ORLANDO, Fla., March 1, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, announced that they have reissued initial research on IT Group Holdings, Inc. (OTCBB:ITGL).
Joe Blankenship, MBA, CFA Level I Candidate, RedChip Research Analyst, wrote in the report:
"Contracts announced and organic growth for ITGL should make for a banner year in 2007. We believe the Company will close out FY06 with revenues of approximately $22 million, but will have incurred a loss. The loss may be partially attributed to costs of the merger, but additional costs have been incurred in the installation of its new switching capability and the addition of personnel to handle the expanded volume.
"Our 12-month price of $1.20 is generated by using a 20x multiple of the $0.06 EPS estimate for FY07. This multiple is low if the Company can demonstrate that growth in the middle teens can continue beyond FY07. Based on performance since the acquisition of ITPLC in June of 2006, we believe that ITGL offers good prospects for patient investors."
To receive a complimentary copy of the RedChip Visibility initial research for ITGL, please visit: http://www.redchip.com/visibility/about.asp?page=requestITGL_initial.
About RedChip Visibility(tm)
RedChip Research, a division of RedChip Companies Inc., writes fundamental research on small-cap companies. RedChip's success has been documented in Forbes, Barron's and the Wall Street Journal. RedChip Visibility(tm) provides small-cap companies access to both professional and individual small-cap investors by holding conferences throughout the United States, producing online corporate visibility programs, and writing company sponsored research.
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RedChip Visibility Research Disclosure
ITGL paid RedChip Visibility $28,000 for the RedChip Visibility Research Program, which includes this report. RedChip Visibility, a division of RedChip Companies, Inc., and the Aurelius Consulting Group Inc., in a joint marketing agreement, have been contracted by IT Group Holdings Inc. to increase investor awareness of ITGL to the small-cap equity community. These services may include investor conferences and digital and print distribution of ITGL investor related materials. 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 a monthly fee of $8,000 for investor relations services and 250,000 warrants with a strike price of $0.30 and 250,000 with a strike price of $0.50 for twelve months of service.