Dutton Associates Announces Investment Opinion: 21st Century Upgraded to Strong Speculative Buy Rating By Dutton Associates

Dutton Associates continues coverage of 21st Century Holding Company (Nasdaq:TCHC) increasing its rating to Strong Speculative Buy and a higher price target of $20.00. The 13-page report by Dutton Associates senior analyst Richard W. West, CFA, is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. The report provides the rationale for increasing our rating on 21st Century Holding to Strong Speculative Buy and increasing the target price to $20.00 per share. Among the reasons were i) after a disappointing first quarter that was affected by political intervention from the state of Florida, 21st Century Holding Company management lowered its guidance for FY2007 to a range of $2.00 to $2.50. In response, we lowered our rating to Speculative Buy and a new 12-month target of $14.00; ii) after the 1Q results were released, 21st Century effected management changes; iii) on July 27, 21st Century increased its guidance for FY2007 to a range of $2.25 to $2.75; iv) reported on July 31, record results for its second quarter of FY2007; and v) continued its string of dividend payments. The recent moves by 21st Century to diversify its business lines away from mobile homes, property, and the auto business are beginning to produce positive results. Further geographical diversification is adding to the long-term attractiveness. The recently filed class action lawsuits are a short-term distraction, and it is impossible to forecast the long-term financial impact of these lawsuits. We recognize the near term risks created by the class action lawsuits, as well as the remaining three months of the 2007 hurricane season. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 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 $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. We received $72,500 from the Company for 10 reports commencing 7/28/2004, and 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.