Wednesday, March 31, 2010

Chechen Rebel Leader Claims Responsibility for Moscow Attacks

Doku K. Umarov, a Chechen rebel leader, posted a video via the Internet hours after another bombing in Dagestan, which is part of the disputed southern Caucasus region. Umarov said that the attacks in Moscow on Monday were an act of revenge against Prime Minister Vladimir Putin. The rebel leader claims that Putin’s anti-terror raid this February (in a wooded area near the border between Chechnya and Ingushetia.) killed both civilians and militants.

“You Russians hear about the war on television and the radio, and this is why you are quiet, this is why you don’t react to the atrocities committed by the bandit group that is led by Putin,” Mr. Umarov said on the video, which was dated March 29, the day of the Moscow bombings. “I promise you the war will come to your streets, and you will feel it in your own lives and on your own skin.”

Chechen Rebel Leader Claims Responsibility for Moscow Attacks“They are sewage scum who will be destroyed”, was Putin’s response to the rebel leader’s video. However, President Medvedev talked about how poverty and unemployment in the Caucasus region is at the root of the problem. He said that resolving those problems was “even harder than looking for and destroying terrorists,” but that he planned to continue pursuing both aims. In their statements you can see two ideologies about how to handle the border near Chechnya. One of force and one of tolerance, but it is possible with the attacks in Moscow that tolerance will no longer be a possibility.

Obama Opening the East Coast to Drilling

Obama Opening the East Coast to DrillingThe Obama Administration will formally announce today that it will open the East Coast to oil drilling. From Delaware to the eastern Gulf of Mexico will be part of the proposal, which was long off-limits from a moratorium made in Congress. The suspected proposal will cover 167 miles of ocean.

This proposal was one that the Bush Administration tried to pass but got carried over to President Obama. President Obama initially put the legislation aside, but now he is going to pass it with a few changes. The main change will be that Bristol Bay, a wildlife protection area, will not be open for exploration. Interior Secretary Ken Salazar orchestrated the deal, which will not allow drilling to begin for over a year, due to intense geological and environmental studies that must be completed before the project can get started. That clause is part of President Obama’s middle ground on the subject. He wants to find a way to make the U.S. less dependent on foreign oil while drilling in the “right way and in the right places.”

Reports on exactly how much oil lies beneath the East Coast waters are unclear. Reports on the area are over 30 years old but that it is rumored that the eastern Gulf could have around 3.5 billion barrels of oil and 17 billion cubic feet of natural gas.

President Obama will draw some fire from some of his supporters, but he did warn of having to make “tough decisions about opening new offshore areas for oil and gas development” in his State of the Union Address. It will be interesting to note how this decision influences voters around election time.

6 Things to Read Before Trading Today

From the Desk of Lou Brien
  1. Stocks were mostly lower in Asia; that was the case for Australia which lost 0.8%, the Hang Seng and Shanghai were both lower by 0.6% and the Nikkei which lost a fraction. European indexes are straddling unchanged on the session and the same can be said of US stock futures.
  2. There was another pair of suicide bombings in Russia today. Today’s incidents are said to have killed at least a dozen people; they occurred in the southern Russian province of Dagestan and officials think it is the same group that perpetrated the Moscow subway bombings earlier this week.
  3. The February reading of Australian Retail Sales was surprisingly weak; sales were down 1.4% but had been expected to increase 0.3%. The March reading of the German Unemployment Rate fell one tenth to 8.0%, a rate of 8.2% had been forecast. Also better than expected was the net change in the number of unemployed, this fell 31k but the estimate was for a gain of 7k. However, the Unemployment Rate in the Eurozone was up one tenth to 10.0% in February.
  4. US mortgage applications were up 1.3% in the week ended March 26, according to the Mortgage Bankers Association.
  5. ADP will announce its estimate for the net change in private sector non-farm payrolls at 7:15am CDT, it is expected to be +40k. The March reading of the Chicago Purchasing Managers Index is due out at 8:45am CDT, three minutes earlier for subscribers; the estimate is 61.0, down from the February result of 62.6. The February reading of Factory Orders is due out at 9:00am CDT, it is forecast to be +0.5% on the month.
  6. The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to grow 2.5 million barrels, but inventories of Gasoline are expected to fall 1.85 million and the estimate for Distillates is -1.375 million.

Tuesday, March 30, 2010

Nissan Bringing a Cheap Electric Car to US

Nissan Bringing a Cheap Electric Car to USNissan Motor Company announced Tuesday that it will be selling its completely battery-operated electric car, for $32,780, but with a $7,500 tax credit, the car would only cost consumers about $25,000. The Leaf is a four-door hatchback that can travel up to 100 miles on a single charge. Nissan will debut the car in showrooms late this year.

The low price of the Leaf will challenge General Motors to keep the price low on Chevy’s rechargeable electric car, the Volt. GM was looking to price the car around $35,000 with that same credit making the car about $27,500. However, the real difference between the Volt and the Leaf is that Chevy’s car is not a true electric car. It can only travel forty miles before a small gas engine powers on and gives energy to the car.Nissan Bringing a Cheap Electric Car to US

GM believes that the Volt is a better option for consumers because they will not be limited to a hundred-mile range, the small gas tank will allow unlimited driving potential. Also, industry analysts believe that the Volt will do better in urban dwelling because it would be very difficult for a person living in an apartment with no garage to charge the Leaf. Nissan's car will probably be a better option for people in a suburban setting with only a short commute.

A New Decade: What will be the role of Pakistan?

A New Decade: What will be the role of Pakistan?The United States has recently been making friends with Pakistani leadership. The White House has been calling the cozy talks “strategic dialogue” – unfortunately, it is these kind of talks that make the U.S. look opportunistic and capricious. On the otherside of Pakistan is India and there are number of conflicts between those two countries: Kashmir, the Siachen Glacier and Pakistan’s involvement in the attacks on Mumbai. It would seem that the U.S. can not be best friends with both of these countries, they will inevitably have to choose.

