Friday, May 28, 2010
Bid to Buy Rights to IDOL - (NASDAQ: CKXE)
As season 9 of American Idol came to a close on Wednesday, talk about the company who owns the rights to IDOL are heating up. CKX Inc. (NASDAQ: CKXE), who owns the rights to IDOL and So You Think You Can Dance television brands, as well as an 85% share in Elvis Presley Enterprises and 80% share in Muhammad Ali Enterprises, has been in discussion as the possible target of a buyout.
Simon Fuller, the creator of American Idol, has teamed up with a former Barclays Capital executive to formulate a $600M bid for CKX. Mr. Fuller has been in discussions with Roger Jenkins, an ex-Barclays Capital tax expert, for months and the two have amassed a $1billion fund, however, don’t have a name for their venture, according to one person familiar with their negotiations.
The stock is trading at $5.35 up $1.03 or 24% as investors saw the $600M bid as high compared to the valuation of the company according to the closing price of $4.32 on Thursday. If you were to multiply the 93.6M shares outstanding by Thursday’s closing price of $4.32 the company’s valuation would be just a touch over $400M so it’s no surprise that the stock has jumped over a dollar today. The company did have about $100M in debt and $55M cash on hand at the end of last quarter.
Robert Sillerman former chairman and chief executive of the company who resigned earlier this month remains the majority shareholder at about 21%. Sillerman along with the Presley family will be a major factor in a decision concerning accepting this bid
This news comes just a day after Simon Cowell, star judge of American Idol, announced he would not return for a season 10. It appears to me that American Idol is in the twilight of its career as Season 9 had low ratings compared to seasons passed. And now that Simon is gone who’s going to watch? We will keep you updated with any further news concerning this bid.
Simon Fuller, the creator of American Idol, has teamed up with a former Barclays Capital executive to formulate a $600M bid for CKX. Mr. Fuller has been in discussions with Roger Jenkins, an ex-Barclays Capital tax expert, for months and the two have amassed a $1billion fund, however, don’t have a name for their venture, according to one person familiar with their negotiations.
The stock is trading at $5.35 up $1.03 or 24% as investors saw the $600M bid as high compared to the valuation of the company according to the closing price of $4.32 on Thursday. If you were to multiply the 93.6M shares outstanding by Thursday’s closing price of $4.32 the company’s valuation would be just a touch over $400M so it’s no surprise that the stock has jumped over a dollar today. The company did have about $100M in debt and $55M cash on hand at the end of last quarter.
Robert Sillerman former chairman and chief executive of the company who resigned earlier this month remains the majority shareholder at about 21%. Sillerman along with the Presley family will be a major factor in a decision concerning accepting this bid
This news comes just a day after Simon Cowell, star judge of American Idol, announced he would not return for a season 10. It appears to me that American Idol is in the twilight of its career as Season 9 had low ratings compared to seasons passed. And now that Simon is gone who’s going to watch? We will keep you updated with any further news concerning this bid.
China’s President Seeks to Ease Korean Tensions
China’s Premier Wen Jiabao told South Korean President Lee Myung-bak that he condemned the sinking of the Cheonan and understood the grief of South Korea. Mr. Jiabao never did denounce North Korea in his public statements but said that China opposes any nation detrimental to peace.
Mr. Jiabao’s comments reflected China's efforts to avoid entanglement in the crisis while seeking to dispel regional worries that Beijing is dismissing South Korea's complaints and protecting Pyongyang. However, some analysts believe that this meeting is a time where China will tell South Korea to step back, because China can not even control North Korea and it’s leader Kim Jong-IL.
The mounting antagonism between the two Koreas has unnerved investors, worried the confrontation could erupt into conflict. Many analysts say that neither side is ready to go to war but warn there could be more skirmishes, especially along their disputed sea border off the west coast.
There is strong doubt that China will change its stance on this issue—not publicly befriending North Korea and yet not voting for sanction in a U.N. sanctions meeting—but still soothing South Korea’s wounds. You see, China has a lot at stake in the Korean peninsula, and this turmoil is bad for business.
Mr. Jiabao’s comments reflected China's efforts to avoid entanglement in the crisis while seeking to dispel regional worries that Beijing is dismissing South Korea's complaints and protecting Pyongyang. However, some analysts believe that this meeting is a time where China will tell South Korea to step back, because China can not even control North Korea and it’s leader Kim Jong-IL.
The mounting antagonism between the two Koreas has unnerved investors, worried the confrontation could erupt into conflict. Many analysts say that neither side is ready to go to war but warn there could be more skirmishes, especially along their disputed sea border off the west coast.
There is strong doubt that China will change its stance on this issue—not publicly befriending North Korea and yet not voting for sanction in a U.N. sanctions meeting—but still soothing South Korea’s wounds. You see, China has a lot at stake in the Korean peninsula, and this turmoil is bad for business.
Thursday, May 27, 2010
25 Dead in Indian Train Blast
In Eastern India, 25 have been killed in a train blast and the death toll is expected to rise as the wreckage is cleared. The incident occurred in an area known to be a stronghold of Maoist rebels. A railway spokesman said sabotage was suspected, but the involvement of the Maoists has yet to be confirmed.
The passenger train was heading to Mumbai from the eastern city of Kolkata in West Bengal. The blast derailed 13 coaches and those coaches tore at the steel of other coaches. The Maoist rebels, who often attack police, government buildings and infrastructure such as railway stations, have in recent months stepped up attacks in response to a government security offensive to clear them out of their jungle bases.
The rebels blew up a bus in the mineral-rich state of Chhattisgarh this month, killing 35 people, about a month after 76 police were killed in another attack. President Manmohan Singh has described these rebels as India’s biggest internal threat and, in addition, they are costing Indian business billions of dollars.
The passenger train was heading to Mumbai from the eastern city of Kolkata in West Bengal. The blast derailed 13 coaches and those coaches tore at the steel of other coaches. The Maoist rebels, who often attack police, government buildings and infrastructure such as railway stations, have in recent months stepped up attacks in response to a government security offensive to clear them out of their jungle bases.
The rebels blew up a bus in the mineral-rich state of Chhattisgarh this month, killing 35 people, about a month after 76 police were killed in another attack. President Manmohan Singh has described these rebels as India’s biggest internal threat and, in addition, they are costing Indian business billions of dollars.
Tofutti Brands Inc. (AMEX: TOF) $12M (MarketCap)
Tofutti Brands Inc. (TOF) is currently trading at 2.27, up .3 or 15.23%. This company is principally involved in the development, production, and marketing of Tofutti brand soy-based, dairy-free frozen desserts and cheese products, among others. Its products are sold in grocery stores, supermarkets, health and convenience stores throughout the United States and in approximately 25 other countries.
On May 18th, it released its First Quarter financial results for the 13 week period ended April 3, 2010.
Financial Highlights include:
- Revenues for the first quarter were approximately $4.6 million compared to $4.2 million in the first quarter of 2009.
- Operating income in the first quarter was $475,000 compared to $253,000 in the first quarter of 2009.
- Net income for the first quarter was $275,000 compared to $152,000 in the first quarter of 2009.
Mr. David Mintz, Chairman and Chief Executive Officer of the Company commented, "Our improved results in the first quarter of 2010 reflect the general improvement in the economic climate and our decision to drop certain low profit margin products that we sold in the 2009 period. We continue to concentrate on our core business of non-dairy frozen desserts and soy-cheese products and believe this strategy will continue to provide positive results. We look forward to improvements in our sales and operating income during the upcoming summer months."
Movado Group, Inc. (NYSE:MOV) $317M (MarketCap) Announces First Quarter Results and Future Plans
Movado Group, Inc. is currently trading at 12.91, up 1.83 or 16.52%. This company designs, sources, markets, and distributes fine watches and jewelry. The company offers its watches under Movado, Ebel, Concord, ESQ, Coach, HUGO BOSS, Juicy Couture, Tommy Hilfiger, and Lacoste brand names. It also designs, develops, markets, and retails Movado-branded jewelry through its luxury Movado Boutiques.
Today, it has announced its First Quarter Results. Adjusted net loss in the first quarter ended April 30, 2010, was $4.8 million, or $.19 per diluted share, compared to adjusted net loss of $9.5 million or $.39 per shared in the previous year.
Financial Highlights Include:
In an effort to streamline its business, redirect investment toward higher return businesses, and improve the company’s overall profitability, it additionally announced the closing of its retail boutique division today. Movado Retail Group, Inc. will close this division effective June 30, 2010. The company will continue to sell its watch products primarily through its wholesale model, where it expects to increase its market share by further expanding relationships with existing wholesale customers and enhancing its relationships with independent retailers. The boutique closings will have no impact on the availiability of any of Movado’s watch products. In addition, MRG will continue to sell all of its watch brands directly to consumers through its 31 outlet stores and will keep the Movado Boutiques located in New York’s Rockefeller Center open as a flagship store.
Today, it has announced its First Quarter Results. Adjusted net loss in the first quarter ended April 30, 2010, was $4.8 million, or $.19 per diluted share, compared to adjusted net loss of $9.5 million or $.39 per shared in the previous year.
Financial Highlights Include:
- Net sales in the first quarter of fiscal 2011 increased 16.7% to $78.9 million compared to $67.6 million in the first quarter of fiscal 2010 primarily driven by growth in both the U.S. and international wholesale categories. Excluding excess discontinued product sales of $4.3 million in the prior year quarter, net sales increased 24.6%.
- Gross profit was $44.2 million, or 56.0% of sales, compared to $35.7 million, or 52.8% of sales in the first quarter last year. Excluding excess discontinued product sales, adjusted gross margin in the first quarter of fiscal 2010 was 57.6% of sales.
In an effort to streamline its business, redirect investment toward higher return businesses, and improve the company’s overall profitability, it additionally announced the closing of its retail boutique division today. Movado Retail Group, Inc. will close this division effective June 30, 2010. The company will continue to sell its watch products primarily through its wholesale model, where it expects to increase its market share by further expanding relationships with existing wholesale customers and enhancing its relationships with independent retailers. The boutique closings will have no impact on the availiability of any of Movado’s watch products. In addition, MRG will continue to sell all of its watch brands directly to consumers through its 31 outlet stores and will keep the Movado Boutiques located in New York’s Rockefeller Center open as a flagship store.
Rick Cote, President and Chief Operating Officer of Movado Group, Inc., commented, "Following several years of unprofitability and a strategic review of the business, we have decided to close our retail boutique division. We believe that this action will assist Movado Group to return U.S. operations to profitability. We will continue to make strategic investments in our brands to capitalize on growth prospects, build market share and elevate our connection with consumers. We believe in the strength of the Movado brand and the rest of our portfolio of iconic brands, and we expect these actions will solidify our position as a leader in the watch industry."
