Friday, April 30, 2010

British Petroleum Oil Spill - Long Term Detriment? (NYSE: BP)

Scan the news headlines of any major website on the Internet and you’ll find the top story is BP’s oil extravaganza occurring in the Gulf of Mexico. On April 20th the company’s drilling platform exploded, creating a giant oil slick that is slowly creeping towards dry ground. 5,000 barrels of oil are gushing out into the ocean on a daily basis and BP is allegedly spending 6 million a day on fixing the accident. At least 11 workers died in the accident.
All sorts of analysts are saying that the incident will overshadow all of the progress that this company has made over the past 3 years, and that the money they are losing attempting to fix the problem will be greatly overshadowed by the ruination of the BP’s brand image.

The truth is that although this slip up is horrible for the company’s image, and will be a supreme pain the ass to clean up environmentally, long term, it really will not matter, at least to BP.
The gulf drilling program contributes to 11% of the company’s worldwide production….therefore the other 89% continues to operate full blast. The demand for oil is inelastic, we need it, and regardless of oil spills, dead sea animals and the determent to the oceanic topography, everyone is still going to hit the pump before going to work on Monday.
Whichever gas station has highest value according to price and proximity to your living arrangements, that’s where you are going to go, regardless of how many sea turtles and baby seals are dying all over the planet…sorry I had to say it.

Of course the company is going to embark in a worldwide social responsibility binge to clean up their image…but I have to wonder whether they actually need to. The company’s stock dropped to $51.35 this morning in early trading and by 11:30 it was above opening price at 53 and change. Currently the company is down .5% or $.31, for the most part leveling out the day. Although the stock has plummeted from the 60’s I wouldn’t be surprised to see them back, or up even higher as investors take this opportunity to get into a large, non-volatile oil company for cheaper than usual.


U.S. Immigration in Mexico

An Arizona immigration law that requires police in the U.S. state bordering Mexico to determine whether people are in the country illegally if there is "reasonable suspicion," has stirred a national furor and pushed immigration to the forefront of U.S. politics.

Arizona had a total population of 6.6 million in 2009, including an estimated 460,000 undocumented immigrants. The state is the principal corridor for illegal immigrants entering the United States from Mexico. The U.S. Border Patrol's Tucson sector has made an average of 650 arrests a day so far this year. Phoenix police reported 357 extortion-related abductions in 2007 targeting people with ties to Mexican smuggling rings.

The effect in Mexico and in Arizona has been a rallying by Mexicans and Americans alike. Protests and demonstrations have been in full swing since Arizona Governor Jan Brewer signed the law into effect. Mexican authorities have warned its citizens that they could be hassled across the border, and Mexican cabbies have painted signs on their cabs saying "No service for Arizona Gringos."

However, defenders of the law believe that the law will not allow misconduct by police and in fact will only come into play when there is a traffic stop or other routine law infringements. The new law being another tool used by police to guard the border.

4 Things To Read Before Trading Today

From the Desk of Lou Brien
  1. Stocks in Asia were generally higher. The Hang Seng was the strongest with a gain of 1.6%, the Nikkei rose 1.2%, Australia added a half percent and Shanghai was unchanged. Europe is mixed, the Dax is up a fraction and the Footsie down a half percent. US stock futures are a fraction higher as I write.
  2. There was a whole slew of data released in Japan overnight on the eve of the Golden Week holiday next week. The March reading of their Jobless Rate was up one tenth to 5.0%, it had been expected to remain at 4.9%; the March reading of the CPI ex fresh food is -1.2% on a year over year basis as forecast and the April reading of that price measure for Tokyo was down one tenth to -1.9% YOY, a larger decline had been expected; the preliminary March reading of Industrial Production is +0.3%, less than half the estimate. In addition the Bank of Japan met and left policy unchanged.
  3. European finance ministers will meet on Sunday May 2 to discuss Greece.
  4. The US Justice Department has opened a criminal investigation of Goldman Sachs over mortgage securities deals it arranged.

Thursday, April 29, 2010

Meeting with India and Pakistan Concludes

A meeting between Prime Minister Manmohan Singh and Pakistan Prime Minister Yousuf Raza Gilani ended Thursday, and the meeting seemed to be all for show. No substantial progress was made toward improving relations between the two nations. The 90-minute meeting, on the sidelines of a regional forum in Bhutan, was the first between the leaders of the two nuclear powers in nine months. New Delhi had suspended formal peace talks in November 2008 after Pakistan-based Islamist militants attacked Mumbai, India's financial capital, killing more than 160 people.

India has made sorting out the details of Pakistan's involvement in the attacks in Mumbai a prerequisite for resuming serious peace talks. Pakistan has made seven arrests regardiung the attacks. However, it it is still issues of terrorism that are holding back progress. Both parties did acknowledge a trust deficit but it seems that India will not improve policy until justice has been done to the perpatrators of the Mumbia attacks.

The two leaders agreed to instruct their foreign secretaries to find a way out of the impasse, but they gave no time frame for a meeting. The foreign secretaries last met in February this year, which marked a formal resumption of the peace talks. That meeting ended with gestures of friendship but no solid progress toward normalization of relations.

China's Influence in Korea

President Lee Myung-bak will travel to Beiijing this week to enlist the help of the Chinese in support for tougher sanctions against the North. However, analysts say he is unlikely to win that support. President Lee's policy, which are considered more confrontational and open about the North, may have driven the North into the hands of the Chinese.

Newspapers in Seoul report daily on growing concerns that the North is becoming a Chinese colony. Growing fears are that Beiijing will have powerful control over the Korean peninsula and will be able to pick up the spoils of the conflict between the North and South. For instance, the Chinese have already started to take over North Korean ports and mining posts. Analysts differ on whether the rising fear of China is due to the economic boom of the People's Republic or just the unraveling of the 'hear no evil, see no evil' policy usually held between the North and South. President Lee's policies are being criticized for their inability to gain international cooperation and essentially allowing the North to become even more isolated and unpredictable.

China, which supplies an estimated 70 percent of North Korea’s trade, is the one country that can provide the necessary economic pressure to push the isolated North to the brink of collapse — or, as Washington, Seoul and Tokyo hope, press it to agree to concessions over its nuclear weapons program. But Beiijing is certainly playing for keeps. A total meltdown in North Korea would send a major amount of refugees into China. So, it is in their best interest to maintain the status quo, keeping North Korea afloat and resisting extreme sanctions.

Weekly Jobless Claims Report

From the Desk of Lou Brien:

  1. The weekly report on Initial Jobless Claims, at 448k for the week ended April 24, was down 11k from a week ago.
  2. Continuing Claims were down 18k at 4.645 million for the week ended April 17.
  3. The Federal extended and emergency benefits were down 91k at 5.402 million for the week ended April 10.

Tuesday, April 27, 2010

After Rowdy Debate Ukrainians Extend Lease on Russian Base


Parliamentary members threw eggs, smokebombs and even fists. The Parliament in Kiev was debating on extending the agreement to allow Russia a naval base in Ukrainian territory. The opposition, those throwing eggs etcetera, believed that the extension would infringe on Ukrainian sovereignty. The agreement, negotiated last week by the new Ukrainian president, Viktor F. Yanukovich, was ratified by 236 members, out of a total of 450.
There is a strong hatred for Russia in Kiev and all of the Ukraine. The Russian naval base is a symbol of the Russian shadow over Ukrainian politics and the future. President Yanukovich has vowed to patch up relations with Russia but the man who is believed to be a champion of the people does not always have his citizen’s support in that endeavor.
The Ukraine will make for an interesting political battleground in the next couple of years. The Ukraine wants to join the European Union and establish strong ties with the West, but Russia will do all it can to block that relationship and stay dominant over the country. And with President Yanukovich, and his strong ties to the Kremlin, it may be a long time until the Ukraine sees such a development.

Strategic Mining’s Vietnam Gold Property Classified as “Property of Merit” by Competent Person’s Report - NI 43-101 Compliant

Strategic Mining’s Vietnam Gold Property Classified as “Property of Merit” by Competent Person’s Report - NI 43-101 Compliant

TORONTO, April 27, 2010 (GLOBE NEWSWIRE) -- The Strategic Mining Corporation (Other OTC: SMNG) announced today that its Vietnam gold property has been classified a “Property of Merit” by the NI 43-101 geological report also known as the Competent Person’s report (CPR).

Geological consultant, Hassan Alief, was retained to examine the Nat Son property in Hoa Binh province in northern Vietnam to provide a report on its mineral potential and to discuss further exploration potential. He concluded in his report dated October 16, 2009 that the property has merit and potential for mineable gold and should be explored in detail.

The report was prepared to the standards and headings of Canadian National Instrument 43-101 and is intended to facilitate technical and economic aspects of the project, including attracting venture partners and/or fund raising. Mr. Alief has written numerous reports and is responsible for the contents of the Ba Dinh report as an independent “Qualified Person” in accordance with NI 43-101 standards of disclosure for mineral projects.

