The FBI and TSA notified UPS of suspicious packages on four of their planes; two landed in Philly, one in Newark and another now said to have landed at a Midlands airport in the UK.
The Newark plane has been cleared, but some reports say the UK grounded plane had an ink cartridge that was converted into a bomb, but that has not been officially confirmed.
Friday, October 29, 2010
5 Things To Know Before Trading
Stocks in Asia were generally lower on the session. The Nikkei was the weakest with a decline of 1.75%, while the Hang Seng, Shanghai and Australia all lost about a half percent. European indexes are also generally lower, with the Dax down a quarter percent and the Footsie off by about 0.4%. US stock futures are lower by a third to a half percent.
*The October reading of China’s Business Conditions Survey was down four points on the month to 65.03, according to Market News.
*The September reading of Japan’s Jobless Rate was down one tenth to 5.0%, a steady reading was forecast. Additionally Overall Household Spending was unchanged on a year over year basis, below the expected gain of 0.8%.
*The September reading of Japan’s Consumer Price Index ex-fresh food is -1.1% on a year over year basis, one tenth more deflationary than the estimate. However, the October reading of that same inflation measure for Tokyo is -0.5%, a few tenths less deflation than expected and half the rate of deflation seen the month before.
*The preliminary look at the September reading of Japan’s Industrial Production showed a decline of 1.9% on a month on month basis, much weaker than the -0.6% that was expected.
*There is a lot of unsubstantiated market chatter about national European central banks buying short dated Greek debt and other peripherals sovereign debt. The buying could be in response to the widening out of the yields on Portugal and Ireland debt versus German debt this morning, possibly because the plan that Germany’s Merkel is presenting to the EC today has a provision that, according to an article in the UK Telegraph, “calls for the ‘orderly insolvency’ by eurozone countries in trouble. Details are sketchy but the ‘Chapter 11’ for soverign states would include an extension of debt maturities, a ‘holiday’ on interest payments for as long as needed to let debtors recover, and a suspension of bondholder rights. The blueprint is akin to debt-restructuring schemes used by the International Monetary Fund.” I was told by a German contact that it appears the Germans are unwilling to keep footing the bill for others in the EU, that they are in essence heading down an “Austrian” path in their economics. The EC meeting is ongoing so be aware of headline risk.
*The September reading of German Retail Sales was down 2.3% on a month on month basis, well short of the expected gain of 0.5%.
*There were 47.5k mortgage approvals in the UK during September, according to the Bank of England, steady from the month before and above the expectation.
*The initial look at Q3 GDP is due out at 7:30am CDT. The expectation for GDP is +2.0%, Personal Consumption is forecast to be +2.5% and the estimate for the GDP Deflator is +1.8%. The Core PCE measured on a quarter on quarter annualized basis is+1.0%. Also due out at 7:30am is the Q3 reading of the Employment Cost Index; it is expected to be +0.5%. The October reading of the Chicago Purchasing Managers Index is due out at 8:45am CDT, but three minutes earlier for subscribers. The Chicago PMI is forecast to be 58.0, down from the September result of 60.4. The final October reading of consumer sentiment from the University of Michigan is due out at 8:55am CDT, the forecast calls for 68.0, or one tenth higher than this month’s preliminary result; it was 68.2 in September.
*The October reading of China’s Business Conditions Survey was down four points on the month to 65.03, according to Market News.
*The September reading of Japan’s Jobless Rate was down one tenth to 5.0%, a steady reading was forecast. Additionally Overall Household Spending was unchanged on a year over year basis, below the expected gain of 0.8%.
*The September reading of Japan’s Consumer Price Index ex-fresh food is -1.1% on a year over year basis, one tenth more deflationary than the estimate. However, the October reading of that same inflation measure for Tokyo is -0.5%, a few tenths less deflation than expected and half the rate of deflation seen the month before.
*The preliminary look at the September reading of Japan’s Industrial Production showed a decline of 1.9% on a month on month basis, much weaker than the -0.6% that was expected.
*There is a lot of unsubstantiated market chatter about national European central banks buying short dated Greek debt and other peripherals sovereign debt. The buying could be in response to the widening out of the yields on Portugal and Ireland debt versus German debt this morning, possibly because the plan that Germany’s Merkel is presenting to the EC today has a provision that, according to an article in the UK Telegraph, “calls for the ‘orderly insolvency’ by eurozone countries in trouble. Details are sketchy but the ‘Chapter 11’ for soverign states would include an extension of debt maturities, a ‘holiday’ on interest payments for as long as needed to let debtors recover, and a suspension of bondholder rights. The blueprint is akin to debt-restructuring schemes used by the International Monetary Fund.” I was told by a German contact that it appears the Germans are unwilling to keep footing the bill for others in the EU, that they are in essence heading down an “Austrian” path in their economics. The EC meeting is ongoing so be aware of headline risk.
*The September reading of German Retail Sales was down 2.3% on a month on month basis, well short of the expected gain of 0.5%.
*There were 47.5k mortgage approvals in the UK during September, according to the Bank of England, steady from the month before and above the expectation.
*The initial look at Q3 GDP is due out at 7:30am CDT. The expectation for GDP is +2.0%, Personal Consumption is forecast to be +2.5% and the estimate for the GDP Deflator is +1.8%. The Core PCE measured on a quarter on quarter annualized basis is+1.0%. Also due out at 7:30am is the Q3 reading of the Employment Cost Index; it is expected to be +0.5%. The October reading of the Chicago Purchasing Managers Index is due out at 8:45am CDT, but three minutes earlier for subscribers. The Chicago PMI is forecast to be 58.0, down from the September result of 60.4. The final October reading of consumer sentiment from the University of Michigan is due out at 8:55am CDT, the forecast calls for 68.0, or one tenth higher than this month’s preliminary result; it was 68.2 in September.
Thursday, October 28, 2010
What's Next for Microsoft
Every July, Microsoft Corp invites a sizable Wall Street crowd to its leafy, low-rise campus outside Seattle. Chief Executive Steve Ballmer and his top managers take a half-day to explain where the world’s biggest software company is going, to a generally friendly audience.
This year things didn’t go quite according to plan.
Ballmer, CEO since 2000, talked excitedly of Windows 7, its new Bing search engine, new Phone software and the Xbox game system. But he was skimpy with details of how Microsoft would counter Apple’s hugely popular iPad, a question that has been vexing investors.
At the end of the presentations, Sarah Friar, the influential Goldman Sachs analyst and a long-term bull on Microsoft’s stock, seemed unconvinced. She wanted Ballmer to take another stab at explaining the iPad counter-attack. “It feels like right now you are not completely clear,” said Friar. “I just want to give you another chance to give a succinct … response.”
Always an energetic presence on stage, Ballmer raised his voice even louder than usual, and with a resounding slap of his hands, repeated his main points methodically. Slates and tablet computers are coming soon. They will have Intel chips. They will run Windows. “We’re going to sell like crazy. We’re going to market like crazy,” he boomed.
Three months later, Microsoft and its hardware partners have unveiled only one Windows tablet, which does not seem to be an iPad contender, much less a killer, as Apple’s nifty gadget heads toward 8 million sales, eating away at the lower end of Microsoft’s core PC market.