Tuesday, May 25, 2010
Lindsay Lohan To Wear Alcohol Bracelet, Undergo Drug Testing
A Los Angeles Superior Court has ordered that Lindsay Lohan must wear an alcohol-detecting bracelet and submit to random drug testing once a week. The ruling comes after the court temporarily issued an arrest warrant for Lohan, 23, after she missed a court appearance last week while attending the Cannes Film Festival. "The problem is that actions do speak louder than words. I've heard the best words in the world, but the actions are more important to me," Judge Marsha Revel told the New York Daily News last week after issuing the warrant. "Her actions in the past have not justified me having faith. She has to take this seriously. I warned her before."
Lohan's attorneys posted a $100,000 bond to have the warrant revoked, claiming that Lohan was stuck in France because her passport was stolen. The actress was reportedly attending the film festival to promote her upcoming film "Inferno," which will chronicle the life of 1970's porn star Linda Lovelace.
MagneGas Corporation (OTCBB: MNGA) $9m (MarketCap) Initiates Its 1st International Shipment
MagneGas Corporation (OTCBB: MNGA) has initiated the shipment of its first international sale of MagneGas™ in the history of the corporation, describing it as a milestone in their operations. It had previously received payment for 294 cylinders the the fuel from United Arab Emirates (UAE)- based United Gas Company (UNIGAS), and has today fulfilled this obligation. MagneGas is enthusiastic about this sale because it creates a marketable track record for all future business development. UNIGAS has secured the rights to be the distributor of MagneGas™ for the region, and has expressed a long-term interest in purchasing equipment from the Company and producing fuel locally.
This shipment and developing relationship with UNIGAS has enabled the introduction of MagneGas to the fabricaiton-rich Middle Eastern market. MagneGas' early exposure will be maximized by UNIGAS' intention to immediately market the fuel to its existing hihg-volume acetylene and propane clients in the UAE. Thisfuel performs as effectively as acetylene, but is less expensive and burns dramatically cleaner. Therefore, the first step of UNIGAS is to target select shipyards whose combined annual acetylene purchase volume exceeds 65,000 cylinders.
MagneGas President Richard Connelly commented, "through this we gained first-hand experience in filing and shipping large fuel orders to overseas clients, a very logistically complex process. We have now defined, tested and implemented an efficient fulfillment system that will expedite future orders and make best use of available resources. With this one shipment we have proven our sales and operational capabilities-- and established a brand footprint in the potentially lucrative Middle East."
View Client Disclosure
This shipment and developing relationship with UNIGAS has enabled the introduction of MagneGas to the fabricaiton-rich Middle Eastern market. MagneGas' early exposure will be maximized by UNIGAS' intention to immediately market the fuel to its existing hihg-volume acetylene and propane clients in the UAE. Thisfuel performs as effectively as acetylene, but is less expensive and burns dramatically cleaner. Therefore, the first step of UNIGAS is to target select shipyards whose combined annual acetylene purchase volume exceeds 65,000 cylinders.
MagneGas President Richard Connelly commented, "through this we gained first-hand experience in filing and shipping large fuel orders to overseas clients, a very logistically complex process. We have now defined, tested and implemented an efficient fulfillment system that will expedite future orders and make best use of available resources. With this one shipment we have proven our sales and operational capabilities-- and established a brand footprint in the potentially lucrative Middle East."
View Client Disclosure
PFSweb, Inc. (NASDAQ: PFSW) $36M (MarketCap) Announces $7 million Stock Offering
PFSweb, Inc. is an international business process outsourcing services provider of end-to-end web commerce solutions and an online discount retailer. Companies partner with PFSweb to launch new online initiatives, enhance or re-platform their current eCommerce offering or streamline their business-to-business operations.
Today, it has announced a public offering of 2,000,000 shares of its common stock at $3.50 per share, less an underwriting discount of $.21 per share. This offering, expected to close on May 28, 2010, is being made only by means of an electronic prospectus and related prospectus supplement. The underwriters in the offering have been given an option to purchase up to 300,000 additional shares of common stock at the same price per share to cover any over-allotments. Craig-Hallum Capital Group, LLC, acted as the lead underwriter for the offering, and Stonegate Securities acted as co-manager. The company expects to receive net proceeds of $6.3 million from the offering, after deducting underwriting discounts and commissions and estimated expenses of the offering. These net proceeds will be used for general corporate purposes, including acquiring or investing in businesses, products or technologies.
Today, it has announced a public offering of 2,000,000 shares of its common stock at $3.50 per share, less an underwriting discount of $.21 per share. This offering, expected to close on May 28, 2010, is being made only by means of an electronic prospectus and related prospectus supplement. The underwriters in the offering have been given an option to purchase up to 300,000 additional shares of common stock at the same price per share to cover any over-allotments. Craig-Hallum Capital Group, LLC, acted as the lead underwriter for the offering, and Stonegate Securities acted as co-manager. The company expects to receive net proceeds of $6.3 million from the offering, after deducting underwriting discounts and commissions and estimated expenses of the offering. These net proceeds will be used for general corporate purposes, including acquiring or investing in businesses, products or technologies.
Brazil Got Played
Brazil’s popular President Luiz Inácio Lula da Silva went to Tehran hoping he could convince Iran to change its nuclear policies - and he had a victory - Iran agreed to send some uranium to Turkey for a year. But as soon as he got home to Brazil, the Iranian government said they would continue to enrich uranium regardless of the deal brokered with Turkey. It caught the President’s administration by surprise and has now opened a floodgate of criticism against him.
The deal brokered with Turkey was dismissed by Washington as a stalling tactic and might have damaged the new country’s ties to the U.S. What could have been one of Mr. da Silva’s crowning achievements as president of a country ascending on the global stage was being characterized as a misstep that could dent the legacy of the popular president. Worse still, it could bring added scrutiny and repercussions for Brazil’s own nuclear ambitions.
Courting Iran on a worldwide stage has not played well at home. Many have called him naïve and overconfident. One Brazilian newspaper said that the Brazilian soccer jersey given to Iranian President Mahmoud Ahmadinejad was “covered in blood.”
The deal brokered with Turkey was dismissed by Washington as a stalling tactic and might have damaged the new country’s ties to the U.S. What could have been one of Mr. da Silva’s crowning achievements as president of a country ascending on the global stage was being characterized as a misstep that could dent the legacy of the popular president. Worse still, it could bring added scrutiny and repercussions for Brazil’s own nuclear ambitions.
Courting Iran on a worldwide stage has not played well at home. Many have called him naïve and overconfident. One Brazilian newspaper said that the Brazilian soccer jersey given to Iranian President Mahmoud Ahmadinejad was “covered in blood.”
Monday, May 24, 2010
U.S. to Bolster South Korean Defenses
Hillary Clinton talked about increasing its military posture towards North Korea today, in response to the sinking of the Cheonan, a South Korean ship. The announcement came in support of South Korea’s President Lee Myung-Bak, who made a statement in favor of cutting off all assistance to Pyongyang.
South Korea also said it was preparing to report Pyongyang to the United Nations Security Council, potentially for a new round of sanctions. On Monday, U.N. Secretary General Ban Ki-moon called the evidence against North Korea "overwhelming and deeply troubling," telling a news conference that he expected the Security Council would take "measures appropriate to the gravity of the situation."
Mrs. Clinton did not say exactly what a new posture would look like militarily, but it could mean U.S. ships in South Korean waters enforcing a ban on North Korean ships moving through South Korean waters. The U.S.'s top diplomat also said the State Department is continuing to review whether to relist North Korea on its list of state sponsors of terrorism. The Bush administration removed Pyongyang in 2008, easing some economic sanctions, in a bid to underpin disarmament talks.
However, the evidence of a North Korean torpedo has done little to sway China into denouncing Kim Jong Il. President Hu Jintao did not mention the incident in his talks this morning for the U.S. economic rally.
The Obama administration views Beijing as central to any moves to punish North Korea for the Cheonan incident. China is North Korea's principal military ally and economic partner. But with South Korea cutting trade ties, it will mean that North Korean ships will be denied a shortcut to China, taxing ships an additional 20 hours in transit.
South Korea also said it was preparing to report Pyongyang to the United Nations Security Council, potentially for a new round of sanctions. On Monday, U.N. Secretary General Ban Ki-moon called the evidence against North Korea "overwhelming and deeply troubling," telling a news conference that he expected the Security Council would take "measures appropriate to the gravity of the situation."
Mrs. Clinton did not say exactly what a new posture would look like militarily, but it could mean U.S. ships in South Korean waters enforcing a ban on North Korean ships moving through South Korean waters. The U.S.'s top diplomat also said the State Department is continuing to review whether to relist North Korea on its list of state sponsors of terrorism. The Bush administration removed Pyongyang in 2008, easing some economic sanctions, in a bid to underpin disarmament talks.
However, the evidence of a North Korean torpedo has done little to sway China into denouncing Kim Jong Il. President Hu Jintao did not mention the incident in his talks this morning for the U.S. economic rally.
The Obama administration views Beijing as central to any moves to punish North Korea for the Cheonan incident. China is North Korea's principal military ally and economic partner. But with South Korea cutting trade ties, it will mean that North Korean ships will be denied a shortcut to China, taxing ships an additional 20 hours in transit.
Jamba, Inc. (NASDAQ: JMBA) $145M (MarketCap) All Natural Smoothies Arrive in Grocery Stores
Jamba, Inc. is a holding company and through its wholly-owned subsidiary, Jamba Juice Company, owns and franchises JAMBA JUICE® stores. Founded in 1990, Jamba Juice is a leading restaurant retailer of better-for-you food and beverage offerings. Jamba Juice had 739 locations consisting of 478 company-owned and operated stores and 261 franchise stores as of December 29, 2009.
Today, Jamba Juice Company has joined forces with Inventure Foods, Inc. (NASDAQ: SNAK) to offer convenient, make-at-home varieties of 3 of the company's legendary smoothies. These Jamba All Natural Smoothies arrive in grocery stores this week with a suggested retail price of $2.99 to $3.29 per unit. Inventure Foods, Inc. is a marketer and manufacturer of Intensely Different specialty brands in indulgent and better-for-you food categories under a variety of company owned or licensed brand names. Steve Sklar, Senior Vice President of Marketing at Inventure Foods, stated "We worked diligently with the Jamba Juice team to make sure our at-home varieties offered the same consistency and great taste customers have come to expect at a Jamba Juice store." These Jamba All Natural Smoothies are easy and quick to make, with simple instructions to just add apple juice and blend for less than 60 seconds to make it.
Susan Shields, Chief Marketing Officer of Jamba Juice Company, commented "To deliver on our brand promise, we've put an extraordinary amount of effort into the development of the Jamba All Natural Smoothies and we are confident that our current Jamba fans will love them. In addition, we expect to introduce the Jamba brand to a whole new set of fans in areas of the country where we don't currently have stores."
Today, Jamba Juice Company has joined forces with Inventure Foods, Inc. (NASDAQ: SNAK) to offer convenient, make-at-home varieties of 3 of the company's legendary smoothies. These Jamba All Natural Smoothies arrive in grocery stores this week with a suggested retail price of $2.99 to $3.29 per unit. Inventure Foods, Inc. is a marketer and manufacturer of Intensely Different specialty brands in indulgent and better-for-you food categories under a variety of company owned or licensed brand names. Steve Sklar, Senior Vice President of Marketing at Inventure Foods, stated "We worked diligently with the Jamba Juice team to make sure our at-home varieties offered the same consistency and great taste customers have come to expect at a Jamba Juice store." These Jamba All Natural Smoothies are easy and quick to make, with simple instructions to just add apple juice and blend for less than 60 seconds to make it.
