HOLLYWOOD, Fla., Aug. 24, 2004 (PRIMEZONE) -- Barrow Street Research, a pioneering online research firm, today reported that it has commenced initial coverage of Senticore, Inc. (OTCBB:SNIO), a diversified holding company that recently acquired a World Hockey franchise, the Detroit Gladiators. A full copy of the report is available at http://www.barrowstreet.com .
"We are initiating coverage of Senticore," said the research firm's founder, John D. Attalienti, the author of the report, "because we believe in the substantial potential for the company, based primarily on our belief that SNIO's business model offers exceptional growth opportunities in several sectors simultaneously, and in a relatively brief time period."
The report notes that, "The corporate focus is now on the acquisition of diverse businesses and real estate within various industries such as residential and commercial real estate, land development projects, timber resources, and professional sports. Senticore is focused on these industries because its management team has expertise and extensive knowledge in these areas. Given current economic conditions and favorable interest rates, the time is ripe for a roll-up within these sectors."
Barrow Street said that the most significant development to date since it has begun due diligence on Senticore is the company's announcement that it has acquired the Detroit Gladiators, a potentially valuable franchise in the new World Hockey Association (WHA). If, in fact, the NHL season is cancelled, the WHA is in a strong position to benefit, it says. It also cites the opportunities in the timber sector, reporting that recent mergers have positioned Senticore to expand its real estate holdings, to include revenue producing timber plantations in Costa Rica and Venezuela, pointing out that the value of the timber resources could be as much as $60 million.
Last year, the researcher notes, "Senticore entered into a merger agreement with Smith Forestal, a Costa Rican timber company that controls 60,000 acres of Melina hardwood plantations. Earlier this year, SNIO added to its timber interests when management announced the acquisition of Westar South America, S.A., which will now operate as a Senticore subsidiary. Westar is based in Venezuela, and was established in 1994. Among the Westar assets are more than 23,000 acres of Pino Caribe timber plantations, and two large sawmills. Senticore believes that this acquisition will complement the Smith Forestal relationship, and that SNIO is now well positioned in the timber industry, with a combination of timber and sawmills that will allow the company to offer a full range of export timber products utilizing both soft woods and semi-hardwoods.
"...Pino Caribe (also known as Caribbean Pine) is a soft wood, and is industrially versatile and considered to be multi-purpose. The company's Costa Rican timber resources produce Melina wood. Melina wood was traditionally used to make wood pulp because it grows easily and quickly, and because its fire resistance makes it a safe product. Melina is also virtually insect proof, making it a wood that may increase significantly in demand owing to a 2001 ruling by the U.S. Environmental Protection Agency (EPA) that calls for the phase out of pressure treated lumber . . . About 90% of all pressure treated wood contains an arsenic based compound that is a known human carcinogen," says the Barrow Street analysis. "This type of pressure treated lumber has been extensively used in the United States to build decks, playgrounds, and fences. Indeed, the EPA sought the ban after researchers at the University of Florida determined that children could get enough arsenic on their hands from touching treated wood in playgrounds and on decks to pose a significant health risk."
Among other developing real estate interests, the report indicates, is Senticore's development project located within the residential community of Vantage Point, in Sebring, Florida. Vantage Point is an affordable neighborhood of beautiful homes, with reasonable taxes, for people 55 and over. Vantage Point is a community of two and three bedroom ranch homes with two-car garages and quality appointments, set back off the main road.
The report notes that "SNIO announced on August 9th that it had secured a funding commitment from the Chicago-based Nutmeg Group, LLC. The Nutmeg Group is a private capital investment and financial consulting organization, which reportedly has more than $30 million in assets under management. The Nutmeg Group has agreed to fund the growth of Senticore's diverse operations. The company has said that the funding will go toward the personnel, transportation and other operational costs associated with fulfilling timber orders for Senticore's recently acquired timber plantations in Costa Rica and Venezuela. The Nutmeg Group has also agreed to provide financial backing towards the purchase of target acquisitions in line with Senticore's current business model."
The report concludes: "If the timber assets can indeed be valued at $60 million, that figure alone would equal about $0.60 per share, well above the current share price of $0.05. If the Detroit Gladiators are a success, this franchise could appreciate significantly and dramatically increase SNIO's asset base. Moreover, if these asset levels are, in fact, achieved, we would expect the stock to sell at a multiple to its book value that could give high risk oriented investors the opportunity to currently purchase a stock that has significant upside potential over the next few years. Based on this evaluation we have rated the SNIO shares a SPECULATIVE BUY."
The Nutmeg Group has compensated Barrow Street Research in the amount of $6,000 for its time spent in due diligence, preparation and distribution this report.
Certain statements contained herein are "forward-looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.