Partly because of this, Microsoft’s stock has drifted lower, and is now down 16 percent for the year, despite a surge in tech stocks that has pushed the Nasdaq up 10 percent in the same time. The shares remain resolutely stuck at the same level as 2002.
At the beginning of October, Goldman’s Friar threw in the towel, pitching Microsoft out of her bank’s Americas Buy List and downgrading it to “neutral” — Wall Street’s euphemism for “dead money.” One of her complaints was the lack of a “coherent consumer strategy,” the very thing which Microsoft and Ballmer took such pains to lay out at the July meeting.
The downgrade by Goldman, the company that led its initial public offering in 1986, was an unexpected knock for Microsoft, which has no shortage of cheerleaders on Wall Street, given the potential fees it represents for mergers and corporate bond issues.
Coming only four months after Apple surpassed Microsoft in market value — until recently an unthinkable event — the downgrade brought into focus questions about Microsoft that are increasingly being asked by customers, investors and even some employees. Why hasn’t the stock moved in eight years, despite more than doubling profit and sales in that time? Is Microsoft really at the forefront of technology? Why can’t it invent popular gadgets like Google or Apple? Is Ballmer still the right person to lead the firm?
From the other side, Wall Street may have missed a subtle answer from Ballmer. The company is not Apple and can’t promise stellar growth or a rocketing share price any more. It is learning how to be a mature, fiscally responsible company that will return as much as it can to shareholders in other ways.
In this fashion, Microsoft may point the way for rising companies like Google, which one day will also face the issue of how to keep growth going beyond its initial success.
This year things didn’t go quite according to plan.
Ballmer, CEO since 2000, talked excitedly of Windows 7, its new Bing search engine, new Phone software and the Xbox game system. But he was skimpy with details of how Microsoft would counter Apple’s hugely popular iPad, a question that has been vexing investors.
At the end of the presentations, Sarah Friar, the influential Goldman Sachs analyst and a long-term bull on Microsoft’s stock, seemed unconvinced. She wanted Ballmer to take another stab at explaining the iPad counter-attack. “It feels like right now you are not completely clear,” said Friar. “I just want to give you another chance to give a succinct … response.”
Always an energetic presence on stage, Ballmer raised his voice even louder than usual, and with a resounding slap of his hands, repeated his main points methodically. Slates and tablet computers are coming soon. They will have Intel chips. They will run Windows. “We’re going to sell like crazy. We’re going to market like crazy,” he boomed.
Three months later, Microsoft and its hardware partners have unveiled only one Windows tablet, which does not seem to be an iPad contender, much less a killer, as Apple’s nifty gadget heads toward 8 million sales, eating away at the lower end of Microsoft’s core PC market.
Partly because of this, Microsoft’s stock has drifted lower, and is now down 16 percent for the year, despite a surge in tech stocks that has pushed the Nasdaq up 10 percent in the same time. The shares remain resolutely stuck at the same level as 2002.
At the beginning of October, Goldman’s Friar threw in the towel, pitching Microsoft out of her bank’s Americas Buy List and downgrading it to “neutral” — Wall Street’s euphemism for “dead money.” One of her complaints was the lack of a “coherent consumer strategy,” the very thing which Microsoft and Ballmer took such pains to lay out at the July meeting.
The downgrade by Goldman, the company that led its initial public offering in 1986, was an unexpected knock for Microsoft, which has no shortage of cheerleaders on Wall Street, given the potential fees it represents for mergers and corporate bond issues.
Coming only four months after Apple surpassed Microsoft in market value — until recently an unthinkable event — the downgrade brought into focus questions about Microsoft that are increasingly being asked by customers, investors and even some employees. Why hasn’t the stock moved in eight years, despite more than doubling profit and sales in that time? Is Microsoft really at the forefront of technology? Why can’t it invent popular gadgets like Google or Apple? Is Ballmer still the right person to lead the firm?
From the other side, Wall Street may have missed a subtle answer from Ballmer. The company is not Apple and can’t promise stellar growth or a rocketing share price any more. It is learning how to be a mature, fiscally responsible company that will return as much as it can to shareholders in other ways.
In this fashion, Microsoft may point the way for rising companies like Google, which one day will also face the issue of how to keep growth going beyond its initial success.
Answers Corporation (NASDAQ: ANSW) WMM Puts the New IR Firm to the Test
The Blueshirt Group will be taking over the investor relations for Answers Corporation, the owner and operator of the community-generated social knowledge Q&A platform Answers.com. Even more interestingly, Answers is not the first company in one of our WMM Family of Indices to retain the Blueshirt Group as their investor relation firm. In this article, I’m going to look at Blueshirts top (and worst) performers.
The BlueShirt Group represents 52 private and pre-IPO or publically-traded companies from across the U.S., including some well known computer services and Dot-com outfits including LogMeIn, Zipcar, and Move, Inc., a leading network of real estate destination information providers that include Move.com and Realtor.com.
From the World Market Media MicroCap Index, Blueshirt Goup represents Openwave Systems Inc., a provider of software solutions that ignite mobility for the communications and media industries. From the World Market Media NanoCap Index, Blueshirt Group represents Hollywood Media Corp., who owns and operates a number of business units focused on the entertainment industry. Answers Corporation sits in the WMM MicroCap Index.
"We are excited to partner with The Blueshirt Group in our investor relations efforts," said Robert Rosenschein, Chairman and CEO. "With several new initiatives underway aimed at driving new traffic and revenue growth, we are committed to ensuring that our investors, and the investment community as a whole, have a clear picture of the company, including our goals, challenges and accomplishments".
I took a look at the performance of the shares of the companies Blueshirt Group represents year to date, and found some interesting correlations. Three of their clients – LogMeIn, Inc. (NASDAQ: LOGM), Motortricity, Inc. (NASDAQ: MOTR), and Riverbed Technology, Inc. (NASDAQ: RVBD) – had appreciations in their stock price of at least 95% since January. LOGM’s stock has jumped 95.5%, MOTR’s stock is up 133%, and RVBD’s stock has packed on a hefty 145% appreciation year to date.
On the other hand, however, Hollywood Media’s stock has shed 11.5% since January, and Answers Corporation has lost about 28% year to date. HOLL spun $59M from its market cap in the plunge, and so too did ANSW to the tune of about $20M in valuation. So can Blueshirt Group turn around these ugly trends?
Investors are optimistic. Shares of Answers Corporation are trading up today $.18, or about 3% at $6.38 a share on average volume. After shares nosedived about 40% for the month of August, prices have clawed their way back up about 30% to the typical 2010 price range.
@import url(/common_scripts/css/styles.css);@import url(/templates/wmmcapital/css/styles.css);Shifting Online Gaming Strategy: Micro-transactions as a Metric
Think Equity gaming analyst Atul Bagga talks with an important player in gaming. I was particularly intrigued by the change in revenue mix, and this applies to nearly all social media gaming models. CEO of Oberon Tal Kerret responded in the Q&A below.
Oberon Media provides games solution (sourcing, QA testing, porting, analytics and reporting) on various platforms including online, TV, and mobile with partners such as Microsoft, Yahoo, EA/Pogo, AT&T, Orange, Dish Network, DirecTV, and Comcast.
The company sources games from third-party developers and also owns game IPs; in-house games contribute about 10-15% of the company’s revenue.
