WESTON, Fla., July 7, 2004 (PRIMEZONE) -- Wall Street News Alert's "stocks to watch" this morning are: CorpHQ, Inc. (Pink Sheets:COHQ), American Fire Retardant Corp. (OTCBB:AFRT), World Airways Inc. (Nasdaq:WLDA) and Wet Seal Inc. (Nasdaq:WTSLA).
Aggressive investors and traders should be watching CorpHQ, Inc. (Pink Sheets:COHQ) this morning! Yesterday after the markets closed, the company issued a press release announcing that it had enhanced its existing relationship with National Beverage Bottling Inc. of Corona, CA by agreeing to provide up to $500,000 in convertible debt financing to fund expansion.
This could be good news for investors! The companies have previously participated in a joint venture to distribute the "Shake-It" lines of self-heating/cooling beverages owned by another CorpHQ partner, Pressto Food & Beverage Inc. of New York City. Initial distribution of this product is targeted for the third quarter of 2004, according to Pressto.
National Beverage was formed to acquire the assets of Palomar Water Company, which includes a state-of-the-art 150,000 square foot water bottling facility in Southern California, with a capacity of approximately one million bottles per day. According to a National Beverage spokesman, the company now has approximately $25 million in supply contracts, and believes it has the ability to grow contracts to over $100 million this year, with increased capitalization.
Steve Crane, CEO of CorpHQ, said, "This is an exciting time for our company and its shareholders. National has the potential to be among the fastest growing and most profitable businesses in its segment in the United States. This capital will be allocated directly into revenue generating assets, including new factory equipment and expansion of credit lines."
"Because Steve Rice and his team at National have a long history of exceptional performance in this business, we see our role in this portfolio company as one of accelerator, rather than incubator. Our goal over the next 6 months is to assist management in dramatically ramping up revenue and accelerating market penetration. We will also begin to position National for the public capital markets in the coming months," added Crane.
Keep your eyes on this company! Management of both companies confirmed that a formal arrangement concerning a long-term relationship will be finalized within the next 30 days. CorpHQ's corporate finance team will begin initial operations at National Beverage next week, and additional news concerning valuation and plans for subsequent financing will be forthcoming, according to both companies.
The stock closed yesterday at seven cents a share.
In case you are not familiar with the company: Since the inception of its predecessor company in 1993, CorpHQ, Inc. has evolved from an innovative online marketplace and virtual corporation for small and home-based businesses into a business consulting organization and holding company comprised of established and emerging companies. The CorpHQ companies address vertical market segments in the Consumer Products, Services and Technology industries. For additional information please visit the Company's website at www.corphq.com.
Stocks showing interesting activity yesterday at the close of the regular trading day were: American Fire Retardant Corp. (OTCBB:AFRT) down 15.3% on 40.1 million shares traded, World Airways Inc. (Nasdaq:WLDA) up 26.1% on 4.9 million shares traded and Wet Seal Inc. (Nasdaq:WTSLA) up 4.7% on 1.6 million shares traded.
Commentary:
"This is a slow week for economic numbers; however, Thursday's consumer-credit data for May could be interesting and worth noting. Consumers have more than $2 trillion in debt owed; this excludes real estate loans. Additionally, chain-store sales for June are due Thursday," stated Sonja Rudd in Wall Street News Alert's daily commentary continued at: http://www.WallStreetNewsAlert.com.
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