President, Todd Sterck, commented: “This report validates the potential for our property and provides the basis to advance to the next stage of exploration development, as outlined and recommended by Mr. Alief.

About Strategic Mining Corporation
Strategic Mining Corporation (Other OTC: SMNG) is engaged in the exploration and development of gold properties in Vietnam, the US and Africa. The company intends to expand by acquiring mineral rights to more key properties and initiating strategic joint ventures. For more information visit: www.strategicminingcorp.com

About World Market Media
WorldMarketMedia.com (The Global Online Investment Community) is a high traffic stock market, news data website providing cutting edge new media products and services to publicly traded companies worldwide. Our Editor's Desk authors insightful real-time coverage on the economy, the capital markets and their listed companies. For more information visit: www.worldmarketmedia.com - The Global Online Investment Community!

Safe Harbor: No assurance can be given that past or similar results of precious metal mining will be indicative of future results. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (The “Act”). In particular, when used in the preceding of discussion, the words “pleased,” “plan,” “confident that,” “believe,” “expect,” or “intent to” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company’s products and technologies, competitive factors, the ability to successfully complete additional financings and other risks in the company’s SEC reports and filings.

Contact:
Strategic Mining Corporation
Jan Moir
+1 705 361 3533
janm@investorvalue.com
www.strategicminingcorp.com

World Market Media
Editor’s Desk
+1 877 801 8408 Ext. 307
editor@worldmarketmedia.com
www.worldmarketmedia.com

8 Things To Read Before Trading Today

From the Desk of Lou Brien:
  1. Stocks were generally lower in Asia trade; the Hang Seng fell 1.5% and Shanghai lost slightly more than two percent, but Australia was unchanged on the session and the Nikkei gained 0.4%. Europe is weaker; although the Dax is off by 0.5%, the Footsie and most other indexes are lower by more than one percent. US stock futures are a fraction lower as I write.
  2. The Q1 reading of Australia’s Producer Price Index was stronger than forecast as it rose 1.0% on a quarter on quarter basis versus an estimate for a 0.6% increase. The PPI was -0.1% on a year over year basis, but this was expected to be -0.6%.
  3. Greek debt is once again under enormous pressure; yields are skyrocketing with their 2 Year Note trading above 16% earlier this morning and Greece credit default swaps said to be at a record, above 760 basis points. Today they are not alone with Portugal and Spain also seeing their yields moving sharply higher and CDS for those countries also moving to record high levels. The euro is currently trading lower by about 100 pips on the day and is once again below 1.3300.
  4. In March there were 34,905 UK loans for house purchases, according to the British Bankers Association, that was about 3k fewer than expected.
  5. The weekly report on chain store sales from ICSC showed that sales were up 0.2% for the week ended April 24 on a week to week basis; on a year over year basis the weekly sales were +5.5%. The Johnson Redbook report on the same thing is due out at 7:55am CDT.
  6. The February reading of the Case/Shiller Home Price Index is due out at 8:00am CDT, it is expected to show a year on year gain of 1.3%. The April reading of Consumer Confidence is due out at 9:00am CDT and is forecast to show a one point gain on the month to 53.5. Also due out at nine o’clock is the April reading of the Richmond Fed Manufacturing Index, it is estimated to be 10, up from 6 the month before.
  7. Busy day for Fed boss Bernanke. He is scheduled to make some comments at the first meeting of the President’s National Commission on Fiscal Responsibility and Reform at 9:00am CDT. Then he will chair the opening day of the FOMC’s two day policy meeting. No word from the policy makers until tomorrow afternoon.
  8. CEO Lloyd Blankfein and six current and former Goldman Sachs employees are scheduled to appear before the Senate’s Permanent Subcommittee on Investigations at 9:00am CDT.

Monday, April 26, 2010

Sushi and The City - (NASDAQ: KONA)

Kona Grill (NASDAQ: KONA) announced today that it will be hosting it’s “Sushi and the City” party on Friday May 28th at all 24 locations as a way to kick off the highly anticipated Sex and the City 2 movie. Kona Grill had a highly successful impromptu patio party during the release of the fist Sex and the City movie and decided to follow up that event with a more planned out party.

The restaurant will have specialty Samantha, Carrie, Charlotte and Miranda sushi rolls as well as signature cocktails and door prizes. Furthermore, there will be a chance to win a trip for two to New York City, complete with airfare, hotel and even a pair of Manolo Blahnik high-heeled shoes (a necessity for any woman). All raffle proceeds from the night will go to Dress for Success, an international not-for-profit organization that promotes the economic independence of disadvantaged women by providing professional attire, a network of support and the career development tools to help women thrive in work and in life.

And don’t worry ladies if Friday, May 28th doesn’t work for you Kona Grill will continue to party for the next ten days with sushi roll and drink specials.

This is an excellent promotion for Kona Grill to run, leave it to a female CEO to come up with this marketing genius. Anyone with a girlfriend knows that Sex and the City is the greatest thing since sliced bread, heck I’ve been forced to watch the first one a few times by my own. But in all seriousness this is a great way for all the ladies to enjoy a night out with the girlfriends. For one night women across the country can live vicariously through the sex and the city cast by enjoying “Sushi and The City” compliments of Kona Grill. As CEO Rachel Phillips-Luther said, “Kona Grill promises to be the ideal pre and post movie place to get ‘Carried Away.”

Artificial Life (OTCBB:ALIF) $1.29 $75M (MarketCap)

Two-time Grammy winning rock band LINKIN PARK, game developer Artificial Life, Inc. (OTCBB:ALIF) (Frankfurt:AIF) (XETRA:AIF), and Warner Bros. Records announced today the launch of the LINKIN PARK 8-BIT REBELLION! App for iPhone, iPod touch and iPad.

Created by Linkin Park and Artificial Life, Inc., the LINKIN PARK 8-BIT REBELLION! App is a heightened app experience for music fans and gamers alike with multiplayer features.

In the LINKIN PARK 8-BIT REBELLION! App players embark on an epic adventure taking them through six unique districts in the game, each featuring the distinctive style of a band member. The master goal is to retrieve the band's stolen music track -- Blackbirds, a brand new, unreleased Linkin Park song made exclusively for the game. The song is unlocked upon completion of all missions inside the game.

The iPad app renders the adventure with high-definition graphics, and a unique user interface that has been specially redesigned to utilize the iPad's larger screen. Essential functions are now just a touch away, so players never need to pause the action to dig into menus. The iPad app also includes two control schemes, allowing players to choose the setting that best suits their gaming style.

Additional game features include:
  • Personalization of players' avatars and apartments provide a unique
  • community experience
  • Non-player characters (NPCs) inhabit the world, adding drama to the
  • gaming experience
  • Shopping for virtual items with coins awarded by winning fights and
  • completing missions
  • Earning trophies for adding friends to the rebellion
  • A news feed to stay up-to-date with Linkin Park
  • Facebook and Twitter integration connecting millions of social network users worldwide
The iPad app features include:
  • Enhanced graphics to allow players to see their avatars and the six
  • districts come to life in great detail
  • Optimized user interface for the larger screen and makes menu items easy
  • to access at all times: equip weapons and change music tracks without
  • ever leaving the main screen
  • Multiple controls so gamers can choose between two control schemes to
  • best fit their playing styles. The iPad-specific D-pad setup has been
  • implemented for players more comfortable with button-oriented controls.

"As opposed to putting together an app featuring just our songs and name, we wanted to make this an exciting gaming and music experience and the folks at Artificial Life shared that vision," says Linkin Park vocalist Mike Shinoda. "They were able to turn my sketches and our creative ideas into a living, breathing world that we think gamers and fans will thoroughly enjoy."

