Dutton Associates Announces Investment Opinion: Seawright Holdings Rating Speculative Buy in Update Coverage by Dutton Associate

  
    
  
  
    
      Dutton Associates updates its coverage of Seawright Holdings 
      (OTCBB:SWRI) maintaining a Speculative Buy rating and a lower price 
      target of $0.45. The 6-page report by Dutton senior analyst Jonathan H. 
      Ziegler, CFA is available at www.jmdutton.com 
      as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and 
      other leading financial portals.
    
    
      Seawright shares recently closed at $0.24 per share, which effects a 
      company enterprise capitalization of approximately $5.2 million. While 
      this number does not appear to be inexpensive premised upon our current 
      estimate of 2007 and 2008 EBITDA of ($1.2 million) and ($74,000) 
      respectively, it represents to us a relative bargain in view of the 
      putative asset values of the Company. The Company’s 
      strategy is to monetize the 300 million gallon per annum spring in rural 
      Virginia, which is within short driving distance of 2/3 of the vast east 
      coast population. The Company has managed to distribute its branded 
      bottled water to local Whole Foods stores and just got into Balducci’s, 
      both upscale operators. However, to become really successful as a major 
      bottler/marketing/merchandising company, we believe the Company will 
      require far more resources in personnel, facilities and capital than it 
      has now. The Company sold a couple of thousand cases during the quarter 
      and generated revenue of only $4,183 up from $522 in the same quarter a 
      year ago. With our view that fresh-water, an inexhaustible supply, 
      represents a major asset which could grow in importance as 
      fresh-water-supplies could conceivably rank up there with energy 
      reserves today, we believe that the Company boasts major asset values 
      which are under-stated by the Company’s 
      current market.
    
    
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