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.
|
Charts Provided Courtesy
Of TradePortal.com
The OTC Journal is
a proud partner of the SwingWire.com
Online Investment Community. A next generation Online Analyst Exchange
providing Members the ability to search, review, track and monitor some
of the Internet's best Online CAs (CyberAnalysts). Members
have the opportunity to potentially achieve higher
returns by viewing top performing portfolios
and receiving real-time alerts from favorite CAs.
SwingWire.com
also has a lucrative incentive model for experienced investors and traders
who consistently outperform the market. Share market ideas with other like-minded
investors, establish a proven track record, provide insightful commentary,
attract followers and ultimately become one of the Internet's highest paid
and most sought after CyberAnalysts!
Click
here to receive your FREE 30-Day Trial Membership with no further obligation.
Sign Up Today!
|