The war on terror has forced the Obama Administration to use the Pakistani government as their punishing hand. Recently, capturing Taliban Commander Mullah Abdul Ghanu Baradar plus a number of other Taliban fighters. In return for these arrests and its continued help, Pakistan will want to see the U.S. cede to a few demands. Those demands will attempt to make Pakistan the Middle East’s new rising star: new energy resources, better infrastructure, trade and eventually going nuclear. But Pakistan is suspicious of the U.S. and its leaders know that they are being used; the White House will help Pakistan until its interests in the region are through. The Pakistani people are not so keen on U.S. involvement and regard our country as a costly ally.

But the main issue is that helping Pakistan loosens our ties with India, one of the world’s largest growing economies. Washington diplomats have said repeatedly that deals with one country are not made at the expense of a neighboring country. However, the reception of a prominent Pakistani General in Washington led Hindu newspapers to claim that the Obama Administration was favoring Pakistan.

Washington has repeatedly told India and Pakistan to talk but it seems that there is a new internal dialogue in Pakistan that needs to be hashed out. It seems to be thinking about what kind of country it wants exactly - a country with powerful militant groups that defend the religious rules of Islam or a country that is based in Islamabad with infrastructure and democracy.

Case/Shiller Home Prices Report

From the Desk of Lou Brien:

Case/Shiller reports that home prices in January were down 0.7% from year ago levels; the smallest annualized decline in two years. On a monthly, seasonally adjusted basis, prices were +0.3%

Of the twenty cities surveyed San Francisco led the way with a year on year gain of 9%. Las Vegas brought up the rear, prices there were down 17% from a year ago. Eleven of the group of cities showed a decline in prices from last year, nine were up.


Monday, March 29, 2010

Suicide Bombers Kill Dozens in Moscow

Suicide Bombers Kill Dozens in MoscowTwo Female suicide bombers killed 35 people in Moscow this morning. The first attack occurred as commuters were exiting a packed train at a station near the headquarters of the F.S.B., the successor to the Soviet-era K.G.B. Officials said they suspected that the attack there was intended as a message to the security services, which have helped lead the crackdown on Islamic extremism in Chechnya and other parts of the Caucasus region in southern Russia. The first blast killed 23 people. The second blast happened 40 minutes later at the Park Kultury station. Twelve people were killed in that blast. More than 100 people were injured in the two attacks combined.

There have been no immediate claims of responsibility. Prime Minister Putin was on his way to Siberia and turned around upon hearing about the attacks. Mr. Putin vowed that “the terrorists will be destroyed.” The attacks marked the second major upsurge in terrorism on the Russian transportation system in the last year. In November 2009, a bomb in a rural area derailed a luxury train traveling from Moscow to St. Petersburg, killing 26 people. The authorities have linked the attack to Muslim insurgents in the Ingushetia region, which is near Chechnya.

In October of 2002, a band of Chechen terrorists stormed a Russian theater during a performance and took 850 actors, musicians, and patrons hostage. After 57 hours of negotiations, Russian Special Forces launched an assault, killing all the militants and 117 of the hostages. During that October siege, some of the terrorists were women and were wearing explosive suicide vests.

3 Pre-Lunch Market Movers - (NASDAQ: OXBT), (NASDAQ: MRNA), (NASDAQ: BELM)

Oxygen Biotherapeutics Inc. (NASDAQ:OXBT) is trading at $6.29 up $1.65 or 35.5% on heavy volume of 550k


Today the company announced that it has begun distribution for its newly formulated Dermacyte(TM) Oxygen Concentrate for the beauty and skin care market. The over-the-counter product is a scientifically designed perfluorocarbon concentrate to enhance oxygen delivery to skin. When Dermacyte was originally introduced to the market it sold quickly and received good feedback.


MDRNA Inc. (NASDAQ:MRNA) is trading at $1.33 up $0.32 or 32% on heavy volume of 13M


Today the company announced that it had been awarded a key patent for its siRNA technology. The U.S. Patent and Trademark Office has issued a Notice of Allowance for patent application U.S. 12/701,397 covering methods for the delivery of siRNAs as well as a broad array of compounds with pharmacological activity. The patent identifies and protects peptides that were discovered using MDRNA's proprietary Trp Cage Phage Display Library and describes targeting peptides that demonstrate high binding affinity to, and internalization by, hepatocellular carcinoma cells. This is the 2nd Notice of Allowance the MDRNA has received in the last 4 months.


Bell Microproducts Inc. (NASDAQ:BELM) is trading at $6.89 up $1.51 or 28% on heavy volume of 34.3MN


The company agreed to be bought by Avnet Inc. for $7 a share in cash. The deal is valued at $594 million, including an equity value of approximately $252 million and $342 million in Bell debt.

3 Morning Movers (NASDAQ:OXBT) (NASDAQ:WHRT) (NASDAQ:SATC)

All Three movers up on good Volume

Monday morning movers in Nasdaq SmallCap find Oxygen Biotherapeutics, Inc. (Nasdaq: OXBT) + 49% this morning. Oxygen Biotherapeutics, Inc. (Nasdaq:OXBT) today announced that the company has begun distribution for its newly formulated Dermacyte(TM) Oxygen Concentrate for the beauty and skin care market. The over-the-counter product is a scientifically designed perfluorocarbon concentrate to enhance oxygen delivery to skin. As of later this week, retail orders also can be placed on the Dermacyte secure website at www.BuyDermacyte.com.

"Inventory of Dermacyte(TM) sold out quickly last fall when it was originally introduced in a market test designed to gauge customer interest and response," said Chris Stern, company chairman and CEO. "The feedback we received from customers was quite positive. We've improved the Dermacyte concentrate to be smoother and more effective. Therefore, we believe that our new cosmetic line has the potential to be a significant financial contributor to our company."

Dermacyte(TM) Oxygen Concentrate is the first product in a broad and diverse cosmetic line currently under development. It uses the company's patented Oxycyte technology, an oxygen carrier scientifically designed to enhance oxygen delivery to tissues such as skin. Some potential benefits of increased oxygenation to the skin include a decrease in the appearance of fine lines, wrinkles and dryness.



