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Kenny Securities Initiates Coverage of SLS International with a Speculative Buy Rating |
ST. LOUIS, Nov. 4 /PRNewswire/ -- Kenny Securities announced today that it has initiated coverage of SLS International (OTC Bulletin Board: SITI) with a Speculative Buy rating and 12-month price target of $3. Analyst Todd Allen, CFA wrote the report.
In the report, he noted that, "SLS has perfected the ribbon-driver technology, enabling their loudspeakers to achieve exceptional detail and accuracy with 20% to 30% less distortion compared to typical compression drivers and dome tweeters." He also noted that, "While not reflected in our preliminary model, we believe SITI is very close to finalizing an agreement to supply speakers to Radioshack. We believe designs and price points have been agreed to and a definitive announcement is near. We anticipate that sales to RSH may begin in 1Q05, with initial quarterly sales of $1.5 million to $1.6 million and ramping rapidly thereafter. FY05 sales to RSH could be as much as $40 million. Products range from individual speakers to complete surround sound systems with price points ranging from $50 up to $1,000." He concluded that "based on the high probability of an agreement with Radioshack in the near future, which could result in as much as $0.40 per fully-diluted share of EPS in FY05, we believe that shares of SITI today represent a speculative buying opportunity."
Kenny Securities Corp, in Saint Louis, Missouri, is a full service brokerage firm and fully disclosed correspondent of Pershing, a BNY Securities Group Company, providing a wide range of investment banking and brokerage services to corporations, institutions and private investors across the United States and overseas. For further information, contact Kenny Securities (314) 726-4777.
Kenny Securities is a member of the National Association of Securities Dealers, CRD number 37552.
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