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Senior Equity Analyst Howard Stillman Issues Buy Recommendation for Pender International Inc.
2005-04-06 09:00 ET - News Release
MARKHAM, Ontario -- (Business Wire) -- April 6, 2005
Pender International Inc. ("Pender") announces today that Howard Stillman, a senior equity analyst with more than 25 years' experience in the securities industry, has issued a "Buy" recommendation for Pender (OTCBB:PNDR). Howard Stillman, a former director of research for two NYSE member firms, is also approved as a supervisory analyst by the NYSE. He is now an independent securities analyst with his own firm. His complete research report follows:
April 4, 2005
PENDER INTERNATIONAL NASDAQ B.B. Symbol: PNDR BUY Price Objective: $2-4
Price: $0.25 Range: $11 3/8 High $0.04 Low
Common Stock: 57,498,000 Estimated Float: 36,000,000
Corporate Strategy:
Pender was established as a merchant bank to fund select acquisitions that have extremely positive opportunities for future growth. Within the past year they have acquired two choice real estate properties and a gold mine in a historic gold producing region in northeastern Ontario, Canada.
Management has set its goals to purchase companies in the range of $35 to $50 million that either through poor management or weak financing have failed to realize their potential, and provide the acumen and support to achieve the material capital growth objective foreseen.
Highlights
A) The initial purchase of a 34% interest in the Armistice gold mine holding 34 contiguous patented claims adjacent to the historic Kerr-Addison mine located near Kirkland Lake in northeastern Ontario, Canada which produced over 12 million ounces over its lifetime. The company can increase its interest to 54% and is the largest shareholder in the property. Discussions to develop the property with a major gold producer are underway.
B) The $30 million investment in a resort property on the Mexican Riviera just three miles from Cabo San Lucas for the development of private houses or timeshares.
C) The purchase of a resort hotel with beautiful views of Niagara Falls is a Sheraton, acquired for $116 million, which includes over 400 rooms and a new golf course. Plans are under way to more than double the room capacity to over 900 and build a convention center. The hotel is already profitable and a casino within walking distance favourably enhances year round occupancy.
The business plan guidelines call for the implementation of managerial skills in all necessary disciplines tailored to the type of acquisition to be considered. From executive marketing, operations or finance, the company believes it has all the bases covered to successfully manage its current and future assets.
Financing
A continuous stream of capital has been invested so far this year culminated by the completion of a $250 million equity placement taken down by 80% institutional investors and 20% private investors. The drawdowns under the equity line of credit are to be converted into Pender common shares at a price of not less than $4. Management believes additional monetary resources will be available as needed.
Management
The management team consists of highly capable and experienced individuals. They are:
Kalson G.H. Jang, Chairman of the Board. Mr. Jang is Chief Operating Officer of Trillion Financial Group, one of the largest financial and investment agencies in North America. He oversees a Life and Casualty business with over 900 agents writing over CDN $5 Billion as recently as 2003.
Orlando Silvestri, President, operated a vast construction services company Tacom Crane Ltd., and is considered an authority in the construction industry. He brings years of executive experience in the administration, development and growth of business operations.
Vic Dominelli, CFO. A manufacturing industry professional with 16 years in the aerospace field with Bombardier Inc. and the DeHavilland Aircraft manufacturing division.
Outlook
The strategies are in place and being aggressively implemented to develop the existing assets in real estate and gold mining already in the fold and progressing toward their respective goals. Concurrently, programs are being actively pursued to uncover suitable acquisition candidates to expand profit potential from current holdings and provide continued future opportunities. The shares at current levels are speculatively attractive for risk-orientated investors seeking material capital appreciation.
Howard N. Stillman Security Analyst
This report is to be read at your own risk. It was prepared for a fee of $5,000. It is based on information believed to be reliable, but cannot be guaranteed as to its accuracy or reliability. *T
Certain statements in this press release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules,including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s)outlined above. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise. Contacts:
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