Susan Shields, Chief Marketing Officer of Jamba Juice Company, commented "To deliver on our brand promise, we've put an extraordinary amount of effort into the development of the Jamba All Natural Smoothies and we are confident that our current Jamba fans will love them. In addition, we expect to introduce the Jamba brand to a whole new set of fans in areas of the country where we don't currently have stores."
Cannabis Science, Inc. (OTCBB: CBIS) $5M (MarketCap) Acquires Revenues and Wages Battle
Cannabis Science is a developmental stage company at the forefront of pharmaceutical medical marijuana research and development. The company works with world authorities, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products to treat disease and the symptoms of disease, as well as for general health maintenance. Needless to say, the company has been attracting a ton of press recently as medical community professionals and ailing patients continue to consider the legitimacy of regulated, controlled, and taxed medical marijuana in the U.S. and abroad.
The company operates in five separate but major segments that include: Horticulture Division - pharmaceutical grade medical cannabis grown under stringent quality controls; Analytical Labs - state of the art facilities developing cannabis extracts and pharmaceutical grade drugs; Manufacturing - cutting edge facilities for creating oral and topical medications for various ailments; Clinical Trials - initial FDA clinical trials targeting veterans suffering from chronic pain and PTSD; Distribution - in state dispensary operations with a growth focused on national dispensaries in the future. Understanding the businesses Cannabis Science operates in is the key to understanding the company’s potential for incredible success (and challenges) in bringing medical marijuana to mass market within only a few years time.
The company recently acquired 100% of a private company that will provide Cannabis Science with two revenue generating operations that are expected to create positive cash flow going forward. The actual transaction was a share swap of 2.4M shares that will provide both the facilities and rights of these operations and the addition of the target company’s founder, Adam Pasquale to the management team at Cannabis Science as the Director of Horticultural. The Company is also targeting financial strength as a focus for 2010; by the end of June 2010, the company plans to have retired a significant portion of its debt by converting it into common equity. If the company can eliminate its debt smoothly, that move coupled with an increase in revenues could attract more institutional investors, adding amplifying the valuation of the company.
Cannabis Science has long been identifying the urgent need for effective therapeutic and medicinal care for returning veterans who suffer from Post Traumatic Stress Disorder or PTSD for quite some time. Sadly, more and more reports of suicides among veterans who have been treated with Seroquel and other antipsychotics that are produced by AstraZeneca, bought by the Pentagon, and prescribed to patients with PTSD are continuing to make headlines. Dr. Robert Melamede, PhD., Cannabis Science President and CEO, offered his position, "Of course, after more than 5,000 years of use, cannabis has not been shown to have caused a single death, and it is now widely - but illegally - used by veterans and others with PTSD as we have reported. It is shameful that those who deserve the best treatment available are being denied access to cannabis while they are given a cocktail of powerful drugs that seems to be killing them." Seroquel recorded revenues of nearly $5B last year, highlighting the immense potential for Cannabis Science to deliver treatment and steal market share.
The uphill battle lies ahead, as there are vast amount of government proponents and resources that are standing in the way of the company as it intends to move its products forward. Foremost, while medical marijuana is legal in a select number of states that include Colorado and California, federal law still prohibits the possession and use of the drug. That being said, the company has friends and foes on both sides. Media outlets like USA Today have reported that there is a growing consensus among government officials and the population that marijuana could one day be regulated as loosely as alcohol or tobacco. The Obama Administration has announced a willingness and intention to examine the War on Drugs for possible reorganization. In November of 2010, California voters will go to the polls to ultimately decide whether or not marijuana will be legalized.
Among those standing in the way of the company’s progress and growth is the National Institute on Drug Abuse (NIDA) and the agencies policies on funding scientific research to determine any illegal drug’s potential benefits. The NIDA presently oversees 85% of the research conducted on controlled substances, and therein lays the deadly Catch-22: the federal laws banning medical and non-medical marijuana cannot be amended until research can prove it has benefits, while no government agencies will allow or fund that research to be conducted.
Cannabis Science has been rallying law enforcement agencies, community activist groups, patient, and the medical community behind its products and mission to bring medicinal marijuana to the mass market. We’ll be watching for new developments from this industry as it gains steam.
Versar, Inc. (AMEX: VSR) $34M (MarketCap) Provides Rapid Response Support to Gulf Oil Spill
The U.S. has lacked any kind of preparation to respond to a major offshore oil spill, as seen by the crude oil gushing into the Gulf of Mexico and washing ashore in Louisiana. The industry has been drilling in the Gulf for decades with 77 rigs operating there, but BP PLC executives, government officials, and scientists are now learning as they go in the fight to limit environmental damage from this month-old spill. Sunday, on CNN's "State of the Nation", Coast Guard Commandant Thad Allen likened the effort to address the Gulf oil spill to fighting a multifront war, as officials work to respond to oil coming ashore in southern Louisiana, tar balls in Alabama and Mississippi and the still-leaking well.
Today, Versar, Inc. has deployed a team of scientists to the Gulf coast region to provide technical support in response to the oil spill. Versar, Inc. is a publicly held international professional services firm supporting government and industry in national defense/ homeland defense programs, environmental health and safety and infrastructure revitalization. They offer a wide array of ecological assessments, statistical analyses, and modeling services that provide scientifically sound and defensible bases for environmental management decisions. The company was selected due to its rapid response capabilities and over 35 years of ecological monitoring and surveying experience. It has expertise in both oil spill response and Natural Resource Damage Assessment and is able to quickly respond to incidents of this magnitude. On-scene Versar scientists will be remotely supported by other Versar divisions with modeling, meteorology, fisheries ecology, sensitive habitat and other technical expertise.
Roshan Selects Arbinet Corporation (NASDAQ: ARBX) $40M (MarketCap) International Voice Services
Arbinet's thexchange is an anonymous marketplace where more than 1,100 carriers and service providers trade, route, manage, and settle voice traffic. It is the industry's leading marketplace for buying and selling voice communications. By utilizing Arbinet's thexchange, Roshan will be able to source high quality routes that allow it to provide its retail customers with cost-effective international voice services.
PrivateExchange is an easy to use, low-risk outsourcing approach that enables service providers to create virtual direct routes and aggregate existing interconnects. With PrivateExchange, Roshan can interconnect directly with bi-lateral partners over Arbinet's network. Arbinet will manage routing, billing and settlements, and provide any necessary TDM or VoIP protocol conversions. It will allow Roshan and its corresponding service provider partners to negotiate pricing and volume commitments directly between themselves.
"We are very pleased with Roshan's selection and utilization of our voice services," states Dan Powdermaker, Arbinet's Senior Vice President of Sales and Marketing. "With one interconnect, Roshan gains access to two unique International Voice Services. In an industry where most operators are looking for new efficiencies when delivering international voice services to their end-users, Arbinet's PrivateExchange and thexchange services give Roshan high-quality voice access to carriers and service providers across the world with unmatched flexibility."
Frederick's of Hollywood Group, Inc. (AMEX: FOH) expansion of E-Commerce
Frederick's of Hollywood Group Inc. conducts its business through its multi-channel retail division and wholesale division. The company primarily sells womens intimate apparel and related products though 132 specialty retail stores nationwide, a catalog, and an online shop at www.fredericks.com. Most of Frederick's of Hollywood stores are located in shopping malls, so the volume of mall traffic highly influences sales. A decline in the desirability of the shopping environment of a particular mall could reduce the volume of mall traffic, which could have an adverse effect on the business, financial condition and results of operations. This fact forces the company to expand its e-commerce division of retail to remain in the game with its competitors, such as Victoria's Secret.
Thomas Lynch, the Company's Chairman and Chief Executive Officer, stated that one of the company's focus for the future will be on several fronts, including driving increased traffic to the e-commerce website. Currently, website traffic accounts for a very low proportion of sales revenue. In comparison, Victoria's Secret generates approximately 15% of its sales from e-commerce. During peak seasons, such as Christmas and Valentine's Day, an immediate option for gifts is at victoriasecret.com. Frederick's of Hollywood, in order to compete, needs to extend its branding, having its most primary source in its website. When comparing websites, Victoria's Secret seems to be more accessible and easier to run through than Frederick's. Immediately when going to the website of Victoria's Secret, shoppers are drawn into putting in their bra size and panty size, and checking out the top specials and styles that fit. This is a great tactic, because customers shopping for something other than bras or panties have a now increased curiosity with what is available in those categories.
Frederick's of Hollywood's homepage is very appealing as well, automatically showing specials and new styles for the current time. They offer clothing in similar categories with Victoria's Secret, so increased recognizability of its brand is crucial. Recently, the company has received a significant investment from a hedge fund to specifically improve thier e-commerce sales revenues. This will include the reorganization of the website to make it more appealing, and the increased recognition of its existence. With this investment, Frederick's looks forward to becoming a true competitor in the e-commerce world, and to have its name be searched during peak seasons as well.
Thomas Lynch, the Company's Chairman and Chief Executive Officer, stated that one of the company's focus for the future will be on several fronts, including driving increased traffic to the e-commerce website. Currently, website traffic accounts for a very low proportion of sales revenue. In comparison, Victoria's Secret generates approximately 15% of its sales from e-commerce. During peak seasons, such as Christmas and Valentine's Day, an immediate option for gifts is at victoriasecret.com. Frederick's of Hollywood, in order to compete, needs to extend its branding, having its most primary source in its website. When comparing websites, Victoria's Secret seems to be more accessible and easier to run through than Frederick's. Immediately when going to the website of Victoria's Secret, shoppers are drawn into putting in their bra size and panty size, and checking out the top specials and styles that fit. This is a great tactic, because customers shopping for something other than bras or panties have a now increased curiosity with what is available in those categories.
Frederick's of Hollywood's homepage is very appealing as well, automatically showing specials and new styles for the current time. They offer clothing in similar categories with Victoria's Secret, so increased recognizability of its brand is crucial. Recently, the company has received a significant investment from a hedge fund to specifically improve thier e-commerce sales revenues. This will include the reorganization of the website to make it more appealing, and the increased recognition of its existence. With this investment, Frederick's looks forward to becoming a true competitor in the e-commerce world, and to have its name be searched during peak seasons as well.
Vaughan Foods, Inc (OTCBB: FOOD) $3.6M (MarketCap) has SEC declare registration statement effective
Vaughan Foods, Inc describes itself as an integrated processor and distributor of value-added, refrigerated foods. Primarily selling to both food service and retail sectors, their products consist of fresh-cut vegetables, fruits, salad kits, dips, spreads, soups, etc. They pride themselves on their unique ability to distribute fresh-cut produce items along with a full array of value-added refrigerated prepared foods multiple times a week.