World Heart Corporation (NasdaqSC: WHRT) following an upgrade by Wedbush Morgan last week is getting some follow on volume + 12% today



Satcon Technology Corporation (NasdaqSC: SATC) + 11% The company delivers a suite of power conditioning solutions and services for large commercial and utility scale renewable energy installations through its two business segments: Renewable Energy Solutions and Applied Technology.

Friday, March 26, 2010

South Korean Naval Vessel Fired Upon

From the Desk of Lou Brien:

A South Korean navy ship is sinking due to a missile or torpedo attack from an unidentified vessel, thought to be from the DPKR (North Korea). There are 104 crew members on the sinking ship, no reports of casualties. The S.
Korean navy is said to have fired at the other ship.


THQ Looking for "Undisputed" Success - (NASDAQ - THQI)

THQ Inc. (NASDAQ:THQI) and Zuffa, LLC today announced the highlights of THQ's March 25th UFC Undisputed 2010 press event featuring UFC President Dana White and videogame cover athlete Brock Lesnar.

During the event, THQ demonstrated the significant game play innovation built into UFC Undisputed 2010, again setting a new standard for mixed martial arts (MMA) gaming. More than 135 press from around the globe, including the US, Canada, UK, France, Germany, Spain, Italy and Russia attended the event to experience, among many features, the improved combat, career mode and customizable fighting techniques in UFC Undisputed 2010.

Almost 4 million units of UFC Undisputed 2009 were shipped worldwide making it quite a successful game. Now the company is building on their success by making the most realistic and advanced MMA game on the market. They are working to make improvements on the first game such as giving fighters the ability to sway back and forth to elude attacks, in essence trying to keep to game from turning into a "button masher."

This could turn into a lucrative franchise as MMA, in specific The UFC, has exploded onto the scene. Even ESPN is starting to give The UFC coverage in their highlights. THQ was smart in taking on the endeavor of making virtual, the fast growing and popular sport. The UFC also has a lot of fans overseas as many of the fighters are foreign, this bodes well for sales.

6 Things To Read Before Trading Today

From the Desk of Lou Brien
  1. Stocks were higher across Asia. The Nikkei led the way with a gain of 1.5%, the Hang Seng and Shanghai were both up by 1.3% and Australia added a fraction. European indexes are however unchanged to lower, with both the Footsie and Dax lower by a quarter percent or so. US stock futures are trading up by about a quarter of a percent as I write.
  2. China report that Industrial Corporate Profits are up 120 percent year to date on a year over year basis. The combined net income grew $71.3 billion in January and February from a year ago. The comparison was relatively easy as the year ago period showed a 37.3% decline.
  3. The February reading of Japan's Consumer Price Index, ex-fresh food, is -1.2% on a year over year basis, matching the forecast. The March reading of that same price measure for Tokyo is -1.8%, one tenth more deflation than expected.
  4. ECB boss Trichet is now "happy" with the solution euro area governments devised for Greece. (When he said IMF involvement would be "very, very bad" he must have intended a definition of the word "bad" that means "good, good, good".) By the way, the deal could at some point take the form of bilateral loans to Greece, about two thirds coming from EU countries and one third IMF. However, for the moment it is an agreement to backstop Greece in a worst case scenario, but not now since Greece has not yet asked for help. If the loans need to be executed euro member states will have to vote unanimously to activate the package and any one state could veto the whole deal.
  5. The dollar/euro has bounced this morning, currently up by about 130 pips, trading around 1.3400.
  6. The final revision of the Q4 GDP is due out at 7:30am CST. None of the key GDP components are expected to change from the first revision, the forecasts are: GDP +5.9%, Personal Consumption +1.7%, GDP Deflator +0.4% and Core PCE QoQ annualized +1.6%. The final March reading of consumer sentiment from the University of Michigan is due out at 8:55am CST; it is expected to be revised up from the preliminary result by a half point to 73.0, in February it was 73.6.

Thursday, March 25, 2010

Al Jazeera Reports that Bin Laden Speaks

Al Jazeera has reported that an Audio Message from Osama Bin laden, whether real or not, has hinted at retaliation at the alleged execution of Khaled Sheikh Mohammed, the mastermind behind the 9/11 attacks.

The audio tape reports:
"The White House declared that they will execute the hero Khaled Sheikh Mohammed and his comrades in arms. They think that America will be safe behind the oceans. Justice is to be treated in the same manner," the message said.

"To the American people, peace be upon those who follow the right path, my message towards you is in regards to our prisoners that you have in your custody. Your president is still following the course of his predecessor."

Messages had also surfaced from the Al qaeda leader in January criticizing the U.S. for violating Kyoto Protocol and taking responsibility for the Nigerian Christmas Underwear Bomber.

The validity of these messages are unconfirmed with many analysts doubtful that Osama Bin Laden is even still breathing.

U.S. Easing up on Iran and Yuan

U.S. Easing up on Iran and YuanThe U.S. has started to retreat from the severe sanctions it was trying to impose on Iran. Instead they are aiming diplomatically to soften the sanctions to gain Russia and China’s support. Among provisions removed from the original draft resolution the U.S. sent to key allies last month were sanctions aimed at choking off Tehran's access to international banking services and capital markets, and closing international airspace and waters to Iran's national air cargo and shipping lines, according to the people.

Secretary of State Hillary Clinton has been on a world tour trying to force Iran into shutting down its nuclear program. Iran maintains that the program is for energy purposes and not for developing atomic weapons. The U.K. and Germany convinced Mrs. Clinton and the Obama Administration that softening several elements of the proposal was the only way to find resolution with China and Russia on the U.N. Security Council.