The company monetizes its audience through selling games, micro-transactions, subscription, and ads, and shares revenue with its publishing partners and game developers.
According to Oberon CEO Tal Kerret, the revenue breakup on its platform has changed dramatically over the last three years—three years ago it was 90% from one-time purchase and 10% from advertising, and today it is 50% from subscription, 25% from one-time purchase and 25% from micro transaction and advertising. Kerret expects 50% of the revenue to come from micro-transaction over a longer term.
Oberon sees strong interest in social games by its partners (mostly online portals) and that seems the top focus by Oberon. The company is in the process of rolling out a social games solution using Facebook social-graph, which it expects would help partners acquire new users. The company is focusing on publishing Facebook games on partners’ sites and is working on acquiring social games from Facebook developers who are looking to expand the reach of their games.
Across the company’s partners, conversion rates range from 1% to 5% but can go as high as 20% for some of the high-definition games, and ARPU range from $80 to $100 per year
Oberon Media provides games solution (sourcing, QA testing, porting, analytics and reporting) on various platforms including online, TV, and mobile with partners such as Microsoft, Yahoo, EA/Pogo, AT&T, Orange, Dish Network, DirecTV, and Comcast.
The company sources games from third-party developers and also owns game IPs; in-house games contribute about 10-15% of the company’s revenue.
The company monetizes its audience through selling games, micro-transactions, subscription, and ads, and shares revenue with its publishing partners and game developers.
According to Oberon CEO Tal Kerret, the revenue breakup on its platform has changed dramatically over the last three years—three years ago it was 90% from one-time purchase and 10% from advertising, and today it is 50% from subscription, 25% from one-time purchase and 25% from micro transaction and advertising. Kerret expects 50% of the revenue to come from micro-transaction over a longer term.
Oberon sees strong interest in social games by its partners (mostly online portals) and that seems the top focus by Oberon. The company is in the process of rolling out a social games solution using Facebook social-graph, which it expects would help partners acquire new users. The company is focusing on publishing Facebook games on partners’ sites and is working on acquiring social games from Facebook developers who are looking to expand the reach of their games.
Across the company’s partners, conversion rates range from 1% to 5% but can go as high as 20% for some of the high-definition games, and ARPU range from $80 to $100 per year
5 Things To Know Before Trading
*Stocks were mixed and generally little changed in Asian trade. The Nikkei and Shanghai were a fraction lower, the Hang Seng a fraction higher and Australia had a gained of 0.8%. European indexes are mostly higher, with the Footsie and Dax both up by a half percent give or take. US stock futures are up by a fraction.
*The September reading of Japanese Retail Trade was significantly weaker than forecast. On a month on month basis Retail Trade was down 3.0%, versus an expected decline of only 0.5%.
*The Bank of Japan policy committee kept all things steady; their key rate remains at 0.10% as did the size of its asset purchase and credit loan programs, no change in the rate or policy stance was expected.
*In October UK house prices fell 0.7% from the month before, according to Nationwide; the price drop was larger than the expected -0.3% and on a year over year basis prices were up only 1.4%, below the estimate of a gain of 2.3%.
*The weekly report on Initial Jobless Claims is due out at 7:30am CDT, it is expected to be 455k.
*The weekly report on inventories of Natural Gas is due out at 9:30am CDT, it is forecast to show an increase of 73 bcf.
*The Fed is scheduled to buy Treasuries today that are due to mature between 4/15/12 and 3/31/13; the results of the operation will be announced just after 10:00am CDT.
*The October reading of the Kansas City Fed Production Index is due out at 10:00am CDT; there is no available estimate.
*The Treasury plans to sell $29 billion 7 Year Notes today; the results will be announced just after noon CDT.
*The September reading of Japanese Retail Trade was significantly weaker than forecast. On a month on month basis Retail Trade was down 3.0%, versus an expected decline of only 0.5%.
*The Bank of Japan policy committee kept all things steady; their key rate remains at 0.10% as did the size of its asset purchase and credit loan programs, no change in the rate or policy stance was expected.
*In October UK house prices fell 0.7% from the month before, according to Nationwide; the price drop was larger than the expected -0.3% and on a year over year basis prices were up only 1.4%, below the estimate of a gain of 2.3%.
*The weekly report on Initial Jobless Claims is due out at 7:30am CDT, it is expected to be 455k.
*The weekly report on inventories of Natural Gas is due out at 9:30am CDT, it is forecast to show an increase of 73 bcf.
*The Fed is scheduled to buy Treasuries today that are due to mature between 4/15/12 and 3/31/13; the results of the operation will be announced just after 10:00am CDT.
*The October reading of the Kansas City Fed Production Index is due out at 10:00am CDT; there is no available estimate.
*The Treasury plans to sell $29 billion 7 Year Notes today; the results will be announced just after noon CDT.
Wednesday, October 27, 2010
Provectus Pharmaceuticals (OTC:PVCT) to Present Phase 2 Results
Provectus Pharmaceuticals, Inc. (PVCT.OB) is a small-cap pharmaceutical company focused on developing treatments for oncology and dermatology. Shares of PVCT have started to gain some momentum the past few weeks in anticipation of clinical data that is being presented in November.
The data comes from its Phase 2 study of PV-10 in metastatic melanoma. This will be presented at the 7th International Melanoma Research Congress in Sydney, Australia, on November 4, 2010 at 4:30 p.m.
PVCT will be presenting efficacy data on the full study population, which will include response rate, progression-free-survival and overall survival. These are very important numbers for the future of PVCT and PV-10. At ASCO 2010, they presented data on the “first 40 subjects in its Phase 2 clinical trial of PV-10 for metastatic melanoma, with an objective response ("OR") observed in 61% of subjects and a mean Progression Free Survival ("PFS") of at least 11.1 months among those subjects achieving an OR. Agarwala has previously said that PV-10 could play an important part in the management/treatment of melanoma because of the efficacy it has shown in early and late stages of melanoma. It's also noteworthy that PV-10 has demonstrated a very benign safety profile, with no serious adverse events either.
PV-10 is an interesting molecule whose immunological mechanism will be studied in a Phase 2 study to provide additional evidence of PV-10’s bystander effect. It is currently a part of the FDA’s Compassionate Use Program which provides experimental therapeutics to patients prior to final FDA approval. Provectus is also exploring the use of PV-10 in liver (currently in Phase 1) and breast cancer (completed Phase 1). Provectus is planning for a Phase 2 study of PV-10 for recurrent breast cancer.
Based on their meetings with FDA officials at the April 2010 End-of-Phase 2 meeting, they are planning for a 2nd meeting to finalize designs of a pivotal Phase 3 randomized controlled study suitable for a Special Protocol Assessment (SPA). It is expected that a Phase 3 trial may begin in early 2011. A SPA for their Phase 3 clinical trial would define the regulatory pathway for PV-10 as a treatment for metastatic melanoma, especially if PV-10 were to eventually post positive Phase 3 results.
