Strategic Mining (Pink Sheets:SMNG ) announced today that it has made arrangements to purchase a Boart Longyear LF 70 diamond core angular drill rig. The company plans to begin this fall the drilling program outlined by company geologist, Hassan Alief, in the 43-101 report.
The acquisition of the LF 70 diamond core drill rig on a Morooka track system is an important step for the continued development of the Ba Dinh gold property in Vietnam. The completion of the drilling program is necessary to define the gold reserves and to give the exact locations where to begin the mining operations.
The LF 70 will be the first angular core drill rig in Hoa Binh Province and the company has received strong support from the Vietnamese Government for bringing the latest angular core drilling technology to the region.
President, Todd Sterck, commented: "The new drilling rig will enable the company to work throughout all seasons and to initiate drilling programs in previously inaccessible areas."
Strategic Mining Corporation is engaged in the exploration and development of gold properties in Vietnam, the U.S. (Nevada/Utah) and Africa. The company intends to expand by acquiring mineral rights to more key properties and initiating strategic joint ventures.
Tuesday, August 31, 2010
Reeds (NASDAQ:REED): Packaging Upgrade from LA Bottling Plant
Reed's, Inc. (NASDAQ:REED ) (OTC.BB:REEDP), maker of the top-selling sodas in natural food stores nationwide, announced today that it has begun producing swing-top bottled beverages from its bottling factory in Los Angeles, California. Reed's, Inc. is the only bottling plant in North America that is tooled to run swing-top bottled beverages.
"Running swing-top bottled products is a true milestone for our company. Ever since we purchased Virgil's Root Beer, we have wanted to tool up our plant in North America to run swing-lid bottled sodas. We find that people love the old style European craftsmanship of swing-top bottles and are willing to pay a premium for them," stated Chris Reed, Founder, Chairman and CEO of Reed's, Inc. "For many years, we had to go to Europe to get production of the swing-lid bottles. We are now pleased that we can offer domestic swing-lid production for our brands and select private label customers. Our first productions have started and we have shipped a one liter swing-lid holiday beverage to one of our top private label customers. We will be adding more of our branded as well as private label swing-lid products in the near future. We expect this capability to give us a distinct advantage over other companies who have to outsource to Europe and ship to the U.S. We expect this new revenue stream from swing-lid products to be material."
"Running swing-top bottled products is a true milestone for our company. Ever since we purchased Virgil's Root Beer, we have wanted to tool up our plant in North America to run swing-lid bottled sodas. We find that people love the old style European craftsmanship of swing-top bottles and are willing to pay a premium for them," stated Chris Reed, Founder, Chairman and CEO of Reed's, Inc. "For many years, we had to go to Europe to get production of the swing-lid bottles. We are now pleased that we can offer domestic swing-lid production for our brands and select private label customers. Our first productions have started and we have shipped a one liter swing-lid holiday beverage to one of our top private label customers. We will be adding more of our branded as well as private label swing-lid products in the near future. We expect this capability to give us a distinct advantage over other companies who have to outsource to Europe and ship to the U.S. We expect this new revenue stream from swing-lid products to be material."
3 Things You Need to Know Before Trading
*Stocks were generally weak in Asian trade. The Nikkei in particular had a bad day as it fell almost 3.6% on the session; the biggest daily decline in about three months. Australia and the Hang Seng were each down by about one percent and Shanghai lost a half percent. European indexes were also broadly lower with both the Footsie and Dax off by one percent. US stock futures are trading down a half percent.
*The Q2 reading of Australia’s Current Account Balance was a deficit of AD$5.6 billion, about one billion less than forecast. Their Net Exports as a percent of GDP rose 0.4% in the quarter.
*The July reading of Australia’s Retail Sales were +0.7% on a month on month basis, beating the estimate of +0.4%.
*The preliminary July reading of Japan’s Industrial Production is +0.3% on a month on month basis, better than the forecast for a decline of 0.2%.
*The July reading of Japan’s Retail Trade was up 0.7% from the month before; it had been forecast to gain 0.5%.
*The August reading of Germany’s Unemployment Rate was steady at 7.6%, as expected. The net change in the number of Unemployed was -17k, just missing the -20k estimate.
*In July there were 48.7k Mortgage Approvals in the UK, according to the Bank of England; a couple thousand more than expected.
*The weekly report on chain store sales from ICSC shows an increase of 0.1% on a week to week basis for the week ended August 28. The Johnson Redbook report of the same thing is due out at 7:55am CDT.
*The June reading of the Case/Shiller Home Price Index is due out at 8:00am CDT, it is expected to be +3.50% on a year over year basis. The August reading of the Chicago Purchasing Managers Index is due out at 8:45am CDT, three minutes earlier for subscribers. The Chicago PMI is expected to be 57.0, which would be down from 62.3 the month before. The August reading of Consumer Confidence is set to be released at 9:00am CDT, it is forecast to improve three tenths on the month to 50.7.
*The FDIC will be out with a report on Q2 bank earnings at 9:00am CDT.
*The minutes from the August 10 FOMC meeting are due to be released at 1:00pm CDT.
*The Q2 reading of Australia’s Current Account Balance was a deficit of AD$5.6 billion, about one billion less than forecast. Their Net Exports as a percent of GDP rose 0.4% in the quarter.
*The July reading of Australia’s Retail Sales were +0.7% on a month on month basis, beating the estimate of +0.4%.
*The preliminary July reading of Japan’s Industrial Production is +0.3% on a month on month basis, better than the forecast for a decline of 0.2%.
*The July reading of Japan’s Retail Trade was up 0.7% from the month before; it had been forecast to gain 0.5%.
*The August reading of Germany’s Unemployment Rate was steady at 7.6%, as expected. The net change in the number of Unemployed was -17k, just missing the -20k estimate.
*In July there were 48.7k Mortgage Approvals in the UK, according to the Bank of England; a couple thousand more than expected.
*The weekly report on chain store sales from ICSC shows an increase of 0.1% on a week to week basis for the week ended August 28. The Johnson Redbook report of the same thing is due out at 7:55am CDT.
*The June reading of the Case/Shiller Home Price Index is due out at 8:00am CDT, it is expected to be +3.50% on a year over year basis. The August reading of the Chicago Purchasing Managers Index is due out at 8:45am CDT, three minutes earlier for subscribers. The Chicago PMI is expected to be 57.0, which would be down from 62.3 the month before. The August reading of Consumer Confidence is set to be released at 9:00am CDT, it is forecast to improve three tenths on the month to 50.7.
*The FDIC will be out with a report on Q2 bank earnings at 9:00am CDT.
*The minutes from the August 10 FOMC meeting are due to be released at 1:00pm CDT.
Monday, August 30, 2010
Stocks Under Monday Pressure:Dow - 83 at Mid Day
Labor Day cannot come soon enough, and this week will be remarkably irrelevant to Q4 for the stock market. Jr traders man trading desks and investors will watch the market for a few days and then start thinking about Holiday Plans and travel returning Tuesday in Sept. Its the same every year since 1987 as we head into October with a huge cloud hanging over October.
The Dow Jones industrial average fell about 75 points in afternoon trading. Broader indexes also dropped. With investors concerned about the health of the economy, money again flowed into the bond market, sending interest rates lower.
A report Monday showed personal income rose less than expected in July, adding to the string of data that points toward a slowdown in growth during the second half of the year.
"The personal income report did little to ease the nervousness about the trajectory of the economy," said Alan Gayle, senior investment strategist at RidgeWorth Investments. The report did show spending was up in July, but without consistent growth in income, any increase in spending is likely temporary, Gayle said.
Investors have been focusing on employment data as a way of predicting where the economy is going. Signs of a slowdown in growth has plagued the market for more than a month. Investors are unsure if companies will be able to keep up strong earnings growth if the recovery runs out of steam or falls back into recession. And consumers aren't likely to spend more until there are clear and regular signs of hiring.
"You have to prepare for slower growth," said Mark Tepper, managing partner at Strategic Wealth Partners. "As consumer spending goes down, businesses will experience lower earnings."
Investors have been betting in recent weeks that the weaker economic reports will translate into smaller earnings that previously thought. That, in turn, has helped drive stocks lower to match the diminished expectations.
Several stocks were moving on the latest flurry of corporate news. Genzyme Corp. rose after rejecting Sanofi-Aventis SA's $18.5 billion takeover offer, while Hewlett-Packard Co. rose after saying it plans to buy back stock. Cogent Inc. jumped after agreeing to be acquired by 3M Co.
In afternoon trading, the Dow fell 75.76, or 0.8 percent, to 10,074.74. The Standard & Poor's 500 index fell 8.24, or 0.8 percent, to 1,056.35, while the Nasdaq composite index fell 18.21, or 0.9 percent, to 2,135.42.
About five stocks fell for every two that rose on the New York Stock Exchange, where volume was 365.6 million. Volume has been light over the past month as investor uncertainty keeps some traders out of the market completely.
The yield on the 10-year Treasury note, which moves opposite its price, fell to 2.55 percent from 2.65 percent late Friday. Its yield is often used to set interest rates on mortgages and other consumer loans.
Biotechnology company Genzyme said Sanofi-Aventis' $69 per share offer undervalues the company. Genzyme shares jumped $2.53, or 3.7 percent, to $70.15, while Sanofi fell 1 cent to $28.91.
Cogent jumped $1.97, or 22.2 percent, to $10.89 after manufacturer 3M said it would buy the maker of fingerprint scanners for $10.50 a share. Shares of 3M dipped $1.03 to $79.97.
Hewlett-Packard said it plans to repurchase $10 billion in stock. The computer company plans to buy back shares, in part, to offset dilution from employee stock plans. Hewlett-Packard shares rose 87 cents, or 2.3 percent, to $38.87.
Stocks have largely been moving on major economic reports and less on individual corporate news during the past month. Because the Labor Department's monthly employment report doesn't come until Friday, investors will look for signs earlier in the week about the jobs market.
In economic news Monday, the Commerce Department said personal income rose 0.2 percent last month, falling below economists' forecast for 0.3 percent growth, according to Thomson Reuters.
Personal spending did climb 0.4 percent in July, the biggest jump in four months. Economists had forecast spending would rise 0.3 percent. But with income and hiring still sluggish, analysts say shoppers won't be consistently spending more.
The Institute for Supply Management releases its monthly manufacturing survey Wednesday, which has an employment component to it. Payroll company ADP also releases its data on private jobs growth Wednesday.
The Labor Department releases its weekly report on unemployment claims Thursday. New claims fell last week, but remain at elevated levels. That indicate employers are not adding new workers, even if they aren't firing too many employees either.
Japanese markets surged overnight after the country's central bank approved new stimulus measures aimed at sparking growth and putting the brakes on a strengthening yen. The yen recently hit a 15-year high against the dollar, which hurts Japanese manufacturers, like Sony Corp., Panasonic Corp. and Toyota Motor Corp., that rely heavily on exports. Japan's Nikkei stock average rose 1.8 percent.
The Dow Jones industrial average fell about 75 points in afternoon trading. Broader indexes also dropped. With investors concerned about the health of the economy, money again flowed into the bond market, sending interest rates lower.
A report Monday showed personal income rose less than expected in July, adding to the string of data that points toward a slowdown in growth during the second half of the year.
"The personal income report did little to ease the nervousness about the trajectory of the economy," said Alan Gayle, senior investment strategist at RidgeWorth Investments. The report did show spending was up in July, but without consistent growth in income, any increase in spending is likely temporary, Gayle said.
Investors have been focusing on employment data as a way of predicting where the economy is going. Signs of a slowdown in growth has plagued the market for more than a month. Investors are unsure if companies will be able to keep up strong earnings growth if the recovery runs out of steam or falls back into recession. And consumers aren't likely to spend more until there are clear and regular signs of hiring.
"You have to prepare for slower growth," said Mark Tepper, managing partner at Strategic Wealth Partners. "As consumer spending goes down, businesses will experience lower earnings."
Investors have been betting in recent weeks that the weaker economic reports will translate into smaller earnings that previously thought. That, in turn, has helped drive stocks lower to match the diminished expectations.
Several stocks were moving on the latest flurry of corporate news. Genzyme Corp. rose after rejecting Sanofi-Aventis SA's $18.5 billion takeover offer, while Hewlett-Packard Co. rose after saying it plans to buy back stock. Cogent Inc. jumped after agreeing to be acquired by 3M Co.
In afternoon trading, the Dow fell 75.76, or 0.8 percent, to 10,074.74. The Standard & Poor's 500 index fell 8.24, or 0.8 percent, to 1,056.35, while the Nasdaq composite index fell 18.21, or 0.9 percent, to 2,135.42.
About five stocks fell for every two that rose on the New York Stock Exchange, where volume was 365.6 million. Volume has been light over the past month as investor uncertainty keeps some traders out of the market completely.
The yield on the 10-year Treasury note, which moves opposite its price, fell to 2.55 percent from 2.65 percent late Friday. Its yield is often used to set interest rates on mortgages and other consumer loans.
Biotechnology company Genzyme said Sanofi-Aventis' $69 per share offer undervalues the company. Genzyme shares jumped $2.53, or 3.7 percent, to $70.15, while Sanofi fell 1 cent to $28.91.
Cogent jumped $1.97, or 22.2 percent, to $10.89 after manufacturer 3M said it would buy the maker of fingerprint scanners for $10.50 a share. Shares of 3M dipped $1.03 to $79.97.
Hewlett-Packard said it plans to repurchase $10 billion in stock. The computer company plans to buy back shares, in part, to offset dilution from employee stock plans. Hewlett-Packard shares rose 87 cents, or 2.3 percent, to $38.87.
Stocks have largely been moving on major economic reports and less on individual corporate news during the past month. Because the Labor Department's monthly employment report doesn't come until Friday, investors will look for signs earlier in the week about the jobs market.
In economic news Monday, the Commerce Department said personal income rose 0.2 percent last month, falling below economists' forecast for 0.3 percent growth, according to Thomson Reuters.
Personal spending did climb 0.4 percent in July, the biggest jump in four months. Economists had forecast spending would rise 0.3 percent. But with income and hiring still sluggish, analysts say shoppers won't be consistently spending more.
The Institute for Supply Management releases its monthly manufacturing survey Wednesday, which has an employment component to it. Payroll company ADP also releases its data on private jobs growth Wednesday.
The Labor Department releases its weekly report on unemployment claims Thursday. New claims fell last week, but remain at elevated levels. That indicate employers are not adding new workers, even if they aren't firing too many employees either.
Japanese markets surged overnight after the country's central bank approved new stimulus measures aimed at sparking growth and putting the brakes on a strengthening yen. The yen recently hit a 15-year high against the dollar, which hurts Japanese manufacturers, like Sony Corp., Panasonic Corp. and Toyota Motor Corp., that rely heavily on exports. Japan's Nikkei stock average rose 1.8 percent.
Revolutions Medical (OTC:RMCP) Spikes +25% after Fresh News
Shares of Revolutions Medical Corp. (OTC:RMCP) today spiked up 25 percent to $0.48 per share on volume of more than 277,000 shares. Pretty good considering the small $18 million market cap. company only averages about 34,000 shares traded per day. They do have fresh news today to go along with whatever promotion campaign they have in the works.
In a press release, Revolutions Medical notified the MDEA (www.MDEAwards.com) that there had been an error in awarding the Free Vac syringe the 2010 Medical Design Excellence Award when in fact Free Vac misrepresented ownership of the syringe. The syringe was actually Revolutions Medical Corporation's RevVac auto retractable safety syringe. This was recently confirmed in a deposition. Ron Wheet, CEO of Revolutions Medical Corporation, states, "The Medical Design Excellence Awards competition, organized and presented by Canon Communications LLC, is the only awards program that exclusively recognizes contributions and advances in the design of medical products. Now in their fourteenth year, the MDEA competition recognizes manufacturers, engineers, scientists designers, and clinicians who are responsible for the leading edge technology that continues to push healthcare to new heights. I am confident that this prestigious organization that prides itself in recognizing the achievements of the workers and companies like ours, will give Revolutions Medical Corporation and the RevVac vacuum operated auto retractable safety syringe the proper recognition that it deserves."
RevVac is Revolutions Medical Corporation's patented and FDA cleared safety syringe that incorporates its proprietary vacuum-operated automatic retractable technology. Designed with healthcare providers in mind, the RevVac utilizes vacuum force to instantly retract the used needle into the barrel of the syringe after an injection is administered. This syringe is intended to replace conventional syringes currently on the market and to reduce the possibility of needle stick injuries. Accidental needle stick injuries endanger the lives of patients and medical professionals who may contract blood borne diseases such as HIV/AIDS, Hepatitis B and C. The features of the RevVac syringe simplify use and enhance the safety of the current injection process used by all healthcare providers worldwide.
Revolutions Medical intends to present the new design of the RevVac safety syringe, whereby they have reduced the parts from 12 to 8, revolutionized the look and style, and improved performance in the 2011 MDEA competition.
Revolutions Medical is a safety medical device and software application company. Its products include the RevVac safety syringe (FDA approved), safety blood drawing device and safety IV catheter. The Company also provides RevColor, RevDisplay and Rev3D -- software solutions and proprietary tools that are compatible with standard MRIs and standard PACS. The software suite's functionality includes sorting of images, color, 3D and automatic segmentation of images.
In a press release, Revolutions Medical notified the MDEA (www.MDEAwards.com) that there had been an error in awarding the Free Vac syringe the 2010 Medical Design Excellence Award when in fact Free Vac misrepresented ownership of the syringe. The syringe was actually Revolutions Medical Corporation's RevVac auto retractable safety syringe. This was recently confirmed in a deposition. Ron Wheet, CEO of Revolutions Medical Corporation, states, "The Medical Design Excellence Awards competition, organized and presented by Canon Communications LLC, is the only awards program that exclusively recognizes contributions and advances in the design of medical products. Now in their fourteenth year, the MDEA competition recognizes manufacturers, engineers, scientists designers, and clinicians who are responsible for the leading edge technology that continues to push healthcare to new heights. I am confident that this prestigious organization that prides itself in recognizing the achievements of the workers and companies like ours, will give Revolutions Medical Corporation and the RevVac vacuum operated auto retractable safety syringe the proper recognition that it deserves."
RevVac is Revolutions Medical Corporation's patented and FDA cleared safety syringe that incorporates its proprietary vacuum-operated automatic retractable technology. Designed with healthcare providers in mind, the RevVac utilizes vacuum force to instantly retract the used needle into the barrel of the syringe after an injection is administered. This syringe is intended to replace conventional syringes currently on the market and to reduce the possibility of needle stick injuries. Accidental needle stick injuries endanger the lives of patients and medical professionals who may contract blood borne diseases such as HIV/AIDS, Hepatitis B and C. The features of the RevVac syringe simplify use and enhance the safety of the current injection process used by all healthcare providers worldwide.
