Press Release Source: Nutrition 21
Dutton Associates Announces Investment Opinion: Nutrition 21 Rating Maintained at Strong Buy in Update by Dutton Associates
Wednesday January 18, 12:30 pm ET
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Jan. 18, 2006--Dutton Associates continues its coverage of Nutrition 21 (Nasdaq:NXXI - News), maintaining its rating at Strong Buy and a $1.70 target price. The 11-page report by Dutton senior analyst William R. Prather, R.Ph., M.D. is available at
www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Multex, Knobias, and other leading financial portals.
We believe Nutrition 21 (N21) has an excellent chance of being successful with their commercialization efforts for Chromax® and Diachrome®, the first branded product line of chromium picolinate. N21 has a very strong clinical database, patent protection surrounding the use of chromium picolinate in humans, and personnel with the expertise and relationships in commercializing products in the mineral/vitamin/supplement category. N21 is promoting the only branded line of chromium picolinate, a supplement category that we estimate generates over $100 million annually. We believe N21 will achieve a significant degree of success with their commercialization efforts of Chromax and Diachrome. We also believe the investment community tends to agree as the value of the common stock rose approximately 60% on the recent news that N21 has entered into an agreement where Rite Aid Corp. will distribute Chromax in its roughly 3,400 stores. However, we believe the Rite Aid announcement was the first of a number of deals N21 plans to announce and believe there will continue to be common stock appreciation as the investment community sees the potential towards significant revenue gains as the Company's commercialization strategy unfolds. We are, therefore, maintaining our rating of Strong Buy with a 12-month target price of $1.70 which represents an approximate 50% increase over current values.
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 120 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. Dutton Associates received $55,000 from the Company for 8 Research Reports with coverage commencing on 7/6/2004. 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
www.jmdutton.com before investing.
Contact:
Dutton Associates
John M. Dutton, 916-941-8119