Craig Dees, Ph.D., CEO of Provectus Pharmaceuticals' recent commentary on the potential PV-10 has for the treatment of melanoma is insightful. "The final follow-up on all 80 subjects enrolled in the Phase 2 study was completed in May 2010. We are extremely excited about the efficacy, progression-free-survival and overall survival data to be presented, which we believe will be comparable to the interim data presented at the ASCO meeting in June. These data confirm our belief that PV-10 compares favorably with available and emerging options for this patient population, making it an attractive candidate for commercial development, and we look forward to Dr. Agarwala's presentation."
One would think that their results will be very encouraging based on interim results and recent actions by management. Pursuing an SPA for a pivotal Phase 3 trial for PV-10 is definitely an indicator of management's intentions. In this report by the Maxim Group on PVCT.OB, they have a $3.50 12-month price target (from May 2010). They also speak quite favorably of the potential for PV-10. I look forward to watching them over the next few months.
The data comes from its Phase 2 study of PV-10 in metastatic melanoma. This will be presented at the 7th International Melanoma Research Congress in Sydney, Australia, on November 4, 2010 at 4:30 p.m.
PVCT will be presenting efficacy data on the full study population, which will include response rate, progression-free-survival and overall survival. These are very important numbers for the future of PVCT and PV-10. At ASCO 2010, they presented data on the “first 40 subjects in its Phase 2 clinical trial of PV-10 for metastatic melanoma, with an objective response ("OR") observed in 61% of subjects and a mean Progression Free Survival ("PFS") of at least 11.1 months among those subjects achieving an OR. Agarwala has previously said that PV-10 could play an important part in the management/treatment of melanoma because of the efficacy it has shown in early and late stages of melanoma. It's also noteworthy that PV-10 has demonstrated a very benign safety profile, with no serious adverse events either.
PV-10 is an interesting molecule whose immunological mechanism will be studied in a Phase 2 study to provide additional evidence of PV-10’s bystander effect. It is currently a part of the FDA’s Compassionate Use Program which provides experimental therapeutics to patients prior to final FDA approval. Provectus is also exploring the use of PV-10 in liver (currently in Phase 1) and breast cancer (completed Phase 1). Provectus is planning for a Phase 2 study of PV-10 for recurrent breast cancer.
Based on their meetings with FDA officials at the April 2010 End-of-Phase 2 meeting, they are planning for a 2nd meeting to finalize designs of a pivotal Phase 3 randomized controlled study suitable for a Special Protocol Assessment (SPA). It is expected that a Phase 3 trial may begin in early 2011. A SPA for their Phase 3 clinical trial would define the regulatory pathway for PV-10 as a treatment for metastatic melanoma, especially if PV-10 were to eventually post positive Phase 3 results.
Craig Dees, Ph.D., CEO of Provectus Pharmaceuticals' recent commentary on the potential PV-10 has for the treatment of melanoma is insightful. "The final follow-up on all 80 subjects enrolled in the Phase 2 study was completed in May 2010. We are extremely excited about the efficacy, progression-free-survival and overall survival data to be presented, which we believe will be comparable to the interim data presented at the ASCO meeting in June. These data confirm our belief that PV-10 compares favorably with available and emerging options for this patient population, making it an attractive candidate for commercial development, and we look forward to Dr. Agarwala's presentation."
One would think that their results will be very encouraging based on interim results and recent actions by management. Pursuing an SPA for a pivotal Phase 3 trial for PV-10 is definitely an indicator of management's intentions. In this report by the Maxim Group on PVCT.OB, they have a $3.50 12-month price target (from May 2010). They also speak quite favorably of the potential for PV-10. I look forward to watching them over the next few months.
Erin Burnett Exposes New Energy (OTC:NENE) on CNBC
I hope you like this picture because I sure did after learning about a SmallCap company being featured on CNBC and then doing a quick image search for Erin Burnett. Okay now back to the company… New Energy Technologies (OTC:NENE) was highlighted on a recent CNBC segment with Erin Burnett because they are unveiling its ground-breaking spray-on solar technology.
Shares of New Energy were up today nearly 15 percent to $1.35 per share on heavy volume once again of 2.3 million shares compared to its average daily volume of only 183,000 shares.
Beckerman, one of the industry’s largest independent public relations firms with the largest clean technology practice in the nation, announced that the highly anticipated debut of New Energy Technologies’ SolarWindow was featured on CNBC (http://www.beckermanpr.com/NewsRoom.php), the satellite and cable television business news channel owned and operated by NBC Universal, with a reach of 390 million viewers around the world.
The segment on SolarWindow, the first-of-its-kind, spray-on technology capable of transforming everyday surfaces, such as windows, into energy-generating devices, aired at 9:50 a.m. EDT on Oct. 20 during “Squawk on the Street,” CNBC’s business show that follows the first 90 minutes of trading on Wall Street in the United States.
Featured as part of the “Race to Fuel the Future” series, the segment notes that the SolarWindow has been successfully tested at the University of South Florida.
To view the complete segment, please visit: http://www.beckermanpr.com/NewsRoom.php.
“Squawk on the Street” is broadcast live at the New York Stock Exchange and gives viewers all the up-to-the minute news they need from every major market around the world. The show not only reports the headlines of the day, it also puts world-class, top-rated market guests on the air to provide the instant analysis of all the market moving news.
New Energy Technologies, together with its wholly owned subsidiaries, is a developer of next generation alternative and renewable energy technologies. Among the Company’s technologies under development are:
MotionPower roadway systems for generating electricity by capturing the kinetic energy produced by moving vehicles – a patent-pending technology, the subject of nine patent applications in the United States and two international patent filings. An estimated 250 million registered vehicles drive more than six billion miles on America’s roadways, every day; and
SolarWindow technologies which enable see-thru windows to generate electricity by ‘spraying’ their glass surfaces with New Energy’s electricity-generating coatings. These solar coatings are less than 1/10th the thickness of ‘thin’ films and make use of the world’s smallest functional solar cells, shown to successfully produce electricity in a published peer-reviewed study in the Journal of Renewable and Sustainable Energy of the American Institute of Physics.
For additional information, please call visit: www.newenergytechnologiesinc.com.
Shares of New Energy were up today nearly 15 percent to $1.35 per share on heavy volume once again of 2.3 million shares compared to its average daily volume of only 183,000 shares.
Beckerman, one of the industry’s largest independent public relations firms with the largest clean technology practice in the nation, announced that the highly anticipated debut of New Energy Technologies’ SolarWindow was featured on CNBC (http://www.beckermanpr.com/NewsRoom.php), the satellite and cable television business news channel owned and operated by NBC Universal, with a reach of 390 million viewers around the world.
The segment on SolarWindow, the first-of-its-kind, spray-on technology capable of transforming everyday surfaces, such as windows, into energy-generating devices, aired at 9:50 a.m. EDT on Oct. 20 during “Squawk on the Street,” CNBC’s business show that follows the first 90 minutes of trading on Wall Street in the United States.
Featured as part of the “Race to Fuel the Future” series, the segment notes that the SolarWindow has been successfully tested at the University of South Florida.
To view the complete segment, please visit: http://www.beckermanpr.com/NewsRoom.php.
“Squawk on the Street” is broadcast live at the New York Stock Exchange and gives viewers all the up-to-the minute news they need from every major market around the world. The show not only reports the headlines of the day, it also puts world-class, top-rated market guests on the air to provide the instant analysis of all the market moving news.