The U.S. is looking for sanctions with bite. If the current resolution is passed, it would still target major power centers in Tehran, particularly the Islamic Revolutionary Guard Corps, the nation’s prime military force, and there would still be legal search and seizure of suspicious cargo bound for Iran. But the original U.S. draft would have demanded an overall ban on Iran airplanes and ships in U.N. territorial waters. Hurting Iran’s imports and exports, and primarily making it difficult to get supplies needed for weapons.

Russia has been contradictory in its statements about Iran. Prime Minister Putin announced opening a nuclear reactor with Iran just last week, but the country has also made statements about continuing the discussion and needing to limit Iran’s economic pull, as long as it does not effect Russia’s existing deal for nuclear energy. China will definitely be the most important nation. Beijing receives a large percentage of its oil from Iran and sanctions against Iran would be an inhibitor to China’s growing nation. However, the U.S. has countered that claim by saying that Saudi Arabia and United Arab Emirates will replace Iran’s oil sales.

In other news, Chinese and U.S. officials, facing rising tensions over Beijing's currency policy, struck a more conciliatory tone Wednesday, though they didn't offer immediate solutions for resolving their differences. The U.S. has commented recently that China has valued the yuan unnaturally low against the dollar and giving China an advantage in global business. Policy makers in the U.S. have called for China to revlaue its currency. Chinese officials have rejected this idea. U.S. Easing up on Iran and Yuan

Treasury Secretary Timothy Geithner said that the U.S. "can't force them to make that change…I think we can work through the tough things we have together," Mr. Geithner said. The US Treasury must label and detect manipulative currency practices. Lawmakers have pointed fingers at China’s practices, claiming that the low value of the yuan keeps the U.S. from creating jobs and lowering the national deficit. Chinese officials have stated that U.S. unemployment issues have nothing to do with China, and they would evaluate the yuan based on China’s condition only.


Wednesday, March 24, 2010

Israel at Odds with US

Israel at Odds with USOver the past week the world has seen the US and Britain wag its finger at Jerusalem. Vice President Joe Biden chastised Israel for announcing a new construction site in disputed soil during his visit last week. Britain expelled an Israeli diplomat over issuing fake British passports to Mossad assassins used for a killing in Dubai. Prime Minister Benjamin Netanyahu, on a peace-keeping visit, said in a speech: “Jerusalem is not a settlement; it’s our capital,” refusing to budge on the disputed construction site in the Ramat Shlomo neighborhood in Eastern Jerusalem.

The Obama administration is now at a public loggerhead with Israel and will have to put pressure on the construction in East Jerusalem, which Palestine is hoping will be the capital of their eventual state. While, in Britain on Tuesday, a host of lawmakers used harsh language to excoriate Israel on the floor of Parliament, calling for the expulsion of the Israeli ambassador, urging criminal prosecution of those involved in the Dubai operation and going so far as to say that Israel was becoming a “rogue state.” The Israeli government only issued a short regretful statement to the press about the dismissal.

The new municipality in East Jerusalem will be a hot topic in talks about Middle-East peace. Israel has refused to share sovereignty of Jerusalem and believe religiously that it should not be divided. Palestinians declared these recent building sites as proof that Israel cares nothing about peace. Palestinian diplomat Saeb Erekat condemned the plan, and said it damaged Israel's credibility as a peace partner. "There is growing international frustration with Israel over the actions and decisions it is taking," Mr. Erekat said. "Israel is digging itself into a hole that it will have to climb out of if it is serious about peace. There is overwhelming international consensus on the illegality of Israel's settlements, including in East Jerusalem, and the damage they are doing to the two-state solution."

Israel annexed East Jerusalem after capturing it in the 1967 Mideast war, but the move was never recognized internationally. The international community sees Jewish neighborhoods in East Jerusalem as no different from settlements in the West Bank.

Two Early Morning Market Movers - (NASDAQ: ZOOM) and (AMEX: SSY)

Zoom Technologies Inc. (NASDAQ: ZOOM) is trading at $8.70 up $0.45 or 20% on heavy volume of 460k.


Today announced that the Company's previously disclosed acquisition target, Leimone Culture, has signed an agreement with China Central Television (CCTV), the major state television broadcaster in China, with 19 channels broadcasting to more than one billion viewers. According to the agreement, Leimone Culture will provide approved media content to CCTV's mobile users and will bundle CCTV.com's mobile TV access link onto Zoom's branded "Leimone" mobile phones and onto Zoom’s OEM customers' phones. ZOOM is now in a position to benefit from mobile video content. Zoom expects to finalize the acquisition of Leimone Culture by mid-year 2010.


SunLink Health Systems Inc. (AMEX:SSY) is trading at $3.85 up $0.88 or 30% on heavy volume of 204k.


The company continues to run in the wake of the health care bill. This is the second day it’s made a big move, continue to watch SSY and the hospital sector in general as the day moves on.

Portugal Given Debt Warning

Portugal Given Debt WarningFitch Rating issued a double A-minus rating to Portugal warning that if the country did not change its fiscal practices it could be facing debt woes. This news comes at a bad time for the Euro Zone. Their currency is already at a 10-month low against the dollar and talks of Greece bailout have been stewing this week.

Fitch said Portugal's government deficit in 2009 hit 9.3% of gross domestic product, much higher than the 6.5% of GDP forecast by Fitch last September, increasing the magnitude of remedial measures needed in the medium term. The government will now need to implement "sizeable" consolidation measures beginning next year, on top of the reversal of the fiscal stimulus this year, in order to meet the deficit target of 3% of GDP by 2013, the agency said.

This news about Portugal will definitely further sag the Euro. The downgrade is not very steep but nonetheless the anxiety in the European market will pick up on this.

Tuesday, March 23, 2010

Google-China Update: China Restricts Hong Kong Site

Google-China Update: China Restricts Hong Kong SiteAfter Google shut down its search engine yesterday it started directing users to its Hong Kong site. That site had uncensored search results. Now, the Chinese Government has countered and restricted mainland China users from accessing the Hong Kong site.