Nextwave Wireless (NASDAQ: WAVE) $75M (MarketCap)


PacketVideo (PV) announced today that a new version of its popular TwonkyBeam(TM) connected home solution can now be downloaded at www.twonkymedia.com. With the version 1.1 update, Firefox(R) and Mac(R) users can now beam media from popular sites - such as YouTube, Flickr and Last.fm - to connected devices throughout the home. Separate downloadable versions of TwonkyBeam are now available for PC users running the Internet Explorer browser, Mac users running the Firefox browser, and PC users running the Firefox browser.
"TwonkyBeam has been a hit with PC users running Internet Explorer for several months now, and we're excited to bring the same unique media sharing experience to Firefox and Mac users as well," said Rick Schwartz, senior product manager, PV. "TwonkyBeam makes it easy for consumers to find the media they want and stream it to many of the best selling Internet-ready TVs on the market today. Web-based media can come to life outside of the browser, and can be shared and enjoyed seamlessly on the devices it is best intended for."
Enhancements for TwonkyBeam version 1.1 include:
  • Firefox Support -TwonkyBeam now runs on the popular Firefox Web browser
  • from Mozilla.
  • Runs on Macintosh(R) -TwonkyBeam now runs on Apple(R) Macintosh
  • computers running OS X and the Firefox Web browser.
  • Improved YouTube Support - TwonkyBeam now supports more high definition
  • YouTube videos, beaming the highest resolution video available on
  • YouTube pages. When HD video is unavailable, TwonkyBeam automatically
  • selects the next highest quality level for streaming to devices.
  • Enhanced Device Support -TwonkyBeam now works better than ever with an
  • expanded number of devices such as Yamaha MusicCAST2 wireless multi-room
  • music systems,and hundreds more.
  • Improved Compatibility with PlugPlayer -Users can now beam music from
  • sites such as Last.fm to PlugPlayer running on an iPhone(R).
  • Expanded Device List - PV has significantly expanded the number of
  • devices listed on its TwonkyBeam "Need a Device" page, including new
  • Sony(R) Bravia(R) TVs, Denon devices and many others.
  • Device Renaming - Users can now change the name of a device by simply
  • right clicking on its icon within the TwonkyBeam interface.
  • Better Device Discovery - Discovery of devices on wireless networks is
  • now more reliable than ever with TwonkyBeam version 1.1.
  • Better Local Media Playback -When TwonkyMedia(TM) server is used in
  • conjunction with TwonkyBeam, users can now play all of the songs from an
  • album directly from the TwonkyMedia server browser page.
Mac and Firefox users can download and install TwonkyBeam in less than a minute. Once installed, users can beam content to their favorite device by right clicking on the content. TwonkyBeam also provides a slick display panel that expands to show all of the available media on a Web page, enabling users to simply click on the media they'd like to stream, select a media player, and hit play. Within seconds, users can enjoy high-quality audio on their stereo, or view photos or video on their networked TV. TwonkyBeam can even stream high-definition video over the home network.

TwonkyBeam works with a wide range of consumer electronics and software products, including PV's popular TwonkyMedia manager application. Popular compatible devices include SAMSUNG, Sony(R) Bravia(R), and Loewe HDTVs, as well as networked stereo receivers from Denon and Pioneer(R). Consumers can also purchase a low cost digital media adapter from Linksys(R), Phillips, Yamaha, or other providers to use with the gear they already have at home.

TwonkyBeam provides a Recommended Sites link to help guide users to fun and interesting sites for music, photos and videos. Users can also add their own favorite sites to the list to customize and personalize their experience.

TwonkyBeam is a patent pending PV technology that is part of the TwonkyMedia family of products, recently recognized as an official 2009 CES Innovations honoree. For information on TwonkyBeam and other TwonkyMedia products, please visit www.twonkymedia.com.

About PV: Founded in 1998, PV is the software pioneer powering the world's leading multimedia services on millions of home and mobile devices. PV is a subsidiary of NextWave Wireless Inc. (NASDAQ: WAVE).

Friday, April 23, 2010

New Home Sales Numbers

From the Desk of Lou Brien:

  1. New Home Sales surged in March, up 26.9% from the month before to an annualized rate of 411k, the highest level since last July. Sales were expected to be 325k. The annualized rate was up 87k from February, that is the biggest monthly increase since April 1963. February had originally been reported as a record low 308k, but this was revised up to 324k.
  2. All regions increased their annualized sales rate; Northeast was up 10k on the month to 38k, the Midwest added 2k to 49k, the West was up 5k to 93k and the South increased 70k to 231k, maybe indicative of the February weather on the east coast, that saw record snowfall in the mid-Atlantic states, shifted the buying by one month. Also the home buyer credit program is on the clock, it expires at the end of April and this was probably an important factor.
  3. Because of the jump in the annualized sales rate the supply of homes for sale fell by almost two months to 6.7 months, the lowest level since December 2006.
  4. The median price of a home fell to $214,000 in March from $221,600 in February, but prices are up 4.3% from year ago levels.

6 Things To Read Before Trading Today

From the Desk of Lou Brien
  1. The Hang Seng lost one percent on the session, Australia and Shanghai were down a half percent and the Nikkei was down about one third of a percent. But Europe is up across the board; the Dax is among the strongest this morning with a gain of 1.4%, the Footsie is currently higher by 0.9%. US stock futures are fractionally higher as I write.
  2. The February reading of Japan's All Industry Activity Index was -2.3%, bigger fall than the -1.6% that was expected.
  3. Greece has formally requested aid from the EU. Yields on Greek debt have fallen a bit, spreads have narrowed and the euro has bounced off its low, but the reaction has been relatively muted at this point.
  4. The April reading of Germany's IFO index of the Business Climate was stronger than forecast; it jumped to 101.6 from 98.1, only a fractional increase had been expected.
  5. The Q1 reading of the UK GDP was less than expected, it was +0.2% on a quarter on quarter basis, half of the forecast; the year over year result was -0.3%, the estimate was -0.1%.
  6. The IMF/World Bank and G20 finance ministers and central bankers are meeting this weekend in Washington.

News from Russia, Brazil and South Korea

In Russia, the ruble hit a 16-month high on boosts from oil prices and hope that the country’s year-long monetary easing cycle may soon end. The ruble traded at 33.56 and the price of oil was just above $83 a barrel.

In Brazil, the Belo Monte dam is giving President Lula da Silva a serious headache. The Brazilian government is planning to build the world’s third largest hydroelectric dam, costing around $17 billion, but activists are protesting the dam saying it will displace 20,000 people. One of those activists is Hollywood director James Cameron. A Brazilian court on Wednesday delayed an auction to build the dam on the grounds that it may violate environmental law, slowing the flagship project of an $878 billion public works crusade that is a key campaign platform of Lula's anointed successor, Dilma Rousseff, for this year's presidential vote.

In South Korea, President Lee announced that there would be no retaliation against the North, even if findings showed they were in fact were responsible. The North says they have nothing to do with the sinking of the Cheonan, which killed 46 sailors. The issue for the South is terrible sensitive. If he were to launch a military attack on his impoverished neighbor, it would be the South that would come off worse, with investors likely to take fright at the threat of conflict across the Cold War's last frontier just as the economy is recovering fast from the global financial crisis.

Thursday, April 22, 2010

Iranian’s Launch Military Display

Iran started a large-scale military exercised in the Strait of Hormuz early this morning, testing new missiles, called “Great Prophet 5.” This display is an expected response to U.S. led economic sanctions on the nation. A Tehran military spokesman said the exercises were aimed at showing Iran’s "strength, will and national resolve to defend independence and territorial integrity."

The Strait of Hormuz is a strategic transit route for about 20% of the world’s daily oil supply. Iranian commanders have threatened to block the Strait in retaliation from any attack. Oil prices were not affected by the announcement. Some analysts worry that Iranian Navy ships will provoke U.S. ships that frequently patrol the Persian Gulf.

In recent days, Iranian negotiators proposed a new draft to the U.N. about nuclear use, but the problem with the draft was that Iranian leadership never backed it. New sanctions have been slow on both ends with China seeming uninterested by U.S. proposals. It seems that Iran is also out attempting to court and diffuse the sanctions by appealing to non-permanent U.N. members, which could weaken any new sanctions.

Wednesday, April 21, 2010

Mayor Getting Too Close to Cartels

Mayor Mauricio Fernandez has only been mayor for six month, but those months have been clouded with controversy and moral conjecture. For instance, on his inauguration day he shocked critics by announcing the death of a notorious local drug dealer. The shocking part was that the police were not even aware that he was dead. Hector Saldana was found in the trunk of car hours after Fernandez’s speech.

Fernandez has used his wealth and questionable courtship to drug cartels to keep his people safe. “If the devil gives me information, I buy it,” he said recently, explaining how a well-known drug dealer came to be his informant.

Reportedly, Fernandez has appeased the Beltran Leyva, one of the country’s most powerful cartels, in return for protection from the Zetas, another drug organization. But his defenders say that whatever the means, Fernandez has made the city safer. Fernandez has used a network of paid informants and spies to weed out corrupt police officers and to remove gangsters from the streets.

Detractors of Fernandez say that he is too close to the cartels, but the Mayor argues Mexico must use new tactics to fight drug warfare. He has said he would support legalizing drugs and makes no apologizes for making deals with bad people.

iPass Takes To The Skies - (NASDAQ: IPAS)

It seems the internet is everywhere we go these days, with the advent of the Smartphone and 3G networks the internet literary is and the tip of our fingers. Is there anywhere we can’t get the internet? I thought airplanes was a good answer until today. iPass Inc. (NASDAQ: IPAS) announced the immediate availability of a new premium in-flight Wi-Fi subscription service for its iPass Mobile Network customers. The convenient service will be on more than 825 commercial airplanes. The service will allow iPass customers to connect safely and simply to the internet at 30,000.

The company surveyed a few thousand iPass customers to see if there was a demand for in-flight Wi-Fi service. The survey uncovered a resounding demand for in-flight Wi-Fi with 63% saying it was critical for meeting business needs, especially on flights over one hour. A massive 87% said they would use it if it was part of the iPass Mobile Network service.