New Energy Technologies, together with its wholly owned subsidiaries, is a developer of next generation alternative and renewable energy technologies. Among the Company’s technologies under development are:
MotionPower roadway systems for generating electricity by capturing the kinetic energy produced by moving vehicles – a patent-pending technology, the subject of nine patent applications in the United States and two international patent filings. An estimated 250 million registered vehicles drive more than six billion miles on America’s roadways, every day; and
SolarWindow technologies which enable see-thru windows to generate electricity by ‘spraying’ their glass surfaces with New Energy’s electricity-generating coatings. These solar coatings are less than 1/10th the thickness of ‘thin’ films and make use of the world’s smallest functional solar cells, shown to successfully produce electricity in a published peer-reviewed study in the Journal of Renewable and Sustainable Energy of the American Institute of Physics.
For additional information, please call visit: www.newenergytechnologiesinc.com.
5 Things To Know Before Trading
*Stocks in Asia were generally lower on the session. The Nikkei added a fraction, but the Hang Seng lost more than 1.8%, Shanghai was off one and a half percent and Australia fell 0.8%. European indexes are mostly higher by a bit; the Dax is higher by a fraction but the Footsie is a notable exception as it is trading lower by 0.4%. US stock futures are down by a third to a half percent.
*The Q3 reading of Australia’s Consumer Price Index was +0.7% on a quarter on quarter basis, one tenth below the forecast. The annualized rate was also one tenth under the estimate at +2.8%.
*German states are releasing the October reading of their Consumer Price Index today, some of the results include: Saxony, 0.0% on the month and +1.4% annualized; Brandenburg, 0.0% and +1.0%; Hesse -0.1% and +1.0%; and Bavaria +0.1% and +1.4%. The national CPI will be released later this morning, it is expected to be +0.1% on a month over month basis and +1.3% year over year.
*US mortgage applications rose 3.2% in the week ended October 22, according to the Mortgage Bankers Association. Both components increased on the week; Purchases +3.9% and Refis +3.0%.
*The September reading of Durable Goods Orders is due out at 7:30am CDT. Headline Orders are expected to increase 2.0% on the month and Orders less transportation are forecast to rise 0.5% from the month before. The September reading of New Home Sales are due out at 9:00am CDT; the estimate for Sales is an annualized rate of 300k units, which would be +4.2% from the pace set in August.
*The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to increase 1.25 million barrels, Gasoline inventories are expected to rise 750k and the estimate for Distillates is -1.5 million.
*The Treasury plans to sell $35 billion 5 Year Notes today, the results of the auction will be announced just after noon CDT.
*New York Fed boss Dudley is scheduled to speak on the economy at 3:00pm CDT.
*The Q3 reading of Australia’s Consumer Price Index was +0.7% on a quarter on quarter basis, one tenth below the forecast. The annualized rate was also one tenth under the estimate at +2.8%.
*German states are releasing the October reading of their Consumer Price Index today, some of the results include: Saxony, 0.0% on the month and +1.4% annualized; Brandenburg, 0.0% and +1.0%; Hesse -0.1% and +1.0%; and Bavaria +0.1% and +1.4%. The national CPI will be released later this morning, it is expected to be +0.1% on a month over month basis and +1.3% year over year.
*US mortgage applications rose 3.2% in the week ended October 22, according to the Mortgage Bankers Association. Both components increased on the week; Purchases +3.9% and Refis +3.0%.
*The September reading of Durable Goods Orders is due out at 7:30am CDT. Headline Orders are expected to increase 2.0% on the month and Orders less transportation are forecast to rise 0.5% from the month before. The September reading of New Home Sales are due out at 9:00am CDT; the estimate for Sales is an annualized rate of 300k units, which would be +4.2% from the pace set in August.
*The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to increase 1.25 million barrels, Gasoline inventories are expected to rise 750k and the estimate for Distillates is -1.5 million.
*The Treasury plans to sell $35 billion 5 Year Notes today, the results of the auction will be announced just after noon CDT.
*New York Fed boss Dudley is scheduled to speak on the economy at 3:00pm CDT.
Tuesday, October 26, 2010
How the Extraordinary Stoner is Helping Prop 19
Despite whatever evidence has presented itself in contradiction with the characterization of stoners as a bunch of lazy liberals over the years, the public image of pot users seems to have only recently begun to budge. Whether the billboards littered across Los Angeles conveying “typical stoners,” as just typical people, like grandmothers, gynecologists and lawyers, have been effective in reshaping the public perception of smokers is hard to say, but it could be ventured that these advertisements have probably not led any conservatives or strict mothers of teenagers to one-eighties on the issue.
Even still, the rebranding of the stoner is working, but like with many effective advertising campaigns, it relies on the endorsement of someone more enviable, with greater public visibility than the Kindergarten teacher smoking up to ease her insomnia.
In the case of marijuana legalization, these people are not paid, but rather paying. It could be argued that the greatest device on the side of Proposition 19, the bill to legalize controlled amounts of marijuana is the endorsement of the non-typical stoner.
Certainly, the financial contributions are helpful and allow for such advantages as the pro-Prop 19 commercial, the first of its kind, that aired on Tuesday, but more than that, it’s their support in the first place that shatters the stereotypes of what it means to be a stoner.
Just today, George Soros, the multibillionaire hedge fund founder and the man credited with, “breaking the bank or Britain” became the second largest donor to the Prop 19 campaign, dedicating $ 1 million to the cause.
Soros is 80-years-old and has enough zeros on his bank statement to make most people dizzy, certainly not the typical inarticulate, underachieving stoner society has been carving since the 60’s.
Several weeks ago, headlines were made when multiple engineers and designers from Google and Facebook, some of the most successful and cerebral members of their generation, donated to Proposition 19. The sums weren’t groundbreaking, but the statements behind them were.
Ten years ago an employee at one of the most competitive companies in the world never want to expose themselves as a pot smoker, but today people are dropping their masks and the typical stoner is being revealed and reinvented something entirely apart from what we have come to recognize.
The extraordinary stoner is arguably the greatest tool in getting marijuana legalized in that it withers the opposition’s argument that pot is a gateway drug that tears teenagers from their ambition and poisons society.
The fear tactic and flame fanning employed by conservatives, the tale that pot will inevitably lead to failure just doesn’t hold up when counter examples, like Facebook co-founder Sean Parker and 80-year-old billionaire are on hand to put them out, and then to light one up.
Even still, the rebranding of the stoner is working, but like with many effective advertising campaigns, it relies on the endorsement of someone more enviable, with greater public visibility than the Kindergarten teacher smoking up to ease her insomnia.
In the case of marijuana legalization, these people are not paid, but rather paying. It could be argued that the greatest device on the side of Proposition 19, the bill to legalize controlled amounts of marijuana is the endorsement of the non-typical stoner.
Certainly, the financial contributions are helpful and allow for such advantages as the pro-Prop 19 commercial, the first of its kind, that aired on Tuesday, but more than that, it’s their support in the first place that shatters the stereotypes of what it means to be a stoner.
Just today, George Soros, the multibillionaire hedge fund founder and the man credited with, “breaking the bank or Britain” became the second largest donor to the Prop 19 campaign, dedicating $ 1 million to the cause.
