RIDGELAND, Miss., Aug. 29, 2005 (PRIMEZONE) -- Knobias, Inc. (OTCBB:KNBS) announced today that it has selected PDG Environmental Inc. (OTCBB:PDGE) as the SPOT of the week in the Knobias Small-Cap "ClipReport."
PDG Environmental, Inc. is an environmental and specialty contractor, providing asbestos and lead abatement, insulation, microbial remediation/demolition, and related services dedicated to assisting its commercial, industrial, and government clients in complying with environmental laws and regulations. PDGE has three operating subsidiaries. Regional marketing and project operations are conducted through 13 branch offices.
The Bulls say:
Customer Quality: Aside from government agencies and private institutions, PDGE touts several significant, public companies as clients. Growth, Valuation and Consistency: PDGE's service expansions have presented numerous growth opportunities beginning to reveal themselves in the financials. Trailing 12 month revenues are $63.6M (+77 percent vs. 2004); net income $2.3M (+261 percent); and EPS 20c (+186 percent). Shareholders' equity = $9.5M (+93 percent); book value = 64c/share. Trailing P/E is a mere 5.15, not accounting for growth and a pending acquisition. PDGE reported working capital of $13.2M or 90c/share (vs a $15.2M marketcap and $1.03 stock price). PDGE has also reported more than $35M in backlog for the last seven quarters.
The Bears say:
Investor Selling and Dilution: The new $7M raise is a two-edged sword. PDGE gets cash to fund continued growth, but issues new shares (dilution) that may be sold into the market pending effective registration (expected by December 2005). PDGE has experienced a great deal of selling by a previous investor, Barron Partners. Since funding PDGE in March 2004, Barron has sold approximately 3.3M shares. Warrant exercises present the same dichotomy -- more cash, more sellers. PDGE has also recommended increasing its number of authorized shares from 30M to 60M. Shareholders vote on Sept 30.
The "ClipReport" is a daily newsletter distributed free to anyone interested in proprietary news and insight concerning small-, micro-, and nano-cap stocks. Each week Knobias independently chooses one company to be highlighted in the SPOT. To qualify for selection, each company must: 1) trade on the Nasdaq National Market, Nasdaq Smallcap Market, AMEX, OTCBB, or Pink Sheets; 2) have a market cap of less than $250 million; 3) have annual revenues greater than $1 million, 4) have a closing share price greater than 5 cents, and 4) have average daily volume of at least 10,000 shares. Knobias is never compensated for SPOT selections, and no position will be held in SPOT stocks by Knobias, its management, or staff while the stock is being highlighted.
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About Knobias, Inc.
Knobias, Inc. provides complete financial information solutions for institutional market participants, corporations, and industry professionals. By receiving early and accurate proprietary information, our clients are allowed to monitor and trade more successfully. Actionable data is delivered via high-quality applications consisting of proprietary products, analytics, streaming information, financial data, fundamental research, and third-party research. Whether you are interested in small cap or the broader markets, we have the tools, information, and knowledge you need. For more information about Knobias, Inc. products, please visit www.knobias.com.
Forward-Looking Safe Harbor Statement:
To the extent that this release discusses any expectations concerning future plans, financial results, or performance, such statements are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and reflect only management's belief and expectations based upon presently available information. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties. Knobias assumes no obligation to update any of the forward-looking statements in this release.