There are currently three tiers of flight length: $4.95 for less than 1.5 hours, $9.95 for 1.5 to three hours; and $12.95 for more than three hours.

I hadn’t realized the internet had already made its way on airlines but when I stopped to think about it, I wasn’t very surprised. Internet access on Airlines was bound to happen, I mean c’mon to think people could stay away from their emails for a few hours in ludicrous. Of course I am using sarcasm; it’s funny how these products are created to make life easier when in reality they just seem to make us busier. I mean how did business peoples possibly survive before the advent of portable internet?

But that’s just me, I’m sure there will be plenty of people more than willing to pay for the new service. Obviously there is a demand and it seems In-flight Wi-Fi is here to stay, so I’d say it’s a good move by iPass to get into the market.

India’s Twittering Minister Resigns

Shashi Tharoor, India’s Deputy Foreign Minister, resigned his post after a week-long cricket scandal. Tharoor had a important career in the United Nations and was elected to the ruling party in Congress for a parliamentary seat representing the city of Thiruvananthapuram in Kerala, a small, southern state best known for its lush coastline and well-educated, affluent population.

Tharoor was a champion of the aspiring India middle class and a vocal opponent of the corruption within parliament. The most important aspect of Tharoor’s professional and modern governing style was his use of Twitter. He would comment on everything from foreign diplomacy to the horrors of flying India domestically. However, his tweeting was not exactly embraced by some members of his fellow ruling class, he was publicly criticized for tweets on flying "cattle class" to abide by the government's austerity guidelines and on the role of Saudi Arabia as a potential "interlocutor" between India and Pakistan.

Despite his unconventional style and criticism, Tharoor was still influential and successful in parliament. That all took a drastic change when Tharoor got involved with the Indian Premier League, a new professional global cricket tournament. India is so rabid about cricket that it has become a billion-dollar business. After Tharoor, a lifelong cricket fan, served as an adviser to a group of investors who put up $333.33 million to buy a new IPL franchise, Lalit Modi, head of the IPL, revealed details of the deal on Twitter on April 11. Among the shareholders was Sunanda Pushkar, Tharoor's frequent companion, who was listed as part owner of 5% of sweat equity. Modi accused Tharoor of asking him not to reveal the ownership details of the consortium — a charge Tharoor denies. Modi's comments prompted allegations in the Indian media that Pushkar's stake was given to her as a proxy for Tharoor.

Pushkar and Tharoor btoh denied the charges and Tharoor even posted a detailed defense on his Twitter page and his personal blog. Alleging that all this controversy is really about not allowing Kerala to have a cricket team, and to send the money elsewhere. After a week of feuding, Prime Minsiter Manmohan Singh announced that Tharoor had in fact resigned. Local Indian Media reported that even though Tharoor was not guilty of any wrongdoing, the party considered the controversy to be an embarrassment.

Tuesday, April 20, 2010

U.S. Agents Shoot Man at Tijuana Border

An investigation is underway looking into the man who was shot down by border agents this past Saturday. The man approached the Tijuana border in a pickup truck and was unable to give proper identification. "The agent referred the driver to a secondary inspection and he quickly accelerated away," said Lieutenant Kevin Rooney of the San Diego police department, which is investigating the incident.

The man was described by officials as an older Latino male, and after he fled from police he struck another vehicle trying to evade agents before they opened fire. The man was not armed.

The Tijuana-San Diego border is the busiest land border in the world. The busy transit point is typically congested with workers and other travelers but also is used by traffickers ferrying drugs and undocumented immigrants north while illegal weapons head south to arm bandits in Mexico's bloody drug war. After the incident three of the 24 lanes were closed for investigation.

"Sometimes we get several incidents like this in a year and sometimes we can go a year without one," Rooney said.

In September, U.S. agents fired at three vans packed with about 70 illegal immigrants that tried to evade heavy security and cross into the United States. Three people in the vans and a motorist were wounded.

Monday, April 19, 2010

2 Afternoon Market Movers (OTCBB: AVOE) and (AMEX: DRJ)

Avro Energy Inc. (OTCBB: AVOE) is trading at $0.12 up $0.05 or 71% on heavy volume of 893k


First quarter production numbers came out over the weekend and the numbers were positive. The company is currently producing 40 barrels of oil a day and anticipates an increase in production in the coming quarters.


Dreams Inc. (AMEX:DRJ) is trading at $1.80 up $0.15 or 9% on heavy volume of 332k


On April 8th press was released that the company’s price target was raised because of its strong and growing
e-commerce division. As e-commerce becomes the focus of the company it seems it will begin to catch the eyes of more and more investors.

DRI Corporation: On The Global Train - (NASDAQ: TBUS)

DRI Corporation (NASDAQ: TBUS), a digital communications technology leader in the global surface transportation and transit security markets, had its 4th quarter and fiscal 2009 financial results. I listened in on the conference call and learned a few interesting things about the company that could make it a real player in the upcoming years. I won’t bother going into the financial details of the call as the 10-K was released last week.



The company continued to see growth in its international business sector as it now makes up 59% of total revenues. With the economic slowdown, quick recovering areas such as India and Brazil were key players for this company to sustain profitability. Looking forward it was smart to focus on the international front as political uncertainty pertaining to transit legislation looms in the U.S. Besides the two strong sectors in India and Brazil there is one more sector which could potentially bolster this thing; Russia.

In previous calls DRI announced it had entered the Russian market, so one of the questions was, have there been any orders from there yet? Although there have been no orders and they are still in a seeding stage the potential in Russia exceeds that of the U.S. According to the CEO there are a larger number of vehicles in service in Russia at present and that doesn’t take into account for the market growth potential Russia has. The CEO went on to say that once the first order is filled they will make an announcement, but growth will be steady and they don’t expect huge ramp-ups like they say in Brazil. Lastly the company could see a little ramp-up in orders for Brazil as the Olympic Games near.

One thing I immediately noticed was the tone and demeanor in which the CEO spoke, he truly sounded like a man on a mission, like he had a chip on his shoulder. Perhaps this had something to do with the fact that the company had some difficulties meeting filing deadlines in 2009. At the very end of the call he commented on stock price and how he was not happy with it and he would be working with IR to help get this thing priced where it should be. Certainly nice to hear as an investor.

3 Small Cap Pre-Lunch Market Movers (JSDA, LMCO, RDCM)

Jones Soda Co. (NASDAQ:JSDA) is trading at $1.24 up $0.14 or 12% on heavy volume of 1.1M


The company has been on a real tear of late up over 150% in the last 30 days. For some time a buyout seemed plausible but a Seattle Times article which has been circulating would suggest otherwise. In the article new CEO William Meissner quotes, “Jones Soda will grow and maintain a high level of independence.” Meissner has a long list of credentials and hope to turn around what he saw as an underperforming company. Over 1M shares of JSDA were traded in the first hour.


Li ion Motors Corp. (OTCBB:LMCO) is trading at $1.14 up $0.32 or 39% on heavy volume of 740k


After the market closed on Friday the company announced it advanced in X-Prize competition. The company uses electric vehicles powered by Lithium-Ion batteries. The car company passed all 4 essential performance tests. The company continues to put out flowery press releases which seem to get eyes; however, the true test will be if they can actually sell some cars.


Radcom Ltd. (NASDAQ:RDCM) is trading at $6.57 up $2.29 or 53% on heavy volume of 358k


The stock continues to be bought up as its made huge moves the past month, there is no real news here, just a lot of movement upward. Perhaps this thing is in line for some big time short selling, because as of now it’s hard to say why it’s getting bought up so much.

China Lending Money to Chavez

It has been reported that China is in the process of extending loans to Venezuela. China might be financing the South American nation to secure some of its oil supplies and putting itself n position for available drilling projects. China’s ties with Venezuela have grown increasingly warm in recent years, marked by rising Venezuelan oil exports to China, the Chinese launching of a satellite for Venezuela and the sale of Chinese military aircraft to Venezuela.

If the loans do go through, they could give Chavez a much needed cash advance. The country is facing a cash flow crisis because of low oil revenues. The linchpin of the loans appears to be China’s thirst for oil, with the China National Petroleum Corporation, or C.N.P.C., agreeing to form a venture with Venezuela’s national oil company to explore for oil in southern Venezuela. Eventually the companies could produce 400,000 barrels a day in the area. Venezuela’s energy minister, Rafael Ramírez, said C.N.P.C. would need to pay $1 billion to move the venture forward. Venezuela has been reaching out to other nations and big energy companies, including Chevron in the U.S., auctioning off exploration contracts in exchange for cash. One of those potential bidders is an Iranian company. This current deal with China is pending and the exact details are unknown.

PokerTek Hits the High Seas - (NASDAQ PTEK)

In our most recent chat with PokerTek we found the number of legitimate, licensed poker tables that exist to be astonishingly low. There are only so many places in the U.S. where one can gamble and gaming has not caught on in all parts of the international scene. So where else can these things get installed you might ask; the high seas. With the advent of cruise ship gaming comes yet another pipeline of revenue for PokerTek.