Today, it has been announced that a registration statement [File Number: 333-165598] originally filed by Vaughan Foods Inc on 3/19/2010 has been declared effective as of 5/21/2010 by the Securities and Exchange Commission. This registration statement included securities issued by FOOD in the private placement transaction that took place on 2/24/2010. This transaction consisted of 3,895,000 shares of common stock sold to third party accredited investors in a $1,903,000 private placement of units, each unit consisting of five shares of common stock and two five-year warrants. The effective registration statement will allow these shareholders to sell back their shares of common stock, consisting of 64 accredited investors and two institutional investors. Vaughan Foods, Inc. will receive none of the proceeds from the sale of shares by selling stockholders. However, if all of the warrants underlying shares of common stock covered hereby are exercised Vaughan will receive aggregate proceeds of $1,090,600, all of which will be added to Vaughan's working capital.
On Tuesday, May 11th, Vaughan Foods, Inc. reported a profitable 1st quarter. Some financial highlights include a net income of $.1 million, or $.02 per share, compared to a net loss of $.3 million or $.96 per share in the comparable 2009 quarter. Gross profit increased to 12.7% in 2010 from 8.7% in the corresponding first quarter of 2009. The improved results are attributable to several factors, including efficiencies in production labor and ingredient costs (partially attributable to its implementation of the Enterprise Resource Planning system), continued stability in commodity raw material costs, and further stabilization of the company's work force.
China Vows to Reform Yuan
Chinese President Hu Jintao opened the U.S.- China Stategic and Economic Dialogue by saying that he would strive to reform the yuan. The majority of President Hu’s speech was the usual script on the yuan, but a mention of controlling the exchange rate is new territory coming out of Beijing.
The U.S. responded positively, continuing its recent efforts to keep the dispute over the currency from poisoning the broader relationship between the two countries. "We welcome the fact that China's leaders have recognized that reform of the exchange rate is an important part of their broader reform agenda," U.S. Treasury Secretary Timothy Geithner said after Mr. Hu's speech, as he opened the economic component of the dialogue.
But, of course, Chinese officials downplayed their President’s comments, saying that no one discussed the exchange rate in any of the opening sessions. China has essentially tacked the yuan to the dollar because of global financial conditions. Chinese officials have said they will reconsider their currency policy when economic conditions permit. Analysts believe that won’t be until the third quarter of this year.
The U.S. responded positively, continuing its recent efforts to keep the dispute over the currency from poisoning the broader relationship between the two countries. "We welcome the fact that China's leaders have recognized that reform of the exchange rate is an important part of their broader reform agenda," U.S. Treasury Secretary Timothy Geithner said after Mr. Hu's speech, as he opened the economic component of the dialogue.
But, of course, Chinese officials downplayed their President’s comments, saying that no one discussed the exchange rate in any of the opening sessions. China has essentially tacked the yuan to the dollar because of global financial conditions. Chinese officials have said they will reconsider their currency policy when economic conditions permit. Analysts believe that won’t be until the third quarter of this year.
World Market Media Adds AISystems (OTCBB: ASYI) to the WMM MicroCap Index
WorldMarketMedia.com – The Global Online Investment Community
WEST PALM BEACH, May 24, 2010 (GLOBE NEWSWIRE) – World Market Media, Inc. (“WMM”) announced today the addition of AISystems, Inc. (OTCBB: ASYI) to the WMM MicroCap Index. The WMM MicroCap Index includes select companies between $50 and $300 million in market cap.
Stephen E. Kanaval, WMM’s Executive Editor stated “Our Editor’s Desk understands the need for more sophisticated software in the airline industry and we are happy to commence coverage on AISystems, which we believe can be an important mover in this space”.
About AISystems
AISystems has developed a unique, proprietary business platform software system for the airline industry called jetEngine that is comprised of systems and mathematical algorithms capable of generating significant improvements in strategic business planning capabilities, resource scheduling, revenue management and integrated operations. More information about AISystems can be found at www.aisystems.org.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. WMM Research Group has the unique ability to combine media and robust journalism with unbiased in-depth research in the Nano, Micro and SmallCap markets.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. 402
editor@worldmarketmedia.com
www.worldmarketmedia.com
Friday, May 21, 2010
Turning Explosive Volatility into Opportunity
Uncertainty. It’s an ugly word in any context, isn’t it? Unfortunately, that’s especially true in finance and capital markets. Nothing spooks investors and traders out of stocks more than other investors and traders getting spooked out of the same stocks; in other words, when uncertainty does hit the market, it breeds more uncertainty, and before you know it, everyone panics because regardless of the individual performance of individual companies, everything seems doomed. Money is pulled from investments as profits are taken and positions get cut out of portfolios, and the market is flooded with liquidity. Flights to safety are made in gold (historically speaking, it’s a precious metal and therefore a safe haven) and government debt. Massive selloffs begin to take place and global indices move down 2%, 4%, or even more in less than a week. What I’m talking about is a market correction due to volatility.
In our earlier posts, we’ve touched on the prevailing concepts of volatility in the greater financial markets and indices like the DOW and the S&P 500, which is now more than ever an important theme and trend for us to understand. But here at World Market Media, we focus on our niche; our expertise is in undervalued and underreported small cap companies from around the world.
Our World Market Media indices performance for 2010 benchmarked against the major indices reveals the following:
Of course, volatility affects Micro and NanoCap companies in a much more dramatic fashion than the mid and large cap companies, and volatility has been rampant this week (really, in most of 2010). Consider this: if the mid and large cap companies like Proctor and Gamble, Microsoft, Citigroup who are highly-valued, profitable, and stable are demonstrating spectacular swings in their stock prices, what chance would the share price of a small-cap start-up company have to avoid those same major swings? The investors who are in invested in those major companies on those major exchanges are typically institutional investors or hedge funds who have more resources available at their disposal to hedge their positions during these periods of ugly volatility by taking positions in options and other derivatives that will (at least in the short run) limit their risk. For example, they may be long in Company A, but during periods of uncertainty, take out a short position against Company A to limit their downside losses. We don’t see those same strategies being employed by players in the Micro and NanoCap markets. The massive drops we’ve watched in stock markets over the past few weeks, including the “Flash Crash” 1,000 point plunge in the DOW in early May, are directly attributable (at least in major part) to those very same institutional investors and hedge funds winding down the hedge options I’m talking about. These functionalities don’t exist in the stocks of the companies we cover.
So while the WMM MicroCap index may be down 33% since 2010 highs, we must remind ourselves that it’s all relative. The good news going forward is that historically, small-cap and micro companies with brilliant, innovative ideas who eventually bring their products to market can be capitalized on by any smart, savvy investor who is able to discover and identify them today in anticipation of their promotion and introduction into the small, mid, and eventually large cap indices tomorrow. Even more important are the implications going forward for those widely-held large cap indices – which have mostly all by now broken key technical support levels – and what that could spell for the Micro and NanoCap companies. Are we in a downward correction, explicitly defined as a change of 10% followed by a recovery and recommence? Or is this the beginning of a long, painful trend in which the DOW could fall another 25%? Where only time can give the answers, volatility can give us indications, and according to our research, it’s still looking pretty uncertain.
In our earlier posts, we’ve touched on the prevailing concepts of volatility in the greater financial markets and indices like the DOW and the S&P 500, which is now more than ever an important theme and trend for us to understand. But here at World Market Media, we focus on our niche; our expertise is in undervalued and underreported small cap companies from around the world.
Our World Market Media indices performance for 2010 benchmarked against the major indices reveals the following:
- WMM MircoCap Index – down 33% from a high of 1,271 reached on March 11th, 2010.
- WMM NanoCap Index – down 19% from a high of 1,130 reached on April 29th, 2010.
- DOW – down 9.6% from a high of 11,205 reached on April 26th, up only 2% from the 2010 low of 9,908 breached on February 8th.
- S&P 500 – down 11% from a high of 1,217 on April 23rd, up only 2% from the 2010 low of 1,056 breached on February 8th.
- NASDAQ – down 12% from a high of 2,530 reached on April 23rd, up only 4% from the 2010 low of 2,125 breached on February 4th.
Of course, volatility affects Micro and NanoCap companies in a much more dramatic fashion than the mid and large cap companies, and volatility has been rampant this week (really, in most of 2010). Consider this: if the mid and large cap companies like Proctor and Gamble, Microsoft, Citigroup who are highly-valued, profitable, and stable are demonstrating spectacular swings in their stock prices, what chance would the share price of a small-cap start-up company have to avoid those same major swings? The investors who are in invested in those major companies on those major exchanges are typically institutional investors or hedge funds who have more resources available at their disposal to hedge their positions during these periods of ugly volatility by taking positions in options and other derivatives that will (at least in the short run) limit their risk. For example, they may be long in Company A, but during periods of uncertainty, take out a short position against Company A to limit their downside losses. We don’t see those same strategies being employed by players in the Micro and NanoCap markets. The massive drops we’ve watched in stock markets over the past few weeks, including the “Flash Crash” 1,000 point plunge in the DOW in early May, are directly attributable (at least in major part) to those very same institutional investors and hedge funds winding down the hedge options I’m talking about. These functionalities don’t exist in the stocks of the companies we cover.
So while the WMM MicroCap index may be down 33% since 2010 highs, we must remind ourselves that it’s all relative. The good news going forward is that historically, small-cap and micro companies with brilliant, innovative ideas who eventually bring their products to market can be capitalized on by any smart, savvy investor who is able to discover and identify them today in anticipation of their promotion and introduction into the small, mid, and eventually large cap indices tomorrow. Even more important are the implications going forward for those widely-held large cap indices – which have mostly all by now broken key technical support levels – and what that could spell for the Micro and NanoCap companies. Are we in a downward correction, explicitly defined as a change of 10% followed by a recovery and recommence? Or is this the beginning of a long, painful trend in which the DOW could fall another 25%? Where only time can give the answers, volatility can give us indications, and according to our research, it’s still looking pretty uncertain.
WMM MicroCap Index Movers (NASDAQ: PEIX) (AMEX: RNN) (OTCBB: TAXS)
Pacific Ethanol (NASDAQ: PEIX) is currently trading at .77, up .11 or 16.67%. On Friday, May 14th, it filed its SEC form 10-Q Quarterly Report. It has a trading volume of 1,361,187 shares with a 52-week high at $2.75.
Rexahn Pharmaceuticals, Inc. (AMEX: RNN) is trading at 1.30, up .11 or 9.24%. On May 13th, it announced its initiation of the Phase IIb Trial of Zoraxel for treatment of erectile dysfunction. The company’s shares are trading at a volume of 1,094,480 shares.
TaxMasters, Inc. (OTCBB: TAXS) is trading at .71, up .06 or 9.23%. On Monday, the company filed its SEC from 10-Q, Quarterly Report. Revenues increased by approximately $4.1 million or 56.1%, to approximately $11.3 million for the three months ended March 31, 2010 as compared to approximately $7.3 million for the same three month period in 2009. This increase in sales was due to increased sales volume attributable to an increase in the advertising expense.