Soros is 80-years-old and has enough zeros on his bank statement to make most people dizzy, certainly not the typical inarticulate, underachieving stoner society has been carving since the 60’s.
Several weeks ago, headlines were made when multiple engineers and designers from Google and Facebook, some of the most successful and cerebral members of their generation, donated to Proposition 19. The sums weren’t groundbreaking, but the statements behind them were.
Ten years ago an employee at one of the most competitive companies in the world never want to expose themselves as a pot smoker, but today people are dropping their masks and the typical stoner is being revealed and reinvented something entirely apart from what we have come to recognize.
The extraordinary stoner is arguably the greatest tool in getting marijuana legalized in that it withers the opposition’s argument that pot is a gateway drug that tears teenagers from their ambition and poisons society.
The fear tactic and flame fanning employed by conservatives, the tale that pot will inevitably lead to failure just doesn’t hold up when counter examples, like Facebook co-founder Sean Parker and 80-year-old billionaire are on hand to put them out, and then to light one up.
Big Gains Today for Visualant (OTC:VSUL): +18%
Shares of Visualant (OTC:VSUL) hit a new 52-week high of $0.65 per share today after announcing that its subsidiary TransTech Systems will be showcasing its talents at an upcoming conference. As I write, shares of Visualant were up 18 percent to $0.65 per shares on heavy volume of more than 640,000 shares compared to its average daily volume of only 40,000 shares.
TransTech Systems will be an exhibitor at the upcoming International Facility Management Association’s (IFMA) World Workplace 2010 Conference and Expo at the Georgia World Congress Center in Atlanta Georgia. This year’s conference will run from October 27th to 29th and marks IFMA’s 30th Anniversary Celebration.
The IFMA is the world’s largest association of professional facility managers. It supports more than 19,000 members in 78 countries. The IFMA members manage more than 37 billion square feet of property and annually purchase more than $100 billion in products and services.
TransTech Systems will be exhibiting the latest in identification card printing and encoding systems and building access control products from manufacturers such as Evolis, Farpointe Data, NiSCA and Paxton Access. TransTech will also be debuting Access and Environmental control products from Assa Abloy’s hospitality division, TimeLox. See these and other popular security industry products, including the breakthrough Visualant Spectral Pattern Matching (“SPM”) technology.
Through its TransTech distribution subsidiary, Visualant has access to the impressive, broad customer base represented by IFMA.
Visualant, Inc. (www.visualant.net) develops low-cost, high speed, light-based security and quality control solutions for use in homeland security, anti-counterfeiting, forgery/fraud prevention, brand protection and process control applications. Its patent-pending technology uses controlled illumination with specific bands of light, to establish a unique spectral signature for both individual and classes of items.
When matched against existing databases, these spectral signatures allow precise identification and authentication of any item or substance. This breakthrough optical sensing and data capture technology is called Spectral Pattern Matching (SPM). SPM technology can be miniaturized and is easily integrated into a variety of hand-held or fixed-mount configurations, and can be combined in the same package as a bar-code or biometric scanner.
Through its wholly owned subsidiary, TransTech Systems, Inc. (www.ttsys.com), the Company provides security and authentication solutions to security and law enforcement markets throughout the United States.
TransTech Systems will be an exhibitor at the upcoming International Facility Management Association’s (IFMA) World Workplace 2010 Conference and Expo at the Georgia World Congress Center in Atlanta Georgia. This year’s conference will run from October 27th to 29th and marks IFMA’s 30th Anniversary Celebration.
The IFMA is the world’s largest association of professional facility managers. It supports more than 19,000 members in 78 countries. The IFMA members manage more than 37 billion square feet of property and annually purchase more than $100 billion in products and services.
TransTech Systems will be exhibiting the latest in identification card printing and encoding systems and building access control products from manufacturers such as Evolis, Farpointe Data, NiSCA and Paxton Access. TransTech will also be debuting Access and Environmental control products from Assa Abloy’s hospitality division, TimeLox. See these and other popular security industry products, including the breakthrough Visualant Spectral Pattern Matching (“SPM”) technology.
Through its TransTech distribution subsidiary, Visualant has access to the impressive, broad customer base represented by IFMA.
Visualant, Inc. (www.visualant.net) develops low-cost, high speed, light-based security and quality control solutions for use in homeland security, anti-counterfeiting, forgery/fraud prevention, brand protection and process control applications. Its patent-pending technology uses controlled illumination with specific bands of light, to establish a unique spectral signature for both individual and classes of items.
When matched against existing databases, these spectral signatures allow precise identification and authentication of any item or substance. This breakthrough optical sensing and data capture technology is called Spectral Pattern Matching (SPM). SPM technology can be miniaturized and is easily integrated into a variety of hand-held or fixed-mount configurations, and can be combined in the same package as a bar-code or biometric scanner.
Through its wholly owned subsidiary, TransTech Systems, Inc. (www.ttsys.com), the Company provides security and authentication solutions to security and law enforcement markets throughout the United States.
Whoopi, Lionsgate and Augme (OTC:AUGT) Hit New 52-Week High
Where’s Whoopi Goldberg Watch… The funny and likable actress/comedian has been flying under the radar in recent years, but yesterday I ran across her name in a company press release that hit a new 52-week high. Augme Technologies (OTC:AUGT) was the lucky winner jumping 18 percent to $3.24 per share on heavy volume of nearly 800,000 shares compared to its average daily volume of only 123,000 shares.
Augme announced that it will be joining Lionsgate films as the marketing arm for an upcoming feature film named “For Colored Girls” with a cast featuring several prominent actresses including Whoopi Goldberg.
Augme is a technology and services leader in interactive media marketing solutions that offers the only end-to-end mobile marketing platform. The company announced that it has launched a mobile marketing campaign with LIONSGATE for its upcoming universal-themed feature film, For Colored Girls. The picture, written for the screen and directed by Tyler Perry, is based on Ntozake Shange’s Tony Award winning play, “For Colored Girls Who Have Considered Suicide When The Rainbow Is Enuf,” which takes the audience on a poetic exploration of what it is to be a woman of color.
The film has a strong female ensemble cast, including Janet Jackson (TYLER PERRY’S WHY DID I GET MARRIED TOO?, POETIC JUSTICE); Loretta Devine (CRASH); Kimberly Elise (TYLER PERRY’S DIARY OF A MAD BLACK WOMAN, THE GREAT DEBATERS); Macy Gray (LACKAWANNA BLUES); Thandie Newton (CRASH); Phylicia Rashad (“The Cosby Show”); Anika Noni Rose (DREAMGIRLS); Tessa Thompson (MISSISSIPPI DAMNED); Kerry Washington (the upcoming NIGHT CATCHES US); and Whoopi Goldberg (THE COLOR PURPLE). Augme’s AD LIFE mobile marketing platform will enable consumers to interact with movie posters and other marketing collateral to explore added online content, leading up to the film’s expected November 5, 2010 release date.
“Audiences are constantly seeking additional information on the films that interest them,” said David Apple, Chief Marketing Officer at Augme Technologies. “By working with Augme to create this mobile marketing campaign, LIONSGATE is placing that information and rich experience at the prospective audience’s fingertips at the moment their interest is peaked.”