Just today PTEK announced the successful completion of the 2009 Carnival PokerPro Challenge tournament, which was held onboard the Carnival Freedom. The completion of the tournament marked the 2nd straight successful event and encouraged plans for 2010’s event to be put in motion. A 2010 event which is poised to see a bigger turn-out and growing popularity compared to its two predecessors.

Scott Mateosky of Middleberg Heights, OH had the winning hand of pocket 5's to walk away with the first place prize of $35,000 and the coveted Carnival PokerPro Challenge winner's bracelet. The remaining $40,000 prize pool was awarded to the top 10 finishers.

So what exactly does PokerTek have to gain from high seas gaming competitions; new installation opportunities. Six PokerPro tables were installed in the Dynasty Lounge on the Carnival Freedom specifically for the final tournament. The tables were available for cash play and tournaments throughout the week. From January 24th through January 30th, 127 final event qualifiers played down to 1 as the Carnival Freedom sailed from Ft. Lauderdale to Key West, Grand Cayman, and Jamaica.

Carnival and PokerTek plan to announce details of the 2010 Carnival PokerPro Challenge in the coming weeks. It will be interesting to see if the trend of gaming competitions continues on cruise lines; if so PTEK may have the perfect product to meet the demand.

Sunday, April 18, 2010

World Market Media Announces the Launch of the WMM NanoCap and MicroCap Indices

WorldMarketMedia.com – The Global Online Investment Community

WEST PALM BEACH, April 19, 2010 (GLOBE NEWSWIRE) – World Market Media, Inc. (“WMM”), a high traffic stock market, news data website providing cutting new media products and services to publicly traded companies worldwide announced today the launch of the WMM NanoCap Index and the WMM MicroCap Index.

Stephen E. Kanaval, Executive Editor on the WMM Editor's Desk (which authors insightful real-time coverage on the economy, the capital markets and their listed companies) stated “We are extremely excited about the launch of our Cap Weighted Indices and the future additions to the WMM Family of Indices which are coming soon”.

MagneGas Corporation (OTCBB: MNGA), GTX Corp. (OTCBB: GTXO), COPsync, Inc. (OTCBB: COYN), and Converted Organics, Inc. (NASDAQ: COIN) were new additions to the WMM NanoCap Index while Onstream Media Corp. (NASDAQ: ONSM) was removed. Additions to the WMM MicroCap Index included AgFeed Industries, Inc. (NASDAQ: FEED) and Rexahn Pharmaceuticals, Inc. (AMEX: RNN) while our Editor’s Desk dropped coverage of Rick's Cabaret International, Inc. (NASDAQ: RICK).

All Indices are managed by FinancialContent.com. The WMM NanoCap Index includes select companies up to $50 million in market cap. The WMM MicroCap Index contains companies that fall between $50 million and $300 million in market cap.

About World Market Media
World Market Media is a high traffic stock market, news data website providing cutting new media products and services to publicly traded companies worldwide. Our Editor's Desk authors insightful real-time coverage on the economy, the capital markets and their listed companies. For more information visit: www.worldmarketmedia.com - The Global Online Investment Community.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, including statements containing the words "believes," "anticipates," "expects," "intends" and words of similar import. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Important factors that the Company believes might cause such differences include: (1) concentration of the Company's assets into one industry segment; (2) the nature of the Company's business (as defined herein); (3) the impact of changing economic conditions; and (4) the actions of competitors, including pricing and new product introductions.


Contact:
World Market Media
Editor’s Desk
+1 877 801 8408 Ext. 307
editor@worldmarketmedia.com
www.worldmarketmedia.com

World Market Media Announces the Launch of the WMM NanoCap and MicroCap Indices

WorldMarketMedia.com – The Global Online Investment Community

WEST PALM BEACH, April 19, 2010 (GLOBE NEWSWIRE) – World Market Media, Inc. (“WMM”), a high traffic stock market, news data website providing cutting edge new media products and services to publicly traded companies worldwide, announced today the launch of the WMM NanoCap Index and the WMM MicroCap Index.

Stephen E. Kanaval, Executive Editor on the WMM Editor's Desk (which authors insightful real-time coverage on the economy, the capital markets and their listed companies) stated “We are extremely excited about the launch of our Cap Weighted Indices and the future additions to the WMM Family of Indices which are coming soon”.

MagneGas Corporation (OTCBB: MNGA), GTX Corp. (OTCBB: GTXO), COPsync, Inc. (OTCBB: COYN), and Converted Organics, Inc. (NASDAQ: COIN) were new additions to the WMM NanoCap Index while Onstream Media Corp. (NASDAQ: ONSM) was removed. Additions to the WMM MicroCap Index included AgFeed Industries, Inc. (NASDAQ: FEED) and Rexahn Pharmaceuticals, Inc. (AMEX: RNN) while our Editor’s Desk dropped coverage of Rick's Cabaret International, Inc. (NASDAQ: RICK).

All Indices are managed by FinancialContent.com. The WMM NanoCap Index includes select companies up to $50 million in market cap. The WMM MicroCap Index contains companies that fall between $50 million and $300 million in market cap.

About World Market Media
World Market Media is a high traffic stock market, news data website providing cutting edge new media products and services to publicly traded companies worldwide. Our Editor's Desk authors insightful real-time coverage on the economy, the capital markets and their listed companies. For more information visit: www.worldmarketmedia.com - The Global Online Investment Community.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, including statements containing the words "believes," "anticipates," "expects," "intends" and words of similar import. These statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Important factors that the Company believes might cause such differences include: (1) concentration of the Company's assets into one industry segment; (2) the nature of the Company's business (as defined herein); (3) the impact of changing economic conditions; and (4) the actions of competitors, including pricing and new product introductions.


Contact:
World Market Media
Editor’s Desk
+1 877 801 8408 Ext. 307
editor@worldmarketmedia.com
www.worldmarketmedia.com

Friday, April 16, 2010

New Media Plus Announces Launch of Social Media Marketing Blog

Let’s admit it; social media is here to stay. When you start getting friend requests on Facebook from you 55 year old, IT challenged father you know this thing is catching on. New Media Plus is going to take on social media as an opportunity to further help businesses grow and offer them some interesting tools.

New Media Plus has launched a social media marketing blog dedicated to helping companies learn and understand social media. The blog’s purpose will be to teach companies how to effectively integrate social media into their businesses. It covers trends, offers advice, reviews new technologies, outlines strategies and shares useful techniques that companies can use within their organizations.

The blog is comprised of top social media experts and guest authors and contributors led by Editor-in-chief Martin Stein. "Our team of experts contributes practical applications from real-life experiences and successes in social media. They share industry-specific advice, from politics and public companies to finances and startups," said Stein.

This can be a very helpful and useful tool. Many companies are intimidated by the idea of social media and the internet in general. New Media Plus will try and curb this fear of Social Networking and demonstrate simple ways to implement effective strategies. Social media and networking has really only taken off in the past several years, and already there are countless opportunities in this field. Furthermore, social media is such a new concept its potential is essentially untapped. Using the new marketing medium is a great way for a start-up or even solidified company to get more awareness and traction.

The blog will also cover the following categories on top of social media techniques; online advertising, website and creative, mobile technologies and internet technologies.

Social Media is here to stay just ask Dad.

Datalink Reports Revenue Growth - (NASDAQ: DTLK)

Datalink (NASDAQ: DTLK), a leading provider of data center infrastructure and services, yesterday reported results for its first quarter that ended March 31, 2010. The company reported within the forecasted range and early signs of success from the investments the company made to expand Datalink's market share around data center solutions started to show.

Financial Highlights
  1. Revenues were $62.5M compared to $39.9M for the prior-year period, a 57% increase and 21% sequential increase.
  2. Product revenue was $38.2M, up 98% from the first quarter of 2009 and 26% sequentially.
  3. Services revenue was $24.4M, up 18% year over year and 13% sequentially.
  4. Net loss of $891,000, or $0.07/diluted share, for the 1st quarter ending March 31, 2010. This compares to loss of $596,000, or $0.05/diluted share, in the 1st quarter of 2009.


The revenue growth the company experienced in the 1st quarter was partially fueled by its previous acquisitions as well as expanded solutions-selling from its enhanced products and services portfolio.

1st Quarter Business Transactions
  1. Datalink successfully completed the integration of Incentra at the end of March, and the combined post-acquisition business has increased the company’s pipeline of opportunities 55% over the last six months.
  2. Datalink completed the Cisco Data Center Unified Computing Authorized Technology Partner program and the Gold Certification audit. These latest accomplishments in Cisco's extensive certification qualifications program enable Datalink to offer customers the most advanced networking and data center solutions available under the Cisco brand.
2nd Quarter Outlook

The company ended the first quarter of 2010 with a significant backlog of $43.4M. Based on this backlog and the current business environment, the company expects revenues to be between $68M and $72M for the second quarter of 2010. The company expects second quarter 2010 results to be between a net loss $0.02 and net earnings of $0.02 per diluted share on a GAAP basis.

