ATLANTA, July 17, 2002 (PRIMEZONE) -- The director of research at J.P. Turner & Company, L.L.C., Mark Slavny, has initiated coverage on Universal Automotive Industries, Inc. (Nasdaq:UVSL) with a BUY rating and establishing an 18-month target price of $4.60 per share.
The following is a brief summary of the research report:
-- In recent years, the maximum speed limit on U.S. highways has increased from 55 mph to 70 mph. As there is a geometric increase in braking required to stop a vehicle from the higher limit, there is a corresponding geometric increase in wear to the various brake parts. This translates into higher total brake component sales.
-- With the rise in popularity of Sports-Utility-Vehicles (SUVs), there is an increase in the number of heavy cars on the road. The added weight results in increased demands on the vehicle's braking systems. This increased weight causes disproportionately large increases in brake wear, which results in increased brake sales.
-- As our population increases, so too do the number of cars on the road. In 2000, over 17 million new cars were sold. 2001 was the second best year for new car sales, and 2002 is currently on a record pace. All this translates into more cars that need aftermarket brakes.
-- Cars are being kept longer than before, and there has been an increase in the mix of cars with front wheel drive. These factors contribute to additional brake component revenue.
-- On October 1, 2001, Federal-Mogul voluntarily filed for financial restructuring in Bankruptcy Court in the United States and Administration in the United Kingdom due to the heavy debt burden created as a result of its roll-up strategy, together with poor execution, over payment on some acquisitions and asbestos concerns. UVSL could capture a significant piece of Federal-Mogul's $400 million plus in annual aftermarket brake sales, if they can expand their offering of premium friction products and demonstrate they are a reliable supply source in the midst of Federal-Mogul's uncertainty.
To view the entire report, visit http://www.jpturner.com/research.htm
For more information, please contact:
Mark Slavny, Director of Research, 1-800-578-8763
J.P. Turner & Company, L.L.C., has or may have business relationships, including investment banking relationships, with the companies in this report.
This communication is not an offer or solicitation of offers to buy or sell any securities mentioned herein. While the information herein has been obtained from sources we believe to be reliable, its accuracy and completeness are not guaranteed. Opinions expressed herein are subject to change without notice. This report may also contain forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Reform Act of 1995. Forward-looking statements concerning future plans or results of the Company are only estimates and actual results could differ materially from expectations. J.P. Turner & Company, LLC and its respective officers, directors, stockholders or employees may maintain positions in some of the securities and/or options on the securities mentioned herein and may have recommended these securities to certain investors prior to publication. Further information on these securities is available upon request. J.P. Turner & Company, LLC, 3340 Peachtree Road, Suite 2300, Atlanta, GA. 30326. J.P. Turner & Company, LLC is a registered broker/dealer, Member of the NASD and the SIPC 2001. These securities are not FDIC insured or bank guaranteed and may lose value.
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