ORLANDO, Fla., Dec. 21, 2006 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, announced today that they have initiated research on Edgewater Foods International, Inc. (OTCBB:EDWT).
Lisa Springer, MBA/CFA, RedChip Research Analyst, wrote in the report:
"Demand for seafood in the U.S. is rising in response to new dietary guidelines, which stress the health and dietary benefits of seafood. Scallops, in particular, are low in fat and calories and provide an excellent source of protein. At the same time seafood demand is rising, overfishing is threatening supplies for many species. According to the National Marines Fisheries Service, demand for scallops was approximately 65 million pounds in 2004. Edgewater faces limited competition from several small Canadian operators who purchase their seed scallops from Edgewater. There are no direct U.S. competitors for Pacific scallops since the farming of Pacific scallops is prohibited in this country.
We initiated coverage of Edgewater Foods International in early October with a Speculative Buy rating and a one-year $4.25 price target, based on a deeply discounted multiple of estimated 2010 per-share earnings. These shares are rated a Speculative Buy because of the Company's significant warrant liabilities ($20.4 million as of August 31, 2006) and lack of current operating and net profits. Still, if Edgewater succeeds in increasing its scallop production to targeted levels, it could be producing annualized revenues exceeding $54 million and meaningful operating profits by calendar 2009."
To receive a complimentary copy of the RedChip Visibility research update for EDWT, please visit: http://www.redchip.com/visibility/about.asp?page=requestEDWT_q3_2006.
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RedChip Visibility Research Disclosure
Edgewater Foods International, Inc. is a client of the Aurelius Consulting Group, Inc. and of RedChip Visibility, a division of RedChip Companies. EDWT paid RedChip Visibility $28,800 for the RedChip Visibility Research Program, which includes this report. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that the Aurelius Consulting Group is an investor relations firm hired by the Company and receives 25,000 shares of Rule 144 stock per quarter for investor relations services.