SARASOTA, Fla., Nov. 11, 2004 (PRIMEZONE) -- The following is an investment opinion issued by eLocity Inc.: Gateway International Holdings, Inc. (Pink Sheets:GWYI), Patriot Scientific Corporation (OTCBB:PTSC), Genelabs Technologies, Inc. (Nasdaq:GNLB), Neoprobe Corporation (OTCBB:NEOP)
Aggressive traders and investors will want to watch Gateway International Holdings, Inc. (Pink Sheets: GWYI), a company expanding throughout the United States in the Aerospace and Defense Precision Manufacturing Industry. Thursday afternoon, the company issued a press release announcing that the two largest shareholders in the Company, CEO Larry Consalvi and COO Joseph Gledhill, have each decided to cancel 6,000,000 shares of their Gateway International Holdings stock. The total shares being retired equals 12,000,000 shares, or approximately 36.4% of the outstanding common stock. Gateway said that neither Mr. Consalvi nor Mr. Gledhill received any consideration for the cancellation of their shares. After the retirement of the 12,000,000 shares, the total outstanding shares will be 20,966,000, down from 32,966,000 currently outstanding.
Gateway International's CEO, Larry Consalvi, commented on the share retirement, "We decided to retire these shares to allow the Company to be in an advantageous position in the implementation of our acquisition schedule. Our goal is to acquire companies that add value to our enterprise and that will be accretive to earnings. Using these shares for acquisitions will help us meet these goals and also allow for growth in earnings without dilution to current shareholders. By giving these shares back to the Company to use for future acquisitions, we feel that we can accelerate earnings growth and create significant shareholder value."
He concluded by saying, "Reducing the number of outstanding shares, coupled with the strong profitability at Elite Machine Tool Company and Eran Engineering, which we recently reported in our year-end results, will allow the Company to increase its earnings per share. Additionally, with the recent addition of All American CNC Sales and A-Line Capital and the earnings that they will add in future reports, I believe that we are well positioned to increase earnings per share at an accelerated rate in the future."
Earlier in the week, Gateway posted record annual sales for the fiscal year totaling $7,445,240. Net income before taxes for the year was also a record, coming in at $726,990, a pre-tax margin of 9.8%. The results reported were from only two of their present companies, Elite Machine Tool and Eran Engineering. Results for newly acquired All American CNC Sales and newly formed A-Line Capital will be reported beginning with October 2005 financials.
Gateway International currently has operating subsidiaries including: Eran Engineering, Inc., Elite Machine Tool Company, Inc., All American CNC Sales, Inc. and A-Line Capital Corporation.
GWYI is currently trading at around .94 cents a share.
Other Stocks to Watch Thursday;
Patriot Scientific Corporation (OTCBB: PTSC)
Patriot Scientific Corp. announced Thursday that it has declined an offer from Relational Advisors LLC, an investment fund, for the sale of its critical microprocessor patents that are believed to be in widespread industry use. PTSC's management and board said the $7.5 million dollar offer inadequate for the intellectual property held by PTSC, adding that they estimate the value to exceed $1 billion.
Genelabs Technologies, Inc. (Nasdaq: GNLB)
Genelabs Technologies announced Thursday it has received a $750,000 payment from GlaxoSmithKline Biologicals (NYSE: GSK) based on a milestone relating to clinical trial results for GSK's investigational vaccine against the hepatitis E virus (HEV). Genelabs has previously granted to GSK an exclusive worldwide license to develop and commercialize HEV vaccines.
Neoprobe Corporation (OTCBB: NEOP)
Diversified oncology and cardiovascular surgical and diagnostic products developer, Neoprobe Corporation, announced on Thursday consolidated operating results for the third quarter of 2004, reporting revenues of $1.7 million, an increase of 46% compared to $1.2 million for the third quarter of 2003, and 11% compared to $1.5 million for the second quarter of 2004.
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Contact: eLocity Inc.
941-544-3498
Thomas Clay
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