Well if this company is going to make any moves it will need to have more exposure from investors, its only trading at a volume of 600 shares today.

PokerTek (NASDAQ:PTEK) 12M (MarketCap)

CEO to focus on International Sales: A numbers guy at the helm

We had the opportunity today to interview Mark Roberson CEO/ CFO of PokerTek. It’s always interesting to interview CEO’s because they know so much more than I do about the sector and its related behavior … I would say generally they love what they do.

As logical as it appears, no one takes the time to call the CEO. Individual investors also have the right to call Investor Relations and be put through to the desk of the CEO. Surely there is a gatekeeper of sorts, but if you are a shareholder usually they'll put through. Many use the current web based tools to listen to the conference calls and ask questions- management can be more candid about cyclicality of their businesses as long as they know you are not just calling to annoy them ..or ask stupid questions to hear yourself talk.

Having said that, our team started to dissect (NASDAQ:PTEK). I work with some pretty smart guys and together we can usually figure out the current valuation by using some simple math. Understanding the multiples of a specific sector makes stock selection easy once you learn the mathematics behind it. Always remember that the market is the ultimate barometer . It doesn’t matter if you think a particular stock may be undervalued the market may not agree with you. It’s really easy because the stock gives you a mark to market price each day and tells you what it thinks.

Looking at PTEK it was apparent what occurred in February as a smart Sales Trader called a Gaming Technology Fund ( and I don’t know who you are but please call me) they cover to establish a position in the gaming sector and said “Listen.. I have a the final piece of the seller here to clean up …there's not much selling behind it and it is probably near the bottom of the move”.

It probably went something like this, “I can't guarantee this is the final piece… but if you want me to open up the seller for clean up I can get you started on a decent piece”. As a retired portfolio manager that's a fantastic call to get. You like to hear those calls, and you pay brokers top commission dollars to be that first call…mainly because at that moment the stock was undervalued and was for sale in a block. Volume always creates tops and bottoms in price action.

PTEK is currently being accumulated, not sure the size of the Fund but I can tell by the trading action and prints that someone is in accumulation mode and the footprint of taking down the piece February 23 around .45 cents was the first important step. I also know that the clean up piece always makes the accumulation much more interesting as you can keep your average price lower…Portfolio Managers love this scenario. The difficult part of the trade is buying on the way up (this is also occurring here in PTEK) and the trader actually become their best own best friend as they average up. This is a great plan as long as the average price isn’t breached and you avoid a large pullback or sell off during this accumulation period. Know this…. stocks spend 85% of the time preparing to move and 15% of the time moving.

Looking at the price action in PTEK helped me realize what is occurring. Our team also realized that back in February, when the acting CEO, Mark Roberson, was named permanent CEO, the stock was about 50% undervalued.

After some back of- the-envelope calculations we view the stock to be slightly undervalued today at .90 cents. I also conclude that the gaming sector will go through an upcoming consolidation with gaming stocks at current valuations there will be acquisitions in the sector based around advances in the Technology of Gaming..Historically large gaming stocks acquire smaller companies with their paper currency at expanding valuations.

The key is (regardless of who wants to buy them) is how the company plans to grow. During our questioning, Mark brought up some interesting points. The first thing he did was logical, knowing that domestic gaming was flagging with only 10,000 licensed poker tables in the world (we found this a staggering fact) 6,000 domestic 4,000 international, a more international strategy was implemented. A market segmentation analysis was conducted and management concluded that traditional US markets were oversaturated with poker and that electronic table games such as Pokerpro perform better in less saturated, less competitive markets, including international. Mark switched the sales effort and the company started to get traction. If you look at the recent press releases they have great relationships in Mexico and they've got their eye on some other interesting international prospects. The question is how much they can grow in Q2 and Q3?

Attempting to do the breakdown of the top line revenue number, we couldn't quite get our hands around how the licensing and revenue flow. We still have plenty of time to find this out. The key factor for PTEK is the rate of growth. This should be a simple metric if you read the filings. The company did the smart thing by building inventories to meet existing orders and prepping for Q2 sales avoiding expensive borrowing rates.

Back to my point about the portfolio manager…. It is my observation that he/she is still out there on a daily basis participating in the volume, increasing the funds position in PTEK and is happy that the average volume jumped from 60,000 shares to 450,000 shares. Let’s not forget that the company had recent insider buying which turns on all sorts of buy-side trading algorithms for Quant funds adding to liquidity. The best scenario for the company is that this player is a long term holder and doesn’t get spooked if they miss a quarter or two. An exit for a large holder can be equally painful.

PTEK is a$12 million market cap company who is positioned to capitalize on the growth in international gaming. The company has a new CEO who also acts as the CFO. I specifically like companies who have a numbers guy with their hand on the rudder. PokerTek will be an easy company to follow because the metrics are simple. The downside for all gaming companies is another downdraft in the global economy as this disposable income is always the first to get sliced from consumer spending. Stay tuned as we watch PTEK closely through the upcoming quarter and look forward to tally the number of tables they install around the globe. World Market Media has no position in this stock and is not paid by the company.

Goldman Sued by the SEC Over Subprime Mortgage Fraud (NYSE: GS)

From the SEC.gov:

The SEC alleges that Goldman Sachs structured and marketed a synthetic collateralized debt obligation (CDO) that hinged on the performance of subprime residential mortgage-backed securities (RMBS). Goldman Sachs failed to disclose to investors vital information about the CDO, in particular the role that a major hedge fund played in the portfolio selection process and the fact that the hedge fund had taken a short position against the CDO.

"The product was new and complex but the deception and conflicts are old and simple," said Robert Khuzami, Director of the Division of Enforcement. "Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party."

Kenneth Lench, Chief of the SEC's Structured and New Products Unit, added, "The SEC continues to investigate the practices of investment banks and others involved in the securitization of complex financial products tied to the U.S. housing market as it was beginning to show signs of distress."

The SEC alleges that one of the world's largest hedge funds, Paulson & Co., paid Goldman Sachs to structure a transaction in which Paulson & Co. could take short positions against mortgage securities chosen by Paulson & Co. based on a belief that the securities would experience credit events.

According to the SEC's complaint, filed in U.S. District Court for the Southern District of New York, the marketing materials for the CDO known as ABACUS 2007-AC1 (ABACUS) all represented that the RMBS portfolio underlying the CDO was selected by ACA Management LLC (ACA), a third party with expertise in analyzing credit risk in RMBS. The SEC alleges that undisclosed in the marketing materials and unbeknownst to investors, the Paulson & Co. hedge fund, which was poised to benefit if the RMBS defaulted, played a significant role in selecting which RMBS should make up the portfolio.

The SEC's complaint alleges that after participating in the portfolio selection, Paulson & Co. effectively shorted the RMBS portfolio it helped select by entering into credit default swaps (CDS) with Goldman Sachs to buy protection on specific layers of the ABACUS capital structure. Given that financial short interest, Paulson & Co. had an economic incentive to select RMBS that it expected to experience credit events in the near future. Goldman Sachs did not disclose Paulson & Co.'s short position or its role in the collateral selection process in the term sheet, flip book, offering memorandum, or other marketing materials provided to investors.

The SEC alleges that Goldman Sachs Vice President Fabrice Tourre was principally responsible for ABACUS 2007-AC1. Tourre structured the transaction, prepared the marketing materials, and communicated directly with investors. Tourre allegedly knew of Paulson & Co.'s undisclosed short interest and role in the collateral selection process. In addition, he misled ACA into believing that Paulson & Co. invested approximately $200 million in the equity of ABACUS, indicating that Paulson & Co.'s interests in the collateral selection process were closely aligned with ACA's interests. In reality, however, their interests were sharply conflicting.

According to the SEC's complaint, the deal closed on April 26, 2007, and Paulson & Co. paid Goldman Sachs approximately $15 million for structuring and marketing ABACUS. By Oct. 24, 2007, 83 percent of the RMBS in the ABACUS portfolio had been downgraded and 17 percent were on negative watch. By Jan. 29, 2008, 99 percent of the portfolio had been downgraded.

Investors in the liabilities of ABACUS are alleged to have lost more than $1 billion.

The SEC's complaint charges Goldman Sachs and Tourre with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5. The Commission seeks injunctive relief, disgorgement of profits, prejudgment interest, and financial penalties.

GE Reports Earnings (NYSE:GE)

From AP:

"GE's earnings beat Wall Street forecasts but revenue came in below expectations and its shares slipped 9 cents to $19.41 in in premarket trading.

The company said losses were moderating within GE Capital, The unit's profit fell 41 percent due to downsizing and a lower tax credit. Chief executive Jeffrey Immelt was optimistic, saying there were positive signs in major sectors like transportation and advertising.

"We saw encouraging economic signs," Immelt said.