Revolutions Medical intends to present the new design of the RevVac safety syringe, whereby they have reduced the parts from 12 to 8, revolutionized the look and style, and improved performance in the 2011 MDEA competition.
Revolutions Medical is a safety medical device and software application company. Its products include the RevVac safety syringe (FDA approved), safety blood drawing device and safety IV catheter. The Company also provides RevColor, RevDisplay and Rev3D -- software solutions and proprietary tools that are compatible with standard MRIs and standard PACS. The software suite's functionality includes sorting of images, color, 3D and automatic segmentation of images.
4 Opening Data Points
*Stocks in Asia picked up on the US market strength on Friday and had solid gains across the board. Australia added 1.9%, the Nikkei was up 1.8%, Shanghai was 1.6% higher and the Hang Seng gained 0.7%. European indexes are however a bit lower on the session, with the Dax currently off by about 0.4%; the UK is closed for a bank holiday. US stock futures are essentially unchanged as I write.
*The Bank of Japan held an emergency policy meeting overnight. They kept their target rate steady at 0.10% but they expanded the special credit program by Y10 trillion up to Y30 trillion as they expressed the need to pay more attention to downside economic risks. Although they took note that the foreign exchange and stock markets have been unstable recently and there is growing uncertainty about their economy and the US as well. They continue to expect a moderate recovery; but beating deflation remains a critical challenge and BoJ boss Shirakawa says they can’t rule out the possibility they may have to lower their economic forecast. However, Shirakawa declined comment on the strength of the Yen and the market began bidding up the currency right after his comments concluded; US/JY is down sixty pips at the moment at 84.62 and EU/JY is down 120 pips at 107.55. Prime Minister Kan says there will be a full stimulus package decided on next month and stressed that the his government will continue to work closely with the BoJ. Also a government spokesman reiterated concern over prolonged Yen gains and that they will take bold action on the Yen gains when necessary; for the time being the market seems determined to find the line in the sand on the value of the Yen.
*For the third month in a row in July New Home Sales in Australia were down, this time the month on month decline was 7.0%.
*The July reading of Personal Income and Spending is due out at 7:30am CDT. Income is forecast to grow 0.3% and the estimate for Spending is also +0.3%. The PCE Core inflation measure is expected to rise 0.1% on a month on month basis and to be +1.4% on a year over year basis.
*The August reading of the Dallas Fed’s Manufacturing Activity Index is due out at 9:30am CDT, it is expected to be -16.0; it was -21.0 in July.
*St. Louis Fed boss Bullard will give some opening remarks at a conference on regulatory reform sponsored by his bank at 12:30pm CDT.
*The Bank of Japan held an emergency policy meeting overnight. They kept their target rate steady at 0.10% but they expanded the special credit program by Y10 trillion up to Y30 trillion as they expressed the need to pay more attention to downside economic risks. Although they took note that the foreign exchange and stock markets have been unstable recently and there is growing uncertainty about their economy and the US as well. They continue to expect a moderate recovery; but beating deflation remains a critical challenge and BoJ boss Shirakawa says they can’t rule out the possibility they may have to lower their economic forecast. However, Shirakawa declined comment on the strength of the Yen and the market began bidding up the currency right after his comments concluded; US/JY is down sixty pips at the moment at 84.62 and EU/JY is down 120 pips at 107.55. Prime Minister Kan says there will be a full stimulus package decided on next month and stressed that the his government will continue to work closely with the BoJ. Also a government spokesman reiterated concern over prolonged Yen gains and that they will take bold action on the Yen gains when necessary; for the time being the market seems determined to find the line in the sand on the value of the Yen.
*For the third month in a row in July New Home Sales in Australia were down, this time the month on month decline was 7.0%.
*The July reading of Personal Income and Spending is due out at 7:30am CDT. Income is forecast to grow 0.3% and the estimate for Spending is also +0.3%. The PCE Core inflation measure is expected to rise 0.1% on a month on month basis and to be +1.4% on a year over year basis.
*The August reading of the Dallas Fed’s Manufacturing Activity Index is due out at 9:30am CDT, it is expected to be -16.0; it was -21.0 in July.
*St. Louis Fed boss Bullard will give some opening remarks at a conference on regulatory reform sponsored by his bank at 12:30pm CDT.
Friday, August 27, 2010
Big Ben Jawbone: Talk Works for the Weekend
Federal Reserve Chairman Ben Bernanke said Friday that the Fed will consider making another large-scale purchase of securities if the slowing economy were to deteriorate significantly and signs of deflation were to flare. The Fed chief offered his most extensive thoughts yet on how to pull the U.S. economy out of a deepening slump. His remarks came 90 minutes after the government said the economy slowed sharply in the second quarter to a 1.6 percent pace.
Fears are growing that the country could lapse back into a recession. Bernanke described the economic outlook as "inherently uncertain" and said the economy "remains vulnerable to unexpected developments."
Bernanke stopped short of committing to any specific action. But he raised the prospect of another Fed purchase of securities, most likely government debt or mortgage securities, to drive down rates on mortgages and other debt to spur more spending by Americans.
"I believe that additional purchases of longer-term securities should the FOMC choose to undertake them, would be effective in further easing financial conditions." he said. The FOMC stands for the Federal Open Market Committee, the group of Fed policymakers that makes decisions on interest rates and other steps to aid the economy.
The other two options he laid out are:
--Providing more information in the Fed's post-meeting policy statements about how long Fed policymakers would continue to keep rates at record lows. For more than a year, the Fed has been pledging to hold rates at ultra-low levels for an "extended period."
-- Cutting to zero the interest the Fed pays for banks to keep money parked at the Fed. That rate is now 0.25 percent.
"The issue at this stage is not whether we have the tools to help support economic activity and guard against disinflation. We do," Bernanke said. "The issue is instead whether, at any given juncture, the benefits of each tool, in terms of additional stimulus, outweigh the associated costs or risks of using each tool."
The Fed's strategy carries no guarantees. Short-term interest rates near zero have yet to rejuvenate the economy. The benefits of federal stimulus programs are fading, and Congress has declined to pass any major new economic aid. That is putting immense pressure on Bernanke to provide relief, and he has no easy options for fixing the economy.
The economy, which has been losing momentum all year, slowed to a near crawl in the second quarter.
At such a weak pace, the nation's 9.5 percent unemployment rate could climb and pass 10 percent later this year or early next year, some analysts say. With economic conditions worsening, there's the danger that consumers and businesses will turn even more cautious in their spending, causing the economy to stall, or worse, slip into reverse.
Bernanke said the prospect of high unemployment for a long period of time is a "central concern" for the Fed. He also made clear that he is determined to prevent the United States from slipping into a deflationary spiral.
Deflation is a widespread and prolonged drop in wages, the prices of goods and services and in the value of stocks, houses and other assets. The country's last serious episode of deflation was in the 1930s. Keeping interest rates super low and taking unconventional to lower rates on mortgages and other debt is a way to nip any deflationary forces.
Japan's deflation problems and stagnant growth caused the country to suffer what many refer to as a "lost decade" in the 1990s. It is still fighting deflation now even as it has kept its key interest rates near zero like the Fed.
Although most economists believe the odds are relatively low that the United States will slide into deflation, it can't be ruled out given the economy's weak growth, they say.
Despite the economy's recent slowing, Bernanke, however, continues to believe there will be "some pickup" in growth in 2011, but not enough to substantially drive down unemployment and reduce the vast ranks of the unemployed.
"We have come a long way, but there is still some way to travel," Bernanke said.
Fears are growing that the country could lapse back into a recession. Bernanke described the economic outlook as "inherently uncertain" and said the economy "remains vulnerable to unexpected developments."
Bernanke stopped short of committing to any specific action. But he raised the prospect of another Fed purchase of securities, most likely government debt or mortgage securities, to drive down rates on mortgages and other debt to spur more spending by Americans.
"I believe that additional purchases of longer-term securities should the FOMC choose to undertake them, would be effective in further easing financial conditions." he said. The FOMC stands for the Federal Open Market Committee, the group of Fed policymakers that makes decisions on interest rates and other steps to aid the economy.
The other two options he laid out are:
--Providing more information in the Fed's post-meeting policy statements about how long Fed policymakers would continue to keep rates at record lows. For more than a year, the Fed has been pledging to hold rates at ultra-low levels for an "extended period."
-- Cutting to zero the interest the Fed pays for banks to keep money parked at the Fed. That rate is now 0.25 percent.
"The issue at this stage is not whether we have the tools to help support economic activity and guard against disinflation. We do," Bernanke said. "The issue is instead whether, at any given juncture, the benefits of each tool, in terms of additional stimulus, outweigh the associated costs or risks of using each tool."
The Fed's strategy carries no guarantees. Short-term interest rates near zero have yet to rejuvenate the economy. The benefits of federal stimulus programs are fading, and Congress has declined to pass any major new economic aid. That is putting immense pressure on Bernanke to provide relief, and he has no easy options for fixing the economy.
The economy, which has been losing momentum all year, slowed to a near crawl in the second quarter.
At such a weak pace, the nation's 9.5 percent unemployment rate could climb and pass 10 percent later this year or early next year, some analysts say. With economic conditions worsening, there's the danger that consumers and businesses will turn even more cautious in their spending, causing the economy to stall, or worse, slip into reverse.
Bernanke said the prospect of high unemployment for a long period of time is a "central concern" for the Fed. He also made clear that he is determined to prevent the United States from slipping into a deflationary spiral.
Deflation is a widespread and prolonged drop in wages, the prices of goods and services and in the value of stocks, houses and other assets. The country's last serious episode of deflation was in the 1930s. Keeping interest rates super low and taking unconventional to lower rates on mortgages and other debt is a way to nip any deflationary forces.
Japan's deflation problems and stagnant growth caused the country to suffer what many refer to as a "lost decade" in the 1990s. It is still fighting deflation now even as it has kept its key interest rates near zero like the Fed.
Although most economists believe the odds are relatively low that the United States will slide into deflation, it can't be ruled out given the economy's weak growth, they say.
Despite the economy's recent slowing, Bernanke, however, continues to believe there will be "some pickup" in growth in 2011, but not enough to substantially drive down unemployment and reduce the vast ranks of the unemployed.
"We have come a long way, but there is still some way to travel," Bernanke said.
3 Things to Know Before Market Open
Stocks had mixed results in Asia overnight. The Nikkei was up almost one percent, while Australia and Shanghai were higher by about 0.3%, but the Hang Seng lost a small fraction. European indexes are generally little changed at the moment, with both the Footsie and the Dax up a fraction. US stock futures are up by about one third of a percent.
*The July reading of Japan’s Jobless Rate was down one tenth on the month to 5.2%, a steady reading was the forecast. Overall Household Spending was +1.1% on a year over year basis, up from June but below the estimate of +1.5%.
*The July reading of Japan’s Consumer Price Index, ex-fresh food, is -1.1% on a year over year basis, matching the forecast. The August reading of that same inflation measure for Tokyo is also -1.1% year over year, less deflationary than the expected -1.2%.
*The July reading of Germany’s Import Price Index -0.2% on a month on month basis, a decline of -0.4% was the forecast.
*German states have been releasing the August reading of their Consumer Price Index this morning, some of the results include: Saxony 0.0% month on month and +1.1% year on year, Hesse +0.1% and +0.7%, Bavaria +0.1% and +1.1% and North Rhine Westphalia +0.2% and +1.0%. The national CPI is due out later this morning, it is expected to be +0.1% on a month over month basis and the estimate for the annualized rate is +1.1%.
*The August reading of the KOF Swiss Leading Indicator is 2.18, that is down from 2.22 in July and the second small decline in a row.
*The Q2 reading of the UK’ s GDP was revised up one tenth to +1.2% on a quarter on quarter basis.
*The first revision of the Q2 GDP is due out at 7:30am CDT. Growth is expected to be revised down to +1.4% on a quarter on quarter annualized basis, it was originally reported to be +2.4%. The Q2 reading of Personal Consumption is expected to be unrevised at +1.6% and so too is the GDP Price Deflator forecast to be steady from the initial report of +1.8%. Also, the estimate for the Q2 annualized PCE Core inflation measure is unrevised at +1.1%. The final August reading of consumer sentiment from the University of Michigan is due out at 8:55am CDT, it is expected to be 69.6, unchanged from the preliminary result.
*Fed boss Bernanke is the highlight of the Fed fest at Jackson Hole, Wyoming today; he is scheduled to speak at 9:00am CDT. The topic is “The Economic Outlook and the Federal Reserve’s Policy Response”.
*The July reading of Japan’s Jobless Rate was down one tenth on the month to 5.2%, a steady reading was the forecast. Overall Household Spending was +1.1% on a year over year basis, up from June but below the estimate of +1.5%.
*The July reading of Japan’s Consumer Price Index, ex-fresh food, is -1.1% on a year over year basis, matching the forecast. The August reading of that same inflation measure for Tokyo is also -1.1% year over year, less deflationary than the expected -1.2%.
*The July reading of Germany’s Import Price Index -0.2% on a month on month basis, a decline of -0.4% was the forecast.
*German states have been releasing the August reading of their Consumer Price Index this morning, some of the results include: Saxony 0.0% month on month and +1.1% year on year, Hesse +0.1% and +0.7%, Bavaria +0.1% and +1.1% and North Rhine Westphalia +0.2% and +1.0%. The national CPI is due out later this morning, it is expected to be +0.1% on a month over month basis and the estimate for the annualized rate is +1.1%.
*The August reading of the KOF Swiss Leading Indicator is 2.18, that is down from 2.22 in July and the second small decline in a row.
*The Q2 reading of the UK’ s GDP was revised up one tenth to +1.2% on a quarter on quarter basis.
*The first revision of the Q2 GDP is due out at 7:30am CDT. Growth is expected to be revised down to +1.4% on a quarter on quarter annualized basis, it was originally reported to be +2.4%. The Q2 reading of Personal Consumption is expected to be unrevised at +1.6% and so too is the GDP Price Deflator forecast to be steady from the initial report of +1.8%. Also, the estimate for the Q2 annualized PCE Core inflation measure is unrevised at +1.1%. The final August reading of consumer sentiment from the University of Michigan is due out at 8:55am CDT, it is expected to be 69.6, unchanged from the preliminary result.
*Fed boss Bernanke is the highlight of the Fed fest at Jackson Hole, Wyoming today; he is scheduled to speak at 9:00am CDT. The topic is “The Economic Outlook and the Federal Reserve’s Policy Response”.
Thursday, August 26, 2010
Diamant Art (OTCBB: DIAAF) Going Global
Diamant Art Corporation is a now a publically traded international company. Through the strategic partnership of its wholly-owned subsidiary, T&R International (Think and React) and a Fortune 500 company, the company will be offering it’s wide range of business software products in China, one of the fastest growing countries in the world.
The Fortune 500 Company involved in the partnership has not been named, but they have been fully trained and educated on the structure and functionalities of T&R’s products, which range from people counting and POS software and data analysis systems, to Green Tec, the company’s energy saving machinery. T&R expects demand for its products through the partnership will be generated beginning September of 2010.
One of the largest facilities for NANO Technology in China is expected to be the first customer for the company’s Green Tec technology and the RFID management control hardware and software, a quality control and security system designed specifically for large buildings with heavy employee and customer foot traffic.
Forward looking statements from the company include:
“With approximately 7,500 Hospitals in the USA and forecasting another 1,500 installations over the next 3 years with the Green Tec hardware and software revenues at an average of $130,000 for each of the Green Tec Hardware installation, the gross revenues could exceed $195,000,000 on the Green Tec Hardware revenues alone. The Green Tec software revenues could also exceed another $300,000,000 within three years in the Hospital market. These figures do not even address potential income from the Mall, Factories, Shops, Office buildings, train stations, Hotels and Convention centers.”
The Fortune 500 Company involved in the partnership has not been named, but they have been fully trained and educated on the structure and functionalities of T&R’s products, which range from people counting and POS software and data analysis systems, to Green Tec, the company’s energy saving machinery. T&R expects demand for its products through the partnership will be generated beginning September of 2010.
One of the largest facilities for NANO Technology in China is expected to be the first customer for the company’s Green Tec technology and the RFID management control hardware and software, a quality control and security system designed specifically for large buildings with heavy employee and customer foot traffic.
Forward looking statements from the company include:
“With approximately 7,500 Hospitals in the USA and forecasting another 1,500 installations over the next 3 years with the Green Tec hardware and software revenues at an average of $130,000 for each of the Green Tec Hardware installation, the gross revenues could exceed $195,000,000 on the Green Tec Hardware revenues alone. The Green Tec software revenues could also exceed another $300,000,000 within three years in the Hospital market. These figures do not even address potential income from the Mall, Factories, Shops, Office buildings, train stations, Hotels and Convention centers.”
3 Things You Need to Know Before Trading
Stocks were mixed in Asian trade. Australia was among the best with a gain of 0.8%, the Nikkei added 0.7% and Shanghai was up a quarter percent, but the Hang Seng fell a fraction on the session. European indexes are modestly higher, with the Footsie currently up about 0.6% and the Dax higher by a quarter percent. US stock futures are fractionally higher.
*In the second quarter Australian business investment unexpectedly fell 4.0%, this had been forecast to expand by 2.3%. Additionally the previous quarter was revised down to -1.0% from -0.2%.
*The Q2 reading of Switzerland’s Employment level was up 0.6% to 3.968 million; both results were a touch shy of the forecast.
*The weekly report on Initial Jobless Claims is due out at 7:30am CDT, it is expected to be 490k.
*The Mortgage Bankers Association is scheduled to release some data on Q2 mortgage delinquencies and foreclosures at 9:00am CDT.
*The Fed is expected to buy Treasuries again today, maturities ranging from February 15, 2021 to August 15, 2040; the results should be out just after 10:00am CDT.
*The weekly report on inventories of Natural Gas is due to be released at 9:30am CDT, it is expected to show an increase of 38 bcf.
*The August reading of the Kansas City Fed Production Index is due out at 10:00am CDT. Usually nobody pays attention to this report but because of the recent weakness in these regional Fed reports it might get more notice than it normally does.
*The Treasury plans to sell $29 billion 7 Year Notes today, the results will be announced just after noon CDT.
*FedHeads begin gathering in Jackson Hole today for the annual weekend long fest. Bernanke is scheduled to speak at 9:00am CDT on Friday.
*In the second quarter Australian business investment unexpectedly fell 4.0%, this had been forecast to expand by 2.3%. Additionally the previous quarter was revised down to -1.0% from -0.2%.
*The Q2 reading of Switzerland’s Employment level was up 0.6% to 3.968 million; both results were a touch shy of the forecast.
*The weekly report on Initial Jobless Claims is due out at 7:30am CDT, it is expected to be 490k.
*The Mortgage Bankers Association is scheduled to release some data on Q2 mortgage delinquencies and foreclosures at 9:00am CDT.