Beijing officials were clearly angered by Google’s decision, which focused global attention on the government’s censorship policies, and there were signs of possible escalation in the dispute. In other news, China’s biggest cellular communications company, China Mobile, was expected to cancel a deal that had placed Google’s search engine on its mobile Internet home page, used by millions of people daily. In interviews, business executives close to industry officials said the company was planning to scrap the deal under government pressure, despite the fact that China Mobile has yet to contract with a replacement.

It has also been hinted that Chinese official will shut down Google’s address in China completely and that their advertising license will not be given renewal.

Monday, March 22, 2010

Historic Day: Google Leaves China

Historic Day: Google Leaves ChinaLate this afternoon, Google announced that it would cut its search engine in China making good on its threat. The Google search engine in China now redirects users to Google’s search engine in Hong Kong. In addition, the company said that they are not completely pulling out of China. They will still have cell phone services and research operations. A Google spokesman said it is "too early to tell" what will happen to its roughly 600 employees in China, who may be reassigned.

David Drummond, the company's chief legal officer, wrote in a blog post that the company's Hong Kong site is "offering uncensored search in simplified Chinese, specifically designed for users in mainland China and delivered via our servers in Hong Kong." Mr. Drummond said Google believes the move is a "sensible decision," but said Google is "well aware that it could at any time block access to our services."

The announcement comes after months of drama and commentary over Google’s Chinese fate, which has been up in the air since a January 12th cyber attack linked to Chinese universities and thought to be state sponsored. Google downplayed the attacks but said they were frustrated with China’s attempts to limit free speech.

Numerous western companies have found China to be a tough place to do business. Nearly every company that starts out in Beijing with promise, ends in bad blood or selling off the parts. After struggling to compete in China, Yahoo sold its Chinese operations to Alibaba Group, a local company; Ebay and Amazon never got traction; and Microsoft’s MSN instant messaging service badly trails rival Tencent.

Could it be that the technological future of China is to head in a different direction than Western nations? The future of China is not an open market, as we would prefer. It is tied to nationalism and doing business there is going to require a better understanding of the Chinese State. The debate will rage if Google has missed out on a serious opportunity but it would seem that the Chinese government prefers homegrown companies.

The loss of Google China will not effect their pocketbook severely, and at home in the US Google may now be seen as a champion for human rights, a company that empowers the individual and the search for knowledge. We will have to wait and see how the wager turns out.

Big Earnings and Growth Out of China - (NASDAQ: JADE)

LJ International Inc. (NASDAQ: JADE), a leading jewelry manufacturer and retailer, today the company reported fourth quarter and fiscal year ended December 31, 2009. JADE reported double-digit increases in retail revenues, net income and earnings per share for these two periods.

Highlights of Earnings
  1. Revenues at ENZO retail division exceed $50M milestone in 2009, rising 56% for fourth quarter and 39% for fiscal year
  2. Fully diluted EPS rises 50% for fourth quarter and 36% for year Comparable store sales rise 19% in fourth quarter and 25% in year
  3. Balance sheet remains strong, with cash and cash equivalents of $11.3M as of Dec. 31, 2009 and $2.3M in long-term debt
  4. Company sees wholesale revenues stabilizing as recovery continues
  5. Provides positive revenue and earnings guidance for first quarter 2010

The company‘s success was greatly due to their ENZO retail division which is slowly growing but quickly becoming their most profitable sector. In previous years ENZO was barely a fourth of total revenues now it is making up half, and its projected next year that it will take over wholesale as the main source of revenue.

More competitors are popping up across China, however, JADE being the first mover and having years of experience under its belt remains the top player in China.

One investor commented on how slowly the retail stores have been growing considering how profitable they are. Yu Chuan Yih, Chairman and CEO, responded by saying the company is focusing on improving productivity on current stores before expanding too quickly. However, they do have their sights on growth for this year and next, they estimate that 100 new stores will be opened by the end of 2011.

This is an interesting company going forward; China remains a huge area for growth and profits and this is the main reason JADE did so well this year. Sales in China nearly matched sales coming from the U.S., Canada, Europe and Japan combined.

Guidance for 1st quarter 2010 was given: Total revenues and ENZO revenues are expected to increase 15%, and 40% respectively from 1st quarter 2009.

News out of Moscow: Coke, Anger, Iran and the Final Frontier

News out of Moscow: Coke, Anger, Iran and the Final FrontierCoca-Cola Co. is getting involved in the race for Russian taste. Over the weekend they applied to the antimonopoly agency to buy a 75% stake in juice company Nidan Soki. The deal is showing its rivals Pepsi that the race is on.

Thousands of protesters headed to Red Square over the weekend. They were protesting falling living standards under Prime Minister Vladimir Putin. The police broke up the rally many people were calling “the day of anger.” Other areas held rallies as well. At least 1,500 people turned out in the Pacific port of Vladivostok, around 1,000 rallied in Saint Petersburg and hundreds gathered in several other cities.

Prime Minister Putin announced last Thursday that Russia would help Iran launch its first nuclear power plant. Secretary of State Hillary Clinton said that this was a certain blow to increase financial pressure on Tehran. Mr. Putin’s announcement surprisingly came as Clinton was visiting Moscow. Secretary Clinton took the announcement as a diplomatic slap in the face. "We think it would be premature to go forward with any project at this time, because we want to send an unequivocal message to the Iranians," Mrs. Clinton said at a news conference with Russian Foreign Minister Sergei Lavrov following Mr. Putin's comments. “We have consistently said that Iran is entitled to civil nuclear power," Mrs. Clinton said at the news conference. "It is a nuclear-weapons program that it is not entitled to."

On a lighter note, a Russian cosmonaut and a US astronaut landed safely in a Russian space capsule on Thursday. The duo was ferrying home from an international space station. The three and half-hour ride back to earth went smoothly. Both men were in good physical condition upon arrival in Kazakhstan.