WMM NanoCap Index Movers (Pink Sheets: SMNG) (OTCBB: MNGA, COYN)
Strategic Mining Corp. (PK: SMNG) is trading at .065, up .013 or 25.48%. The stock is trading at a volume of 30,000 shares and is setting its 52 week high. There hasn’t been any news released since May 13th, when Strategic Mining’s West African Gold Property was classified as “Property of Merit”.
MageneGas Corporation (OTCBB: MNGA) is currently trading at .10, up .01 or 11.11%. The stock is trading at a volume of 20,490 shares with a 52 week high of .51. On Wednesday, it confirmed that its Chinese Partner is Finalizing their Phase II Option. This will result in a $2M equity investment and 20% joint venture ownership of the China company.
Copsync, Inc. (OTCBB: COYN) is trading at .11, up .01 or 10%. The company released its 2010 first quarter financial results on Tuesday. During the first quarter of 2010, the Company generated total revenue of $311,124, resulting in a gross profit of $16,465. The stock is trading at a volume of 1,330 shares.
Daily Market Movers (NASDAQ: ENCO) (AMEX: ZBB)
Encorium Group, Inc. (NASDAQ: ENCO) is currently trading at 3.11, up .46 or 17.36%. On Tuesday, it reported its first quarter 2010 results. Net revenue was $3 million, a decrease of 33.9% from $4.5 million for the first quarter of 2009. Encorium was recently awarded $6.8 million of new business awards, primarily consisting of two Phase III studies for a major Asian technology company that is diversifying its operations into the pharmaceutical industry, $1.1 million of which is included in the March 31, 2010 backlog.
ZBB Energy Corp (AMEX: ZBB) is currently trading at .402, up .081 or 25.23%. On Monday, it filed its Form 10-Q, Quarterly Report. Revenues for the three months ended March 31, 2010 and 2009 were $188,780 and $219,853, respectively, a decrease of $31,073. They released a basic registration statement on Wednesday, May 19th as well.
China Quietly Aligned with U.S. Enemies
Almost 200 officials from the Obama Administration, some of those being Hillary Clinton and Timothy Geithner, will be heading to Beijing next week for a talks on trade and the yuan. However, no doubt the current issues with North Korea and Iran will be on the table.
China’s involvement with North Korea has certainly been an interest of late. Washington has long urged Beijing to do more to press these countries to curb their nuclear ambitions. South Korea's official finding that a North Korean torpedo sank its warship, the Cheonan, in late March killing 46 sailors will add to U.S. demands on China, the North's sole major backer.
Kim Jong-il visited Beijing this month and China will keep all statements about its dealings with North Korea to a minimum, but another concern will be Tehran. China has recently agreed to sanctions concerning Iran, but on the economic front, China's biggest oil company is pressing ahead with oil-and-gas projects in Iran valued at billions of dollars, highlighting Beijing's strong economic ties to Tehran.
Faced at home with both declining oil production and rising demand, China has been importing more oil from countries like Iran. China believes stability in the Middle East is good for energy security, but it doesn't want sanctions to cut off its supply of Iranian crude, which could have forced it to buy more oil elsewhere with the possible effect of driving up global prices.
China’s involvement with North Korea has certainly been an interest of late. Washington has long urged Beijing to do more to press these countries to curb their nuclear ambitions. South Korea's official finding that a North Korean torpedo sank its warship, the Cheonan, in late March killing 46 sailors will add to U.S. demands on China, the North's sole major backer.
Kim Jong-il visited Beijing this month and China will keep all statements about its dealings with North Korea to a minimum, but another concern will be Tehran. China has recently agreed to sanctions concerning Iran, but on the economic front, China's biggest oil company is pressing ahead with oil-and-gas projects in Iran valued at billions of dollars, highlighting Beijing's strong economic ties to Tehran.
Faced at home with both declining oil production and rising demand, China has been importing more oil from countries like Iran. China believes stability in the Middle East is good for energy security, but it doesn't want sanctions to cut off its supply of Iranian crude, which could have forced it to buy more oil elsewhere with the possible effect of driving up global prices.
Thursday, May 20, 2010
WMM MicroCap Index Movers (AMEX: QBC) (NASDAQ: DTLK)
Cubic Energy, Inc. (QBC) is trading at .99, up .05 or 5.32%. On Wednesday, it released its third quarter financial results, including a 206% increase in revenue and 253% increase in production from 2009. It is currently trading at a volume of 318,192 shares, and its 52 week high is $1.82.
Datalink (DTLK) is currently trading at 4.28, up .03 or .71%. On Monday, it reported the results of the election of Directors from its annual meeting of stockholders on May 13th. It filed its SEC form 10-Q, quarterly report on Monday as well.
Datalink (DTLK) is currently trading at 4.28, up .03 or .71%. On Monday, it reported the results of the election of Directors from its annual meeting of stockholders on May 13th. It filed its SEC form 10-Q, quarterly report on Monday as well.
S&W Seed Company (NASDAQ: SANWU) Completes Aquisition of S&W Company Partnership
S&W Seed Company, founded in 1980, is a leader in the market for salt and heat tolerant, non-dormant varieties of alfalfa seed, including varieties that can thrive on poor, saline soils. In 2010, the company launched a pilot program to produce stevia leaf, the source of an all natural, non-caloric sweetener. Headquartered in Five Points, California, S&W owns a 40 acres alfalfa seed cleaning and processing facility, and it plans to increase the utilization of it as it is currently operating at less than 20% capacity. A large percentage of its sales are to a distributor who sells to foreign end users, principally in Saudi Arabia.
Today, it has completed its purchase of the S&W Seed Company, a California general partnership. This part was the 15% of the general partnership not already owned by Seed Holding, LLC, its wholly owned subsidiary. Consequently, the general partnership has ceased to exist, and the business and property of the partnership is now wholly-owned and operated by S&W Seed Company and its subsidiary. Matt Szot, Chief Financial Officer, commented “We are pleased to own 100% of the business and we look forward to executing on our strategic initiatives.”
Roomlink (OTCBB: RMLX) to Provide iTV, HSIA and FTG to Hyatt's New Andaz 5th Avenue in New York City
Roomlinx, Inc. (RMLX) is currently trading at .04, up .01 or 25%. The company sells, installs and services in-room media and entertainment solutions for hotels, resorts, and time share properties. Today, Roomlinx serves 30,000 hotel rooms, and leads the industry in providing sound infrastructure and support to hotels through the U.S., Europe, and Canada. It develops software and integrates hardware to facilitate the distribution of Hollywood, adult, and specialty content, business applications, national and local advertising, and concierge services. Utilizing premium content and applications, it delivers an exceptional product that will impress today’s increasingly sophisticated business and leisure travelers.
Today, Roomlinx has announced that Hyatt will join its highly respected customer base in the hospitality industry, including Westin LaPaloma Resort and Spa and Hershey Resorts. After an extensive request-for-proposal process to find a new in-room entertainment provider, Hyatt has chosen Roomlinx to install and manage the property’s network at its new Andaz 5th Avenue in New York City for a term of three years. Jim Gery Vice President, IT, Hyatt Hotels and Resorts, North America, commented on Roomlinx’s products, “Their iTV product is the most comprehensive, it is easy-to-use and it allows for future expansion of technology.” Roomlinx will also be responsible for the integration of multiple network applications including point of sale handheld tablets, door locking solutions, IP phones, and back office systems. It will complete a full installation of all 184 rooms at the Andaz, which is scheduled to open July 1st 2010, with the potential to install an additional 10,000 rooms at other properties in the future.
Today, Roomlinx has announced that Hyatt will join its highly respected customer base in the hospitality industry, including Westin LaPaloma Resort and Spa and Hershey Resorts. After an extensive request-for-proposal process to find a new in-room entertainment provider, Hyatt has chosen Roomlinx to install and manage the property’s network at its new Andaz 5th Avenue in New York City for a term of three years. Jim Gery Vice President, IT, Hyatt Hotels and Resorts, North America, commented on Roomlinx’s products, “Their iTV product is the most comprehensive, it is easy-to-use and it allows for future expansion of technology.” Roomlinx will also be responsible for the integration of multiple network applications including point of sale handheld tablets, door locking solutions, IP phones, and back office systems. It will complete a full installation of all 184 rooms at the Andaz, which is scheduled to open July 1st 2010, with the potential to install an additional 10,000 rooms at other properties in the future.
"This is a big win for us. We are excited about forging a deep relationship with Hyatt that includes multiple disciplines including installing our iTV product at Andaz 5th Avenue in New York. I am confident we will receive the same positive guest reaction to iTV that we have seen at our other properties," commented Mike Wasik, CEO of Roomlinx.
Mobilebits Holdings (OTCBB: MBIT) $26M (MarketCap) Shows Strength and Momentum in Developments
How easy and convenient it would be to speak a question into the microphone of your cell and immediately return accurate and specific search results. If Mobilebits has anything to do with it, you’ll soon be able to.
In press released last month, Walter Kostiuk, MobileBits founder touched on a product The Company is developing to do just that. Designed specifically to meet the needs of mobile consumers, the MobileBits(TM) application will simplify access to a world of content and enhance performance by delivering answers, not links, to search queries that would be driven by targeted advertising. "MobileBits leverages millions of dollars in technology search assets and many years of know-how to capitalize on this valuable marketplace and deliver an easy-to-use solution that returns answers with accurately matched advertisements” said My. Kostuik. Mobilebits plan to roll the application out this year, available initially in English. Later, The Company plans for the product to support any internet browser in multiple languages.
All this recent progress is not to necessarily say The Company won’t have challenges inevitably lying ahead. Among the most prominent: cutthroat competition from big caps like Apple, Google, and Microsoft. Mobilebits has leveraged an edge that could put them into a position to dominate by focusing on simplified delivery of the content with accurate answers and precise advertisement connections rather than embedded links. The Company has sunk nearly $100 million into their technology over the last 20 years.
Is the future of mobile wireless in speeding up the decades-old quest for intelligent Web searches—or “answer engines”—that can quickly find the precise information users need? Mobilebits thinks so, and many investors are confident they’re right.
Amico Games Corporation (PINKSHEETS: AMCG) $9M (MarketCap) Cornering the 3G Cell Phone Entertainment Market
Amico Games offers a portfolio of diversified gaming content including some of the most popular massive multi-player online role-playing games (MMORPGs) and advanced casual online games in China. Sure, online gaming has been gaining steam over the last few years as technology expands into new regions and kids and young adults, a strong user demographic, look for interactivity and accessibility in online entertainment. It’s worth noting these are loyal, passionate users; while it may sound silly to you or I, laying out dollars each month in subscription fees to play socially connected MMORPG’s month after month is as casual for the users as taking a shower. The games work across both JAVA™ and WAP (wireless application protocol) platforms over 3G and 2.5G mobile telecommunication network in China, giving the users a vibrant and attractive experience they can share with thousands of other users across the world.