*The Fed is expected to buy Treasuries again today, maturities ranging from February 15, 2021 to August 15, 2040; the results should be out just after 10:00am CDT.
*The weekly report on inventories of Natural Gas is due to be released at 9:30am CDT, it is expected to show an increase of 38 bcf.
*The August reading of the Kansas City Fed Production Index is due out at 10:00am CDT. Usually nobody pays attention to this report but because of the recent weakness in these regional Fed reports it might get more notice than it normally does.
*The Treasury plans to sell $29 billion 7 Year Notes today, the results will be announced just after noon CDT.
*FedHeads begin gathering in Jackson Hole today for the annual weekend long fest. Bernanke is scheduled to speak at 9:00am CDT on Friday.
Wednesday, August 25, 2010
Market Up and Down Interday as August Slogs Thru
The Dow Jones industrial average fell about 10 points Wednesday afternoon following news that sales of new homes fell last month to the lowest level on record. It was the latest indication that home sales are stagnating after the expiration of a homebuyer tax credit this spring.
A separate report from the Commerce Department showed that durable goods orders grew only slightly last month, falling shy of expectations and disappointing investors who had been hoping that the U.S. manufacturing sector would continue to pick up.
Market indicators came off their lows for the day as some investors saw value in beaten-down shares.
"There are some buyers today," said Albert Meyer, portfolio manager of the Mirzam Capital Appreciation Fund. Meyer said some investors might see the market as oversold after its recent losing streak.
The Dow briefly fell below 10,000 for the second straight day Wednesday before climbing back above that psychological benchmark. It had been down as much as 102 points during the day but recouped much of its losses.
Sandy Mehta, principal and chief investment officer of Value Investment Principals, said stocks are in a volatile range right now, which has been exacerbated by the seasonal summer slowdown in trading.
"We rally, we sell off. We rally, we sell off," Mehta said. "It's just the nature of the market right now."
The newest signs that the economic recovery is sputtering led many investors to move money into the relative safety of Treasurys, sending their yields lower. The yield on the 10-year Treasury note touched levels not reached since January 2009, when the stock market was heading toward its lowest level in 12 years, and the yield on the two-year remained near a record low.
Stocks have been hit hard in recent days because of concerns about whether the economy will fall back into recession or at least be stuck in a prolonged period of very slow growth. The Dow is heading into its fifth straight day of declines.
New home sales fell 12.4 percent in July to an annual rate of 276,600, the Commerce Department reported. That was the slowest pace on records dating back to 1963 and worse than the pace forecast by economists polled by Thomson Reuters. A day earlier, the National Association of Realtors said sales of existing homes, a far greater proportion of the housing market, fell to a 15-year low in July.
The Dow Jones industrial average fell 9.99, or 0.1 percent, to 10,030.46 in afternoon trading.
Broader market barometers were mixed. The Standard & Poor's 500 index fell 1.74, or 0.2 percent, to 1,050.13, while the Nasdaq composite index rose 1.81, or 0.1 percent, to 2,125.57.
About three stocks fell for every two that rose on the New York Stock Exchange, where volume came to 591.7 million shares.
The fear among investors is that if the economy continues to worsen, corporate earnings will start to weaken, just as economic indicators have.
"The worry is, if the economy looks worse, maybe companies start ratcheting down" their earnings forecasts, said Russell Croft, portfolio manager at Croft Leominster Investment Management. "It's still a very uncertain time."
The yield on the 10-year Treasury note fell as low as 2.42 percent during morning trading before climbing back to 2.50 percent. Its yield is helps set interest rates on mortgages and other consumer loans.
Despite the ultra-low borrowing rates, home sales have been weak since a home buyer tax credit expired at the end of April. High unemployment has kept people from buying homes, and banks still reeling from the crisis in the mortgage-backed securities market have been cautious in making new loans.
Overseas, Japanese shares fell again after the yen hit a new 15-year high against the dollar and a nine-year high against the euro. The high yen hurts profitability at major Japanese exporters. Japan's Nikkei stock average fell 1.7 percent. European markets were also lower.
A separate report from the Commerce Department showed that durable goods orders grew only slightly last month, falling shy of expectations and disappointing investors who had been hoping that the U.S. manufacturing sector would continue to pick up.
Market indicators came off their lows for the day as some investors saw value in beaten-down shares.
"There are some buyers today," said Albert Meyer, portfolio manager of the Mirzam Capital Appreciation Fund. Meyer said some investors might see the market as oversold after its recent losing streak.
The Dow briefly fell below 10,000 for the second straight day Wednesday before climbing back above that psychological benchmark. It had been down as much as 102 points during the day but recouped much of its losses.
Sandy Mehta, principal and chief investment officer of Value Investment Principals, said stocks are in a volatile range right now, which has been exacerbated by the seasonal summer slowdown in trading.
"We rally, we sell off. We rally, we sell off," Mehta said. "It's just the nature of the market right now."
The newest signs that the economic recovery is sputtering led many investors to move money into the relative safety of Treasurys, sending their yields lower. The yield on the 10-year Treasury note touched levels not reached since January 2009, when the stock market was heading toward its lowest level in 12 years, and the yield on the two-year remained near a record low.
Stocks have been hit hard in recent days because of concerns about whether the economy will fall back into recession or at least be stuck in a prolonged period of very slow growth. The Dow is heading into its fifth straight day of declines.
New home sales fell 12.4 percent in July to an annual rate of 276,600, the Commerce Department reported. That was the slowest pace on records dating back to 1963 and worse than the pace forecast by economists polled by Thomson Reuters. A day earlier, the National Association of Realtors said sales of existing homes, a far greater proportion of the housing market, fell to a 15-year low in July.
The Dow Jones industrial average fell 9.99, or 0.1 percent, to 10,030.46 in afternoon trading.
Broader market barometers were mixed. The Standard & Poor's 500 index fell 1.74, or 0.2 percent, to 1,050.13, while the Nasdaq composite index rose 1.81, or 0.1 percent, to 2,125.57.
About three stocks fell for every two that rose on the New York Stock Exchange, where volume came to 591.7 million shares.
The fear among investors is that if the economy continues to worsen, corporate earnings will start to weaken, just as economic indicators have.
"The worry is, if the economy looks worse, maybe companies start ratcheting down" their earnings forecasts, said Russell Croft, portfolio manager at Croft Leominster Investment Management. "It's still a very uncertain time."
The yield on the 10-year Treasury note fell as low as 2.42 percent during morning trading before climbing back to 2.50 percent. Its yield is helps set interest rates on mortgages and other consumer loans.
Despite the ultra-low borrowing rates, home sales have been weak since a home buyer tax credit expired at the end of April. High unemployment has kept people from buying homes, and banks still reeling from the crisis in the mortgage-backed securities market have been cautious in making new loans.
Overseas, Japanese shares fell again after the yen hit a new 15-year high against the dollar and a nine-year high against the euro. The high yen hurts profitability at major Japanese exporters. Japan's Nikkei stock average fell 1.7 percent. European markets were also lower.
Cereplast (NASDAQ:CERP): New Deal is Nice Bump in Qtrly Rev
Cereplast (NASDAQ:CERP) a leading manufacturer of proprietary bio-based, compostable and sustainable plastics, announced today that it has entered into a multi-million dollar contract with RI.ME. Masterbatch S.r.l., ("RI.ME.") based in Mozzate (CO), Italy, to supply bioplastic resins for use in its masterbatch process for adding colorant to bulk, uncolored resins. The new agreement supports RI.ME.'s commitment to offering its customers sustainable, environmental solutions in the design and production of masterbatches.
"We are excited that RI.ME. has chosen Cereplast to provide bioplastic resins for use in its masterbatching process for its clients throughout Europe," said Mr. Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. "This was made possible by RI.ME.'s success in using our materials in its masterbatching process, and by the excellent performance of Cereplast resins on extrusion lines designed for HDPE, LDPE or PVC without any kind of technical investments. RI.ME. is a leader in designing and developing masterbatches suitable for coloration and with any type of thermoplastic resin. This is a significant contract for Cereplast and we are honored to work with RI.ME., who is promoting increased market awareness and adaption of bioplastic/compostable solutions in Europe and helping us to increase our presence in this important geographic market."
Under the terms of the contract, Cereplast will supply its Compostable 3000 film grade for use in RI.ME.'s masterbatching processes for the production of items such as carry out bags and compostable trash bags. This film is designed to have an excellent balance of puncture strength, toughness, and can be processed on existing blown film extrusion machines. Cereplast Compostable 3000 is a proprietary patented formulation which includes Ingeo PLA and a copolyester from BASF. Cereplast will begin shipping its bio resins in September 2010 and is currently in discussions to extend the contract on other RI.ME. product lines. The initial contract runs through December, 2011.
"Our contract with Cereplast enables us to address growing consumer and industrial demand for environmentally-friendly plastic products," commented Mr. Alberto Cattaneo, CEO of RI.ME. "We currently supply biodegradable colors to more than 150 of our customers. This collaborative agreement expands our product offering and strengthens our position as a leading designer and developer of masterbatches throughout Europe."
"We are excited that RI.ME. has chosen Cereplast to provide bioplastic resins for use in its masterbatching process for its clients throughout Europe," said Mr. Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. "This was made possible by RI.ME.'s success in using our materials in its masterbatching process, and by the excellent performance of Cereplast resins on extrusion lines designed for HDPE, LDPE or PVC without any kind of technical investments. RI.ME. is a leader in designing and developing masterbatches suitable for coloration and with any type of thermoplastic resin. This is a significant contract for Cereplast and we are honored to work with RI.ME., who is promoting increased market awareness and adaption of bioplastic/compostable solutions in Europe and helping us to increase our presence in this important geographic market."
Under the terms of the contract, Cereplast will supply its Compostable 3000 film grade for use in RI.ME.'s masterbatching processes for the production of items such as carry out bags and compostable trash bags. This film is designed to have an excellent balance of puncture strength, toughness, and can be processed on existing blown film extrusion machines. Cereplast Compostable 3000 is a proprietary patented formulation which includes Ingeo PLA and a copolyester from BASF. Cereplast will begin shipping its bio resins in September 2010 and is currently in discussions to extend the contract on other RI.ME. product lines. The initial contract runs through December, 2011.
"Our contract with Cereplast enables us to address growing consumer and industrial demand for environmentally-friendly plastic products," commented Mr. Alberto Cattaneo, CEO of RI.ME. "We currently supply biodegradable colors to more than 150 of our customers. This collaborative agreement expands our product offering and strengthens our position as a leading designer and developer of masterbatches throughout Europe."
Cereplast (NASDAQ:CERP): New Deal is Nice Bump in Qtrly Rev
Cereplast (NASDAQ:CERP) a leading manufacturer of proprietary bio-based, compostable and sustainable plastics, announced today that it has entered into a multi-million dollar contract with RI.ME. Masterbatch S.r.l., ("RI.ME.") based in Mozzate (CO), Italy, to supply bioplastic resins for use in its masterbatch process for adding colorant to bulk, uncolored resins. The new agreement supports RI.ME.'s commitment to offering its customers sustainable, environmental solutions in the design and production of masterbatches.
"We are excited that RI.ME. has chosen Cereplast to provide bioplastic resins for use in its masterbatching process for its clients throughout Europe," said Mr. Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. "This was made possible by RI.ME.'s success in using our materials in its masterbatching process, and by the excellent performance of Cereplast resins on extrusion lines designed for HDPE, LDPE or PVC without any kind of technical investments. RI.ME. is a leader in designing and developing masterbatches suitable for coloration and with any type of thermoplastic resin. This is a significant contract for Cereplast and we are honored to work with RI.ME., who is promoting increased market awareness and adaption of bioplastic/compostable solutions in Europe and helping us to increase our presence in this important geographic market."
Under the terms of the contract, Cereplast will supply its Compostable 3000 film grade for use in RI.ME.'s masterbatching processes for the production of items such as carry out bags and compostable trash bags. This film is designed to have an excellent balance of puncture strength, toughness, and can be processed on existing blown film extrusion machines. Cereplast Compostable 3000 is a proprietary patented formulation which includes Ingeo PLA and a copolyester from BASF. Cereplast will begin shipping its bio resins in September 2010 and is currently in discussions to extend the contract on other RI.ME. product lines. The initial contract runs through December, 2011.
"Our contract with Cereplast enables us to address growing consumer and industrial demand for environmentally-friendly plastic products," commented Mr. Alberto Cattaneo, CEO of RI.ME. "We currently supply biodegradable colors to more than 150 of our customers. This collaborative agreement expands our product offering and strengthens our position as a leading designer and developer of masterbatches throughout Europe."
"We are excited that RI.ME. has chosen Cereplast to provide bioplastic resins for use in its masterbatching process for its clients throughout Europe," said Mr. Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. "This was made possible by RI.ME.'s success in using our materials in its masterbatching process, and by the excellent performance of Cereplast resins on extrusion lines designed for HDPE, LDPE or PVC without any kind of technical investments. RI.ME. is a leader in designing and developing masterbatches suitable for coloration and with any type of thermoplastic resin. This is a significant contract for Cereplast and we are honored to work with RI.ME., who is promoting increased market awareness and adaption of bioplastic/compostable solutions in Europe and helping us to increase our presence in this important geographic market."
Under the terms of the contract, Cereplast will supply its Compostable 3000 film grade for use in RI.ME.'s masterbatching processes for the production of items such as carry out bags and compostable trash bags. This film is designed to have an excellent balance of puncture strength, toughness, and can be processed on existing blown film extrusion machines. Cereplast Compostable 3000 is a proprietary patented formulation which includes Ingeo PLA and a copolyester from BASF. Cereplast will begin shipping its bio resins in September 2010 and is currently in discussions to extend the contract on other RI.ME. product lines. The initial contract runs through December, 2011.
"Our contract with Cereplast enables us to address growing consumer and industrial demand for environmentally-friendly plastic products," commented Mr. Alberto Cattaneo, CEO of RI.ME. "We currently supply biodegradable colors to more than 150 of our customers. This collaborative agreement expands our product offering and strengthens our position as a leading designer and developer of masterbatches throughout Europe."
3 Things You Need to Know Before Trading
*Stocks were generally weak in Asia overnight. Shanghai lost two percent on the session, the Nikkei was down one and two thirds percent, Australia lost 1.4% and the Hang Seng was off a fraction. European indexes are moderately lower as well with the Footsie and Dax currently lower by 0.7% and 0.4% respectively. US stock futures are down a fraction as I write.
*The July reading of China’s Leading Economic Index was 102.10, that is down from 102.84 in June, it is the fifth decline in a row and it brings the index back to a level last seen in May 2009.
*The July reading of Japan’s Balance of Trade was a bigger surplus than forecast at Y804.2 billion, or $9.5 billion. Exports were down 1.4% from a month earlier, but up 23.5% from a year earlier. The month on month drop in exports is fueling additional concerns about the strong Yen, which is a bit lower in the wake of the data; dollar/yen is currently +58 pips at 84.48.
*The August reading of the German IFO Index of the Business Climate was up a half point from the month before to 106.7, a half point fall was the forecast.
*US mortgage applications rose 4.9% in the week ended August 20, according to the Mortgage Bankers Association. Once again it was the Refi market that was behind the increase, +5.7%; applications for purchase gained only 0.6%.
*The July reading of Durable Goods Orders is due out at 7:30am CDT. Headline Orders are expected to rise 3.0% on a month on month basis and the Order ex-transportation are forecast to rise 0.5%. The July reading of New Home Sales are due out at 9:00am CDT, it is expected to show an annualized sales rate of 330k units, which would be steady from the month before. Also due out at 9:00am is the FHFA House Price Index, a rise of 0.1% is the estimate.
*The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to increase 400k barrels, Gasoline inventories are expected to fall 500k and the estimate for Distillates is +1.0 million.
*The Treasury plans to sell $36 billion 5 Year Notes today, the results will be announced just after noon CDT.
*The July reading of China’s Leading Economic Index was 102.10, that is down from 102.84 in June, it is the fifth decline in a row and it brings the index back to a level last seen in May 2009.
*The July reading of Japan’s Balance of Trade was a bigger surplus than forecast at Y804.2 billion, or $9.5 billion. Exports were down 1.4% from a month earlier, but up 23.5% from a year earlier. The month on month drop in exports is fueling additional concerns about the strong Yen, which is a bit lower in the wake of the data; dollar/yen is currently +58 pips at 84.48.
*The August reading of the German IFO Index of the Business Climate was up a half point from the month before to 106.7, a half point fall was the forecast.
*US mortgage applications rose 4.9% in the week ended August 20, according to the Mortgage Bankers Association. Once again it was the Refi market that was behind the increase, +5.7%; applications for purchase gained only 0.6%.
*The July reading of Durable Goods Orders is due out at 7:30am CDT. Headline Orders are expected to rise 3.0% on a month on month basis and the Order ex-transportation are forecast to rise 0.5%. The July reading of New Home Sales are due out at 9:00am CDT, it is expected to show an annualized sales rate of 330k units, which would be steady from the month before. Also due out at 9:00am is the FHFA House Price Index, a rise of 0.1% is the estimate.
*The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to increase 400k barrels, Gasoline inventories are expected to fall 500k and the estimate for Distillates is +1.0 million.
*The Treasury plans to sell $36 billion 5 Year Notes today, the results will be announced just after noon CDT.
Monday, August 23, 2010
Cereplast (NASDAQ:CERP): To Ring NASDAQ Opening Bell
CERP a leading manufacturer of proprietary bio-based, sustainable plastics, announced that Cereplast Founder, Chairman and CEO Mr. Frederic Scheer will ring the opening bell at the NASDAQ stock exchange at 9:30 a.m. ET on Thursday, August 26, 2010.
The bell ringing will take place at the NASDAQ MarketSite in New York City's Time Square. Mr. Scheer will be joined by members of his Board of Directors, including Jacques Vincent, current Vice Chairman of Groupe Danone (ENXTPA: BN), and Petros Kitsos, Managing Principal of TBL Strategy in Los Angeles.
We are honored to ring the NASDAQ opening bell in celebration of our listing on the NASDAQ Stock Exchange on April 13, 2010,said Mr. Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. Not only is this a significant step in the evolution of Cereplast as a public company, but it is also a reflection of the extraordinary growth of the bioplastics industry, which represents the changes that both consumers and industry are making to embrace and live in a more environmentally-conscious manner.
As founder of the Biodegradable Products Institute (BPI), the largest biodegradable association in the world, Cereplasts listing and mission to focus on renewable resources is also a fantastic way to remind people of the role businesses can play in leaving our planet in better shape for future generations.
A live webcast of the NASDAQ Opening Bell will also be available at: http://www.nasdaq.com/about/marketsitetowervideo.asx.