GE, which is based in Fairfield, Conn., said it earned $1.87 billion, or 17 cents per share, after deducting preferred dividends in the January-March period, down from $2.75 billion, or 26 cents per share, a year ago. Revenue fell 5 percent to $36.6 billion from $38.4 billion a year ago.

Excluding $390 million in losses from one-time items, GE's earnings from continuing operations were $2.4 billion, or 21 cents a share. Analysts polled by Thomson Reuters expected profit of 16 cents a share on higher revenue of $37.1 billion.

GE is considered an indicator of the well-being of the broader economy. It makes industrial products ranging from light bulbs to wind turbines, and is a big lender to businesses and consumers."

CopSync Reports Its First Year Results Looking For a Bright 2010 (OTCBB: COYN)

On April 12th COPsync, COYN announced fourth quarter and year end results for December 2009.

From Global News Wire:”COPsync defines "gross sales" as the gross contract price accrued by the company for installations of its COPsync software product and hardware related to that product.

During 2009, COPsync received $1,153,914 in gross sales, versus $913,836 in software and hardware costs related to those receipts. This gross sales number included $278,018 in revenues recognized during the year, $533,293 in deferred revenues, which will be recognized over the term of the applicable license agreements, and $342,606 in incentives that COPsync gave back to its customers to supplement their purchase of hardware.

Additionally, as of December 31, 2009, the company had executed software license agreements with customers under which it expects to install its product and related hardware, and receive $945,492 in gross sales, in the first half of 2010.”



World Market Media covered the beginnings of COPsync earlier in the month, which highlighted the features of the software and provided some color on the business model of the company. Russell Chaney, CEO stated that he was very happy with the performance of the company in 2009 when considering the economic climate and the slow adapting nature of state funded organizations. You can find the link here

As branches begin to come up the curve, asking for grants and installing the software, the COPsync network will begin to expand and be valid tool for information sharing. The product is only as good as its network, and COPsync stated that the company was dedicated a large amount of resources towards grant programs which include: Border Security Equipment and Technology (BSET) Grant Program, the Homeland Security Grant Program (HSGP), the Edward Byrne Memorial Justice Assistance Grant (JAG) Program and the Department of Homeland Security Operation Stonegarden Grant."

As I stated in my previous blog, there is a demand for this product, and this company is the first in the space so moving into 2010 world market media will be following this company to see if they begin to get some real revenue traction

Bank of America Earnings Report (NYSE: BAC)

From AP:

Bank of America said Friday its first-quarter earnings rose 0.7 percent to $2.83 billion as strong trading revenue helped the bank offset continuing losses on consumer loans.

The bank reported a $2.1 billion loss in its home mortgage business, but said its other consumer loan businesses were showing signs of healing.



Bank of America's results after payment of preferred stock dividends are up slightly from $2.81 billion a year ago. They surpassed expectations and provided further evidence that the banking industry and the economy are recovering. JPMorgan Chase & Co. on Wednesday also reported improvements in its consumer loan business, and said continuing credit losses were offset by income from trading.

Bank of America set aside $9.8 billion to covered soured loans during the quarter, down 3 percent from $10.1 billion the previous quarter. A year earlier, it had set aside $13.4 billion. Many analysts predict loan losses should peak some time in the first half of 2010.

CEO Brian Moynihan said in a statement, "the 2010 story appears to be one of continuing credit recovery, and our results reflect a gradually improving economy." JPMorgan Chase also reported that it saw signs of improvement in the economy.

5 Things to Read Before Trading Today

From the Desk of Lou Brien
  1. Stocks were lower across Asia overnight. The Nikkei lost about one and a half percent on the session, the Hang Seng was down 1.3%, Shanghai fell one percent and Australia slipped 0.3%. Europe is currently straddling unchanged and US stock futures are down just a fraction as I write.
  2. The March reading of Switzerland’s Produce and Import Prices was +0.5% on the month, one tenth stronger than forecast. On a year over year basis the index was 0.0%.
  3. Among the earnings reports out this morning are: Bank of America Q1 eps +28 cents, above the estimate for +10 cents; and GE Q1 eps +21 cents, above the estimate for +16 cents, but they were a slight miss on Revenues; $36.61 billion versus the estimate of 436.98 billion.
  4. The March reading of Housing Starts is due out at 7:30am CDT. Starts are expected to rise 6.1% from the month before to an annualized rate of 610k. The estimate for Building Permits is 625k, or down 1.9% from a revised February result. The preliminary April reading of consumer sentiment from the University of Michigan is due out at 8:55am CDT, it is forecast to be 75.0, up from 73.6 in March.
  5. Fed Governor Warsh is slated to speak on “Beyond the Exit” at 8:00am CDT at the Minsky conference in New York. Also scheduled to appear at that conference is Kansas City Fed boss Hoenig, he will begin his talk at noon CDT.

North Korea Likely Responsible in Blast

After excavating the sunken naval ship and examining the hull, South Koreans believe that an external explosion split the ship in two, killing many. South Korea's defense minister said this month the 1,200-tonne Cheonan may have been hit by a torpedo, immediately putting suspicion on North Korea and stoking concerns that the incident could start a conflict on the long divided peninsula.

The world and most South Koreans were hoping that they explosion was a technical failure, but after evidence on Thursday it seems that local media in Seoul is pinning the blame on the North. The fear is that this will trigger a major conflict with the North, besides this event relations have been soured since President Lee Myung-bak came to power in Seoul over two years ago, angering Pyongyang by ending the financial largesse that had for years been a lifeline for the broken North Korean economy

The North’s ambiguity has become a major issue for the South. Ratings agency Standard & Poor's said on Thursday it did not plan to raise the South's sovereign rating -- which would normally make it cheaper for South Korean borrowers overseas -- while risks involving Pyongyang's leadership persist.

Thursday, April 15, 2010

Michelle Obama in Mexico

The First Lady watched students sing and dance in a Mexico City elementary school yesterday. “Just to let you know — today you did your country proud,” she told the youngsters on the second day of her first solo foray out of the United States as first lady, a trip in which she surrounded herself with young people of all ages and backgrounds and attempted to offer them inspiration.

She also gave an inspirational speech at Iberoamericana University advising students to continue to help the less fortunate of Mexico. It was noted that she did not mention that violent drug war that has recently struck the middle class and college students of Mexico.

Mrs. Obama cited Benito Juarez as a shining example of Mexican man who came from humble means to lead the country in the 19th century. The challenges facing Mexico’s youth are towering. The struggling economy continues to prompt many of them to risk their lives migrating illegally to the United States, sometimes alone. In addition, the drug war of Mexico is largely a war of youths. Most involved are under 30 years of age, and with 23,000 dead so far, the toll is difficult to ignore.

Google Reports Earnings (NASDAQ:GOOG)

From Offical Google Press Release:

Google reported revenues of $6.77 billion for the quarter ended March 31, 2010, an increase of 23% compared to the first quarter of 2009. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the first quarter of 2010, TAC totaled $1.71 billion, or 26% of advertising revenues.



Google Sites Revenues - Google-owned sites generated revenues of $4.44 billion, or 66% of total revenues, in the first quarter of 2010. This represents a 20% increase over first quarter 2009 revenues of $3.69 billion.

Google Network Revenues - Google’s partner sites generated revenues, through AdSense programs, of $2.04 billion, or 30% of total revenues, in the first quarter of 2010. This represents a 24% increase from first quarter 2009 network revenues of $1.64 billion.

International Revenues - Revenues from outside of the United States totaled $3.58 billion, representing 53% of total revenues in the first quarter of 2010, compared to 53% in the fourth quarter of 2009 and 52% in the first quarter of 2009. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the fourth quarter of 2009 through the first quarter of 2010, our revenues in the first quarter of 2010 would have been $112 million higher. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the first quarter of 2009 through the first quarter of 2010, our revenues in the first quarter of 2010 would have been $242 million lower.

Cash – As of March 31, 2010, cash, cash equivalents, and short-term marketable securities were $26.5 billion.

Wednesday, April 14, 2010

3 OTCBB Market Movers - (OTCBB: GWSC), (OTCBB: BYOC), (OTCBB: ONCI)

GWS Technologies Inc. (OTCBB:GWSC) is trading at $0.27 up $0.09 or 50% on heavy volume of 760k


Today the company announced that it is preparing plans for proposed solar farm sites ranging in size from 80 acres to 400 acres bordering electric substations in Veracruz and Chiapas, Mexico. GWS will provide engineering, project management, solar equipment and technology integration on the projects, with estimated costs ranging from $50M USD to $250M USD per project. In November 2008, the Mexican Congress passed the Renewable Energy Usage and Energy Transition Financing Act, a clear step towards implementing alternative energy policy at the federal level. With a tremendous demand for “green” technology in countries like Mexico, where the technology is still new, there are going to be opportunities for companies like GWS.