The Company’s products are a small mix of MMORPG centering on a mix of cartooned themes that include traditional Chinese paladin stories, mythology, and ancient dynasties. According to a press release sent out on May 17th, 2010, as of April 30, 2010 the total registered users of all its mobile game products increased from 23,876,906 for the month ended March 2010 to 25,006,233 in April of 2010, based on records. With one game, “Miracle Journey to the West” capturing 11.1% share of China’s multiplayer WAP game market, these numbers make Amico the market leader of networked WAP gaming in terms of registered users. This particular game contributes 74% of total registered users to the company’s product profile.
According to Clay Mahaffey, CFA President of Venture Research LLC, an independent provider of research on micro cap companies, "AMCG is a leading developer of online games used by millions of mobile phone owners in China. They have one of the leading MMORPGs in China. These games are growing over 50%/yr as new, faster 3G mobile phones are rolled out."
With a major beneficial ownership of shares belonging to Digital Force, LTD. And Ronotech LTD., Amico seems certainly seems poised for the estimated growth experts are predicting. Is it any surprise that today The Company released another press release highlighting growth of China’s 3G network availability and expansions in Amico’s subscriber database?
According to Reuters, China spent more than $880M (6B yuan) expanding its 3G telecom network in the first quarter of 2010, with just under a third of the money going to its home-grown TD-SCDMA standard while the three biggest China telecom operators spent about $21 billion building their 3G networks in just 2009. Mobile subscribers in China increased by 18.6M in the first two months of 2010, pushing the national total to $765.97M, according to statistics released by the Ministry of Industry and Information Technology (MIIT) on April 1, 2010. If recent performance is any indication, this is Amico’s chance to capture new subscribers and build their brand, securing future growth and profits, and it doesn’t seem likely they will disappoint.
Amico Games Corporation (PINKSHEETS: AMCG) $9M (MarketCap) Cornering the 3G Cell Phone Entertainment Market
Amico Games offers a portfolio of diversified gaming content including some of the most popular massive multi-player online role-playing games (MMORPGs) and advanced casual online games in China. Sure, online gaming has been gaining steam over the last few years as technology expands into new regions and kids and young adults, a strong user demographic, look for interactivity and accessibility in online entertainment. It’s worth noting these are loyal, passionate users; while it may sound silly to you or I, laying out dollars each month in subscription fees to play socially connected MMORPG’s month after month is as casual for the users as taking a shower. The games work across both JAVA™ and WAP (wireless application protocol) platforms over 3G and 2.5G mobile telecommunication network in China, giving the users a vibrant and attractive experience they can share with thousands of other users across the world.
The Company’s products are a small mix of MMORPG centering on a mix of cartooned themes that include traditional Chinese paladin stories, mythology, and ancient dynasties. According to a press release sent out on May 17th, 2010, as of April 30, 2010 the total registered users of all its mobile game products increased from 23,876,906 for the month ended March 2010 to 25,006,233 in April of 2010, based on records. With one game, “Miracle Journey to the West” capturing 11.1% share of China’s multiplayer WAP game market, these numbers make Amico the market leader of networked WAP gaming in terms of registered users. This particular game contributes 74% of total registered users to the company’s product profile.
According to Clay Mahaffey, CFA President of Venture Research LLC, an independent provider of research on micro cap companies, "AMCG is a leading developer of online games used by millions of mobile phone owners in China. They have one of the leading MMORPGs in China. These games are growing over 50%/yr as new, faster 3G mobile phones are rolled out."
With a major beneficial ownership of shares belonging to Digital Force, LTD. And Ronotech LTD., Amico seems certainly seems poised for the estimated growth experts are predicting. Is it any surprise that today The Company released another press release highlighting growth of China’s 3G network availability and expansions in Amico’s subscriber database?
According to Reuters, China spent more than $880M (6B yuan) expanding its 3G telecom network in the first quarter of 2010, with just under a third of the money going to its home-grown TD-SCDMA standard while the three biggest China telecom operators spent about $21 billion building their 3G networks in just 2009. Mobile subscribers in China increased by 18.6M in the first two months of 2010, pushing the national total to $765.97M, according to statistics released by the Ministry of Industry and Information Technology (MIIT) on April 1, 2010. If recent performance is any indication, this is Amico’s chance to capture new subscribers and build their brand, securing future growth and profits, and it doesn’t seem likely they will disappoint.
US Stocks Getting Crushed Dow off 300 Circuit Breakers Near
The stock market extended its sharp slide Thursday as investors' already bleak view of the world economy worsened with another drop in the euro and disappointing U.S. employment news.
The Dow Jones industrial average fell more than 250 points in morning trading. Interest rates fell sharply in the Treasury market as investors once again sought the safety of U.S. government debt.
With Thursday's drop, the S&P 500 is down more than 10 percent from its 2010 trading high last month. Such a drop is considered by many analysts to be a "correction" in the market. Many analysts pay more attention to drops from closing highs, however, not trading highs.
The euro is falling again and continues to hover near a four-year low. It has become a key indicator for confidence in Europe's economy. The euro fell to $1.2329, a day after hitting $1.2146.
"There's a question out there now that potentially we could be talking about a collapse of the eurozone or countries breaking away from the euro," said Tim Quinlan, an economist at Wells Fargo & Co. As recently as four months ago, that wasn't even considered a possibility, Quinlan said.
Such a stark change in views has unnerved investors, and the euro is now largely driving stock trading. Major European indexes gave up their morning gains and are now sharply lower after the euro retreated.
3 Pre-Lunch Market Movers - (NASDAQ: CNTF), (OTCBB: RMLX), (OTC: BGMO)
China Techfaith Wireless Communication Technology Ltd. (NASDAQ: CNTF) is trading at $2.73 up $0.47 or 20% on heavy volume of 860k
Yesterday, after the closing bell, the company reported first quarter 2010 financial results. Financial Highlights as follows:
The company, a leading supplier of Interactive TV (iTV) for the hospitality industry, today announced that Hyatt (NYSE:H) has awarded it a contract to install products at the new Andaz 5th Avenue in New York City after an extensive request-for-proposal process to find a new in-room entertainment provider. Roomlinx will install and manage the property's network including Roomlinx' Interactive TV (iTV) product, high speed internet access, and free-to-guest programming for a term of three years.
Bergamo Acquisition Corp. (OTC: BGMO) is trading at $0.12 up $0.04 or 50% on heavy volume of 717k
Today the company announced the receipt of $75 million as the initial funding of the $100 million that was previously announced. The funding has been deposited in the accounts of Bergamo FZC, a wholly owned subsidiary of Bergamo Acquisition Corp. Funds will be made available for the series of acquisitions as previously announced to shareholders.
Yesterday, after the closing bell, the company reported first quarter 2010 financial results. Financial Highlights as follows:
- Net revenue of $60.9 million a 1.8% increase compared to $59.8 million in the fourth quarter of 2009 and a 25.1% increase compared to $48.7 million in the same period of last year.
- Gross margin for the first quarter of 2010 improved to 22.0% compared to 16.1% in the previous quarter and 18.1% in the same quarter last year.
- Net income for the first quarter of 2010 was $6.9 million, compared to $3.1 million in the fourth quarter of 2009, and $2.1 million in the same quarter of last year.
The company, a leading supplier of Interactive TV (iTV) for the hospitality industry, today announced that Hyatt (NYSE:H) has awarded it a contract to install products at the new Andaz 5th Avenue in New York City after an extensive request-for-proposal process to find a new in-room entertainment provider. Roomlinx will install and manage the property's network including Roomlinx' Interactive TV (iTV) product, high speed internet access, and free-to-guest programming for a term of three years.
Bergamo Acquisition Corp. (OTC: BGMO) is trading at $0.12 up $0.04 or 50% on heavy volume of 717k
Today the company announced the receipt of $75 million as the initial funding of the $100 million that was previously announced. The funding has been deposited in the accounts of Bergamo FZC, a wholly owned subsidiary of Bergamo Acquisition Corp. Funds will be made available for the series of acquisitions as previously announced to shareholders.
British University in Dubai Visit
Today our group had the privilege to hear a lecture from Professor Mohammed Dulaimi, an Iraqi born Civil engineer on the working environment in the United Arab Emirates. Although Mr. Dulaimi's background is in the sciences, his particular study in the academic field has been in supply chain and project management along with group dynamics and inter-relations.Professor Dulaimi first spoke on the three most important stages in the history of the UAE, highlighting Infrastructure, corporate branches and sustainable development. His proceeding slides follow an open style of discussion touching on why expatriates have come to Dubai, the economic recession, and the underlying problems in the Emirates economy.
Many of our speakers have driven the point that Dubai is an open, western economy, full of all the western facilities and accommodations to attract foreign direct investment and immigration. The underlying problem of management in the government is its lack of focus upon the middle economy. Although many developers like Emaar and Nakheel have undertaken massive tourist attracting project, the Arab world continues to lack infrastructure. The title of Mr. Duailmi's next slide was “Is the Party Over” which restated my thoughts from the last entry summarizing the Nakheel group visit. Dubai has overstated the demand for its lavish supply of opulent hotel's and real estate. The economic downturn has been a determent, but also can be viewed as a positive occurrence.
The global economic downturn has forced top level management all across the world to take a step back and begin to run “lean”. Particularly in Dubai many corporations are now focusing inward on creating efficiencies and getting rid of dead wood in their companies rather than focusing on expansion. The downturn will hopefully lead to stable growth of a middle class economy and infrastructure to support it.
The dangers Dubai faces now are the government’s insistence on pumping money into projects that there is no demand for. Tense relations between suppliers, contractors and customers remain a problem and there needs to be a change in the targeted investor should any real growth take place in the upcoming years.
Finally, our speaker spoke on the economy of Abu Dhabi, a more conservative society floating on oil wealth and hopefully not making the same overgrowth mistakes as little brother Dubai. Abu Dhabi prides itself on sustainable development, and a secure society. A large, empowered private sector facilitates a strong educational and health infrastructure. Although the conservative nature of this society has probably blinded the government to lucrative opportunities; it has also saved them trouble during our turbulent times.
In conclusion, this presentation was very insightful coming from a person who has been present for the growth in Dubai with an academic viewpoint rather than a business bias. Upon completion of our lecture we were taken on a brief tour of the campus which was sponsored by many universities I was familiar with here in the states such as the University of Michigan. The campus was beautiful although the heat forced us into an entertainment room before leaving.
After our time at the British University our group proceeded to the ultra modern marketing offices of TBWA/RAAD. The office was one of the coolest I had ever seen, exhibiting the artwork the employees had completed as well as inspirational pieces. This office reminded me of how one of Google or Apples offices might look.
The chairman of the company Ranzi Raad spoke to us briefly of the history of media in the middle east, dating all the way back to hieroglyphics. In the Middle East, the real tipping point for broadcast media was CNN's coverage of the Iraqi occupation of Kuwait. This was a sensitive time in Middle Eastern History and served as an ice breaker for western companies to come in and broadcast. Along with the largest youth population, comes government censorship and tense politics. Although the potential of this market is great, the necessary precautions and red tape is enough to hinder many advertisement and media companies out.