The bell ringing will take place at the NASDAQ MarketSite in New York City's Time Square. Mr. Scheer will be joined by members of his Board of Directors, including Jacques Vincent, current Vice Chairman of Groupe Danone (ENXTPA: BN), and Petros Kitsos, Managing Principal of TBL Strategy in Los Angeles.
We are honored to ring the NASDAQ opening bell in celebration of our listing on the NASDAQ Stock Exchange on April 13, 2010,said Mr. Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. Not only is this a significant step in the evolution of Cereplast as a public company, but it is also a reflection of the extraordinary growth of the bioplastics industry, which represents the changes that both consumers and industry are making to embrace and live in a more environmentally-conscious manner.
As founder of the Biodegradable Products Institute (BPI), the largest biodegradable association in the world, Cereplasts listing and mission to focus on renewable resources is also a fantastic way to remind people of the role businesses can play in leaving our planet in better shape for future generations.
A live webcast of the NASDAQ Opening Bell will also be available at: http://www.nasdaq.com/about/marketsitetowervideo.asx.
Hewlett-Packard Trumps Dell with $1.5 Billion for 3Par
Hewlett-Packard Co. is bidding $1.5 billion for data storage provider 3Par Inc., offering 33 percent more than what rival Dell Inc. agreed to pay for the company just a week earlier.
The tussle for control of 3Par comes as both HP and Dell have been looking to expand beyond personal computers in search of bigger profits. The company they both want to buy provides products for organizing data on corporate servers. Those tools could help either company go deeper into "cloud computing," the growing practice of offering software on a subscription basis over the Internet.
The offer announced Monday raised questions about the direction HP is taking since CEO Mark Hurd was forced to resign earlier this month. Hurd was pushed out for filing inaccurate expense reports for his dinners and other outings with a former HP marketing contractor.
Faced with questions about why HP only made an offer for 3Par after Dell jumped in last week with a bid for $1.13 billion, company executives declined to say exactly how long they have been considering the deal, or whether Hurd had been in favor of it.
HP Executive Vice President Dave Donatelli indicated that HP had made a previous offer, but would go only as far as saying, "We've been working on this deal for some time."
HP's bid of $24 per share represents a 33 percent increase over Dell's offer last Monday of $18 per share, which itself had been 87 percent premium over the company's most recent closing price at the time. Including debt, HP valued the deal at about $1.6 billion.
In midday trading Monday, shares of 3Par jumped $7.35, or 41 percent, to $25.39. The fact that it's above HP's offer price suggests that investors expect Dell to make a higher counteroffer. Dell spokesman David Frink declined to comment on the company's next move.
HP shares slipped 87 cents, or 2.2 percent, to $38.98 in midday trading. Shares of Dell, which is based in Round Rock, Texas, fell 20 cents, or 1.7 percent, to $11.87.
The tussle for control of 3Par comes as both HP and Dell have been looking to expand beyond personal computers in search of bigger profits. The company they both want to buy provides products for organizing data on corporate servers. Those tools could help either company go deeper into "cloud computing," the growing practice of offering software on a subscription basis over the Internet.
The offer announced Monday raised questions about the direction HP is taking since CEO Mark Hurd was forced to resign earlier this month. Hurd was pushed out for filing inaccurate expense reports for his dinners and other outings with a former HP marketing contractor.
Faced with questions about why HP only made an offer for 3Par after Dell jumped in last week with a bid for $1.13 billion, company executives declined to say exactly how long they have been considering the deal, or whether Hurd had been in favor of it.
HP Executive Vice President Dave Donatelli indicated that HP had made a previous offer, but would go only as far as saying, "We've been working on this deal for some time."
HP's bid of $24 per share represents a 33 percent increase over Dell's offer last Monday of $18 per share, which itself had been 87 percent premium over the company's most recent closing price at the time. Including debt, HP valued the deal at about $1.6 billion.
In midday trading Monday, shares of 3Par jumped $7.35, or 41 percent, to $25.39. The fact that it's above HP's offer price suggests that investors expect Dell to make a higher counteroffer. Dell spokesman David Frink declined to comment on the company's next move.
HP shares slipped 87 cents, or 2.2 percent, to $38.98 in midday trading. Shares of Dell, which is based in Round Rock, Texas, fell 20 cents, or 1.7 percent, to $11.87.
3 Things You Need to Know Before Trading
*Stocks in Asia were mixed overnight, but most of the key indexes were modestly lower. The Nikkei lost 0.7%, the Hang Seng was down 0.4% and Shanghai and Australia were off a small fraction. European indexes are however broadly higher, with the Footsie currently up by 0.8% and the Dax higher by just under a half percent. US stock futures are up a third to a half percent as I write.
*For several weeks there has been talk of planned a meeting between Japanese PM Kan and BoJ boss Shirakawa to discuss the strength of the Yen and to figure out what to do about it. But so far, nothing. Finance Minister Noda says he has been told by Kan to continue watching the markets, (what else is he supposed to do?) and adds that he wants to continue close cooperation with the BoJ (how else should he act?). Noda also says that Kan is considering a meeting with Shirakawa when needed, but he offered no indication as to the level of Yen that would make such a meeting rise to the top of the “to do” list. The Yen remains near its fifteen year high versus the buck and not far of a nine year high versus the euro.
*Australia’s election did not produce a clear winner as neither of the major parties achieved a 76 seat simple majority and they now have the first hung parliament in seventy years. Both party leaders, Gillard and Abbott, are now trying to form a coalition with the handful of independent seat winners.
*The preliminary August reading of the German manufacturing sector PMI was 58.2, down three points on the month and a couple of points under the estimate. On the other hand the service sector PMI rose two points to 58.5, better than the fractional decline that was expected.
*The July reading of the Chicago Fed National Activity Index is due out at 7:30am CDT, it is expected to be -0.10. It was -0.63 in June, the first negative reading in four months.
*Kansas City Fed boss Hoenig is scheduled to testify at a field hearing in Kansas before the House Subcommittee on Oversight and Investigations.
*The Treasury plans to sell $7 billion re-opened 30 Year TIPS today, the results will be announced just after noon CDT.
*For several weeks there has been talk of planned a meeting between Japanese PM Kan and BoJ boss Shirakawa to discuss the strength of the Yen and to figure out what to do about it. But so far, nothing. Finance Minister Noda says he has been told by Kan to continue watching the markets, (what else is he supposed to do?) and adds that he wants to continue close cooperation with the BoJ (how else should he act?). Noda also says that Kan is considering a meeting with Shirakawa when needed, but he offered no indication as to the level of Yen that would make such a meeting rise to the top of the “to do” list. The Yen remains near its fifteen year high versus the buck and not far of a nine year high versus the euro.
*Australia’s election did not produce a clear winner as neither of the major parties achieved a 76 seat simple majority and they now have the first hung parliament in seventy years. Both party leaders, Gillard and Abbott, are now trying to form a coalition with the handful of independent seat winners.
*The preliminary August reading of the German manufacturing sector PMI was 58.2, down three points on the month and a couple of points under the estimate. On the other hand the service sector PMI rose two points to 58.5, better than the fractional decline that was expected.
*The July reading of the Chicago Fed National Activity Index is due out at 7:30am CDT, it is expected to be -0.10. It was -0.63 in June, the first negative reading in four months.
*Kansas City Fed boss Hoenig is scheduled to testify at a field hearing in Kansas before the House Subcommittee on Oversight and Investigations.
*The Treasury plans to sell $7 billion re-opened 30 Year TIPS today, the results will be announced just after noon CDT.
Friday, August 20, 2010
3 Things You Need to Know Before Trading
*Stocks in Asia were generally lower, with some key indexes hit hard. The Nikkei fell about two percent on the session, Shanghai lost 1.7%, Australia was down about one percent and the Hang Seng fell 0.4%. Similar situation in Europe, as the Dax is currently off 0.9% and the Footsie is down a half percent. US stock futures are down by almost a half percent.
*Bundesbank President Axel Weber, frontrunner to succeed Trichet as ECB boss, said overnight that the ECB should keep unlimited lending through year end and that German growth is likely to slow in the second half of the year to about 0.5%.
*Australia heads to the polls on Saturday for a national election that is said to be too close to call. Leading the incumbent Labor Party is Julia Gillard, who ousted former leader Kevin Rudd in June after his popularity plummeted in response to his proposal to exact a forty percent tax on “super profits” in the mining industry. Tony Abbott is the leader of the center-right Liberal Party. There is some thought that the tight election could result in a hung parliament.
*No data today; here, there or anywhere.
*Bundesbank President Axel Weber, frontrunner to succeed Trichet as ECB boss, said overnight that the ECB should keep unlimited lending through year end and that German growth is likely to slow in the second half of the year to about 0.5%.
*Australia heads to the polls on Saturday for a national election that is said to be too close to call. Leading the incumbent Labor Party is Julia Gillard, who ousted former leader Kevin Rudd in June after his popularity plummeted in response to his proposal to exact a forty percent tax on “super profits” in the mining industry. Tony Abbott is the leader of the center-right Liberal Party. There is some thought that the tight election could result in a hung parliament.
*No data today; here, there or anywhere.
Thursday, August 19, 2010
3 Things to Know Before Trading
Stocks were bid throughout Asia overnight. The Nikkei was up 1.3%, Shanghai added 0.8%, the Hang Seng gained a quarter percent and Australia was up a fraction. European indexes are also generally higher, with the Dax currently up a half percent and the Footsie a fraction better. US stock futures are up about a third of a percent.
*Nationwide department store sales in Japan were down 1.4% on a year over year basis in July; that is the smallest annualized decline since March 2008.
*The July reading of the German Producer Price Index was up 0.5% on a monthly basis; it was expected to rise only 0.1%. On a year over year basis the PPI was +3.7%, a few tenths more than forecast.
*The July reading of Switzerland’s Trade Balance was a record surplus of SF2.89 billion, mainly the result of falling imports.
*The August reading of Switzerland’s ZEW Index of Economic Growth Expectations bounced up to 9.1 from 2.2 the month before; this index had fallen sharply from the mid-fifties in the previous three months.
*The July reading of UK Retail Sales was up 1.1% on a month on month basis, that was up almost four times the forecast.
*GM has filed papers for its upcoming IPO; listing several banks as underwriters.
*The weekly report on Initial Jobless Claims is due out at 7:30am CDT, it is expected to be 478k. The August reading of the Philly Fed Business Activity Index is due out at 9:00am CDT, it is forecast to increase two points on the month to 7.0. Also due out at 9:00am is the July reading of the Leading Economic Indicators, a reading of +0.1% is the estimate.
*The Fed is expected to buy Treasuries this morning, the operation is set to begin around 9:15am CDT; they will target paper maturing between August 2016 and May 2020.
*The weekly report on inventories of Natural Gas is due out at 9:30am CDT, it is expected to show a gain of 30 bcf.
*The Treasury is expected to announce at 10:00am CDT the details of next week’s auctions of 30 Year TIPS, 2 Year Notes, 5 Year Notes and 7 Year Notes.
*St. Louis Fed boss Bullard is scheduled to speak on the economy at 11:30am CDT.
*Nationwide department store sales in Japan were down 1.4% on a year over year basis in July; that is the smallest annualized decline since March 2008.
*The July reading of the German Producer Price Index was up 0.5% on a monthly basis; it was expected to rise only 0.1%. On a year over year basis the PPI was +3.7%, a few tenths more than forecast.
*The July reading of Switzerland’s Trade Balance was a record surplus of SF2.89 billion, mainly the result of falling imports.
*The August reading of Switzerland’s ZEW Index of Economic Growth Expectations bounced up to 9.1 from 2.2 the month before; this index had fallen sharply from the mid-fifties in the previous three months.
*The July reading of UK Retail Sales was up 1.1% on a month on month basis, that was up almost four times the forecast.
*GM has filed papers for its upcoming IPO; listing several banks as underwriters.
*The weekly report on Initial Jobless Claims is due out at 7:30am CDT, it is expected to be 478k. The August reading of the Philly Fed Business Activity Index is due out at 9:00am CDT, it is forecast to increase two points on the month to 7.0. Also due out at 9:00am is the July reading of the Leading Economic Indicators, a reading of +0.1% is the estimate.
*The Fed is expected to buy Treasuries this morning, the operation is set to begin around 9:15am CDT; they will target paper maturing between August 2016 and May 2020.
*The weekly report on inventories of Natural Gas is due out at 9:30am CDT, it is expected to show a gain of 30 bcf.
*The Treasury is expected to announce at 10:00am CDT the details of next week’s auctions of 30 Year TIPS, 2 Year Notes, 5 Year Notes and 7 Year Notes.
*St. Louis Fed boss Bullard is scheduled to speak on the economy at 11:30am CDT.
Wednesday, August 18, 2010
Baron Energy OTCBB:BROE
Magnum Hunter ResourcesMHR$8,343,767 $33,375,068 1,166 3666182164%68.6$4.05 $277.8 8.3 $152,600
FieldPoint PetroleumFPP$1,769,673 $7,078,692 218 44629873%8.1$3.61 $29.2 4.1 $98,242
Earthstone EnergyBSIC$1,764,000 $7,056,000 258 26630684%17.1$1.06 $18.1 2.6 $59,332
Evolution PetroleumEPM$1,291,381 $5,165,524 136 109333141%25.1$4.60 $115.5 22.4 $348,634
Cubic EnergyQBC$898,075 $3,592,300 113 219350522%75.4$0.93 $69.7 19.4 $138,216
Mexco EnergyMXC$832,010 $3,328,040 50 133428817%2.0$6.16 $12.3 3.7 $42,746
Lucas EnergyLEI$577,540 $2,310,160 87 087100%13.6$1.73 $23.5 10.2 $269,655
Daybreak Oil & GasDBRM$193,051 $772,204 51 051100%47.9$0.08 $3.8 5.0 $75,137
Baron EnergyBROE$180,000 $720,000 32 63397%42.3$0.12 $5.1 7.1 $153,486
Jayhawk EnergyJYHW$159,623 $638,492 22 1534945%49.0$0.21 $10.3 16.2 $209,824
9.9
Future State Based on Average Revenue Multiple
Baron EnergyBROE$315,000 $1,260,000 50 050 100%43.0$0.29 $12.5 9.9 $249,150
Baron EnergyBROE$630,000 $2,520,000 100 0100 100%45.0$0.55 $24.9 9.9 $249,150
Baron EnergyBROE$945,000 $3,780,000 150 0150 100%47.0$0.80 $37.4 9.9 $249,150
FieldPoint PetroleumFPP$1,769,673 $7,078,692 218 44629873%8.1$3.61 $29.2 4.1 $98,242
Earthstone EnergyBSIC$1,764,000 $7,056,000 258 26630684%17.1$1.06 $18.1 2.6 $59,332
Evolution PetroleumEPM$1,291,381 $5,165,524 136 109333141%25.1$4.60 $115.5 22.4 $348,634
Cubic EnergyQBC$898,075 $3,592,300 113 219350522%75.4$0.93 $69.7 19.4 $138,216
Mexco EnergyMXC$832,010 $3,328,040 50 133428817%2.0$6.16 $12.3 3.7 $42,746
Lucas EnergyLEI$577,540 $2,310,160 87 087100%13.6$1.73 $23.5 10.2 $269,655
Daybreak Oil & GasDBRM$193,051 $772,204 51 051100%47.9$0.08 $3.8 5.0 $75,137
Baron EnergyBROE$180,000 $720,000 32 63397%42.3$0.12 $5.1 7.1 $153,486
Jayhawk EnergyJYHW$159,623 $638,492 22 1534945%49.0$0.21 $10.3 16.2 $209,824
9.9
Future State Based on Average Revenue Multiple
Baron EnergyBROE$315,000 $1,260,000 50 050 100%43.0$0.29 $12.5 9.9 $249,150
Baron EnergyBROE$630,000 $2,520,000 100 0100 100%45.0$0.55 $24.9 9.9 $249,150
Baron EnergyBROE$945,000 $3,780,000 150 0150 100%47.0$0.80 $37.4 9.9 $249,150
CERP Appoints New CFO, Reports Second Quarter Numbers (NASDAQ:CERP)
Cereplast Incorporated, symbol CERP announced the appointment of a new CFO, Heather Sheehan. Mrs. Sheehan has over 20 years of experience and joined Cerepast in 2008 where she was continually promoted until finally landing in her current position. Previously, Sheehan served as the CFO of Exemplis Corporation. CEO and Founder Frederic Scheer commented, ““We are delighted to enhance our executive team with the appointment of Heather Sheehan as Chief Financial Officer,” The company’s second quarter results reported lower sales for the quarter, 684,431 compared to 900,598 a year ago. Gross profit increased 157% to 199,211 and 7.5 million was raised in direct financing. Shipments for 2010 increased 400% from a year ago as well.
Today, Cereplast cited a report from the European Bioplastics Association, noting the development of a bio-based product marketing emerging in Europe in an effort to find solutions to an environment of sustainable development. Recently, Cereplast Incorporated has been uplisted to the NASDAQ exchange, these next few months will be important for CERP to remain healthy, particularly staying above the mandated $1.00 NASDAQ minimum. In other news, Cereplast announced earlier this month that it will have access to a new rail freight service in an industrial park located in Seymour, Indiana. The construction of this rail was funded by the city of Seymour’s Economic Development Corporation.
Using this access, the company can easily produce shipments across the United States, particularly to port cities for international shipment into Asia, Europe and South America. The use of rail shipment will also help cut costs and reduce the carbon footprint of Cereplast Incorporated. The forecast for shipment in 2010 has been established at 16 million pounds of bio plastic resin, an increase in 400% from a year ago.
Currently, CERP is trading at $3.24, the company dropped about a dollar in early June and has remained steady for the following months. Today’s number release could boost the company’s stock price as many are analysts are forecasting growth in the Plastics market. It is possible that reduced shipment cost and increased sales could translate into a higher pricing forecast for the remainder of the year.
Today, Cereplast cited a report from the European Bioplastics Association, noting the development of a bio-based product marketing emerging in Europe in an effort to find solutions to an environment of sustainable development. Recently, Cereplast Incorporated has been uplisted to the NASDAQ exchange, these next few months will be important for CERP to remain healthy, particularly staying above the mandated $1.00 NASDAQ minimum. In other news, Cereplast announced earlier this month that it will have access to a new rail freight service in an industrial park located in Seymour, Indiana. The construction of this rail was funded by the city of Seymour’s Economic Development Corporation.
Using this access, the company can easily produce shipments across the United States, particularly to port cities for international shipment into Asia, Europe and South America. The use of rail shipment will also help cut costs and reduce the carbon footprint of Cereplast Incorporated. The forecast for shipment in 2010 has been established at 16 million pounds of bio plastic resin, an increase in 400% from a year ago.
Currently, CERP is trading at $3.24, the company dropped about a dollar in early June and has remained steady for the following months. Today’s number release could boost the company’s stock price as many are analysts are forecasting growth in the Plastics market. It is possible that reduced shipment cost and increased sales could translate into a higher pricing forecast for the remainder of the year.
