Magnum d'Or Resources, Inc. (fka MDOR)

[Makamai]

More News: Grass Roots and Cohen Independent Research Group Releases Updated Buy Rating on MDOR at $3.14 with a Positive Research Report Indicating $4.34 Target Price
· Press Release
· Source: Magnum D'Or Resources, Inc.
· On Tuesday June 23, 2009, 9:00 pm EDT

MAGOG, Quebec, June 23 /PRNewswire-FirstCall/ -- Magnum D'Or Resources, Inc. (OTC Bulletin Board: MDOR - News), a next generation rubber recycling Solutions Company, announced today that Grass Roots Distribution through Cohen Independent Research Group (CIRG), Wall Street's leading independent research firm, has initiated unsolicited coverage on Magnum D'Or Resources, Inc. with a "BUY" recommendation and a $3.14 per share Target Price. Grass Roots & CIRG provides an in-depth analysis, including 5-year financial and valuation projections, on Magnum's business and its significant growth drivers. Research Report and "Buy" recommendation on MDOR visit: http://www.grassrootsrd.com/mdor-report.pdf

Grass Roots & CIRG highlights positive quotes on Magnum including; We believe wide applicability of the Company's compounds in varied industries, recent and installation of new equipment in its Magog facility along with its expansion plans should propel top-line growth. As a result, annual revenues are expected to increase to $54 million in 2010 and approximately $135 million by 2013. With additional planned capital, the Company is also expected to manage operations efficiently and be profitable in 2009. EBITA margins are expected to expand from 69% in 2009 to 81% in 2013. We have valued the stock using our Discounted Cash flow (DCF) method to derive our short-term price target of $1.77 and intermediate term price target of $2.20 is based on our Price/Capital employed ratio. Using an assumed long term sustainable growth rate of 3%, our Base Case target price is a conservative $3.14 per share. We believe our valuation is conservative.

Grass Roots & CIRG continued highlights; MDOR.OB is a lucrative investment opportunity for risk adverse investors. We reiterate our BUY rating. Grass Roots & CIRG price targets on MDOR overall range very bullish from $3.14 to $4.34 per share.

Grass Roots & CIRG report went on to say, "The robust industry demand accentuated by the government's focus to drive green technology and products should command a higher market share. The Company's expects to increase the speed, cost efficiency, processing capacities and performance specifications of existing devulcanization technologies and expand globally in collaboration with Sekhar Research Innovation. Growth prospects are impressive."
Grass Roots Distribution Http://www.grass-roots-distribution.com/home.php is CIRG's (http://www.cohenresearch.com/) small cap distribution website. Based in San Rafael, California, CIRG has a strong record of working with emerging growth companies in the U.S. that do not have current analyst coverage, but who, according to Mr. Cohen's proprietary valuation techniques, are "undervalued gems and destined for long-term growth and success." CIRG includes nine PhD's (three with MD's), two MD's, six CFA's (chartered financial analyst), three with CPA's (certified public accountant) and 21 analysts covering most industries.

Founded and led by D. Paul Cohen, CIRG is Wall Street's #1 Independent Research Firm. As founder of Bear Stearns Western Regional Offices, D. Paul Cohen was one of the original 12 Dirty Dozen analysts, regarded by many to be the top 12 security analysts in the nation. Mr. Cohen was also the West Coast Senior Vice President of CBWL-Hayden Stone-American Express. Mr. Cohen's partners were Sanford I. Weill (past Chairman and CEO of CitiGroup and past Chairman of Salomon Smith Barney) and Arthur Levitt (past Chairman of the SEC).
About: Magnum's 98,000+ sq ft facility is located in Magog (Quebec). Magnum currently holds over $130 Million USD in open contracts for the production of rubber nuggets and rubber buffing. Magnum's proprietary "GREEN" technology provides a one of a kind solution to all of the challenges in eliminating Stockpiles of Scrap Tires and Rubber Scrap.
Magnum/SRI are currently using their advanced technologies to produce next generation rubber recycling solutions for custom compounds, retread compounds, processing aids, advanced state-of-the-art equipment, and reactivated ambient/cryogenic rubber powders for the global market. The Company is also carrying out a number of trials on various compound blends specifically targeted at high specification premium applications. Magnum/SRI tests are targeting premium applications that contain high grade properties. This will allow production of higher yielding compounds which will potentially create higher revenues and profits. This also includes maximizing cost savings for clients while producing high quality materials.

The reason why Magnum/SRI premium compounds are one of a kind is because they can be substituted in high specification compound applications without appreciable loss in properties or performance. Furthermore, the reason why our clients will prefer to use Magnum/SRI compounds is they will be able to enjoy a substantial and meaningful reduction in raw material cost without compromising product performance and quality. In the competitive environment of rubber product manufacturing this is a major development having a direct impact on our customer's bottom line.