NEW YORK, Oct. 15, 2003 (PRIMEZONE) -- The following is an investment opinion issued by Investrend Research Syndicate:
Fundamental Research Analyst Brian Tang has initiated coverage of Datec Group Ltd. (TSE:DGL) (Other OTC:DTGLF) with a 'Buy' rating and an assigned fair value of $CAN 1.20. Fundamental Research is an Investrend Research affiliate.
In his 11-page report, available free at www.fundamentalresearchcorp.com or www.investrendresearch.com, Tang notes that the company is focused on providing high-growth IT services in various Pacific Island Countries, and is the only partner of IBM Corp. (NYSE:IBM) in the Pacific.
"In many of the countries Datec operates in, it is the dominant firm either by being the largest in the region, and/or by possessing quality standards no other firms have," said Tang. In addition, the report says that the company has maintained its advantages by entering into strategic partnerships with some of the world's leading and largest IT companies.
Tang's fair value on the stock is C$1.20, derived from comparing multiples of similar firms and the market to Datec's multiples. This implies an expected return of over 76% from the company's most recent closing price of C$0.68. The analyst notes that Datec is "...significantly undervalued relative to industry comparable and market P/E multiples." Datec trades at about 11 times the analyst's forward EPS estimate versus about 27 times for the Canadian Software Industry.
Datec Group Ltd. has provided Fundamental Research Corp a fee for coverage. Fundamental's standard fee for annual coverage is $25,000, and Datec has paid the fee. Fundamental Research Corp is an independent equity research firm dedicated to providing institutional-quality, fundamental research on smaller-cap and under-followed companies. Their investment philosophy is value-based.
Fundamental Research Corp. is an affiliate of Investrend Research and a member of the FIRST Research Consortium http://www.firstresearchconsortium.com. Fundamental serves on FIRST's Executive and Compliance Committee.
The company's website is at http://www.datecgroup.com.
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