MagneGas OTCBB:MNGA): Record Revenue for Quarter
MagneGas Corporation (OTCBB:MNGA), a producer of a metal working fuel and natural gas alternative made from liquid waste, today announced operating results for the quarter and six months ended June 30, 2010. Recent Financial Highlights:
Generated record revenue of $1.3 MM in the second quarter, $1.5 MM for the first six months Achieved profitability for the first time: net income of $282,372 and $120,289, respectively In July received the first of two $1.0 MM investment installments from China partner.
Recent Business Highlights:
Entered potentially lucrative China market with 20% ownership of joint venture Acquired 20% of European and African markets Further strengthened competitive advantage through new technological patent.
Business Overview:
"We are proud to announce that we achieved in the second quarter that most fundamental of initial goals: profitability," stated MagneGas Chief Financial Officer, Luisa Ingargiola. "We have done so at such an early stage through spending discipline and a strategically sequenced, two-pronged sales approach. The international community has shown an interest in the MagneGas Technology™, so we have focused abroad on equipment sales that can yield large individual payments and thus accelerate revenue growth. We intend to balance this with recurring revenue gas sales in the U.S. -- beginning first with the $1 billion metal working market. We have built a broad distribution network, and now with the financial resources for a concerted marketing push we believe that our superior product can begin to capture market share."
Generated record revenue of $1.3 MM in the second quarter, $1.5 MM for the first six months Achieved profitability for the first time: net income of $282,372 and $120,289, respectively In July received the first of two $1.0 MM investment installments from China partner.
Recent Business Highlights:
Entered potentially lucrative China market with 20% ownership of joint venture Acquired 20% of European and African markets Further strengthened competitive advantage through new technological patent.
Business Overview:
"We are proud to announce that we achieved in the second quarter that most fundamental of initial goals: profitability," stated MagneGas Chief Financial Officer, Luisa Ingargiola. "We have done so at such an early stage through spending discipline and a strategically sequenced, two-pronged sales approach. The international community has shown an interest in the MagneGas Technology™, so we have focused abroad on equipment sales that can yield large individual payments and thus accelerate revenue growth. We intend to balance this with recurring revenue gas sales in the U.S. -- beginning first with the $1 billion metal working market. We have built a broad distribution network, and now with the financial resources for a concerted marketing push we believe that our superior product can begin to capture market share."
Markets Give Back in First Hours
Stocks looked to open modestly higher Wednesday after retailer Target Corp.'s earnings report was better than the market expected. Dow Jones industrial average and Standard & Poor's 500 futures rose after the discount retailer met analysts' forecasts for its second quarter earnings but beat expectations for its revenue. Target's report comes a day after Wal-Mart Stores Inc. and Home Depot Inc. helped feed the stock rally with upbeat numbers.
Retailers that are doing well or raising their forecasts have given investors some reassurance about consumer spending, particularly because the second half of the year includes the holiday shopping season. Investors are waiting to see if consumers will pick up their spending and help restore some momentum to the economic recovery.
Wednesday's trading was muted however, and that was to be expected after investors on Tuesday showed their first real enthusiasm for stocks in weeks and sent the Dow up 103 points. There were no big economic reports planned Wednesday.
Dow futures were up 31 at 10,389. Standard & Poor's 500 index futures rose 3.20 to 1,092.30. Nasdaq 100 futures gained 3.50 to 1,843.
BHP Billiton's $38.5 billion takeover offer for fertilizer producer Potash Corp. of Saskatchewan turned hostile Wednesday. Potash had called BHP's offer grossly inadequate. The announcement of the bid and Potash's rejection Tuesday helped feed the rally in stocks. Mergers and acquisitions activity tends to lift the market because it shows investors' confidence in the economy.
Still, it's too early to tell if Tuesday's advance, which came on improving economic and earnings numbers, was the start of a turnaround for the market, or a one-shot deal.
Overseas, Japan's Nikkei 225 index closed up 0.9 percent. In later European trading, London's FT-SE 100 index fell 0.7 percent. Germany's DAX index fell 0.1 percent, while the CAC-40 index in Paris fell 0.2 percent.
Retailers that are doing well or raising their forecasts have given investors some reassurance about consumer spending, particularly because the second half of the year includes the holiday shopping season. Investors are waiting to see if consumers will pick up their spending and help restore some momentum to the economic recovery.
Wednesday's trading was muted however, and that was to be expected after investors on Tuesday showed their first real enthusiasm for stocks in weeks and sent the Dow up 103 points. There were no big economic reports planned Wednesday.
Dow futures were up 31 at 10,389. Standard & Poor's 500 index futures rose 3.20 to 1,092.30. Nasdaq 100 futures gained 3.50 to 1,843.
BHP Billiton's $38.5 billion takeover offer for fertilizer producer Potash Corp. of Saskatchewan turned hostile Wednesday. Potash had called BHP's offer grossly inadequate. The announcement of the bid and Potash's rejection Tuesday helped feed the rally in stocks. Mergers and acquisitions activity tends to lift the market because it shows investors' confidence in the economy.
Still, it's too early to tell if Tuesday's advance, which came on improving economic and earnings numbers, was the start of a turnaround for the market, or a one-shot deal.
Overseas, Japan's Nikkei 225 index closed up 0.9 percent. In later European trading, London's FT-SE 100 index fell 0.7 percent. Germany's DAX index fell 0.1 percent, while the CAC-40 index in Paris fell 0.2 percent.
Tuesday, August 17, 2010
CDXC Reports Second Quarter Results: $2M Top-Line Revenue
Shares of ChromaDex Corp. (OTCBB: CDXC.OB) jumped up briefly to $1.34 before settling at $1.23 per share on moderate volume. ChromaDex announced a net loss attributable to common stockholders of $0.01 per share for the thirteen week period ended July 3, 2010 and top-line revenues of $2.03 million compared to $1.34 million in the year ago quarter.
As of July 3, 2010, cash, cash equivalents, and marketable securities totaled $3,381,744.
"ChromaDex is continuing to position ourselves to take advantage of the unique product offerings we have acquired and will continue to develop novel ingredients for dietary supplement, food and related industries," said Frank Jaksch, CEO and co-founder of ChromaDex. "By continuing to license technology that ChromaDex believes has a strong future potential to be marketed to many industry segments, we will be able to offer our customers and consumers significant new options in the field of natural products."
On a reported basis, ChromaDex recorded revenue during the second quarter of 2010 of $2,033,861 as compared to $1,342,716 for the same period in 2009. The net loss attributable to common stockholders for the thirteen weeks ended July 3, 2010, was $303,529 as compared to a net loss of $291,100 for the same period in 2009. The net loss in the second quarter of 2010 was attributable an increase in share based compensation expenses of $230,858 as compared to a $50,830 versus the same period in 2009, and an adoption of a formal investor relations program to increase market and shareholder awareness.
ChromaDex is a leader in the development of phytochemical and botanical reference standards and the creation of associated intellectual property. ChromaDex is committed to sustainable "green chemistry" and provides the dietary supplement, food, beverage, nutraceutical and cosmetic industries with the novel ingredients, analytical tools and services to meet product regulatory, quality, efficacy and safety standards.
COPsync, Inc. (OTCBB: COYN): Releases Q2 Results and Highlights Settlement
COPSyncps and sells a proprietary line of technologyservices that allows for police departments and officers around the country tocommunicate, collect, and analyze data with other enforcement agencies to savetime, money, and ultimately, lives. The sharing software, called COPsync, givespatrol officers real-time data access to critical information and streamlinesthe productivity of officers by reducing the activity and offense paperworkload required during investigations and subsequent arrests.
The company announces some major milestones for the secondquarter and the first six month period of 2010. There are 126 current lawenforcement agency accounts that are subscribed to the data service, and licensingfee revenues grew from $19k to $74k in the second quarter and in aggregate from$23k to $123k in the first six months of 2010.
The growth in licensing fee revenues represents a tremendousimprovement in gross margin from (256%) for the second quarter 2009 to 58% forthe second quarter 2010. Gross profit improved from a loss of ($32k) in thesecond quarter 2009 to $263k in the second quarter 2010.
The net loss for the six months ended June 30th, 2010 improvedfrom a loss of ($838k) during the first six months of 2009 to a loss of ($586k)during the first six months of 2010. The net loss per common basic and dilutedshare remained unchanged at ($.01) for the first six months and last threemonths ending June 30th, 2010 from the year ago period.
Interestingly,COPsync, Inc. was able to squeeze out a bottom-line net income of about $5kapplicable to common shareholders. The reason being is the company booked asettlement gain of $333k tied to a litigation suit in which damages were soughtagainst Testre LP for federal securities law violations and fraud. While afinal settlement agreement had been reached, it had not yet been finalized. The$333k settlement amount is the difference between a recorded settlement accrualcosts and the discharge of a convertible note that was payable to the defendant.You can read theentire litigations overview from the Commitments and Contingencies (Note 9)section from the second quarter 10K found here on the SEC website.
Keep an eye outhere for an interview with Russell Chaney, the chief executive officer of COPsync coming soon.
New World Gold Corp. (PinkSheets: NWGC):The Golden Sapphire
Uncertain times and a shaky history of late have many investors going back to their roots so to speak when choosing where to allocate capital. One constant throughout the recession has been the value of tangible assets such as precious metals like gold. One company is on track to shake up the mining market like a tornado, except their debris will be laced with gold and sapphires. New World Gold Corp. (PinkSheets: NWGC) has mining operations in Montana and Colorado along with International expansion agreements in place for mining in Columbia and Indonesia.
Mining gold is all well and good on its own, but New World Gold has sapphires in them there hills too… Not bad when you can get more bang for your buck or, in this case, more minerals for each ton of earth. Thanks to advances in technology, New World Gold has been able to identify significant deposits of gold in previously closed mines and has a business plan in place to search out and identify solid investment projects.
Projects and plans are all well and good but current production and areas being developed are a must for investors to commit substantial capital. Good thing New World Gold has the Montana project ready to mine with equipment on site; samples taken with production estimates in place; and the Colorado project on the tarmac ready for takeoff once it gets the necessary funding.
Some highlights and production estimates are as follows for years one and two:
Revenues from gold mined are expected to be $4.5 million for year one (Montana).
Revenues from gold mined are expected to be $11 million for year two once the Colorado project goes on-line.
Sapphire numbers are expected to be significant (pending independent verification).
The Company is in the process of converting its financials from in-house to audited and plans to move up to the Amex exchange by the first quarter of 2011.
In conclusion, New World Gold is a company with solid expansion plans in place to complement its current production at the Montana location. Also, by going after all the goodies underground, the Company is diversifying itself and leveraging risk while not increasing expenses that come with any mining operation. At $0.08 per share NWGC.PK is definitely worth a look and should offer solid returns in the short and long term as long as the company follows its business strategy during a reasonable timeline.
Mining gold is all well and good on its own, but New World Gold has sapphires in them there hills too… Not bad when you can get more bang for your buck or, in this case, more minerals for each ton of earth. Thanks to advances in technology, New World Gold has been able to identify significant deposits of gold in previously closed mines and has a business plan in place to search out and identify solid investment projects.
Projects and plans are all well and good but current production and areas being developed are a must for investors to commit substantial capital. Good thing New World Gold has the Montana project ready to mine with equipment on site; samples taken with production estimates in place; and the Colorado project on the tarmac ready for takeoff once it gets the necessary funding.
Some highlights and production estimates are as follows for years one and two:
Revenues from gold mined are expected to be $4.5 million for year one (Montana).
Revenues from gold mined are expected to be $11 million for year two once the Colorado project goes on-line.
Sapphire numbers are expected to be significant (pending independent verification).
The Company is in the process of converting its financials from in-house to audited and plans to move up to the Amex exchange by the first quarter of 2011.
In conclusion, New World Gold is a company with solid expansion plans in place to complement its current production at the Montana location. Also, by going after all the goodies underground, the Company is diversifying itself and leveraging risk while not increasing expenses that come with any mining operation. At $0.08 per share NWGC.PK is definitely worth a look and should offer solid returns in the short and long term as long as the company follows its business strategy during a reasonable timeline.
Strategic Mining (Pink Sheets:SMNG): Completed Geological Report
Strategic Mining (Pink Sheets:SMNG ) announced today that it has recently completed a geological report for its East Canyon gold property located in both Nevada and Utah. Due to the presence of both gold and silver, further geological mapping, geochemical and geophysical surveys are required to develop new or refined exploration targets for both gold and silver.
Hassan Alief, the company's geological consultant, reviewed geochemical and field reports from historic and recent exploration to evaluate the property and write a report. Pending further investigation, Strategic Mining has plans for the further acquisition of adjacent properties.
President, Todd Sterck commented: "We are fortunate to have our gold property located in pro-mining states. Our goal is to establish ourselves in this region that has a long and proven track record for successful gold production."
The company has entered into negotiations with interested parties for the initial financing of $5 million required to develop at least one of its properties and begin gold production. These negotiations are in the early stages and SMC will update its shareholders on the progress as it develops.
Strategic Mining Corporation is engaged in the exploration and development of gold properties in Vietnam, the U.S. (Nevada/Utah) and Africa. The company intends to expand by acquiring mineral rights to more key properties and initiating strategic joint ventures.
Hassan Alief, the company's geological consultant, reviewed geochemical and field reports from historic and recent exploration to evaluate the property and write a report. Pending further investigation, Strategic Mining has plans for the further acquisition of adjacent properties.
President, Todd Sterck commented: "We are fortunate to have our gold property located in pro-mining states. Our goal is to establish ourselves in this region that has a long and proven track record for successful gold production."
The company has entered into negotiations with interested parties for the initial financing of $5 million required to develop at least one of its properties and begin gold production. These negotiations are in the early stages and SMC will update its shareholders on the progress as it develops.
Strategic Mining Corporation is engaged in the exploration and development of gold properties in Vietnam, the U.S. (Nevada/Utah) and Africa. The company intends to expand by acquiring mineral rights to more key properties and initiating strategic joint ventures.
Monday, August 16, 2010
Stocks FinishThe Day Unchanged
Stocks fluctuated Monday as investors did a little buying after four days of heavy selling. The Dow Jones industrial average erased its early losses and was up 27 points. Other major stock indexes rose slightly. Interest rates dropped as investors looking for safe investments bought U.S. Treasury notes and bonds.
The market initially pulled back after a regional manufacturing report fell short of forecasts and Japan became the latest country to show signs of slowing growth. Both reports raised investors' concerns about the pace of the global economic recovery. Analysts said Monday's trading was just a pause following four days of losses that sent the Dow down almost 400 points.
"The market is really being controlled by (short-term) traders," said Mike Rubino, CEO at Rubino Financial Group in Troy, Mich. "The long-term investor doesn't appear to be anywhere in sight."
Without those long-term investors, trading is expected to remain erratic for the foreseeable future.
In midday trading, the Dow rose 26.72, or 0.3 percent, to 10,329.87. The Standard & Poor's 500 index rose 3.05, or 0.3 percent, to 1,082.30, while the Nasdaq composite index rose 19.67, or 0.9 percent, to 2,193.15.
About two stocks rose for every one that fell on the New York Stock Exchange, where volume came to 329.6 million shares.
Investors continued buying Treasurys Monday, driving interest rates lower. U.S. government bonds are looking more and more appealing to investors wanting to find a safe place for their money as the economy cools and stocks drop.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.60 percent from 2.68 percent late Monday. Its yield is often used to help set interest rates on mortgages and consumer loans.
The yield on the 10-year note is near the level it last hit in March 2009 when stocks fell to a 12-year low.
"It's a sign of pessimism that investors accept that low a yield," said Joe Heider, principal at Rehmann Financial in Cleveland.
Investors who are concerned about the U.S. economy got some bad news from overseas Monday. Japan said its economy grew just 0.1 percent in the second quarter, well below the 1.2 percent growth in the first quarter and short of expectations. The report follows signs last week that both the U.S. and Chinese economies are not growing as fast as earlier in the year.
Meanwhile, the Federal Reserve Bank of New York said manufacturing activity in the state rebounded slightly this month after falling sharply in July. Despite the modest gain, activity did not expand as much as had been forecast, which indicates that economic growth remains tepid.
The New York Fed's Empire State Manufacturing Index rose to 7.1 in August from 5.1 in July. Economists polled by Thomson Reuters forecast the index would rise to 8. It was 19.6 just two months ago.
Regional manufacturing reports have shown a broad slowdown in recent months, a trend seen in other industries as well. It is particularly discouraging because manufacturing had provided the most consistent signs of growth during the first few months of the year.
The reports are the latest to indicate that the global economy is growing, but not as fast as it did during the first few months of the year. The slowdown has concerned traders who were predicting growth to pick up during the second half.
"We're scared of our own shadows here," said Jamie Cox, managing director at Harris Financial Group in Richmond, Va. "We need to readjust our signs from above-trend growth. If not, we're going to be perennially disappointed."
The news about the housing market was also discouraging. The National Association of Home Builders said its monthly index of builders' sentiment fell in August for the third straight month.
Rubino said the weak housing market will force the government to keep interest rates low for a long time. That makes bonds an attractive investment right now because there is little fear that interest rates will climb. Higher rates eat into returns on bonds.
Lowe's Cos. said Monday its quarterly profit and revenue rose, though both measures fell short of forecasts. The home-improvement retailer also lowered its full-year revenue forecast.
Shares of Lowe's rose, climbing 38 to $19.97.
Overseas, Japan's Nikkei stock average fell 0.6 percent. Britain's FTSE 100 and Germany's DAX index both rose less than 0.1 percent. France's CAC-40 fell 0.4 percent.
The market initially pulled back after a regional manufacturing report fell short of forecasts and Japan became the latest country to show signs of slowing growth. Both reports raised investors' concerns about the pace of the global economic recovery. Analysts said Monday's trading was just a pause following four days of losses that sent the Dow down almost 400 points.
"The market is really being controlled by (short-term) traders," said Mike Rubino, CEO at Rubino Financial Group in Troy, Mich. "The long-term investor doesn't appear to be anywhere in sight."
Without those long-term investors, trading is expected to remain erratic for the foreseeable future.
In midday trading, the Dow rose 26.72, or 0.3 percent, to 10,329.87. The Standard & Poor's 500 index rose 3.05, or 0.3 percent, to 1,082.30, while the Nasdaq composite index rose 19.67, or 0.9 percent, to 2,193.15.
About two stocks rose for every one that fell on the New York Stock Exchange, where volume came to 329.6 million shares.
Investors continued buying Treasurys Monday, driving interest rates lower. U.S. government bonds are looking more and more appealing to investors wanting to find a safe place for their money as the economy cools and stocks drop.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.60 percent from 2.68 percent late Monday. Its yield is often used to help set interest rates on mortgages and consumer loans.