“This is a profound and moving film whose characters will resonate deeply with the audience. Augme worked very closely with us to extend and enrich this relationship through ‘Living Portraits,’ and we are excited to work with them to provide the audience with this level of experience,” said Danielle DePalma, VP, New Media, Theatrical Marketing, LIONSGATE.
FOR COLORED GIRLS weaves together the stories of nine different women — Jo, Tangie, Crystal, Gilda, Kelly, Juanita, Yasmine, Nyla and Alice — as they move into and out of one another’s existences; some are well known to one another, others are as yet strangers. Crises, heartbreaks and crimes will ultimately bring these nine women fully into the same orbit where they will find commonality and understanding. Each will speak her truth as never before. And each will know that she is complete as a human being, glorious and divine in all her colors.
For more information on the film, please visit http://forcoloredgirlsmovie.com/.
Augme is a technology and services leader in interactive media marketing platforms that enable marketers and agencies to seamlessly integrate brands, promotions, video and other digital content through the power of the Internet and mobile communications.
For more information, visit www.augme.com.
Augme announced that it will be joining Lionsgate films as the marketing arm for an upcoming feature film named “For Colored Girls” with a cast featuring several prominent actresses including Whoopi Goldberg.
Augme is a technology and services leader in interactive media marketing solutions that offers the only end-to-end mobile marketing platform. The company announced that it has launched a mobile marketing campaign with LIONSGATE for its upcoming universal-themed feature film, For Colored Girls. The picture, written for the screen and directed by Tyler Perry, is based on Ntozake Shange’s Tony Award winning play, “For Colored Girls Who Have Considered Suicide When The Rainbow Is Enuf,” which takes the audience on a poetic exploration of what it is to be a woman of color.
The film has a strong female ensemble cast, including Janet Jackson (TYLER PERRY’S WHY DID I GET MARRIED TOO?, POETIC JUSTICE); Loretta Devine (CRASH); Kimberly Elise (TYLER PERRY’S DIARY OF A MAD BLACK WOMAN, THE GREAT DEBATERS); Macy Gray (LACKAWANNA BLUES); Thandie Newton (CRASH); Phylicia Rashad (“The Cosby Show”); Anika Noni Rose (DREAMGIRLS); Tessa Thompson (MISSISSIPPI DAMNED); Kerry Washington (the upcoming NIGHT CATCHES US); and Whoopi Goldberg (THE COLOR PURPLE). Augme’s AD LIFE mobile marketing platform will enable consumers to interact with movie posters and other marketing collateral to explore added online content, leading up to the film’s expected November 5, 2010 release date.
“Audiences are constantly seeking additional information on the films that interest them,” said David Apple, Chief Marketing Officer at Augme Technologies. “By working with Augme to create this mobile marketing campaign, LIONSGATE is placing that information and rich experience at the prospective audience’s fingertips at the moment their interest is peaked.”
“This is a profound and moving film whose characters will resonate deeply with the audience. Augme worked very closely with us to extend and enrich this relationship through ‘Living Portraits,’ and we are excited to work with them to provide the audience with this level of experience,” said Danielle DePalma, VP, New Media, Theatrical Marketing, LIONSGATE.
FOR COLORED GIRLS weaves together the stories of nine different women — Jo, Tangie, Crystal, Gilda, Kelly, Juanita, Yasmine, Nyla and Alice — as they move into and out of one another’s existences; some are well known to one another, others are as yet strangers. Crises, heartbreaks and crimes will ultimately bring these nine women fully into the same orbit where they will find commonality and understanding. Each will speak her truth as never before. And each will know that she is complete as a human being, glorious and divine in all her colors.
For more information on the film, please visit http://forcoloredgirlsmovie.com/.
Augme is a technology and services leader in interactive media marketing platforms that enable marketers and agencies to seamlessly integrate brands, promotions, video and other digital content through the power of the Internet and mobile communications.
For more information, visit www.augme.com.
LC Luxuries Limited (PINKSHEETS: LLUX) Prepares for Corporate Name Change to General Cannabis, Inc.
Costa Mesa, California – October 26, 2010 (GLOBENEWSWIRE) -- LC LUXURIES LIMITED (OTCPK: LLUX) (the “Company”) today announced that it has commenced the process to change the Company name from LC Luxuries Limited to General Cannabis, Inc. The Company anticipates the name change to be completed by year end 2010.
James Pakulis, President of LC Luxuries Limited states: “We feel the name General Cannabis more clearly defines our involvement in the cannabis industry. General Cannabis encompasses the divisions that we have or anticipate rolling out such as internet, merchant, medical marketing or management.”
About LC Luxuries Limited (OTCPK: LLUX)
LC Luxuries Limited (OTCPK:LLUX), a Nevada based company with headquarters in Newport Beach, California, continues to operate its historical merchant processing business that was started as a compliment to its online makeup business. The Company is also pursuing complimentary lines of business through its new subsidiary.
About U.S. Cannabis, Inc.
U.S. Cannabis, Inc., a wholly-owned subsidiary of LC Luxuries Limited, is committed to the management of medical clinics for the lawful diagnosis and treatment of patients that may derive benefit from medical marijuana treatments.
About The Equities Group, Inc.
The Global Online Investment Community… The Equities Group, Inc. (herein “TEG”) is a global financial media network which owns and operates our branded specialty divisions, such as www.equities.com and www.worldmarketmedia.com, and manages our strategic network partnerships. TEG is expanding our interlinking portfolio of web properties to create a social network that bridges the world’s financial markets and investment communities. Collectively our sites provide a unique array of news and data on the world’s capital markets and economies.
The TEG team provides interactive advertising, digital IR/PR, journalism, market intelligence, media/marketing, news dissemination, research, video production and ancillary specialty communications services to publicly traded companies worldwide.
Safe Harbor Notice
Certain statements contained herein are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995). LC Luxuries Limited cautions that statements made in this news release relating to the change of control and new business direction constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections or implied results. LC Luxuries Limited undertakes no obligation to revise these statements following the date of this news release.
For more info please contact:
LC Luxuries Limited (OTCPK: LLUX)
James Pakulis – President
1-866-347-5057
James Pakulis, President of LC Luxuries Limited states: “We feel the name General Cannabis more clearly defines our involvement in the cannabis industry. General Cannabis encompasses the divisions that we have or anticipate rolling out such as internet, merchant, medical marketing or management.”
About LC Luxuries Limited (OTCPK: LLUX)
LC Luxuries Limited (OTCPK:LLUX), a Nevada based company with headquarters in Newport Beach, California, continues to operate its historical merchant processing business that was started as a compliment to its online makeup business. The Company is also pursuing complimentary lines of business through its new subsidiary.
About U.S. Cannabis, Inc.
U.S. Cannabis, Inc., a wholly-owned subsidiary of LC Luxuries Limited, is committed to the management of medical clinics for the lawful diagnosis and treatment of patients that may derive benefit from medical marijuana treatments.
About The Equities Group, Inc.
The Global Online Investment Community… The Equities Group, Inc. (herein “TEG”) is a global financial media network which owns and operates our branded specialty divisions, such as www.equities.com and www.worldmarketmedia.com, and manages our strategic network partnerships. TEG is expanding our interlinking portfolio of web properties to create a social network that bridges the world’s financial markets and investment communities. Collectively our sites provide a unique array of news and data on the world’s capital markets and economies.
