SARASOTA, Fla., Nov. 11, 2004 (PRIMEZONE) -- The following is an investment opinion issued by eLocity Inc.
Gateway International Holdings, Inc. (Pink Sheets:GWYI), Intel Corp. (Nasdaq:INTC), American Eagle Outfitters Inc. (Nasdaq:AEOS), DataLogic International, Inc. (OTCBB:DLGI)
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 of interest Thursday:
Intel Corp. (Nasdaq:INTC)
Intel Corp. announced on Thursday that President Paul Otellini would replace Craig Barrett as CEO. Intel added that Barrett, 65, will take over as chairman.
American Eagle Outfitters Inc. (Nasdaq:AEOS)
Retailer American Eagle Outfitters announced Thursday its third quarter financial results, reporting net earnings of $58.0 million or $0.77 per share for the quarter, compared to adjusted net income of $18.1 million or $0.25 in the same quarter of 2003. Revenues increased 34.7% to $503.4 million from $373.8 million reported in the third quarter last year.
DataLogic International, Inc. (OTCBB:DLGI)
Technology and professional services company, DataLogic International, Inc., announced Thursday that its wholly owned subsidiary, IPN Communications, Inc. signed an agreement to market VoIP phones with online media company SINA Corporation (Nasdaq: SINA).
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