The yield on the 10-year note is near the level it last hit in March 2009 when stocks fell to a 12-year low.
"It's a sign of pessimism that investors accept that low a yield," said Joe Heider, principal at Rehmann Financial in Cleveland.
Investors who are concerned about the U.S. economy got some bad news from overseas Monday. Japan said its economy grew just 0.1 percent in the second quarter, well below the 1.2 percent growth in the first quarter and short of expectations. The report follows signs last week that both the U.S. and Chinese economies are not growing as fast as earlier in the year.
Meanwhile, the Federal Reserve Bank of New York said manufacturing activity in the state rebounded slightly this month after falling sharply in July. Despite the modest gain, activity did not expand as much as had been forecast, which indicates that economic growth remains tepid.
The New York Fed's Empire State Manufacturing Index rose to 7.1 in August from 5.1 in July. Economists polled by Thomson Reuters forecast the index would rise to 8. It was 19.6 just two months ago.
Regional manufacturing reports have shown a broad slowdown in recent months, a trend seen in other industries as well. It is particularly discouraging because manufacturing had provided the most consistent signs of growth during the first few months of the year.
The reports are the latest to indicate that the global economy is growing, but not as fast as it did during the first few months of the year. The slowdown has concerned traders who were predicting growth to pick up during the second half.
"We're scared of our own shadows here," said Jamie Cox, managing director at Harris Financial Group in Richmond, Va. "We need to readjust our signs from above-trend growth. If not, we're going to be perennially disappointed."
The news about the housing market was also discouraging. The National Association of Home Builders said its monthly index of builders' sentiment fell in August for the third straight month.
Rubino said the weak housing market will force the government to keep interest rates low for a long time. That makes bonds an attractive investment right now because there is little fear that interest rates will climb. Higher rates eat into returns on bonds.
Lowe's Cos. said Monday its quarterly profit and revenue rose, though both measures fell short of forecasts. The home-improvement retailer also lowered its full-year revenue forecast.
Shares of Lowe's rose, climbing 38 to $19.97.
Overseas, Japan's Nikkei stock average fell 0.6 percent. Britain's FTSE 100 and Germany's DAX index both rose less than 0.1 percent. France's CAC-40 fell 0.4 percent.
HULU Fresh on the IPO Scene
IPO’s are a rare occasion in today’s market Two IPO’s brought to my attention due to recent press buzz. The first has been titled the world’s largest IPO, The Agricultural Bank of China raising 22.1 billion last month. The company sold 3.34 billion shares at 2.68 Yuan. Although many invested, some are timid and concerned that the bank’s balance sheet may not be enough to continue growth. The market has not been terribly receptive to the shares recently. The Second IPO I wanted to highlight was that of internet Giant HULU.
Today it was rumored that HULU may be going public valued at a possible $2 billion. Hulu almost single handedly changed the Television game, offering on demand programming to users online, mostly for free. As a direct competitor to Youtube, Hulu offers an alternative to low quality internet footage as well as channel surfing. Offering free viewing of television shows such as Family Guy and Glee, Hulu has built up quite the following and has placed itself at the forefront of future entertainment programming.
Hulu has monetized its content by offering paid subscription to devices, game consoles and television sets offsetting all of the free content the site provides.. Hulu reported revenue of $100 million last year and is suspected to continue on with similar figures.
Today it was rumored that HULU may be going public valued at a possible $2 billion. Hulu almost single handedly changed the Television game, offering on demand programming to users online, mostly for free. As a direct competitor to Youtube, Hulu offers an alternative to low quality internet footage as well as channel surfing. Offering free viewing of television shows such as Family Guy and Glee, Hulu has built up quite the following and has placed itself at the forefront of future entertainment programming.
Hulu has monetized its content by offering paid subscription to devices, game consoles and television sets offsetting all of the free content the site provides.. Hulu reported revenue of $100 million last year and is suspected to continue on with similar figures.
When You have a Brand Building Problem Just Clicker
Every start-up business and entrepreneur out there need effective, affordable outlets to get the word out about their products or they will get swept under the rug. Basically, "on-line want ads" are what Clicker, Inc. (OTCBB: CLKZ.OB) offers at affordable prices and, through its subsidiaries, can tailor an advertising campaign by brand building. Shares of Clicker were trading on very heavy volume this morning of 921,000 shares, compared to its average daily volume of only 51,000 and were up 4 cents to $1.22 per share.
Clicker has been in the news lately announcing publishing agreements with FindItQuick.com and Meta Network; entering into the web development business and landing the $300,000 contract for developing freeinsurancereport.com; and being featured on a radio show titled "Stu Taylor on Business."
Clicker's web properties include Forwant.com, Cashclicker.com and C2we.com, Sippinit.com, ItsMyLocal.com, Sportsgulp.net, and Wallst.net and Mywallst.net.
Clicker has been in the news lately announcing publishing agreements with FindItQuick.com and Meta Network; entering into the web development business and landing the $300,000 contract for developing freeinsurancereport.com; and being featured on a radio show titled "Stu Taylor on Business."
Clicker's web properties include Forwant.com, Cashclicker.com and C2we.com, Sippinit.com, ItsMyLocal.com, Sportsgulp.net, and Wallst.net and Mywallst.net.
Augme Technologies (OTCBB:AUGT): Augme Issued 3rd Patent
Augme Technologies (OTCBB:AUGT ), a leading developer and provider of patented and innovative smart mobile marketing technologies, today announced that it is the recipient of US Patent #7,783,721 issued from the United States Patent and Trademark Office (USPTO) entitled "Method and Code Module for Adding Function to a Webpage." The patent was filed by the Company on September 4, 2007 and is a continuation of the Company's previously issued patent number #7,269,636.
The Company believes that this issuance further establishes Augme as the owner of foundational Internet content targeting technology. Andy Burgess, Augme Technologies' intellectual property consultant, stated, "The new '721 patent clearly delineates and provides protection for critical areas of custom content delivery on network-enabled devices."
"The claims of the new patent provide Augme Technologies with the specific technology ownership of a software device," added Nathaniel Bradley, Chief Technology Officer of Augme Technologies. "The software device that is patented enables Internet and Mobile Web sites to be delivered with customized content that is tailored to any end-user's network-enabled device. The customization being performed by the software device is achieved by automatically gathering information about the user's device, browser and other information provided from the content of the Web page containing the patented technology."
"This issuance provides further validation of our Company's core technology and increases our patent claims in key new areas for our business operations and enforcement strategy," added Paul Arena, Chief Executive Officer of Augme Technologies, Inc. "The USPTO again recognizes Augme's first position and our contribution to the field of customized Internet communications. This issuance is a long-awaited milestone in the development of our foundational Intellectual property portfolio and another victory for our Company and its shareholders. The new patent is being further assessed and should make a significant contribution to the overall valuation of our portfolio."
The Company believes that this issuance further establishes Augme as the owner of foundational Internet content targeting technology. Andy Burgess, Augme Technologies' intellectual property consultant, stated, "The new '721 patent clearly delineates and provides protection for critical areas of custom content delivery on network-enabled devices."
"The claims of the new patent provide Augme Technologies with the specific technology ownership of a software device," added Nathaniel Bradley, Chief Technology Officer of Augme Technologies. "The software device that is patented enables Internet and Mobile Web sites to be delivered with customized content that is tailored to any end-user's network-enabled device. The customization being performed by the software device is achieved by automatically gathering information about the user's device, browser and other information provided from the content of the Web page containing the patented technology."
"This issuance provides further validation of our Company's core technology and increases our patent claims in key new areas for our business operations and enforcement strategy," added Paul Arena, Chief Executive Officer of Augme Technologies, Inc. "The USPTO again recognizes Augme's first position and our contribution to the field of customized Internet communications. This issuance is a long-awaited milestone in the development of our foundational Intellectual property portfolio and another victory for our Company and its shareholders. The new patent is being further assessed and should make a significant contribution to the overall valuation of our portfolio."
Cereplast (NASDAQ:CERP): New CFO Heather Sheehan
Cereplast (NASDAQ: CERP) a leading manufacturer of proprietary bio-based, sustainable plastics, today announced that it has appointed Ms. Heather E. Sheehan to the position of Senior Vice President and Chief Financial Officer, effective August 16, 2010. Ms. Sheehan is a seasoned finance executive with over 20 years of financial leadership in public companies and ‘Big Four’ accounting firms.
She joined Cereplast in 2008 and has served in increasingly important roles, most recently as Senior Vice President & Chief Accounting Officer. Prior to joining Cereplast, Ms. Sheehan served as Chief Financial Officer of Exemplis Corporation and held various senior international treasury, corporate finance, and accounting roles at ConAgra Inc. (NYSE: CAG - News), International Rectifier Corp. (NYSE: IRF - News), and Trans Mountain Pipe Line Co., Ltd. Ms. Sheehan began her career in the audit practice of PriceWaterhouseCoopers in Canada and the United Kingdom. Ms. Sheehan, who holds a Bachelor of Business Administration in accounting from Simon Fraser University (Vancouver, Canada), is a Chartered Accountant (Canada) and a Certified Public Accountant.
“We are delighted to enhance our executive team with the appointment of Heather Sheehan as Chief Financial Officer,” said Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. “Based on our recent NASDAQ uplisting and the revenue growth we are anticipating over the next couple of years, I am confident that her ability to navigate the regulatory landscape and further develop our corporate financial infrastructure to support operations and communicate with the investing public will be a key to driving Cereplast’s long-term success.”
She joined Cereplast in 2008 and has served in increasingly important roles, most recently as Senior Vice President & Chief Accounting Officer. Prior to joining Cereplast, Ms. Sheehan served as Chief Financial Officer of Exemplis Corporation and held various senior international treasury, corporate finance, and accounting roles at ConAgra Inc. (NYSE: CAG - News), International Rectifier Corp. (NYSE: IRF - News), and Trans Mountain Pipe Line Co., Ltd. Ms. Sheehan began her career in the audit practice of PriceWaterhouseCoopers in Canada and the United Kingdom. Ms. Sheehan, who holds a Bachelor of Business Administration in accounting from Simon Fraser University (Vancouver, Canada), is a Chartered Accountant (Canada) and a Certified Public Accountant.
“We are delighted to enhance our executive team with the appointment of Heather Sheehan as Chief Financial Officer,” said Frederic Scheer, Founder, Chairman and CEO of Cereplast, Inc. “Based on our recent NASDAQ uplisting and the revenue growth we are anticipating over the next couple of years, I am confident that her ability to navigate the regulatory landscape and further develop our corporate financial infrastructure to support operations and communicate with the investing public will be a key to driving Cereplast’s long-term success.”
DecisionPoint Systems (OTCBB:DNPI ): Rare Certification Status with Motorola
DecisionPoint Systems, Inc. (OTC.BB:DNPI - News), a leading provider of enterprise mobility solutions, today announced their recent certification as an Authorized Motorola Two-Way Radio Reseller through MEI Corporation. DecisionPoint's certification enables them to supply their customers with Motorola's industry-leading Two-Way Radios, including the CLP Series, RPX Repeater and new products as they become available. The new CLP Series Two-Way Radios are small, lightweight and ideal for retail associates.
They are a valuable tool that provides instant communication needed in today's fast paced and highly competitive retail environment. DecisionPoint's end-to-end Retail Solutions and the CLP Series Radios have two things in common -- they're designed to increase productivity and enhance customer experiences. The CLP Series Radios are the perfect complement to a DecisionPoint Retail Solution and the obvious choice for instant PTT communication in demanding retail environments.
"DecisionPoint Systems is very pleased to announce this certification and is excited to be able to supply Motorola's extensive line of Two-Way Radios to our retail customers," said Tom Barber, Vice President of Marketing. "This certification provides our customers with more communication choices to empower associates and exceed the demands of shoppers."
Eric Kriete of MEI Corporation added, "We are thrilled that Decisionpoint is now a Motorola Authorized Reseller of on-site business two-way radios. Motorola business two-way radios appear to be a natural extension to their existing product offering as they help solve some of today's challenges found in the retail, warehousing, manufacturing and other industries they serve."
They are a valuable tool that provides instant communication needed in today's fast paced and highly competitive retail environment. DecisionPoint's end-to-end Retail Solutions and the CLP Series Radios have two things in common -- they're designed to increase productivity and enhance customer experiences. The CLP Series Radios are the perfect complement to a DecisionPoint Retail Solution and the obvious choice for instant PTT communication in demanding retail environments.
"DecisionPoint Systems is very pleased to announce this certification and is excited to be able to supply Motorola's extensive line of Two-Way Radios to our retail customers," said Tom Barber, Vice President of Marketing. "This certification provides our customers with more communication choices to empower associates and exceed the demands of shoppers."
Eric Kriete of MEI Corporation added, "We are thrilled that Decisionpoint is now a Motorola Authorized Reseller of on-site business two-way radios. Motorola business two-way radios appear to be a natural extension to their existing product offering as they help solve some of today's challenges found in the retail, warehousing, manufacturing and other industries they serve."
Friday, August 13, 2010
Traders Head out Early Friday
Stocks fluctuated Friday after a mixed batch of readings on consumer spending contributed to a muddled picture of the economy. The major stock indexes moved in a narrow band, alternately rising and falling in very light trading. Many traders were away on vacation, and those who were working had little reason to make any major moves because of economic data that remains confusing.
The Commerce Department said that retail sales rose 0.4 percent in July. That was an improvement after two months of sales declines. But the number was just below economists' forecast of a gain of 0.5 percent. The report did show strength in auto sales, but it also showed that consumers are shying away from other purchases.
Some better news came from the University of Michigan/Reuters survey of consumer sentiment for the first part of August, which showed consumers are slightly more optimistic. An index based on the survey came in at 69.6, slightly above analysts' estimates and up from July's 67.8.
Earlier Friday, retailer J.C. Penney Co. lowered its earnings forecast for the year, citing expectations that consumer spending will be slow. J.C. Penney joined competitor Kohl's Corp., which lowered its earnings outlook on Thursday.
These latest reports fell in line with a long string of conflicting data that has left investors unsure about where the economy is headed. Consumer spending has remained weak along with the labor market. And there are no signs that employers are ready to start hiring at a pace to help lift the economy. On Thursday, the Labor Department said the number of people filing for unemployment benefits for the first time rose last week.
Although J.C. Penney and Kohl's had disappointments for investors, second-quarter earnings overall have been strong and company executives are optimistic. The split between economic and earnings numbers has added to investors' murky view of the economy.
That uncertainty has led to heavy selling this week. The Dow Jones industrial average has lost 380 points over the past three days. But the big drop may also have lured some buyers back into the market Friday.
"Maybe it's getting ready to be bought again," Philip S. Dow, director of equity strategy at RBC Wealth Management in Minneapolis, said of the market. He noted that the market's recent declines have made stocks more attractive.
Still, that doesn't mean analysts are looking for the market to rally.
"We're in a fragile market," said Steven Goldman, chief market strategist, Weeden & Co. in Greenwich, Conn. He noted that the market's decline is feeding the lack of confidence among consumers and investors. That inevitably has an impact on the economy.
The Dow Jones industrial average was up 22.29, or 0.2 percent, at 10,342.32. The Standard & Poor's 500 index rose 0.43, or 0.04 percent, to 1,084.04. The Nasdaq composite index fell 4.28, or 0.2 percent, to 2,185.99.
Rising stocks were ahead of losers by 4 to 3 on the New York Stock Exchange, where volume came to a light 445 million shares.
The yield on the Treasury's 10-year note, which is used to set rates on consumer loans including mortgages, was 2.70 percent, down from late Wednesday's 2.75 percent. Yields fall as prices rise. Treasury prices have risen sharply this week as investors -- worried about the economy and watching stocks fall -- sought a safer place for their money.
Dow said much of the trading was likely coming from high-frequency traders, who used complex mathematical models and computers to make money off small differences in stock prices. Many other investors still have a lot of cash on the sidelines while they wait to see where the market is headed, Dow said.
Stocks drew some support from the announcements of two planned corporate acquisitions. Asset manager Blackstone Group is paying $542.7 million to take power plant owner Dynegy Inc. private. The deal also calls for Blackstone to assume more than $4 billion in Dynegy's debt. Dynegy will also sell four power plants to NRG Energy Inc.
Dynegy rose $1.67, or 60 percent, to $4.45. Blackstone fell 26 cents, or 2.36 percent, to $10.75. And NRG fell 28 cents, or 1.25 percent, to $22.13.
IBM Corp. said it's buying Unica Corp., a marketing services company, for $480 million. IBM fell 57 cents, or 0.4 percent, to $127.72. Unica more than doubled in price, rising $11.23 to $20.78.
J.C. Penney fell 60 cents, or 2.9 percent, to $20.20. Other retailers also fell, but Macy's Inc., which has lured customers away from Penney, climbed. Macy's rose 13 cents, or 0.6 percent, to $20.38.
Overseas markets were mixed. London's FTSE-100 index rose 0.2 percent, while Germany's DAX fell 0.4 percent and the CAC-40 index in Paris fell 0.3 percent.
Investors in Europe were more concerned with signs of slowing growth in the U.S. than in their own economies. News that the European economy had grown 1 percent during the second quarter gave some support to stocks, but it was not enough to lift them across the board.
Earlier, Japan's Nikkei 225 index rose 0.4 percent.
The Commerce Department said that retail sales rose 0.4 percent in July. That was an improvement after two months of sales declines. But the number was just below economists' forecast of a gain of 0.5 percent. The report did show strength in auto sales, but it also showed that consumers are shying away from other purchases.
Some better news came from the University of Michigan/Reuters survey of consumer sentiment for the first part of August, which showed consumers are slightly more optimistic. An index based on the survey came in at 69.6, slightly above analysts' estimates and up from July's 67.8.
Earlier Friday, retailer J.C. Penney Co. lowered its earnings forecast for the year, citing expectations that consumer spending will be slow. J.C. Penney joined competitor Kohl's Corp., which lowered its earnings outlook on Thursday.
These latest reports fell in line with a long string of conflicting data that has left investors unsure about where the economy is headed. Consumer spending has remained weak along with the labor market. And there are no signs that employers are ready to start hiring at a pace to help lift the economy. On Thursday, the Labor Department said the number of people filing for unemployment benefits for the first time rose last week.
Although J.C. Penney and Kohl's had disappointments for investors, second-quarter earnings overall have been strong and company executives are optimistic. The split between economic and earnings numbers has added to investors' murky view of the economy.
That uncertainty has led to heavy selling this week. The Dow Jones industrial average has lost 380 points over the past three days. But the big drop may also have lured some buyers back into the market Friday.
"Maybe it's getting ready to be bought again," Philip S. Dow, director of equity strategy at RBC Wealth Management in Minneapolis, said of the market. He noted that the market's recent declines have made stocks more attractive.
Still, that doesn't mean analysts are looking for the market to rally.