Beyond Commerce Inc. (OTCBB:BYOC) is trading at $0.07 up $0.025 or 50% on heavy volume of 292k


Back in March the company re-vamped its business strategy and redesigned their website as a way to turn around a company which was facing steady losses. The company seems to still be working on turning things around, but, today it’s seeing real volume to the upside so we will keep an eye if anything further comes out


On4 Communications Inc. (OTCBB:ONCI) is trading at $0.14 up $0.03 or 27% on heavy volume of 62k


Today an interview with CEO Cameron Robb was released concerning the business model and goals for 2010 and beyond. They have licensed the Smith & Wesson brand for their LBS (Location Based Services) products and services. Their LBS products target both the enterprise and the consumer markets. The Company’s enterprise solutions cover transportation fleet, cargo and personnel tracking and in the consumer market, they are focusing on personal valuable assets, people, such as children and elderly and pets tracking devices. The company is also on the cusp of moving from the developmental stage and entering into the revenue generating stage.

Hott Topic and The Retail Rebound – (NASDAQ: HOTT)

The optimism continues to flow out of Wall Street, this time the positive news is coming from the retail sector. Retail stocks opened higher Wednesday, boosted by better-than-expected March retail sales. The S&P Retail Index rose 0.3% to 473.75.

Hot Topic Inc., part of our Micro Cap Index here at World Market Media, rose 10% after the teen retailer said in a conference presentation, this morning, all of the company’s core businesses are seeing improvement at its Hot Topic chain. Furthermore, quarter-to-date comparable sales at its Torrid plus-sized chain are up 8%. Executives made the comments in a presentation at Telsey Advisory Group conference. Recently the company's results have been hurt by comparisons against sales of Twilight and New Moon movie merchandise.

This is a good sign for HOTT who has been struggling since they lost licensing rights for the highly profitable Twilight Saga. In their latest quarterly conference call the company commented that the license from the first Twilight movie artificially boosted sales, so when they missed out on the license for the 2nd movie comparable sales seemed much worse than they really were. It seems their more balanced approach to gaining licenses paired with improving retail sales has this strong looking strong moving forward.


Shares of HOTT are trading at $9.30 up 82 cents or 9.6% on heavy volume of 5.2M

7.1 Earthquake kills 400 in China

A powerful earthquake in Western China killed 400 and injured 10,000 and many others are still buried under rubble. The quake, which struck at 7:49 a.m. in Qinghai Province, had a magnitude of 7.1, according to China’s earthquake agency. Within that province, the epicenter was in a county named Yushu, a remote area of farmers and herdsmen, most of them Tibetans. A report said that nearly 90% of the homes in Yushu had collapsed.

Among those still missing were 20 children buried in the wreckage of a primary school, and as many as 50 people were trapped beneath a collapsed office building that houses the Departments of Commerce and Industry, according to news reports.

This quake comes after a deadly quake in the Sichuan Province, which is adjacent to Qinghai. That quake killed about 87,000 people. The quakes were both caused by the upward thrust of the Indian Plate against the Eurasian Plate. Officials said that rescue efforts were stymied by a lack of heavy equipment. Medical supplies and tents, they added, were in short supply. Phone calls to local government offices went unanswered on Wednesday afternoon.

Yushu is located on the Tibetan plateau and many villages are well above 16,000 feet. The temperatures are well below freezing even in April and with thousands of people now homeless, Chinese officials are rushing to airdrop tents and aid.

Tuesday, April 13, 2010

A Market for Greek Debt

A recent auction on Greek debt showed strong demands. Greece's debt agency sold €780 million ($1.061 billion) apiece of the six- and 12-month Treasury bills at yields of 4.55% and 4.85%, respectively. Greece has a bond due on April 20th, which it has the cash to pay for. However, a bond due on May 19th may be the one that forces Greece to call up its European brethren. Putting the cash together may be an issue for each nation, possibly requiring parliamentary approval from each separate nation.

Prediction are that Greece will tap the aid package by the end of this month. In addition to high interest rates, Greece faces recession risk and a period of very low inflation or even deflation to make its economy competitive again. The mix is poisonous for government revenues that depend on income and value-added taxes. The euro firmed slightly after the Tuesday's T-bill sale but swiftly fell below Monday's closing levels, reflecting those worries.

This could be the beginning of the end for Greece’s debt crisis but it is a substantially new dawn for the Euro Zone, whom hit a road block, and was forced to do something unexpected and icky. Now, the Euro nations will try to assure investors that the rest of its members are stable and secure.

Intel Earnings! (NASDAQ: INTC)

SAN FRANCISCO (AP) -- Intel Corp. said Tuesday its net income in the first quarter nearly quadrupled over last year and reflected an overall bump in spending on technology by companies.

Among other things, Intel got a lift from sales of new chips for computer servers -- the kind of purchase that many companies delayed in the recession.

Intel is the first major technology company to report earnings for the first three months. It said after the market closed Tuesday that it earned $2.4 billion, or 43 cents per share, in the first three months of 2009.

Analysts polled by Thomson Reuters were expecting profit of 38 cents per share.

The company also raised its forecast for a key performance measurement. Intel now predicts a gross profit margin of 62 percent to 66 percent of revenue in 2010, up from its previous guidance of 58 percent to 64 percent of revenue.

Intel shares rose 1.45 percent in after-hours trading.


Wal-Mart to Make India Major Hub

Wal-Mart is about to begin exporting millions of dollars worth of products to India in hopes of making it a major sourcing hub. The retail giant’s operations are linked to an India company called Bharti Enterprises. India is a perfect place for retail source materials: the cost advantage is high and the markets in the West are bogged down. Room for expansion and growth is enormous.

There is one problem though, the law governing India's retail sector is a hindrance. The country allows multi-brand retailers such as Wal-Mart to operate only wholesale outlets and provide back-end support to local operators. Single-brand retailers, however, can make up to 51% foreign direct investment in their ventures. Wal-Mart executives will certainly be lobbying the Indian government to make a change. Pitching the idea that bringing Wal-Mart and a stronger retail market to India will increase the standard of living.

Raj Jain, managing director and chief executive of Bharti Wal-Mart, said the companies "will like to be equal partners" if India relaxes rules and allows Wal-Mart to invest in Bharti Retail, which caters to retail customers.

Monday, April 12, 2010

Iceweb Up on New Storage System - (OTCBB: IWEB)

Iceweb Inc. (OTCBB: IWEB) is trading at $0.34 up $0.06 or 21% on heavy volume of 2.3M

Today announced that it will be shipping its new, version 3.0 storage system platform which will have upgraded functionality from the previous Legacy platform. Some upgrades will be concerning the platforms virtualization and its integrated search abilities.

The new 3.0 Virtual Machine Datacenter is the only product which can support a variety of platforms from a single point. In other words storage administrators can now see their entire virtual environment, provision storage, backup, VM cloning, replicate and set retention policies all from a point and click interface.

3.0 Storage also allows for an unlimited number of snapshots, something the Legacy Solution could not do. Furthermore, indexes and Boolean search have been included to help manage the massive amounts of snapshots. As a result of this new technology someone using the technology has the capabilities of taking hourly snapshots, resulting in restoring data in a timely manner in smaller incremental amounts.

3.0 has improved on many of the areas that the previous system lacked in. Supposedly the new changes are what customers have been asking for since the beginning. IWEB is also excited about the reasonable price tag they were able to put on the system considering the advancements the product has undergone. In a society which is becoming more and more digital IWEB has a unique niche in unified data storage and building blocks for cloud storage networks.

Fresh Harvest Products (OTCBB:FRHV) 10M(MarketCap)

Selling Nature Bars at Walgreens: +175% today… traded 58 million shares

I had these guys on our IPTV show at MN1.com a few years ago and they sent us all sorts of products which my staff devoured in no time. This stock had a big pop today based on the agreement with Walgreens in Orlando Florida and products flying off the shelves. How long can it be before other Walgreen locations begin ordering this product. Today’s Press below.

(website for photos) http://www.freshharvestproducts.com/about


Fresh Harvest Products, Inc. (OTCBB: FRHV), a developer and marketer of natural and organic products, is pleased to announce that sales of its Wings of Nature bars in Walgreens have been brisk and that re-orders have been submitted several times to restock the shelves. The Wings of Nature bars are sold in approximately 205 Walgreens retail locations in the greater Orlando, FL area.

"We are encouraged to see such a positive consumer response to our Wings of Nature bars. Right out of that gate several stores have sold out and continue to sell quickly. As we are building a strong foundation, we are very pleased with the customers' acceptance of our products and we are actively working towards expanding our brand and distribution throughout Walgreens," said Michael J. Friedman, CEO of Fresh Harvest.

This announcement comes on the heels of several good press releases from Fresh Harvest, including the recently completed acquisition of AC LaRocco Pizza Co., a 12-year-old purveyor of organic and natural frozen foods, which has approximately $1.5 million in sales and has products in retailers such as Kroger and Albertsons (certain divisions), among others. We have also recently announced that we are increasing our distribution in both Florida and the North East, as well as meeting with innovative natural and organic product companies seeking opportunities for growth through acquisitions or strategic partnerships.