Newsletter

DUPLICATE

March 8, 2002
Volume V, Issue 17
Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

Quick Note- Before deciding if you want to participate, please read the OTC Journal's section on Trading Alerts found on the left hand menu bar of our home page. For a Track Record of former Trading Alerts, Click Here.

Our last Trading Alert on January 4th was Dupont Direct Holdings at $.70. The stock opened the following Monday at $1.39 for an absurd gain of nearly 100% overnight. We advised members to participate only if they could lock in at $1 or less. Please pay close attention to the price parameters to maximize your opportunity to make money.
 

Trading Alert- Decorize, Inc (AMEX: DCZ)

While the manufacturing and technology sectors have been mired in recession for the past year, the consumer continues spending, minimizing the overall impact on the economy.

The American consumer has turned his (or her) attention back to the home. After two years of horrifying losses in the stock market, people are  gravitating towards putting their capital into new home purchases and upgrades of existing homes. Investors still feel safe putting their money in this age old safe haven, which is perceived to always appreciate over the long term. The stock market does too, but investors have fogotten after the last two years.

January existing home sales jumped an astronomical 16.2 percent, the highest gain in history. 6.04 million units were purchased in January, following December's 5.2 million unit pace. This growth rate was 16% higher than economists were forecasting.

Since the September 21 low in the market the Dow Jones Home Builders Index has rocketed an astonishing 86%. In addition, all this activity in the housing sector has led to substantial gains in durable goods purchases. Home buyers need furniture and appliances for these new homes.

One company benefiting dramatically from this demographic megatrend is little known Decorize. Over the past year the company's growth rate has been no less than astonishing, as the company is revolutionizing the process of importing home furnishings and accessories manufactured in the Asian Pacific Rim. The Company strips away layers of handling and storage steps to deliver products directly from the Far East to the doors of retailers, at unprecedented cost savings. The Company's business model affords aggressive savings of up to 70% for large retailers and 30% for small retailers.

This revolutionary new business model has led to substantial growth as the company has become a preferred supplier to such major chains as Dillards's, Sears, and Rooms to Go. Consumers are snapping up their quality furnishings at very competitive prices. The table below, based on the company's 10Q SEC filing for the end of December, shows just how dramatic their growth has been:
 

 
Year 2000
Year 2001
Percentage Growth
Revenues for three months ending December 31
$180,000
$3.8 million
2000% (up 20 times)
Revenues for six months ending December 31
$285,000
$6.7 million
2250% (up 22.5 times)

Another important milestone was achieved in the December quarter. The company turned cash flow positive from operations for the first time in its history.

As depicted in the chart, the Home Builders' index has been outperforming the stock price of Decorize over the last month. As a result of today's events, we believe shares of Decorize will now rapidly close this gap.

Today, two major events occurred which we believe will put this stock on the radar screen of investors as follows:

  • The company announced a backlog of over $5 million in orders, thereby virtually assuring the company will continue to grow at a blistering pace.
  • After a rigorous regulatory process, the company met the requirements to upgrade its listing from the OTC Bulletin Board to the American Stock Exchange, and the stock opened for trading for the first time today on the AMEX. We feel this event alone will expand the audience for the stock considerably. Those of you who are holding Diomed (AMEX: DIO) have experienced the value of this enhanced listing status.
Trading Alert Details

As a result of today's' major events we believe shares of Decorize are poised to appreciate rapidly. The stock has pulled back about half way from its gains in mid December, and is camped firmly on its support level, suggesting an ideal entry point. Here are our thoughts on this Trading Alert on Decorize, Inc. (Amex: DCZ).
 

  • Buy up to $4.00 - with a 2000% growth rate you are investing at about 4 times annual sales, a very reasonable valuation.
  • Set your Stop Loss at $3.50 to give you some room for a short term pullback or what ever your risk tolerance is.
  • Look for a short term move to $4.75  if the stock can get through $4.80 if would make a new all time high and it could find its way higher with a little luck and favorable market conditions. A move to $4.75 would place the stock 26% above today's closing price.
  • Because of their high growth rate and favorable demographic trends you can comfortably put this one in your long term speculative portfolio.

The OTC Journal intends to publish follow-up editions on this company. This stock has the potential to be a huge winner. To look at the company's products and to purchase merchandise directly, visit the company's web site at www.decorize.com.


This newsletter is our opinion only, and not a solicitation to buy this stock. Make up your own mind. If you are looking for a short term trade limit your loss if the stock goes against you. As always, we remind you before making any investment decisions please review the section on our home page on Trading Alerts. Read our section on Successful Microcap Investing, paying particular attention to the Trading Strategies Section. The track record on our previous alerts can be obtained by clicking here.

Here is the complete text of today's news release for your review:
 
Friday March 8, 4:56 pm Eastern Time
Press Release
SOURCE: Decorize, Inc.

Decorize Marks First Day of Trading on the AMEX
- The Company also Announces Record Backlog in Excess of $5 Million -

SPRINGFIELD, Mo., March 8 /PRNewswire-FirstCall/ -- Decorize, Inc. (Amex: DCZ - news), an emerging-growth provider of direct sourcing solutions for the global home decor market, announced that effective today its common shares began trading on the American Stock Exchange® (AMEX).

Decorize closed the market today at a share price of $3.65 with 8,600 in trading volume.

In 20 months of operations, Decorize has secured record orders, including $1.7 million from one of the nation's largest retailers. The Company has captured new and repeat business from its small and large-scale client base, translating to increased sales- up 28% in the quarter ended December 31, 2001 over the preceding quarter. The Company's current backlog exceeds $5 million.

Jon Baker, CEO of Decorize, stated, ``We are extremely pleased to begin trading on the AMEX. Our team has worked tirelessly to increase sales and develop what we consider the industry's best value-oriented B2B sourcing model. As we implement additional growth strategies, an AMEX listing will complement our ability to enhance shareholder value by reaching a greater number of market makers and institutions with our story.''

Decorize applies a value-oriented technology, logistics and sourcing model and exclusive overseas network (covering Thailand, Vietnam, the Philippines, Indonesia, Hong Kong and China) to deliver small and large scale retailers dramatic cost savings in the import of furniture-related goods from the Far East.

About Decorize, Inc.

Decorize, Inc. is the proprietor of a breakthrough sourcing, logistics and technology model that reduces the non-value added costs that have traditionally been channeled into the home furnishings category. The Company strips away layers of handling and storage steps to deliver products directly from the Far East to the doors of retailers, at unprecedented cost savings. Decorize has served more than 2,000 small and large retail accounts, including national brand names Dillard's, Rooms To Go and Sears -- The Great Indoors.

The Company's business model affords aggressive savings of up to 70% for large retailers and 30% for small retailers. Decorize deploys a ``one-price'' approach at Decorize.com. For the first time in the industry, small retailers can ship directly from the Far East with a minimum order of $500, including freight, while enjoying cost savings of 30% over wholesale prices. Decorize offers over 10,000 SKUs through its brands: Faith Walk, GuildMaster and decorize.com. Additional information on the Company and its products can be found www.decorize.com.

Forward-looking statements in this release are made pursuant to the ``safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.

     AT THE COMPANY:
     417-879-3326
     Jon Baker
     j.baker@decorize.com
     or
     Gaylen Ball
     g.ball@decorize.com
     www.decorize.com

     AT NATIONAL FINANCIAL NETWORK:
     877-366-0845 or 781-444-6100
     Brokers/Analysts: Rick McCaffrey, ext. 621
     rick@nfnonline.com

     Media: Kristina Henneberg; ext. 615
     kristina@nfnonline.com

SOURCE: Decorize, Inc.
 


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