"We're in a fragile market," said Steven Goldman, chief market strategist, Weeden & Co. in Greenwich, Conn. He noted that the market's decline is feeding the lack of confidence among consumers and investors. That inevitably has an impact on the economy.
The Dow Jones industrial average was up 22.29, or 0.2 percent, at 10,342.32. The Standard & Poor's 500 index rose 0.43, or 0.04 percent, to 1,084.04. The Nasdaq composite index fell 4.28, or 0.2 percent, to 2,185.99.
Rising stocks were ahead of losers by 4 to 3 on the New York Stock Exchange, where volume came to a light 445 million shares.
The yield on the Treasury's 10-year note, which is used to set rates on consumer loans including mortgages, was 2.70 percent, down from late Wednesday's 2.75 percent. Yields fall as prices rise. Treasury prices have risen sharply this week as investors -- worried about the economy and watching stocks fall -- sought a safer place for their money.
Dow said much of the trading was likely coming from high-frequency traders, who used complex mathematical models and computers to make money off small differences in stock prices. Many other investors still have a lot of cash on the sidelines while they wait to see where the market is headed, Dow said.
Stocks drew some support from the announcements of two planned corporate acquisitions. Asset manager Blackstone Group is paying $542.7 million to take power plant owner Dynegy Inc. private. The deal also calls for Blackstone to assume more than $4 billion in Dynegy's debt. Dynegy will also sell four power plants to NRG Energy Inc.
Dynegy rose $1.67, or 60 percent, to $4.45. Blackstone fell 26 cents, or 2.36 percent, to $10.75. And NRG fell 28 cents, or 1.25 percent, to $22.13.
IBM Corp. said it's buying Unica Corp., a marketing services company, for $480 million. IBM fell 57 cents, or 0.4 percent, to $127.72. Unica more than doubled in price, rising $11.23 to $20.78.
J.C. Penney fell 60 cents, or 2.9 percent, to $20.20. Other retailers also fell, but Macy's Inc., which has lured customers away from Penney, climbed. Macy's rose 13 cents, or 0.6 percent, to $20.38.
Overseas markets were mixed. London's FTSE-100 index rose 0.2 percent, while Germany's DAX fell 0.4 percent and the CAC-40 index in Paris fell 0.3 percent.
Investors in Europe were more concerned with signs of slowing growth in the U.S. than in their own economies. News that the European economy had grown 1 percent during the second quarter gave some support to stocks, but it was not enough to lift them across the board.
Earlier, Japan's Nikkei 225 index rose 0.4 percent.
Premier Exibitions (NASDAQ:PRXI): Investing in the Titanic
Premier Exhibitions, Inc. (PRXI), a leading presenter of museum-quality touring exhibitions around the world, today announced that the United States District Court for the Eastern District of Virginia, Norfolk Division, has issued an opinion granting a salvage award to RMS Titanic Inc., a wholly owned subsidiary of the Company. The salvage award is based upon the Company's work in recovering and conserving over three thousand artifacts from the wreck of Titanic during its expeditions conducted in 1993, 1994, 1996, 1998, 2000, and 2004. The Company has been awarded 100% of the fair market value of the artifacts, which the Court set at approximately one hundred ten million dollars.
The Court has reserved the right to determine the manner in which to pay the award. It will determine by August 15, 2011, whether to pay the Company a cash award from proceeds derived from a judicial sale, or in the alternative, to issue the Company an award of title the artifacts with certain covenants and conditions which would govern their maintenance and future disposition.
This award is in addition to the approximately 1,800 artifacts recovered by RMS Titanic, Inc. in its first expedition to the wreck of Titanic in 1987. Title to these artifacts already rests with RMS Titanic, Inc. pursuant to a 1993 in specie salvage award issued by a French Maritime Tribunal. These artifacts have been appraised at over thirty five million dollars.
"When Sellers Capital won its proxy fight and removed previous management in January 2009, we had two main goals: to stabilize the financial condition of the Company, and to convince the court that we are trustworthy stewards of the Titanic shipwreck and artifacts and would follow a sharply different course than prior management," stated Mark Sellers, Chairman of the Board of Directors and Managing Member of Sellers Capital LLC, the Company's largest shareholder. "With this ruling, we believe we've now accomplished both of those goals. Christopher Davino deserves much of the credit; he has workedtirelessly and remained laser focused on reaching this outcome."
"We are very pleased with the decision of the court and believe it reflects the extensive efforts of the Company to embrace its role of Salvor-in-Possession of Titanic," stated Christopher Davino, Premier Exhibitions, Inc.'s President and Chief Executive Officer. "We will continue to honor this role through our upcoming expedition to the wreck of Titanic commencing on August 22, 2010, as well as through our touring exhibit Titanic: The Artifact Exhibition."
Premier Exhibitions, Inc. will host a conference call to discuss the Court opinion on Friday, August 13, 2010 at 9:00 a.m. (EDT). Investors in the U.S. can access the call by dialing 1-877-879-6209 and international callers may dial 1-719-325-4775. Callers should reference confirmation code 7040923. A transcript of the conference call will be made available on the Company's website: www.prxi.com.
About RMS Titanic, Inc. -- a wholly owned subsidiary of Premier Exhibitions, Inc.
RMS Titanic, Inc., a wholly owned subsidiary of Premier Exhibitions, Inc., is the only company permitted by law to recover objects from the wreck of Titanic. The Company was granted Salvor-In-Possession rights to the wreck of Titanic by a United States Federal Court in 1994 and has conducted seven research and recovery expeditions to Titanic recovering more than 5,500 artifacts. Beginning on August 22, 2010, RMS Titanic, Inc., in partnership with Woods Hole Oceanographic Institution and the Waitt Institute, will conduct a ground-breaking expedition to Titanic 25 years after its discovery, to take innovative measures and virtually raise Titanic, preserving the legacy of the Ship for all time. For more information on the expedition visit www.expeditiontitanic.com
About Premier Exhibitions, Inc.
Premier Exhibitions, Inc. (PRXI), located in Atlanta, Georgia, is a leading presenter of museum quality exhibitions throughout the world. Premier is a recognized leader in developing and displaying unique exhibitions for education and entertainment including "Titanic: The Artifact Exhibition", "BODIES...The Exhibition" and "Dialog in the Dark". Additional information about Premier Exhibitions, Inc. is available at the Company's web site www.prxi.com.
The Court has reserved the right to determine the manner in which to pay the award. It will determine by August 15, 2011, whether to pay the Company a cash award from proceeds derived from a judicial sale, or in the alternative, to issue the Company an award of title the artifacts with certain covenants and conditions which would govern their maintenance and future disposition.
This award is in addition to the approximately 1,800 artifacts recovered by RMS Titanic, Inc. in its first expedition to the wreck of Titanic in 1987. Title to these artifacts already rests with RMS Titanic, Inc. pursuant to a 1993 in specie salvage award issued by a French Maritime Tribunal. These artifacts have been appraised at over thirty five million dollars.
"When Sellers Capital won its proxy fight and removed previous management in January 2009, we had two main goals: to stabilize the financial condition of the Company, and to convince the court that we are trustworthy stewards of the Titanic shipwreck and artifacts and would follow a sharply different course than prior management," stated Mark Sellers, Chairman of the Board of Directors and Managing Member of Sellers Capital LLC, the Company's largest shareholder. "With this ruling, we believe we've now accomplished both of those goals. Christopher Davino deserves much of the credit; he has workedtirelessly and remained laser focused on reaching this outcome."
"We are very pleased with the decision of the court and believe it reflects the extensive efforts of the Company to embrace its role of Salvor-in-Possession of Titanic," stated Christopher Davino, Premier Exhibitions, Inc.'s President and Chief Executive Officer. "We will continue to honor this role through our upcoming expedition to the wreck of Titanic commencing on August 22, 2010, as well as through our touring exhibit Titanic: The Artifact Exhibition."
Premier Exhibitions, Inc. will host a conference call to discuss the Court opinion on Friday, August 13, 2010 at 9:00 a.m. (EDT). Investors in the U.S. can access the call by dialing 1-877-879-6209 and international callers may dial 1-719-325-4775. Callers should reference confirmation code 7040923. A transcript of the conference call will be made available on the Company's website: www.prxi.com.
About RMS Titanic, Inc. -- a wholly owned subsidiary of Premier Exhibitions, Inc.
RMS Titanic, Inc., a wholly owned subsidiary of Premier Exhibitions, Inc., is the only company permitted by law to recover objects from the wreck of Titanic. The Company was granted Salvor-In-Possession rights to the wreck of Titanic by a United States Federal Court in 1994 and has conducted seven research and recovery expeditions to Titanic recovering more than 5,500 artifacts. Beginning on August 22, 2010, RMS Titanic, Inc., in partnership with Woods Hole Oceanographic Institution and the Waitt Institute, will conduct a ground-breaking expedition to Titanic 25 years after its discovery, to take innovative measures and virtually raise Titanic, preserving the legacy of the Ship for all time. For more information on the expedition visit www.expeditiontitanic.com
About Premier Exhibitions, Inc.
Premier Exhibitions, Inc. (PRXI), located in Atlanta, Georgia, is a leading presenter of museum quality exhibitions throughout the world. Premier is a recognized leader in developing and displaying unique exhibitions for education and entertainment including "Titanic: The Artifact Exhibition", "BODIES...The Exhibition" and "Dialog in the Dark". Additional information about Premier Exhibitions, Inc. is available at the Company's web site www.prxi.com.
3 Things You Need to Know Before Trading
Stocks fluctuated in early trading Friday after the latest consumer spending readings disappointed investors. The Commerce Department said that retail sales rose 0.4 percent in July. That was an improvement after two months of sales declines. But the number was just below economists' forecast of a gain of 0.5 percent. The report did show strength in auto sales, but it also showed that consumers are shying away from other purchases.
The report came out shortly after retailer JCPenney Co. lowered its earnings forecast for the year, citing expectations that consumer spending will be slow. On Thursday, competitor Kohl's Corp. lowered its earnings outlook.
Consumer spending has remained weak along with the labor market. And there are no signs that employers are ready to start hiring at a pace to help lift the economy. On Thursday, the Labor Department said the number of people filing for unemployment benefits for the first time rose last week.
Stocks have been falling as investors' take on the economic recovery grows more pessimistic. The Dow Jones industrial average has lost 380 points over the past three days. Analysts say many traders are on vacation or just not willing to make any big moves on stocks. That has led to lower trading volume and some skewing of price changes.
The big drop may also have lured some buyers back into the market Friday.
The Dow Jones industrial average was up 3.03, or 0.03 percent, at 10,325.25. The Standard & Poor's 500 index rose 0.18, or 0.02 percent, to 1,083.79. The Nasdaq composite index fell 4.41, or 0.2 percent, to 2,185.86.
The yield on the Treasury's 10-year note, which is used to set rates on consumer loans including mortgages, was 2.72 percent, down from late Wednesday's 2.75 percent. Yields fall as prices rise. Treasury prices have risen sharply this week as investors -- worried about the economy and watching stocks fall -- sought a safer place for their money.
Overseas markets were down. London's FTSE-100 index was up 0.1 percent, while Germany's DAX fell 0.1 percent and the CAC-40 index in Paris fell 0.2 percent.
Investors in Europe were more concerned with signs of slowing growth in the U.S. than in their own economies. News that the European economy had grown 1 percent during the second quarter gave some support to stocks, but it was not enough to lift them across the board.
The report came out shortly after retailer JCPenney Co. lowered its earnings forecast for the year, citing expectations that consumer spending will be slow. On Thursday, competitor Kohl's Corp. lowered its earnings outlook.
Consumer spending has remained weak along with the labor market. And there are no signs that employers are ready to start hiring at a pace to help lift the economy. On Thursday, the Labor Department said the number of people filing for unemployment benefits for the first time rose last week.
Stocks have been falling as investors' take on the economic recovery grows more pessimistic. The Dow Jones industrial average has lost 380 points over the past three days. Analysts say many traders are on vacation or just not willing to make any big moves on stocks. That has led to lower trading volume and some skewing of price changes.
The big drop may also have lured some buyers back into the market Friday.
The Dow Jones industrial average was up 3.03, or 0.03 percent, at 10,325.25. The Standard & Poor's 500 index rose 0.18, or 0.02 percent, to 1,083.79. The Nasdaq composite index fell 4.41, or 0.2 percent, to 2,185.86.
The yield on the Treasury's 10-year note, which is used to set rates on consumer loans including mortgages, was 2.72 percent, down from late Wednesday's 2.75 percent. Yields fall as prices rise. Treasury prices have risen sharply this week as investors -- worried about the economy and watching stocks fall -- sought a safer place for their money.
Overseas markets were down. London's FTSE-100 index was up 0.1 percent, while Germany's DAX fell 0.1 percent and the CAC-40 index in Paris fell 0.2 percent.
Investors in Europe were more concerned with signs of slowing growth in the U.S. than in their own economies. News that the European economy had grown 1 percent during the second quarter gave some support to stocks, but it was not enough to lift them across the board.
Thursday, August 12, 2010
Market Finds Support Heads Into Friday
The Dow Jones industrial average fell 70 points in afternoon trading. The Nasdaq composite index had a steeper loss in percentage terms, a reflection of the drop in tech stocks. Analysts said many traders were on vacation, and the market's resulting light volume helped skew price changes.
Stocks also fell after the Labor Department reported that the number of people filing for unemployment benefits for the first time rose last week to 484,000. The gain was small at 2,000, but economists had expected the number to drop. The news pointed to continuing weakness in the labor market, yet another sign that the economic recovery is weakening.
The latest earnings reports added to the market's darkening view of the economy. Cisco Systems Inc.'s revenue from its latest quarter and its forecast for future revenue both fell short of analysts' expectations. The company's stock fell almost 10 percent and other tech stocks also fell.
Investors have been focused on revenue since companies began reporting second-quarter earnings almost a month ago. They're concerned by the connection between revenue and the economy -- if revenue is down, it's a sign that consumers' reluctance to spend is starting to affect companies' sales and profits. Investors see the revenue shortfalls as another sign of a weakening recovery.
Sara Lee Corp.'s revenue also missed analysts' forecasts. And retailer Kohl's Corp. disappointed the market by lowering its earnings outlook because it expects sales to slow during the second half. That period includes the holiday season, when retailers hope to make a large part of their profits.
Stocks extended their losses from Wednesday, when the Dow fell 265 points as investors reacted to the Federal Reserve's lowering of its assessment of the recovery on Tuesday. Economic data from several countries including the U.S. contributed to the heavy selling.
Investors don't have a sense of whether the recovery will hold. The uncertainty has led to big losses, but many traders are staying out of the market and not making any moves. That has made trading volume even lighter than usual during July and August, when vacations leave trading desks thinly staffed.
Charlie Smith, chief investment officer with Fort Pitt Capital Group in Pittsburgh, predicted few major market moves for the rest of the month because so many key market players are away.
Smith said the market's drop over the past few months was due more to investors' more negative outlook rather than a fundamental change in the economy.
"We had a weak recovery back in March and April," Smith said. At that point, the market was moving toward its post-financial crisis high. Stocks began falling after the major indexes peaked in late April.
In late trading Thursday, the Dow fell 70.91, or 0.7 percent, to 10,307.92. The Dow fell almost 320 points over the course of Tuesday and Wednesday.
The Standard & Poor's 500 index fell 7.62, or 0.7 percent, to 1,081.85. The Nasdaq composite index fell 21.18, or 1 percent, to 2,187.45.
Losing stocks were ahead of gainers by about 2 to 1 on the New York Stock Exchange, where volume came to 807 million shares.
Interest rates rose in the Treasury market after falling sharply Wednesday, when investors were seeking the safety of government securities. The yield on the 10-year Treasury note, which rises as its price falls, was 2.75 percent, up from late Wednesday's 2.69 percent.
Markets in Europe fell after the U.S. unemployment news, then regained ground. In London, the FTSE-100 index was up 0.4 percent. Germany's DAX index was down 0.3 percent, while the CAC-40 index in Paris was down 0.2 percent. Earlier, Japan's Nikkei index closed down 0.9 percent.
In other earnings news, General Motors Co. reported net income of $1.33 billion in the April-June quarter, its second straight quarterly profit. The company, which is 61 percent owned by the federal government, is moving toward a public offering of its shares. The company also announced that CEO Ed Whitacre will step down Sept. 1 and be replaced by GM board member Daniel Akerson, the managing director and head of global buyout for The Carlyle Group, a private equity firm.
Stocks also fell after the Labor Department reported that the number of people filing for unemployment benefits for the first time rose last week to 484,000. The gain was small at 2,000, but economists had expected the number to drop. The news pointed to continuing weakness in the labor market, yet another sign that the economic recovery is weakening.
The latest earnings reports added to the market's darkening view of the economy. Cisco Systems Inc.'s revenue from its latest quarter and its forecast for future revenue both fell short of analysts' expectations. The company's stock fell almost 10 percent and other tech stocks also fell.
Investors have been focused on revenue since companies began reporting second-quarter earnings almost a month ago. They're concerned by the connection between revenue and the economy -- if revenue is down, it's a sign that consumers' reluctance to spend is starting to affect companies' sales and profits. Investors see the revenue shortfalls as another sign of a weakening recovery.
Sara Lee Corp.'s revenue also missed analysts' forecasts. And retailer Kohl's Corp. disappointed the market by lowering its earnings outlook because it expects sales to slow during the second half. That period includes the holiday season, when retailers hope to make a large part of their profits.
Stocks extended their losses from Wednesday, when the Dow fell 265 points as investors reacted to the Federal Reserve's lowering of its assessment of the recovery on Tuesday. Economic data from several countries including the U.S. contributed to the heavy selling.
Investors don't have a sense of whether the recovery will hold. The uncertainty has led to big losses, but many traders are staying out of the market and not making any moves. That has made trading volume even lighter than usual during July and August, when vacations leave trading desks thinly staffed.
Charlie Smith, chief investment officer with Fort Pitt Capital Group in Pittsburgh, predicted few major market moves for the rest of the month because so many key market players are away.
Smith said the market's drop over the past few months was due more to investors' more negative outlook rather than a fundamental change in the economy.
"We had a weak recovery back in March and April," Smith said. At that point, the market was moving toward its post-financial crisis high. Stocks began falling after the major indexes peaked in late April.
In late trading Thursday, the Dow fell 70.91, or 0.7 percent, to 10,307.92. The Dow fell almost 320 points over the course of Tuesday and Wednesday.
The Standard & Poor's 500 index fell 7.62, or 0.7 percent, to 1,081.85. The Nasdaq composite index fell 21.18, or 1 percent, to 2,187.45.
Losing stocks were ahead of gainers by about 2 to 1 on the New York Stock Exchange, where volume came to 807 million shares.
