IRVINE, Calif., July 18, 2006 (PRIMEZONE) -- "There used to be an adage that a good idea could exist as a small public company for two years and then it had better show some revenues," said SmallCap Sentinel analyst D.R. Clark. "But expectations have changed and now revenues among small caps seem to be an enormous deciding factor in a) attracting new investors and b) validating the company's business plan."
"This is even more dramatic, pardon the pun, for creative based companies," said Clark. "Most investors lack the personal acumen to evaluate an entertainment company's broad appeal or profitability. A more 'macro' view suggests that reports of profitability imply broader acceptance and implied endorsement of the company's creative efforts."
"Along these lines, Peace Arch Entertainment Group Inc. (AMEX:PAE) announced yesterday a revenue increase of 105.6% to CAN $8.8 million in the fiscal 2006 third-quarter when compared to the same period from the previous year," Clark stated. "Revenues now seem to be trending upward and with a significant number of new productions in the pipeline, free cash flow (the traditional measure of health for a film and television company) may follow."
Peace Arch produces and acquires feature film and television programs for distribution to worldwide markets. Its Peace Arch Films division markets and licenses theatrical films oriented towards the major international film festivals such as Cannes, Venice and Toronto. The company's Archetype Film label focuses on projects in the horror, thriller and action genres. Peace Arch Television specializes in the licensing of the Company's own productions and third-party projects to Canadian and international broadcasters, cable and satellite companies.
The informational report "Technology Growth, Emerging Companies & Emerging Markets" has been made available at www.SmallCapSentinel.com and will address related film companies News Corp. (NYSE:NWS), Time-Warner (NYSE:TWX), Disney (NYSE:DIS), and Peace Arch.
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Statements made herein contain forward-looking statements and are subject to significant risks and uncertainties that will affect the results. SmallCapSentinel and StockUpTicks.com are properties of Market Pathways Financial Relations Inc. (MP). MP provides no assurance as to the subject company's plans or ability to effect any proposed actions and cannot project its capabilities, intent, resources, or experience.
Information contained herein is based upon sources believed to be reliable but no representation is made as to accuracy or completeness. This report is neither a solicitation to buy nor offer to sell securities but is rather a paid advertisement provided for information purposes only and shouldn't be used as basis for any investment decision. MP isn't an investment advisor and this report is not investment advice. MP has been paid $15,000 by Peace Arch for preparation and distribution of this report and other advertising services. This constitutes a conflict of interest as to MP's ability to remain objective in its communication regarding the subject companies.