ORLANDO, Fla., Oct. 4, 2007 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., announced that it has issued an initial research report on H2Diesel Holdings, Inc. (OTCBB:HTWO).
Piyali Chakravarty, MBA, RedChip Research Analyst, wrote in the report:
"H2Diesel Holdings Inc. (OTCBB:HTWO) is a development stage company that holds an exclusive license for North America, Central America, and the Caribbean to proprietary technology for the manufacture of an alternative 'BioFuel' produced from vegetable oils and animal fats. The fuel is intended for use in power generation, heavy equipment, marine applications, and as heating fuel. The Company's business model calls for the establishment of biofuel production facilities directly and through sublicensing of its technology to qualified licensees.
"As HTWO's proprietary alternative biofuel product has distinct and compelling competitive advantages over traditional biofuel, we conservatively believe that there is good possibility that the company can achieve a 0.5% share of this $18.5 billion bio-fuel market. Thus, we see a initial market potential of $92.50 million for the company. We believe that a P/S multiple of 2 is achievable over a 24-month horizon, should the company's proprietary technology gain commercialization as we anticipate. Thus, we value the company at $185 million. Dividing this by approximately 17 million shares outstanding, we obtained our target price of $11.00, which is close to the 52-week high for the HTWO shares. This offers a potential for approximately 80% appreciation from current trading levels."
To receive a complimentary copy of the RedChip Visibility Initial Research Report for HTWO, please visit:
http://www.redchip.com/visibility/about.asp?page=requestHTWO_Initial&from=newsHTWO10042007
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Disclosures
The analysts contributing to this report do not hold any shares of HTWO. 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 report. Additional information on the securities mentioned in this report is available upon request. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. H2Diesel Holdings, Inc. is a client of RedChip Visibility, a division of RedChip Companies. HTWO paid RedChip Visibility $20,000 for the RedChip Visibility Research Program, which includes this report. RedChip Visibility, a division of RedChip Companies, Inc., has been contracted by H2Diesel Holdings, Inc. to increase investor awareness of HTWO to the small-cap equity community. These services may include investor conferences and digital and print distribution of HTWO 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 Company has received 50,000 warrants with at strike price of $2.00 and 50,000 warrants with at strike price of $3.00 for investor relations services.