GREY:AZDDQ - Post by User
Post by
bpeterson Apr 20, 2004 2:32pm
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Post# 7378531
Paradigm recomendation
Paradigm recomendationApril 13, 2004
Today’s Research Summary:
Azure Dynamics Corporation (AZD–V)
US Gasoline Prices Reach All Time Highs
U.S. gasoline prices have reached all time highs with the average price nationwide for premium
grades averaging US$1.95 per US gallon, and local prices in some markets reaching US$2.30
per gallon on the weekend. All grades have reached al time highs with regular grade averaging
US$1.77, and mid-grade US$1.88. These higher prices are a function of a weaker U.S. dollar,
higher oil prices and specific refinery constraints in the U.S. market. With the normal “summer
driving season“ beginning on Memorial Day weekend (end of May), we believe the likelihood of
higher gasoline prices remaining at or near these levels for the next 4 to six months appears
high. With this backdrop, we believe hybrid automotive alternatives should receive ever more
focus as an immediate and affordable solution to significant gasoline efficiency without
sacrificing size or performance. Azure’s hybrid drivetrains achieve 50% improvement in
gasoline consumption and are very attractive to the commercial vehicle market. We
recommend Azure as a Buy (Speculative).
Analyst: J. Marvin Wolff, CFA (416) 361-3376
mwolff@paradigmcapinc.com
Recommendation: Buy (Speculative)
12-month Target (C$): 2.20
Current Price (C$): 0.90
Potential Return: 144.4%
Research Note: N.A.
(C$) EPS P/E
FY04e -0.14 nmf
FY05e -0.09 nmf
FY06e 0.04 22.5x