7 Mintues of Michelle "Bombshell" McGee - (OTCBB: PNTV)

As the Jesse James and Sandra Bullock story continues to unfold, Players Network continues to experience an incredible amount of volume. Players Network (OTCBB: PNTV), the leading Television and Digital Media Network concentrating on Las Vegas Entertainment and the Gaming Lifestyle announced it has an exclusive interview with Michelle “Bombshell” McGee.

This Michelle Bombshell character has been claiming she had an affair with married man Jesse James, the two met at last year’s “Miss Ink” competition. A 90 second clip which has been circulating the internet for some time now is just a fraction of the interview in which Bombshell explains her provocative affair. Players Network has the full, un-cut, 7 minute interview, and has received several hundred thousand views in less than 24 hours. The Players Network has additional unseen footage that will be released over the next week.

Within the next few days the company will decide whether to make the uncut interview available to any of the major media outlets or if it will distribute it exclusively on their own platform. Either way this whole situation has driven up volume and traffic to the company’s site.

It is incredible how such a monstrosity of a woman can get such media coverage, but Players Network has done a good job of taking advantage of what has turned into somewhat of a craze. But seriously c’mon Jesse, Bombshell over Bullock?

IRS Announces Flexibility in Settlements - (OTCBB: TAXS)

As we begin to approach April, the end of tax season gets closer and closer. This is usually a time period we all seem to dread, however, this year the IRS will be taking steps to accommodate those who are having difficulty paying tax obligations due to unemployment or financial problems.

IRS commissioner Shulman has announced that IRS agents will be extending more flexibility when considering tax settlements. For example agents will be able to consider a taxpayer’s current income or their potential for future income when considering a settlement. In the past a compromise would be talked about, however, clients would be judged on their previous years of income. This can be misleading in economic hardships and times of high unemployment. The new step gives those who are unemployed an opportunity to discuss a compromise, when in previous years wouldn’t have such a luxury.

This will definitely help tax payers across the board and companies who offer tax services and counsel. One company in specific which is excited about this new step is TaxMasters Inc (OTCBB: TAXS). In an environment such as the one we are in today, more and more people are looking for counsel for tax relief. Shulman’s command for more flexibility will allow for more taxpayers, thousands to be specific, to become eligible for tax relief and compromise services. The increase of those eligible will give TaxMasters an even larger client base.

It will be interesting to see if the IRS will follow through with this new plan. Some are skeptical on the sincerity of the IRS and commission Shulman in specific.

Friday, March 19, 2010

March Madness in the Work Place

The past two days are probably the two most exciting days for the sport of basketball, and arguably sports in general. Of course we are talking about the first round of March Madness, 32 games in 2 days. Its two days in which teams who know nothing about each other get to play each other on the biggest stage in college sports, always making for exciting and unpredictable play. However, one thing that is predictable is the amount of people streaming these games from their office computers. One industry study has estimated the value of lost employee productivity due to March Madness at $1.8 billion.

So who in specific does this March Madness craze affect? For one the IT guys at these companies. Popular college basketball websites such as NCAA.com and CBSSports.com, where any game can be streamed live, generate a 10,000% increase in traffic flow during this time. IT professionals can bet that decreased network performance will occur. So besides employee productivity decreasing it seems March Madness can also potentially severely disable network performance, inevitably interfering with business goals and daily operations of a company.

Even just a few employees watching a game simultaneously can dominate a network gateway, impairing internal business traffic, and slowing applications. The amount of corporate bandwidth used to stream these lives games is quite eye-opening. Who would have thought such an American classic like college basketball could cause so much financial and productivity loss to a company. Good thing it only happens once a year.

Clean Tech the Next Big Thing

So the markets have been pretty slow today, probably a result of it being Friday combined with March Madness hitting full stride with its second wave of round 1 games. Lately there has been a lot of noise concerning the energy crisis we apparently put ourselves into. This made me think of a quote, by Paul Romer, I remembered hearing in a class a few years back; "A crisis is a terrible thing to waste." This is a perfect quote to explain the big push in “clean-energy” companies that have sprung up the past few years.

California’s Silicon Valley has exploded with Entrepreneurs trying to make a dollar solving the energy crisis. One major company that comes to mind is Bloom Energy; if you have not heard about them check out the piece 60 minutes did on this company. Apparently they have created a fuel cell which can wirelessly power homes and buildings 24/7; furthermore, this energy is cheaper and cleaner than the present grid technology. Some Major companies like Google, FedEx and EBay have already purchased the bloom box and say it has saved them money on their electric bills.

The point is as an investor, especially a young one, it is important to ask yourself, what is the next big thing? Sure Microchips, Software, and Dotcoms had their day but what will be the big player in the next decade. With more silicon in the US going toward making solar panels than computer chips seems that clean-energy isn’t a bad guess.

Two Pre-Lunch Market Movers (NYSE: POL) and (NASDAQ: APCVZ)

PolyOne Corp (NYSE:POL) is trading at $9.99 up $1.05 or 12% on heavy volume of 1.4M


Yesterday, after the closing bell, the company announced 1st quarter 2010 expectations, and they were better than originally expected. The company anticipates earnings per share before special items and tax adjustments of approximately $0.15 for first quarter 2010 versus First Call Consensus Estimate of $0.09. Furthermore, positive impact of new business gains and improving demand dynamics expected to drive revenues above $600M for first quarter of 2010.


Fresenius Kabi Pharmaceuticals Holding Inc (NASDAQ:APCVZ) is trading at $0.43 up $0.255 or 145% on heavy volume of 12M


There is no news on this stock today but there seems to be something going on as it is trading at a ridiculous volume. We will keep you informed on this one as the day goes on.

Thursday, March 18, 2010

Hillary in Russia Discussing Arms

"It's very important, as we move ahead on START (Strategic Arms Reduction Treaty) and as we work together on nonproliferation issues, for the United States and Russia to show effective leadership…” Clinton said addressing reporters after a meeting with Russian President Medvedev. Clinton is in Moscow discussing the details of the agreement. The treaty is no yet finalized but both leaders are hoping to finalize it this spring.


