ORLANDO, Fla., Aug. 10, 2006 (PRIMEZONE) -- RedChip Independent, a division of RedChip Companies, issued a research update on Newtek Business Services (Nasdaq:NKBS).
Patrick Murphy, CFA Level III Candidate, RedChip Research Analyst, wrote in the report:
"With a current market cap of under $60 million, NKBS is trading at 0.63x expected 2006 sales, when a more typical ratio for an enterprise with these components would be something in excess of 1.50 times. The current valuation of NKBS is 0.68x book value. We maintain our price target of $3.50 for NKBS, and expect that if the company continues to deliver the results it has projected, and 2006 guidance remains the same or improves, NKBS will begin to regenerate interest from the market."
To receive a complimentary copy of the RedChip Independent research update for NKBS, please visit: http://www.redchip.com/independent/subscriber.asp?page=requestnkbsupdate
About RedChip Independent(tm)
RedChip Companies, Inc., is a well-established source of independent research and information on the small-cap market. Dedicated to "discovering tomorrow's blue chips today(tm)," its analysts seek out up-and-coming and undiscovered small-cap companies before they show up on Wall Street's radar screen. For more information please visit RedChip.com or call 1-800-RedChip.
The RedChip Companies, Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2761
RedChip Independent Research Disclosure
The analysts contributing to this NKBS RedChip report do not hold any shares of NKBS. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the NKBS RedChip report. Additional information on the securities mentioned in this report is available upon request. NKBS is not a client of RedChip Company or Aurelius Consulting Group, a RedChip affiliate.