Medina International Holdings is focused on designing, manufacturing and selling recreational, fire, rescue and police boats to an international audience. The boats are specifically designed for private, state, local, federal agencies and military use. Quick response boats have been in higher demand since September 11 and the increasing terrorism concerns.
Recently, the SAFE Port Act was signed into law which expanded importance on port security by providing over $3.4 billion every year, for the next five years, designed for port security. The Act also provides $400 million a year over the next five years for training exercises at ports. In close time proximity of the Act’s signing, US Homeland Security Secretary Michael Chertoff stressed the importance of improving protection of the US coast before the House Committee on Homeland Security.
The analyst of the report stated, “Since our initial report, the Company has made significant progress in implementing its business model. MIHI has secured a distribution agreement with a major DOD contractor, made its first sale of a fire rescue boat outside the US (in Turkey), extended the license term for the 12’ and 15’ boat designs and will participate as an exhibitor at the only international event covering global maritime security. In addition, the Company is in the process of negotiating distributor relationships in Central and South America, Europe and the Middle East and has recorded revenues and gross profits of $192,800 and $105,806 for the first quarter ended July 31, 2007.
She concluded, “Management anticipates additional product deliveries in the second half of 2007 and recently reaffirmed its 2007 guidance of approximately $800,000 in sales. Since we issued our initial report, MIHI’s share price has risen to $0.45 then fallen to a $0.38 current range. Our valuation analysis and recent developments suggest that there remains significant potential for further growth. Consequently, we reiterate our Speculative Buy Rating and $0.94 price target.”
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