Letters From Dubai
British University in Dubai Visit
John Rummo
Today our group had the privilege to hear a lecture from Professor Mohammed Dulaimi, an Iraqi born Civil engineer on the working environment in the United Arab Emirates. Although Mr. Dulaimi's background is in the sciences, his particular study in the academic field has been in supply chain and project management along with group dynamics and inter-relations.
Professor Dulaimi first spoke on the three most important stages in the history of the UAE, highlighting Infrastructure, corporate branches and sustainable development. His proceeding slides follow an open style of discussion touching on why expatriates have come to Dubai, the economic recession, and the underlying problems in the Emirates economy.
Many of our speakers have driven the point that Dubai is an open, western economy, full of all the western facilities and accommodations to attract foreign direct investment and immigration. The underlying problem of management in the government is its lack of focus upon the middle economy. Although many developers like Emaar and Nakheel have undertaken massive tourist attracting project, the Arab world continues to lack infrastructure. The title of Mr. Duailmi's next slide was “Is the Party Over” which restated my thoughts from the last entry summarizing the Nakheel group visit. Dubai has overstated the demand for its lavish supply of opulent hotel's and real estate. The economic downturn has been a detriment, but also can be viewed as a positive occurrence.
The global economic downturn has forced top level management all across the world to take a step back and begin to run “lean”. Particularly in Dubai many corporations are now focusing inward on creating efficiencies and getting rid of dead wood in their companies rather than focusing on expansion. The downturn will hopefully lead to stable growth of a middle class economy and infrastructure to support it.
The dangers Dubai faces now is the governments insistence on pumping money into projects that there is no emend for. Tense relations suppliers, contractors and customers remain a problem and there needs to be a change in the targeted investor should any real growth take place in the upcoming years.
Finally, our speaker spoke on the economy of Abu Dhabi, a more conservative society floating on oil wealth and hopefully not making the same overgrowth mistakes as little brother Dubai. Abu Dhabi prides itself on sustainable development, and a secure society. A large, empowered private sector facilitates a strong educational and health infrastructure. Although the conservative nature of this society has probably blinded the government to lucrative opportunities, it has also saved them trouble during our turbulent times.
In conclusion, this presentation was very insightful coming from a person who has been present for the growth in Dubai with an academic viewpoint rather than a business bias. Upon completion of our lecture we were taken on a brief tour of the campus which was sponsored by many universities I was familiar with here in the states such as the University of Michigan. The campus was beautiful although the heat forced us into an entertainment room before leaving.
Nakheel Group
After a short bus ride, our trip arrived at the modern and lavish corporate offices of Nakheel Group, a local, major real estate developer. We were welcomed by an HR Rep (Name) who led us into a large movie theater style room where we comfortably sat in lounge chairs for an interactive, and creative presentation. The proceeding 20 minutes highlighted the advances that Nakheel group has made in developing the Jumeriah Islands, the features of the islands and how they were engineered. The presentation also highlighted further projects including the World Islands, and three more manmade land reclamation undertakings Nakheel has envisioned. It was Shiek Al Maktoum's vision to increase Dubai's coast line from the existing 70 kilometers to 1,000 kilometers. Nakheel's goal is to make this vision a reality and has extended the coastline to 800 kilometers already with the extra 200 on the horizon. A note that the HR Rep (Name) made at the end of the presentation was that Nakheel group was undergoing upper level management change and would shortly become one of many state run corporations, although the details are were not fully given, a new board of directors and chairman were in the process of being implemented.
Post-meeting Nakheel was gracious enough to offer a boat tour of the Palm Jumeriah Islands to our entire group. Although the day was overcast due to turbulent winds and sand interference, the islands are still a sight to be seen. The engineering behind these manmade islands is advanced and intriguing. Now that the work has been completed I only hope that permanent investors will be found.
A recurring theme throughout Dubai is the amount of fleeting foreign direct invest the Emirate is experiencing. To explain, we were informed that the Houses on the Palm Jumeriah Island were sold out within 72 hours; this was before any of them were even built. Investors lined up to get a piece of property on the manmade palm in the Arabian Gulf, but most of the houses were flipped quickly in a fast rising housing bubble. Properties were passed from hand to hand until the value of these properties soon were exceeding 500% of their original value, of course this was halted during the global real estate crash.
But I begin wonder what the long term intentions of these investors are, and whether enough of them plan on becoming a major source of economic stimulus for the economy. Can Dubai become an attractive enough city for a large middle class population to support the infrastructure? From all that I have observed so far, I am beginning to have my doubts. Although the scenery and lavish lifestyle here are attractive, the longevity of this economy comes into question. The opulence of this country is unmatched but I wonder if Sheik Maktoum's vision of an Emirate entirely supported by tourism will ever be possible.
Nice Timing on Competitive Technologies Inc. (AMEX: CTT) $35M (MarketCap)
Competitive Technology's business description says " CTT provides distribution, patent and technology transfer, sales and licensing services focused on the needs of its customers and matching those requirements with commercially viable product or technology solutions. CTT is a global leader in identifying, developing and commercializing innovative products and technologies in life, electronic, nano, and physical sciences developed by universities, companies and inventors." However it is clear that the company's focus is on their most promising and most marketable technology--the Calmare Pain Therapy system-- which has successfully treated thousands of patients suffering from chronic pain. The system, which already had the CE Mark certification in Europe, received U.S. FDA marketing clearance last year and is just beginning to see significant growth in units sales, with an order of 100 units announced by one of their European distributors. And the
What makes our write up on CTT so timely is that the company recently showcased its Calmare(R) Pain Therapy Treatment at a symposium for medical professionals in Boston, Mass.,on May 17, 2010. Several noted physicians/researchers described to the audience of physicians the success they have had among patients suffering from chronic pain associated with cancer and various types of neuropathic conditions. Patients that had tried the standard painkillers that were not effective on them found relief with CTT's medical instrument. The Calmare Pain Therapy incorporates the "Scrambler Theory" described in simple terms as a “scrambled signal that is interpreted by the brain as “non-pain,” and very importantly, as “self.” Once the scrambled signal arrives, the patient immediately feels pain relief”. He’s also stated that the cost of Calmare “is minimal compared to alternatives and in comparison to the costs already incurred by many patients: A one-hour treatment session is $150 (less than a session at most spas).” Additionally, the company's non-invasive and non-narcotic pain relief therapy was used in a clinical study conducted at the Massey Center at the University of Virgina that will be presented at the upcoming American Society of Clinical Oncology (ASCO) on June 8. This debut to the medical world in the US (long-awaited by shareholders) will be followed this Summer with two peer-reviewed articles in the Journal of Pain and the Journal of Pain and Symptom Management.
CTT's recent 10-Q's show a company just beginning to realize revenues, so its financial past gives little insight in the future earnings potential of their proprietary neuro-biological approach to pain relief. Judging by past CTT's filings, the Calmare units are reasonably priced for medical practices (roughly $50k to $60K), providing an ethical and economic incentive for many physicians to offer an alternative pain relief therapy. As with any new medical technology, it is difficult to assess how broadly CTT's technology will be adopted. But according to the American Pain Foundation, 76.5 million Americans, or about 26% of all adults, live with chronic, persistent pain. And the annual cost in painkiller prescriptions, doctor visits, alternative therapies and accounting for lost income and less than optimal productivity? --- $100 Billion per year. Any new therapy that can help reduce these costs is a therapy that will be assessed for adoption. And a company that has only 11 million shares outstanding which has yet to be discovered by rank and file investors could offer enviable investment returns.
What makes our write up on CTT so timely is that the company recently showcased its Calmare(R) Pain Therapy Treatment at a symposium for medical professionals in Boston, Mass.,on May 17, 2010. Several noted physicians/researchers described to the audience of physicians the success they have had among patients suffering from chronic pain associated with cancer and various types of neuropathic conditions. Patients that had tried the standard painkillers that were not effective on them found relief with CTT's medical instrument. The Calmare Pain Therapy incorporates the "Scrambler Theory" described in simple terms as a “scrambled signal that is interpreted by the brain as “non-pain,” and very importantly, as “self.” Once the scrambled signal arrives, the patient immediately feels pain relief”. He’s also stated that the cost of Calmare “is minimal compared to alternatives and in comparison to the costs already incurred by many patients: A one-hour treatment session is $150 (less than a session at most spas).” Additionally, the company's non-invasive and non-narcotic pain relief therapy was used in a clinical study conducted at the Massey Center at the University of Virgina that will be presented at the upcoming American Society of Clinical Oncology (ASCO) on June 8. This debut to the medical world in the US (long-awaited by shareholders) will be followed this Summer with two peer-reviewed articles in the Journal of Pain and the Journal of Pain and Symptom Management.
CTT's recent 10-Q's show a company just beginning to realize revenues, so its financial past gives little insight in the future earnings potential of their proprietary neuro-biological approach to pain relief. Judging by past CTT's filings, the Calmare units are reasonably priced for medical practices (roughly $50k to $60K), providing an ethical and economic incentive for many physicians to offer an alternative pain relief therapy. As with any new medical technology, it is difficult to assess how broadly CTT's technology will be adopted. But according to the American Pain Foundation, 76.5 million Americans, or about 26% of all adults, live with chronic, persistent pain. And the annual cost in painkiller prescriptions, doctor visits, alternative therapies and accounting for lost income and less than optimal productivity? --- $100 Billion per year. Any new therapy that can help reduce these costs is a therapy that will be assessed for adoption. And a company that has only 11 million shares outstanding which has yet to be discovered by rank and file investors could offer enviable investment returns.
Grant Thorton Presentation/Sharjah Tour
This morning a partner of the Grant Thorton Group traveled to our hotel conference room to present a brief history of Dubai and an overview of the general business environment in this prospering area of the world. Hisham Farouk is a well spoken, London educated (MBA), Egyptian expatriate, who joined Grant Thorton in 1998, a time when there were only four hotels here in Dubai, he has been here since the beginning and his knowledge of the countries many facets is expansive. Not one question our group posed was met with even a pause or an “um”.
Mr. Farouk began his presentation with a brief history of the UAE, which I have studied rather extensively prior to this trip. He highlighted the uniting of the seven emirates under the UAE and most notably, the rise of Abu Dhabi as the reigning power. The bar here is whichever Emirate possesses the largest amount of sustainable economic power, makes the rules. AbuDhabi sits on 300 square kilometers of oil, so for now, they call the shots.
The most popular form of business here is the limited liability corporation, accounting for 80% of the business. 51% of shares are required to be owned by an UAE national, a law that was implemented in the 70's as a way to control business in the region and was conducted by means of a gentlemen's handshake. Not one single contract was drawn here until the mid 1980's. The incentive for creating an LLC here is the freedom from any form of tax or trade barriers.
The second form of business highlighted by Mr. Farouk was the Branch and parent Company ownership model. Many corporations such as Microsoft and Intel have established marketing offices here, not wishing to sell through the country or to establish separate legal entities. Although this business model allows for greater control, there are zero tax structure advantages. Branch business has grown in popularity here during the economic downturn as countries such as the United Kingdom have encouraged business to repatriate profits through tax incentives in order to stimulate homeland economics.
