MAGOG, Quebec, June 23 /PRNewswire-FirstCall/ -- Magnum D'Or Resources, Inc. (OTC Bulletin Board: MDOR), 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.
