Dixie Lee Receives Speculative Investment Merit Rating From Reovest Growth Research
January 18 2008 - 4:04PM
Marketwired
DALLAS, TX , parent company of the 40-year-old "Dixie Lee" brand
name, with more than 80 franchised Chicken & Seafood
restaurants open, today announced that Reovest Growth Research has
initiated coverage on the Company with a Speculative Investment
Merit rating and a $3.00-4.00 price target.
The Reovest Growth Research report states:
"If we utilize a $1.50 price bench mark for the company's
proposed initial round of equity financing, this would increase
shares outstanding by 3.3 million shares to a total of 42.43
million. Cash flow generation would be approximately $9 million
annually, or $0.21/share. Given an industry multiple average of
43.50 X, and heavily discounting this by 50 - 60%, we believe that
a projected P/FCF (price to free cash flow) multiple range of 17 X
- 21 X is warranted. Based upon these parameters, the intrinsic
value of the company should support a fundamental market price of
between $3.65 - $4.55 per share. Execution and timing issues aside,
the company is certainly on a fast track internationally, to expand
franchise roll outs. Once the USA program gets underway -- this
company could really fast track and get on some visible radar
screens."
You may request the full report by contacting the Investor
Relations Dept. of Dixie Lee Chicken @ ir@dixieleechicken.com
Subject line: Reovest
About Reovest Growth Research
Reovest Growth Research, a wholly owned subsidiary of Reovest
Financial, Inc., is an independent investment research and business
consulting firm that specializes in providing research and
investment banking consulting services to small and mid-cap listed
companies. Contact: Reovestinc@aol.com
About Dixie Lee
The Dixie Lee brand name started with the opening of the first
Dixie Lee Chicken & Seafood restaurant in 1964 in Belleville,
Ontario, Canada. Building on an old Louisiana chicken recipe, the
Dixie Lee name has grown to include subsidiary and affiliated
companies accounting for more than 80 branded restaurants open and
more than 20 in development. Dixie Lee restaurant concepts include
full service, fast casual and take-out. Dixie Lee International
Industries, is currently developing its newest franchised concept,
the classic "Dixie Lee Diner," a 60- to 80-seat stainless steel
diner reminiscent of the nostalgic 1940s and 1950s family diners
featuring breakfast, lunch and dinner. Dixie Lee International
Industries, Inc. is expanding through both corporate-owned and
franchised restaurant development throughout North America and
abroad. www.dixieleechicken.com
Forward-looking statements in this release are made pursuant to
the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are subject to
certain risks, and uncertainties and actual results could differ
from those discussed. This material is information only and is not
an offer or solicitation to buy or sell the securities.
For more information contact: Dixie Lee Investor Relations
800-858-7502 ir@dixieleechicken.com
Dixie Lee International ... (CE) (USOTC:DLII)
Historical Stock Chart
From Nov 2024 to Dec 2024
Dixie Lee International ... (CE) (USOTC:DLII)
Historical Stock Chart
From Dec 2023 to Dec 2024