Beautiful Valley Promoter (fka PVLH)

[TasukiGap]

Independent Research report gives $1.50 target

http://www.otclive.com/PVLH_Initiation_ReportTSC.pdf

• Promotora Valle Hermoso guided revenues for the full fiscal 2007 to be between
$1.1 million and $1.3 million with the net income between $300,000 and
$325,000 or between 4.6 cents and 5 cents per share.

• Recently, the Board of Directors informed shareholders that the Company would use its
best efforts to achieve a listing on major stock exchange within the coming year.

• PVLH shares appear decidedly appealing in context of forecast revenue and profit streams that are being projected and also on a peer comparison basis. Operations should be supported by the demographic and real estate macro factors in Ecuador. With an estimated market share of less than 1% of the total industry, leaves ample window of growth for Promotora Valle Hermoso. We believe the shares have room to appreciate considerably, given its customized product offering and high revenue growth rates. Although the Ecuadorian housing industry faces a number of challenges for most operators we believe that PVLH can grow at faster rates than the overall market due to its differentiated strategy, focused approach and tight financial management regimen. Our 12-month target price is set at $1.50 per share, which involves a PE approach in context of peer earnings multiples and our FY2007 EPS estimate.