Tuesday, 31 July 2007

Paradigm Calls For $2 Target On Icron

In his initial research report, analyst Barry Richards of Toronto based Paradigm Capital is calling for a twelve month, $2 target on Icron (IT - TSX V - current $0.90) based on several key factors.

Mr.Richards is looking for accelerated growth based on the launch of IT's new wireless USB product, which he feels will have broad consumer appeal and huge potential.

He's forecasting sales will reach $10.5 million with $0.03 Earnings Per Share (EPS) this year (Dec. 31) and $18 million with $0.08 EPS in 2008.

To use his words, Icron is "significantly undervalued" and it should trade at 2 to 3 times projected 2008 sales. His BUY rating is based on 2 times projected 2008 sales or 25 times projected EPS plus the fact that Icron has $4.4 million in the bank, which is equivalent to $0.20 a share.

The report is only available to Paradigm clients.