Interest rates rose in the Treasury market after falling sharply Wednesday, when investors were seeking the safety of government securities. The yield on the 10-year Treasury note, which rises as its price falls, was 2.75 percent, up from late Wednesday's 2.69 percent.
Markets in Europe fell after the U.S. unemployment news, then regained ground. In London, the FTSE-100 index was up 0.4 percent. Germany's DAX index was down 0.3 percent, while the CAC-40 index in Paris was down 0.2 percent. Earlier, Japan's Nikkei index closed down 0.9 percent.
In other earnings news, General Motors Co. reported net income of $1.33 billion in the April-June quarter, its second straight quarterly profit. The company, which is 61 percent owned by the federal government, is moving toward a public offering of its shares. The company also announced that CEO Ed Whitacre will step down Sept. 1 and be replaced by GM board member Daniel Akerson, the managing director and head of global buyout for The Carlyle Group, a private equity firm.
Market Finds Support Heads Into Friday
The Dow Jones industrial average fell 70 points in afternoon trading. The Nasdaq composite index had a steeper loss in percentage terms, a reflection of the drop in tech stocks. Analysts said many traders were on vacation, and the market's resulting light volume helped skew price changes.
Stocks also fell after the Labor Department reported that the number of people filing for unemployment benefits for the first time rose last week to 484,000. The gain was small at 2,000, but economists had expected the number to drop. The news pointed to continuing weakness in the labor market, yet another sign that the economic recovery is weakening.
The latest earnings reports added to the market's darkening view of the economy. Cisco Systems Inc.'s revenue from its latest quarter and its forecast for future revenue both fell short of analysts' expectations. The company's stock fell almost 10 percent and other tech stocks also fell.
Investors have been focused on revenue since companies began reporting second-quarter earnings almost a month ago. They're concerned by the connection between revenue and the economy -- if revenue is down, it's a sign that consumers' reluctance to spend is starting to affect companies' sales and profits. Investors see the revenue shortfalls as another sign of a weakening recovery.
Sara Lee Corp.'s revenue also missed analysts' forecasts. And retailer Kohl's Corp. disappointed the market by lowering its earnings outlook because it expects sales to slow during the second half. That period includes the holiday season, when retailers hope to make a large part of their profits.
Stocks extended their losses from Wednesday, when the Dow fell 265 points as investors reacted to the Federal Reserve's lowering of its assessment of the recovery on Tuesday. Economic data from several countries including the U.S. contributed to the heavy selling.
Investors don't have a sense of whether the recovery will hold. The uncertainty has led to big losses, but many traders are staying out of the market and not making any moves. That has made trading volume even lighter than usual during July and August, when vacations leave trading desks thinly staffed.
Charlie Smith, chief investment officer with Fort Pitt Capital Group in Pittsburgh, predicted few major market moves for the rest of the month because so many key market players are away.
Smith said the market's drop over the past few months was due more to investors' more negative outlook rather than a fundamental change in the economy.
"We had a weak recovery back in March and April," Smith said. At that point, the market was moving toward its post-financial crisis high. Stocks began falling after the major indexes peaked in late April.
In late trading Thursday, the Dow fell 70.91, or 0.7 percent, to 10,307.92. The Dow fell almost 320 points over the course of Tuesday and Wednesday.
The Standard & Poor's 500 index fell 7.62, or 0.7 percent, to 1,081.85. The Nasdaq composite index fell 21.18, or 1 percent, to 2,187.45.
Losing stocks were ahead of gainers by about 2 to 1 on the New York Stock Exchange, where volume came to 807 million shares.
Interest rates rose in the Treasury market after falling sharply Wednesday, when investors were seeking the safety of government securities. The yield on the 10-year Treasury note, which rises as its price falls, was 2.75 percent, up from late Wednesday's 2.69 percent.
Markets in Europe fell after the U.S. unemployment news, then regained ground. In London, the FTSE-100 index was up 0.4 percent. Germany's DAX index was down 0.3 percent, while the CAC-40 index in Paris was down 0.2 percent. Earlier, Japan's Nikkei index closed down 0.9 percent.
In other earnings news, General Motors Co. reported net income of $1.33 billion in the April-June quarter, its second straight quarterly profit. The company, which is 61 percent owned by the federal government, is moving toward a public offering of its shares. The company also announced that CEO Ed Whitacre will step down Sept. 1 and be replaced by GM board member Daniel Akerson, the managing director and head of global buyout for The Carlyle Group, a private equity firm.
Stocks also fell after the Labor Department reported that the number of people filing for unemployment benefits for the first time rose last week to 484,000. The gain was small at 2,000, but economists had expected the number to drop. The news pointed to continuing weakness in the labor market, yet another sign that the economic recovery is weakening.
The latest earnings reports added to the market's darkening view of the economy. Cisco Systems Inc.'s revenue from its latest quarter and its forecast for future revenue both fell short of analysts' expectations. The company's stock fell almost 10 percent and other tech stocks also fell.
Investors have been focused on revenue since companies began reporting second-quarter earnings almost a month ago. They're concerned by the connection between revenue and the economy -- if revenue is down, it's a sign that consumers' reluctance to spend is starting to affect companies' sales and profits. Investors see the revenue shortfalls as another sign of a weakening recovery.
Sara Lee Corp.'s revenue also missed analysts' forecasts. And retailer Kohl's Corp. disappointed the market by lowering its earnings outlook because it expects sales to slow during the second half. That period includes the holiday season, when retailers hope to make a large part of their profits.
Stocks extended their losses from Wednesday, when the Dow fell 265 points as investors reacted to the Federal Reserve's lowering of its assessment of the recovery on Tuesday. Economic data from several countries including the U.S. contributed to the heavy selling.
Investors don't have a sense of whether the recovery will hold. The uncertainty has led to big losses, but many traders are staying out of the market and not making any moves. That has made trading volume even lighter than usual during July and August, when vacations leave trading desks thinly staffed.
Charlie Smith, chief investment officer with Fort Pitt Capital Group in Pittsburgh, predicted few major market moves for the rest of the month because so many key market players are away.
Smith said the market's drop over the past few months was due more to investors' more negative outlook rather than a fundamental change in the economy.
"We had a weak recovery back in March and April," Smith said. At that point, the market was moving toward its post-financial crisis high. Stocks began falling after the major indexes peaked in late April.
In late trading Thursday, the Dow fell 70.91, or 0.7 percent, to 10,307.92. The Dow fell almost 320 points over the course of Tuesday and Wednesday.
The Standard & Poor's 500 index fell 7.62, or 0.7 percent, to 1,081.85. The Nasdaq composite index fell 21.18, or 1 percent, to 2,187.45.
Losing stocks were ahead of gainers by about 2 to 1 on the New York Stock Exchange, where volume came to 807 million shares.
Interest rates rose in the Treasury market after falling sharply Wednesday, when investors were seeking the safety of government securities. The yield on the 10-year Treasury note, which rises as its price falls, was 2.75 percent, up from late Wednesday's 2.69 percent.
Markets in Europe fell after the U.S. unemployment news, then regained ground. In London, the FTSE-100 index was up 0.4 percent. Germany's DAX index was down 0.3 percent, while the CAC-40 index in Paris was down 0.2 percent. Earlier, Japan's Nikkei index closed down 0.9 percent.
In other earnings news, General Motors Co. reported net income of $1.33 billion in the April-June quarter, its second straight quarterly profit. The company, which is 61 percent owned by the federal government, is moving toward a public offering of its shares. The company also announced that CEO Ed Whitacre will step down Sept. 1 and be replaced by GM board member Daniel Akerson, the managing director and head of global buyout for The Carlyle Group, a private equity firm.
Wednesday, August 11, 2010
ICOP Digital (NASDAQ:ICOP): Homeland Security Contract +163%
ICOP Digital, Inc. (ICOP), an industry-leading company engaged in advancing digital surveillance technology solutions, today announced the receipt of an initial order for the ICOP Model 20/20®-W in-car video systems from the US Department of Homeland Security. Due to the security nature of the project, ICOP agreed not to release details of the project until the Department releases its own press release.
The order will outfit just over one hundred (100) vehicles, and will include recording of mobile video/audio, wireless uploading, live streaming video capability, and ICOP's video management software. "Ease of use and the quality of the recorded video were the deciding factors in the selection of ICOP. This is an example of our shift in focus to key accounts and use of our products outside the standard police agency. This project is a significant advance for ICOP. ICOP is proud that our equipment will play a major role in helping to secure our nation," said Dave Owen, Chief Executive Officer at ICOP.
About ICOP Digital, Inc.
ICOP Digital, Inc. (ICOP) is a leading provider of in-car video and mobile video solutions for Law Enforcement, Fire, EMS, Military, and Homeland Security markets worldwide. ICOP solutions help the public and private sectors mitigate risks, reduce losses, and improve security through the live streaming, capture and secure management of high quality video and audio. www.ICOP.com
The order will outfit just over one hundred (100) vehicles, and will include recording of mobile video/audio, wireless uploading, live streaming video capability, and ICOP's video management software. "Ease of use and the quality of the recorded video were the deciding factors in the selection of ICOP. This is an example of our shift in focus to key accounts and use of our products outside the standard police agency. This project is a significant advance for ICOP. ICOP is proud that our equipment will play a major role in helping to secure our nation," said Dave Owen, Chief Executive Officer at ICOP.
About ICOP Digital, Inc.
ICOP Digital, Inc. (ICOP) is a leading provider of in-car video and mobile video solutions for Law Enforcement, Fire, EMS, Military, and Homeland Security markets worldwide. ICOP solutions help the public and private sectors mitigate risks, reduce losses, and improve security through the live streaming, capture and secure management of high quality video and audio. www.ICOP.com
Reed's (Nasdaq:REED) 5 Million in Top Line Rev's, Sales +14%
Reed's, Inc. (NASDAQ:REED ), maker of the top-selling sodas in natural food stores nationwide, today issued selected second quarter 2010 financial highlights following its second quarter earnings conference call held on August 10, 2010. For those who were unable to participate in the call, a replay is now available at: http://www.reedsinc.com/investor-relations/.
Second Quarter 2010 Financial Highlights:
Second quarter sales increased 16% to a record $4.9 million. Fiscal six month 2010 sales were 17% ahead of 2009. Branded product sales represented approximately 75% of the overall sales increases. Gross profit was 24% of sales during the quarter and 25% for the six month period, as compared to 26% in 2009. Operating expenses decreased during both the second quarter and six month periods in 2010 as compared to 2009. EBITDA income for the second quarter 2010 was $209,000, as compared to a loss of $488,000 in the second quarter of 2009. For the six month period, EBITDA income was $414,000, as compared to a loss of $483,000 in the prior year period. Net loss for the quarter narrowed sharply to $164,000, compared to net loss of $873,000 during 2009. Working capital increased by approximately $370,000 during the quarter to $2.4 million. Cash was $1.1 million at June 30, 2010, as compared to $1.3 million at December 31, 2009. Additionally, there was $206,000 available on the revolving line of credit at June 30, 2010.
"We achieved record revenues of nearly $5 million in the second quarter, driven primarily by sales of our branded products, which all continue to outpace what we saw last year," saidChris Reed, Founder, Chairman and CEO of Reed's, Inc. "We expect sales of our branded product sales to be strong for the second half of the year, and anticipate realizing meaningful revenue contribution from our private label business, which has been opening new doors and helping us develop closer relationships with our customers." Added Mr. Reed, "Operationally, Reed's is lean and nimble and has held its costs low. With over $1 million in cash on our balance sheet and an expanding line of exciting new products, we have the talent and wherewithal to execute our vision and grow Reed's significantly."
Second Quarter 2010 Financial Highlights:
Second quarter sales increased 16% to a record $4.9 million. Fiscal six month 2010 sales were 17% ahead of 2009. Branded product sales represented approximately 75% of the overall sales increases. Gross profit was 24% of sales during the quarter and 25% for the six month period, as compared to 26% in 2009. Operating expenses decreased during both the second quarter and six month periods in 2010 as compared to 2009. EBITDA income for the second quarter 2010 was $209,000, as compared to a loss of $488,000 in the second quarter of 2009. For the six month period, EBITDA income was $414,000, as compared to a loss of $483,000 in the prior year period. Net loss for the quarter narrowed sharply to $164,000, compared to net loss of $873,000 during 2009. Working capital increased by approximately $370,000 during the quarter to $2.4 million. Cash was $1.1 million at June 30, 2010, as compared to $1.3 million at December 31, 2009. Additionally, there was $206,000 available on the revolving line of credit at June 30, 2010.
"We achieved record revenues of nearly $5 million in the second quarter, driven primarily by sales of our branded products, which all continue to outpace what we saw last year," saidChris Reed, Founder, Chairman and CEO of Reed's, Inc. "We expect sales of our branded product sales to be strong for the second half of the year, and anticipate realizing meaningful revenue contribution from our private label business, which has been opening new doors and helping us develop closer relationships with our customers." Added Mr. Reed, "Operationally, Reed's is lean and nimble and has held its costs low. With over $1 million in cash on our balance sheet and an expanding line of exciting new products, we have the talent and wherewithal to execute our vision and grow Reed's significantly."
Market to Open Lower Post Fed Noise
Stock futures and interest rates tumbled Wednesday as investors worldwide grew concerned about the health of the U.S. economy after the Federal Reserve said the recovery was slowing down. Overseas markets all fell sharply. Japan's Nikkei stock average was hit especially hard by the rising value of the yen, which hurts exports. The yen is at a 15-year low against the dollar.
The Fed said Tuesday it will start buying government bonds with money it receives from maturing mortgage-backed bonds it bought during the recession. The goal is to try to cut interest rates on mortgages and corporate loans, which in turn would increase borrowing and help the economy grow faster.
It could also drive the prices of Treasurys so high and their yields so low that they no longer become attractive investments, forcing traders to move into riskier assets that have the potential for bigger profits, like corporate debt and stocks.
The move comes after the Fed took a much more cautious view of the recovery. In its statement at the conclusion of the meeting, the Fed said the recovery "has slowed in recent months." It reinforced comments from Chairman Ben Bernanke last month when he spooked the market by saying the pace of recovery was "unusually uncertain."
Economic reports in recent months, including key measures on gross domestic product and employment, have pointed to a slowing recovery in the U.S. Analysts' opinions have been mixed about whether the economy could slow down to the point of falling back into recession. A report Wednesday showed the U.S. trade deficit widened in June to its highest level in 20 months as exports dipped. Falling exports is discouraging because it means U.S. manufacturers could be slowing down. Early this year, manufacturing showed the most consistent signs of recovery.
Uncertainty about the economy has added volatility to the market and kept many investors out of stocks completely.
Weak economic reports have also stood in contrast to upbeat earnings, which powered stocks higher throughout July. Strong earnings and optimistic outlooks from companies have continued in recent weeks. But as earnings season winds down, strong results have been overshadowed by the disappointing economic data.
Walt Disney Co. and Macy's Inc. were the latest to report healthy earnings. Disney was helped by its ESPN television station and its movie studio, which produced hits like "Toy Story 3" during the quarter. Macy's raised its profit outlook as it takes market share from rivals.
Ahead of the opening bell, Dow Jones industrial average futures fell 135, or 1.3 percent, to 10,483. Standard & Poor's 500 index futures fell 16.20, or 1.5 percent, to 1,103.50, while Nasdaq 100 index futures fell 28.00, or 1.5 percent, to 1,868.50.
The yield on the 10-year Treasury note, which moves opposite its price, fell to 2.73 percent from 2.77 percent late Tuesday. Interest rates are often set based on the yield of 10-year Treasurys.
The 10-year yield is at levels not touched since late March 2009 just weeks after recession worries sent the stock market to a 12-year low.
Britain's FTSE 100 fell 1.5 percent, Germany's DAX index dropped 1.8 percent, and France's CAC-40 fell 1.8 percent. Japan's Nikkei stock average dropped 2.7 percent.
Stocks pared losses in the final one and a half hours of trading after the Fed's announcement Tuesday, but that momentum hasn't been able to carry over into Wednesday's trading. The Dow dropped 54 points.
Disney shares rose 8 cents to $35.37 in pre-opening trading. Macy's rose 23 cents to $19.61.
The Fed said Tuesday it will start buying government bonds with money it receives from maturing mortgage-backed bonds it bought during the recession. The goal is to try to cut interest rates on mortgages and corporate loans, which in turn would increase borrowing and help the economy grow faster.
It could also drive the prices of Treasurys so high and their yields so low that they no longer become attractive investments, forcing traders to move into riskier assets that have the potential for bigger profits, like corporate debt and stocks.
The move comes after the Fed took a much more cautious view of the recovery. In its statement at the conclusion of the meeting, the Fed said the recovery "has slowed in recent months." It reinforced comments from Chairman Ben Bernanke last month when he spooked the market by saying the pace of recovery was "unusually uncertain."
Economic reports in recent months, including key measures on gross domestic product and employment, have pointed to a slowing recovery in the U.S. Analysts' opinions have been mixed about whether the economy could slow down to the point of falling back into recession. A report Wednesday showed the U.S. trade deficit widened in June to its highest level in 20 months as exports dipped. Falling exports is discouraging because it means U.S. manufacturers could be slowing down. Early this year, manufacturing showed the most consistent signs of recovery.
Uncertainty about the economy has added volatility to the market and kept many investors out of stocks completely.
Weak economic reports have also stood in contrast to upbeat earnings, which powered stocks higher throughout July. Strong earnings and optimistic outlooks from companies have continued in recent weeks. But as earnings season winds down, strong results have been overshadowed by the disappointing economic data.
Walt Disney Co. and Macy's Inc. were the latest to report healthy earnings. Disney was helped by its ESPN television station and its movie studio, which produced hits like "Toy Story 3" during the quarter. Macy's raised its profit outlook as it takes market share from rivals.
Ahead of the opening bell, Dow Jones industrial average futures fell 135, or 1.3 percent, to 10,483. Standard & Poor's 500 index futures fell 16.20, or 1.5 percent, to 1,103.50, while Nasdaq 100 index futures fell 28.00, or 1.5 percent, to 1,868.50.
The yield on the 10-year Treasury note, which moves opposite its price, fell to 2.73 percent from 2.77 percent late Tuesday. Interest rates are often set based on the yield of 10-year Treasurys.
The 10-year yield is at levels not touched since late March 2009 just weeks after recession worries sent the stock market to a 12-year low.
Britain's FTSE 100 fell 1.5 percent, Germany's DAX index dropped 1.8 percent, and France's CAC-40 fell 1.8 percent. Japan's Nikkei stock average dropped 2.7 percent.
Stocks pared losses in the final one and a half hours of trading after the Fed's announcement Tuesday, but that momentum hasn't been able to carry over into Wednesday's trading. The Dow dropped 54 points.
Disney shares rose 8 cents to $35.37 in pre-opening trading. Macy's rose 23 cents to $19.61.
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