANALYST
This report is based upon information believed to be reliable but can
cannot be guaranteed as to its accuracy or completeness. Mr. Stillman was
compensated on a fee basis for performing due diligence and preparation of
this report. As always, DO YOUR OWN RESEARCH before making any investment.