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Dutton Associates Announces Investment Opinion: Sunwin International Neutraceuticals Speculative Buy Rating In Update Coverage By Dutton Associates
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--
Dutton Associates updates its coverage of Sunwin International Neutraceuticals (OTCBB:SUWN) with a Speculative Buy rating and a price target of $.65. The 13-page report by Dutton senior analyst Stanley Ng is available at
www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
Sunwin International Neutraceuticals recently announced its financial results for the fourth quarter and fiscal year 2007 ended April 30, 2007, which were rather disappointing and were below our downward revised forecasts in January 2007. The poor financial results were attributable to decline in demand for TCM and animal medicines, severe margins erosion due to increase in raw material costs and significant increase in operating expenses. As a result, price performance of the stock has been punished for the poor financial results. Despite the poor financial results in FY2007, we believe Sunwin is on its way to a strong recovery beginning in FY2008 for both revenue and net income. As farmers and breeders have begun slowly increasing their livestock population to normal levels, and assuming no further recurrence of avian flu or similar infections, sales of TCM and animal medicines will return to prior levels as government regulations have eased along with a decline in reports of avian flu. As for the Company's natural sweetener operation, recent reports of significant progress on penetrating the North American markets, shipments of OnlySweet (TM) to major grocery outlets in the US and reorders from the Company's largest customer are clear signs of increasing sales of its natural sweetener products. In addition, the commenced shipment of the 120-ton order for the much higher premium stevia from a Korean company should start making visible contributions to revenue and net income beginning in 2Q 2008.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. The Firm does not accept any equity compensation. We received $35,000 from the Company for 4 quarterly Research Reports with coverage commencing on 05/08/2006. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at
www.jmdutton.com before investing.
Source: Sunwin International Neutraceuticals