President Barack Obama will host a meeting next month in Washington of roughly 50 world leaders to improve the safeguarding of nuclear materials internationally. The United Nations will then convene a May conference in New York to review the implementation of the Nuclear Nonproliferation Treaty.

The Obama Administration is dedicated to START but completion has lagged. Getting the bill signed will be an important issue in the reelection campaign. Russian Foreign Minister Sergei Lavrov announced optimism on Tuesday that Start negotiations could be completed in the coming weeks. "The end of March-April—those are the dates, when, if the delegations firmly follow the directives of the presidents, they will finish preparing the treaty," the Itar-Tass news agency quoted Mr. Lavrov as saying.



The Obama Administration has tried to do strengthen and renew the relationship with Moscow. It has reduced arms specifically aimed at Russia and asking the Kremlin for help in the war in Afghanistan. "At the beginning of 2010, if you look at the U.S.-Russian relationship, we're in much more solid shape than we were in the beginning of 2009," a US diplomat said.

Wednesday, March 17, 2010

Merkel Pushes for Expulsion Option

Merkel Pushes for Expulsion OptionAngela Merkel proposed Wednesday to Germany’s lower parliament,that countries threatening EuroZone financial stability should face expulsion. She also warned against pouring money into Greece when it was unclear if a bailout would even be the necessary fix that Greece needs. Merkel’s comments rival a December paper documenting that kicking a country out of the EU would be next to impossible. The expulsion mechanism would require a treaty change and all 27 members would have to agree. Getting those signatures, especially now, will not happen. It would be as if Greece were signing it’s own dismissal. The threat from Merkel is inherently empty.

Germany seems quite unhappy in the Eurozone, but the reality is that Germany needs the weaker Southern European countries to export its products to. It will have to either bite the bullet or handle its economy differently. Demanding budget cuts from Greece is their constant refrain, but it does not appear that Greece will be able to meet all those requests. Greece will probably have to reschedule debt payments, and Germany and the rest will have to subsidize them.

The other option could be, and one that some economists are predicting, is that Greece will step out of the EU to devalue its currency, resurrecting the drachma. Paying back its debt in Euros is going to be a serious challenge causing even lower wages and further tax increases.

(NYSE: TNL) - Introduces New NanoFilter

Pulse, a Technitrol Company (NYSE: TNL), a worldwide leader in electronic component and subassembly design and manufacturing, introduced the first DSL NanoFilter; Z-321NF. This piece of equipment will offer both data and voice protection, equating to excellent voice band quality and optimal DSL rates. Pulse’s Z-321NF is designed for Southeast Asia, India, and Eastern European markets with 600 Ohm telephones.

The new NanoFilter works with any single-line phone, fax machine, or dial-up modem, and plugs into any standard phone jack.

Pulse continues to be a leading developer when it comes to DSL Filters, as they developed the first MicroFilter and now are introducing the first NanoFilter.

The company has also worked to save on transit costs for this new product. They are going to package 800 DSL filters to a box when normally 500 DSL filters are put in a box. Pulse is strategically targeting areas of high-volume DSL markets.

The stock is trading at $5.10 up $0.17 or 3.5% on above average volume of 184k.

Tix Corporation - Looking to Rebound in 2010 - (NASDAQ - TIXC)

Tix Corporation (NASDAQ: TIXC), a leading integrated entertainment company providing discount and premium ticketing services, event and branded merchandising, and production/promotion of live concert and theatrical events, today reported financial results for the 4th quarter and full year of 2009. The company experienced growing revenues and a shrinking net loss for both the 4th quarter and year in general.

Financial Highlights

  1. 4th quarter revenues increased 24.2% to $25.7M - Revenues for the year advance 18% to $81.8M
  2. The Company repurchased 1,326,000 shares of its common stock in the fourth quarter of 2009
  3. 4th quarter net loss narrows to $0.04/diluted share, compared with $1.02/diluted share, for 4th quarter 2008 - 2009 net loss declines to $0.02/diluted share compared with $1.08/diluted share in 2008
  4. The Company generated $6.2M of cash flow from its operations

The company bought back stock at a price of $1.55 and management feels at even this price the stock is underpriced. As early as October of 2009 this stock was a $4/share and it is speculated that a major holder had a margin call and dumped a large portion of TIXC which started the downward spiral.

One major business transaction that took place recently was the acquisition of All Access a discount ticket service with five facilities in Las Vegas. The acquisition will enable to company to reach more customers with top-notch Vegas shows. TIXC gave guidance that this could increase gross ticket sales to $100M.

Lastly The United States Patent and Trademark Office has awarded and issued the Company a United States patent on a "Ticket Distribution System." This is a brand new patent so there was not much information on it but it is worth keeping an eye on.

Once again the company is optimistic about 2010, if we see a decent economic recovery these guys could see a bump in stock price especially with Vegas coming back to life. Furthermore, with the extra cash on hand management sees more opportunities to buy back stock and get this thing priced where it should be.

Tuesday, March 16, 2010

Google’s Move From China Could Open Door for Microsoft

Google’s Move From China Could Open Door for MicrosoftIf Google does decide to leave China it will be a big opportunity for Microsoft’s search engine Bing, the Wallstreet Journal reported today. Microsoft has vowed to stay in China and abide by local laws. Essentially saying they are willing to censor all sensitive material.Google’s Move From China Could Open Door for Microsoft
Google is still negotiating with Chinese officials but it seems that the two are at a stalemate. China is not going to budge on its policies of expression and Google has repeatedly voiced its views on censorship. If Microsoft were to sweep in and promote itself after Google’s exit, analysts say it could cause public relations trouble for Microsoft. Google will appear as a champion to free media and Microsoft will be called a sycophant. However, putting the PR aside, this could be exactly the opening Microsoft needs. China is the largest market in the world and with Google out of the way; they could be laughing all the way to the bank.
Bing has not done all that well in China. Baidu, the Chinese search engine, currently holds 58% of the market in China and Google has about 36%. Although, a deal has been launched with Motorola where all cellphones sold in China will have Bing as their default search engine.Google’s Move From China Could Open Door for Microsoft
Some analysts have predicted that Google is bluffing, but one thing is clear: the damage done to the relationship with the Chinese government is very real. China sees Google as backing out of a contract. Google knew the laws of the land and decided to do business within the context of those laws. The reality is now, that Google could have talked its way out of an enormous market.

