Press Release Source: TMSF Holdings
Dutton Associates Announces Investment Opinion: TMSF Holdings Strong Speculative Buy Rating by Dutton Associates
Thursday April 28, 4:22 pm ET
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--April 28, 2005--Dutton Associates continues coverage of TMSF Holdings (OTCBB:TMFZ - News), reiterating its Strong Buy Rating and raising its price target to $3.70. The 8-page report by Dutton senior analyst Richard W. West, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Multex, and other leading financial portals.
TMSF Holdings reported strong growth in revenues and earnings for the fourth quarter and year of 2004. In our April 1, 2005 Research Note we noted that the strong revenues and earnings came in much higher than our estimates. For the fourth quarter 2004, revenues rose 104% to $17.3 million, compared to revenues of $8.5 million for the 2003 fourth quarter. Net income for the 2004 fourth quarter increased 47% to $2.4 million, or diluted EPS of $0.16. TMSF's strong fourth quarter in 2004 was the direct result of its change in strategy to shift mortgage underwriting into the Alt-A mortgage market and other niche products that include purchase money orders for first-time home buyers. TMSF has reported double-digit growth in revenue and earnings in the last five quarters, and we believe this growth is not recognized in the stock market. Based on our estimated diluted EPS of $0.98 for 2005 and applying a conservative price earnings ratio of 3.8, we are raising our 12-month price target to $3.70 per share. Based on our 2006 estimated diluted EPS of $1.05 and applying a 4.5 price earnings ratio, the price target for year-end 2006 is $4.70 per share. At the current levels, TMSF Holdings affords investors an opportunity for long-term capital growth with minimum downside risk.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 27 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 90 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $33,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. We received $52,000 from the Company for 8 Research Reports with coverage commencing on 2/7/2003. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at before investing.
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Contact:
Dutton Associates
John M. Dutton, 916-941-8119
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