Finally, the most famed business model here in the United Arab Emirates is the Free Trade Zone. A FTZ provides 100% foreign ownership, repatriation, tax exemption, and import/export duties. This form of business was implemented in response to western timidity of penetrating Arab markets, Mr. Farouk noted that it takes him about three months to convince American Lawyers to conduct business in the Emirate on the grounds of legal wording and cultural differences. The take away for Dubai is visa fees, real estate sales, licensing and of course increased spending in their economy. The most relevant slogan for this model is the motto “If you build it, they will come”, and it has held true in a tremendous way here in the UAE.
With fast pasted growth comes the need for a financial regulatory body. The central bank, as all government run agencies, had become too large to deal with incoming investments. Hence, the DIFC was created which allows inflowing finances to be reinvested wisely through traceable and regulated means. The DIFC follows FSA regulations (UK) and has settled much of the money laundering accusations of those who would block outgoing funds from western countries.
In reflection, leadership here has created one of the fastest growing economies over night, in doing so they have walked before they could run and have had to back track in order to hedge against all the usual risk. Although the economic downturn has halted much of the real estate investment in the area, a bounce back of the world economy will create another boom of both business and scientific development here in Dubai. The lifestyle and incentive to move here is just too great to pass up, Dubai has certainly set itself up as the Hub of the East.
Mr. Farouk began his presentation with a brief history of the UAE, which I have studied rather extensively prior to this trip. He highlighted the uniting of the seven emirates under the UAE and most notably, the rise of Abu Dhabi as the reigning power. The bar here is whichever Emirate possesses the largest amount of sustainable economic power, makes the rules. AbuDhabi sits on 300 square kilometers of oil, so for now, they call the shots.
The most popular form of business here is the limited liability corporation, accounting for 80% of the business. 51% of shares are required to be owned by an UAE national, a law that was implemented in the 70's as a way to control business in the region and was conducted by means of a gentlemen's handshake. Not one single contract was drawn here until the mid 1980's. The incentive for creating an LLC here is the freedom from any form of tax or trade barriers.
The second form of business highlighted by Mr. Farouk was the Branch and parent Company ownership model. Many corporations such as Microsoft and Intel have established marketing offices here, not wishing to sell through the country or to establish separate legal entities. Although this business model allows for greater control, there are zero tax structure advantages. Branch business has grown in popularity here during the economic downturn as countries such as the United Kingdom have encouraged business to repatriate profits through tax incentives in order to stimulate homeland economics. Finally, the most famed business model here in the United Arab Emirates is the Free Trade Zone. A FTZ provides 100% foreign ownership, repatriation, tax exemption, and import/export duties. This form of business was implemented in response to western timidity of penetrating Arab markets, Mr. Farouk noted that it takes him about three months to convince American Lawyers to conduct business in the Emirate on the grounds of legal wording and cultural differences. The take away for Dubai is visa fees, real estate sales, licensing and of course increased spending in their economy. The most relevant slogan for this model is the motto “If you build it, they will come”, and it has held true in a tremendous way here in the UAE.
With fast pasted growth comes the need for a financial regulatory body. The central bank, as all government run agencies, had become too large to deal with incoming investments. Hence, the DIFC was created which allows inflowing finances to be reinvested wisely through traceable and regulated means. The DIFC follows FSA regulations (UK) and has settled much of the money laundering accusations of those who would block outgoing funds from western countries.
In reflection, leadership here has created one of the fastest growing economies over night, in doing so they have walked before they could run and have had to back track in order to hedge against all the usual risk. Although the economic downturn has halted much of the real estate investment in the area, a bounce back of the world economy will create another boom of both business and scientific development here in Dubai. The lifestyle and incentive to move here is just too great to pass up, Dubai has certainly set itself up as the Hub of the East.
India’s Star Wedding Almost Rocked by Scandal
Sania Mirza is an Indian tennis star and one of India’s new female role models. She was married recently to Pakistani cricket player Shoaib Malik but the wedding almost didn’t happen. It wasn’t the fact that Malik is from Pakistan, India’s arch-nemesis. It was when another woman from Hyderabad claimed she was already married to Malik.
The other woman, Ayesha Siddiqui, whose family lives in the posh Banjara Hills neighborhood on a street adjacent to Mirza's, filed a criminal case of "cheating" against Malik. Although the cricketer claimed he had been tricked into marrying someone he'd never met, his earlier marriage was widely known in Hyderabad's society circles, particularly after the Siddiqui family hosted a dinner for the Pakistani cricket team in 2005. Mirza stood by her man as the police questioned him, insisting, "Me and my family know what the truth is."
All is well that ends well, though. The two were married at her parents’ home and the Indian tabloids are in a frenzy for the four day long reception.
The other woman, Ayesha Siddiqui, whose family lives in the posh Banjara Hills neighborhood on a street adjacent to Mirza's, filed a criminal case of "cheating" against Malik. Although the cricketer claimed he had been tricked into marrying someone he'd never met, his earlier marriage was widely known in Hyderabad's society circles, particularly after the Siddiqui family hosted a dinner for the Pakistani cricket team in 2005. Mirza stood by her man as the police questioned him, insisting, "Me and my family know what the truth is."
All is well that ends well, though. The two were married at her parents’ home and the Indian tabloids are in a frenzy for the four day long reception.
Brazil’s Role in Iran Diplomacy Troubles U.S.
You may have seen Brazilian President Luiz Inácio Lula da Silva arm-in-arm with the Iran’s,Mahmoud Ahmadinejad this week, he was celebrating a deal to move Iran’s uranium payloads to Turkey. The deal happened a day before the U.S. announced a conclusive agreement with the U.N. Security Council to impose sanctions against Iran. The fact that Brazil was involved with the deal has many in the U.S. shaking their head.
Brazil opposes sanctions as ineffective and likely to intensify the conflict. As a developing country that has defended its own nuclear aspirations against international pressure, Brazil strongly identifies with Iran. Celso Amorim, the Brazilian foreign minister who represented the country at the United Nations when the United States used inconclusive evidence to build a case against Iraq, has described this weekend’s talks as an effort to prevent that from happening again.
However, some say that Brazil does not identify with Iran as a budding nation, but only as a way to oppose the international dominance of the United States. Mr. da Silva, who is very popular in his country, has challenged the United States on everything from trade and climate change to last year’s coup in Honduras to Washington’s longstanding embargo against Cuba. Alienating the United States has not exactly rattled the Obama administration, they wished Mr. da Silva luck in Iran but counter that it will continue with sanctions if Brazil’s vote is there or not.
Brazil opposes sanctions as ineffective and likely to intensify the conflict. As a developing country that has defended its own nuclear aspirations against international pressure, Brazil strongly identifies with Iran. Celso Amorim, the Brazilian foreign minister who represented the country at the United Nations when the United States used inconclusive evidence to build a case against Iraq, has described this weekend’s talks as an effort to prevent that from happening again.
However, some say that Brazil does not identify with Iran as a budding nation, but only as a way to oppose the international dominance of the United States. Mr. da Silva, who is very popular in his country, has challenged the United States on everything from trade and climate change to last year’s coup in Honduras to Washington’s longstanding embargo against Cuba. Alienating the United States has not exactly rattled the Obama administration, they wished Mr. da Silva luck in Iran but counter that it will continue with sanctions if Brazil’s vote is there or not.
Wednesday, May 19, 2010
MagneGas Corporation (OTCBB: MNGA) $11M (MarketCap) Confirms Chinese Partner and Introduces an Answer for the Gulf Oil Slick
MagneGas Corporation focuses on recycling liquid waste into useable byproducts, including a hydrogen based fuel named MagneGas. The company intends to provide services in cleaning and converting contaminated liquid waste and today announced that they will be moving forward with a partnership that will provide $2 million dollars in investments for The Company.MagneGas Corporation, a producer of a metal working fuel and natural gas alternative made from liquid waste, announced today that Beijing-based DDI Industry International ("DDI") has exercised its option to proceed with Phase II of the MagneGas China initiative and has submitted an agreement to formalize the partnership and trigger formational next steps. In Phase I, DDI signed a Purchase Agreement for a 200kw Refinery at a price of $1.9 million and paid $950,000 to the Company as down-payment. In Phase II, DDI would acquire the exclusive MagneGas™ Technology and manufacturing rights for the Greater China market. As compensation DDI would directly invest $2 million in The Company. DDI would create a new China-based Joint Venture company ("MagneGas China") to house and administer the rights; DDI would seek to take this Joint Venture company public in the Asian market in the future. DDI would grant to MagneGas 20% of MagneGas China, giving the Company and its investors a significant and perpetual share of China market operations. MagneGas CEO Dr. Ruggero Santilli or his assignee would receive a full voting seat on the MagneGas China Board of Directors. Read more from the press release on our The Companies WMM profile site here.
"We have found in DDI a partner not only of substantial resources, but one equally passionate about the MagneGas™ Technology and its potential benefits to both the environment and the fiscal bottom line," stated MagneGas President Richard Connelly. "Negotiations on specific terms are underway, and we are both pleased and encouraged by the progress we have mutually made in the last week. We look forward to reaching a final agreement favorable to both parties and their constituents -- and to MagneGas investors in particular." Details on the investment have yet to be released as the two companies have up to 60 days to iron out the deal and release the updates that are to follow. Looking at MagneGas’ financial statements for the first quarter 2010 ending March 31st, 2010 showed cash on hand of $552 thousand dollars and total assets of $2.0M. An investment of $2 million in The Company by DDI could increase their market cap by almost 20%, a big jump for a small alternative energy firm.
The announcement comes on the heels of MagneGas’ management confirming they are ready to test their oil-recycling technology. “At this writing MagneGas Corporation is solely interested in collaborating specifically, for the use of our technology to recycle the oil spill in the Gulf of Mexico” said Dr. Ruggero Maria Santilli, chairman and chief executive officer. The Company is currently tapping BP and Halliburton to raise the cash necessary to pay for the costs of testing their proprietary product Plasma Arc Flow, designed to clean and recycle liquid waste, on only one barrel of recovered oil form the recent spill. Citing the disaster as having significant social and national issues associated with it beyond MagneGas’s obligation, Dr. Santilli says it would be unethical to expect The Company to pay for the costs of testing. For readers who may consider this to be an effort worth funding, click here to donate to the New Energy Economy Works Initative, a group raising money to cover testing expenses association with MagneGas’ testing.
MagneGas presented on the topic of waste management on May 6, 2010 at the 18th session of the United Nations (UN) Commission on Sustainable Development (CSD). The 53 member states of the CSD were on hand, including China, Pakistan, France, Argentina, Brazil and Israel, as were other major groups including Business & Industry, Farming, Children & Youth, Women and Indigenous Peoples. The company introduced their technologies as an innovative process to convert liquid waste to a green fuel solution. A PDF file of the presentation can be found here.
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