Monday, March 15, 2010

2 Conference Calls This Afternoon (PRKR: NASDAQ) and (TSCM: NASDAQ)

There are two conference calls this afternoon that we will be monitoring and bringing you the results of. The two companies reporting after the bell today are Parkervision Inc. (NASDAQ: PRKR) and TheStreet.com Inc. (NASDAQ: TSCM).

PRKR has been trading much lower today down almost 8% into the close

TSCM has been pretty flat all day, however, it is up almost 2% into the close.

Once again make sure to check back this evening for these companies results.

2 Afternoon Market Movers (AVOI: OTCBB) and (SINO: NASDAQ)

Advanced Voice Recognition Systems Inc. (OTCBB: AVOI) is trading at $0.30 up $0.23 or 330% on heavy volume of 304k.


Today the company announced that the United States Patent and Trademark Office have declared an interference between its application serial number 09/351,542 as Senior Party and U.S. Patent 5,799,273, owned by Allvoice Developments LTD ("Allvoice") as Junior Party.

This application in interference was filed back in 1999, after years of work the company finally has the declaration of an interference. This is huge for a company as small as AVOI, more information on this story as it becomes available.


Sino-Global Shipping America Ltd. (NASDAQ: SINO) is trading at $4.20 up $1.02 or 32% on heavy volume of 203k.



The company does not have any news as to why the stock is up, but its trading at a ridiculously high volume. The average 10-day volume is 5k, so the fact it’s trading at 203k probably means something is going on here. We will keep you updated as we find out news.

ORBC - Revenues Flat in 2009

ORBCOMM Inc. (Nasdaq: ORBC), a global satellite data communications company focusing on two-way Machine-to-Machine communications and leading provider of space-based Automatic Identification System services, today announced financial results for the 4th quarter and full year of 2009.

The company saw a decrease in product sales and an increase in service revenues, this equated in the company having very modest total revenue increase year over year ($27.6M from $27.3M).


The decrease of $3.1M in product sales seemed to have come from the company’s Japanese subsidiary; however, for the first few months of 2010 Japanese hardware sales have shown signs of improvement.

Service revenues were flat in the 4th quarter compared to 4th quarter 2008 and product sales were down, leading to lower revenue in 4th quarter 2009 compared to 2008.

On a good note, the company saw an uptick in billable subscriber communicators, and management sees this trend continuing as early as the 1st quarter of 2010.

ORBC was able to successfully complete the negotiations for its insurance settlement and received $44.25M this will be extremely helpful with building and launching its next generation satellites.

There were two business related bright spots for ORBC in 2010; the agreement with Lloyd’s List Intelligence, which should give service revenues an incremental boost, and the partnership with Xact Technology.

Management is excited for 2010 and during questions they said that they are experiencing momentum they haven’t seen since the first half of 2008.

US Consulate Worker Killed in Mexico

US Consulate Worker Killed in MexicoThe border town of Juarez this weekend saw terrible violence. A female consulate worker and her husband were shot dead in their car in broad daylight on Saturday. Their daughter, who was in the back of the car, survived the killings. Almost at the exact same time, in a different part of town, another American, who is the husband of a female consulate worker, was also murdered. He was driving down a street nearby the couple’s home when he was boxed in by gunmen and slain behind the wheel.
An outraged President Obama expressed his concern over the situation in Mexico and he also gave out his condolences to those families of the departed. "The president is deeply saddened and outraged by the news," said White House National Security Council spokesman Mike Hammer. He said Obama "shares in the outrage of the Mexican people at the murders of thousands in Ciudad Juarez and elsewhere in Mexico." The State Department updated its warning on travel to Mexico to say it had authorized the departure of dependents of U.S. government personnel from consulates in Ciudad Juarez and five other northern border cities.
"The safety and security of our personnel and their families in Mexico and at posts around the world is always our highest priority," Secretary of State Hillary Clinton said in statement. "These appalling assaults on members of our own State Department family are, sadly, part of a growing tragedy besetting many communities in Mexico."
Nearly 19,000 people have been killed since President Felipe Calderon came to power in Mexico in late 2006 and launched a military assault on the country's powerful drug cartels, sparking a surge in violence that has alarmed Washington, foreign investors and tourists.

2 Pre-Lunch Market Movers (CHRD: NASDAQ) and (RDNT: NASDAQ)

Chordiant Software Inc. (NASDAQ: CHRD) is trading at $4.98 up $1.17 or 31% on heavy volume of 3.3M


Today the company, a leading provider of customer relationship management software and services, announced it has entered into a definitive agreement to be acquired by Pegasystems (NASDAQ: PEGA). Under the terms of the agreement, Pegasystems will make a cash tender offer of $5.00 per share for all outstanding shares of Chordiant common stock for a total purchase price of up to approximately $161.5 million, assuming all outstanding shares are tendered.


RadNet Inc. (NASDAQ: RDNT) is trading at $3.03 up $0.28 or 10% on heavy volume of 467k


Today the company reported record 4th quarter and annual results for 2009. They also announced a debt refinancing plan and a few strategic acquisitions.

  1. Reported record revenue of $131.8 million for the 4th quarter
  2. Announced it has closed one strategic acquisition and signed letters of intent to make an additional two strategic acquisitions that, on a combined annualized basis, are expected to generate revenue of $36million. These acquisitions are designed to enhance RadNet's core market presence in California and Northern New Jersey
  3. Announced a debt refinancing plan consisting of $485 million of senior secured debt and senior unsecured notes, along with an untapped revolving credit facility for $100 million; transaction would significantly lengthen debt maturities, enhance liquidity, fund two potential strategic acquisitions and provide growth capital.