Ludlow Issues Research Opinion on Relm Holdings (RELM)

Ludlow Capital Issues Research Opinion on Relm Holdings, Inc.
Last Updated: June 30, 2010 - 8:50am EST
NEW YORK--Ludlow Capital issues research and traders opinion on Relm Holdings, Inc. (OTC:RELM), a developer of financial information service technology, with a 'speculative' price valuation target to $0.01 to $0.02 per share.

SUMMARY

Although a ‘speculative’ micro-cap play, the Company has shown increased interest based on current technical indicators within their trading pattern, current share structure, and pending new acquisitions for the company. Through their holding subsidiary, Access Versalign, Inc, the Company is expected to announce several new acquisitions within the financial information technology sector, which in turn could provide for increased revenues and cash-flow for the parent holding company.

As of March 31, 2010, the Company had around 650 million shares issued and outstanding. Based on pending acquisitions, and relative tight share-structure, we feel a fair-value for this start-up company to be in the range of $7 to $10 million for the time being. So, even if on a conservative bases we round the shares up to an even 700 million outstanding, then a price of $0.01 to $0.02 would still equate to only $7 to $14 million market cap.

On the short-term, we would watch for a break of the 200 day moving average at around $0.0023 for indication of true break-out trend for the stock, with additional resistance around the $0.004 to $0.0045 range for move up to our $0.01 target price. Technical indicators such as the MACD, and short-trend moving averages are pointing to a potential break upward something in the very near-future.

Risks Involved

As with most equities, dilution of common shares could reduce the valuation of the company, and thus effect and valuation targets, and price performance. Other risks range from inability to obtain proper financing, decrease of demand for financial servicing products, and under-performance of revenue expectations. The company is currently traded on the Pink Sheet exchange, and thus has limited public and audited information available for review. Investors are highly encourage to consult with a financial advisors before making and and all investment decisions. 

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