The TEG team provides interactive advertising, digital IR/PR, journalism, market intelligence, media/marketing, news dissemination, research, video production and ancillary specialty communications services to publicly traded companies worldwide.
Safe Harbor Notice
Certain statements contained herein are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995). LC Luxuries Limited cautions that statements made in this news release relating to the change of control and new business direction constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections or implied results. LC Luxuries Limited undertakes no obligation to revise these statements following the date of this news release.
For more info please contact:
LC Luxuries Limited (OTCPK: LLUX)
James Pakulis – President
1-866-347-5057
3 Things to Know For Today's Trading
Stocks were mixed in Asian trade, but the main indexes were generally lower. Australia fell a half percent, Shanghai lost a third of a percent, while the Nikkei and Hang Seng were off by a fraction. European indexes are broadly lower, with the Footsie down by about three quarters of a percent and the Dax is currently a quarter percent lower. US stock futures are down by a small fraction.
*The Q3 reading of Australian Business Confidence rose six points to 9, taking back some of the considerable 13 point decline seen in the previous quarter.
*The latest reading of German Consumer Confidence was steady at 4.9, a couple tenths short of the forecast.
*The September reading of Germany’s Import Price Index was +0.3%, one tenth more than expected.
*The initial reading of the UK Q3 GDP was twice the estimate, a quarter on quarter gain of 0.8%; but down from the 1.2% pace set in Q2.
*The weekly report on chain store sales from ICSC showed a sales increase of 0.3% on a week on week basis for the week ended October 23. They say sales were up 1.9% for the week when compared to the corresponding week from a year ago and they revised down their October forecast to +2.0% to +2.5%, from a previous estimate for a monthly sales gain of 2.5% to 3.0%. The Johnson Redbook report on the same thing is due out at 7:55am CDT.
*The August reading of the Case/Shiller Home Price is due out at 8:00am CDT, it is expected to show a year on year gain of 2.10%. The October reading of Consumer Confidence is due out at 9:00am CDT, it is forecast to rise to 49.9 from the September result of 48.5. The August reading of the FHFA House Price Index is also scheduled for 9:00am and it is expected to be -0.2% on a month on month basis.
*The October reading of the Richmond Fed’s Manufacturing Index is due out at 9:00am CDT; the estimate is +1, up from -2 the month before.
*The Fed is scheduled to by Treasuries today that are due to expire between 2/15/21 and 8/15/40; the results of the operation will be announced just after 10:00am CDT.
*The Treasury plans to sell $35 billion 2 Year Notes today; the results of the auction will be announced just after noon CDT.
*NY Fedster Dudley is set to speak about the economy at 3:30pm CDT at Rochester University in upstate New York.
*The Q3 reading of Australian Business Confidence rose six points to 9, taking back some of the considerable 13 point decline seen in the previous quarter.
*The latest reading of German Consumer Confidence was steady at 4.9, a couple tenths short of the forecast.
*The September reading of Germany’s Import Price Index was +0.3%, one tenth more than expected.
*The initial reading of the UK Q3 GDP was twice the estimate, a quarter on quarter gain of 0.8%; but down from the 1.2% pace set in Q2.
*The weekly report on chain store sales from ICSC showed a sales increase of 0.3% on a week on week basis for the week ended October 23. They say sales were up 1.9% for the week when compared to the corresponding week from a year ago and they revised down their October forecast to +2.0% to +2.5%, from a previous estimate for a monthly sales gain of 2.5% to 3.0%. The Johnson Redbook report on the same thing is due out at 7:55am CDT.
*The August reading of the Case/Shiller Home Price is due out at 8:00am CDT, it is expected to show a year on year gain of 2.10%. The October reading of Consumer Confidence is due out at 9:00am CDT, it is forecast to rise to 49.9 from the September result of 48.5. The August reading of the FHFA House Price Index is also scheduled for 9:00am and it is expected to be -0.2% on a month on month basis.
*The October reading of the Richmond Fed’s Manufacturing Index is due out at 9:00am CDT; the estimate is +1, up from -2 the month before.
*The Fed is scheduled to by Treasuries today that are due to expire between 2/15/21 and 8/15/40; the results of the operation will be announced just after 10:00am CDT.
*The Treasury plans to sell $35 billion 2 Year Notes today; the results of the auction will be announced just after noon CDT.
*NY Fedster Dudley is set to speak about the economy at 3:30pm CDT at Rochester University in upstate New York.
Monday, October 25, 2010
Zhone Technologies (NASDAQ:ZHNE) Prime Acquisition Target: +22%
Zhone Technologies (NASDAQ:ZHNE) is a popular buy on the exchanges today after announcing its third quarter results last week. Shares of Zhone closed up 22 percent at $2.46 per share on heavy volume of more than 804,000 shares compared to its average daily volume of only 68,000 shares. Is Zhone a prime candidate for a buyout? Some analysts agree.
Thursday evening, Zhone Technologies reported revenues of $33.7M, up fractionally year over year. On the surface, Q3 was nothing to get excited about, but the conference call revealed a very different story.
As it turns out, Zhone’s lackluster sales masked a significant shift in its balance sheet and operating model profile. It also overshadowed the imminent ramp in Broadband Stimulus revenues, as internet providers around the world begin using generous government subsidies to purchase Zhone equipment to build out their high-speed networks.
Specific to the balance sheet and operating model profile, Zhone sold its Oakland campus and leased back only the square-footage it needs to operate. This took them out of the real estate game, wiped out a big chunk of debt, and set the stage for profitability. In fact, the company turned an adjusted-EBITDA profit and stated that it expects that trend to continue.
Net-net, this transaction changed the complexion and quality of its net asset value, which now represents all but $10M of its market cap. In addition, as Zhone returns to profitability, it will not have to pay taxes, due to a build-up of net operating loss carry-forwards.
From an execution standpoint, revenues were not impacted by weak demand. Rather, difficulty in sourcing components was the culprit. In reality, the company added 20 new customers and enjoy expanding gross margins due to the popularity of its new line of products.
Thus, for a $10M enterprise value, investors get shares of a company with a refreshed product line that attracted 20 new customers in the quarter, $22M in annual R&D, $135M in annual revenue, positive EBIDTA, and pent-up demand for its products, stemming from component shortages that held shipments in check. Most importantly, an investor can sit tight for the next 8-10 quarters, because funding from the U.S. government’s Broadband Stimulus Initiative has begun to kick in. This has yet to be reflected in the stock because Zhone only has one analyst covering the company at this time.
It’s clear that ZHNE has just reached a critical turnaround point. Reminiscent of Occam Networks’ story from Q2, component issues accompanied the start of its Broadband Stimulus demand-ramp. That story came to a head last month when Calix announced its intentions to acquire the company for a 40% premium.
It wouldn’t be surprising to see a repeat of that ending, with Calix acquiring Zhone to further consolidate the space. In such a scenario, Calix would likely replicate its plans for Occam (lay-off all non-critical, non-repetitive personnel, resulting in substantial operating margin accretion). In ZHNE’s case, that accretion would likely lead to 30% operating margins. With $148M in 2011 revenues, $44M would drop to the operating line. With NOLs stemming the tax burden, much of this would flow through to net income.
If Calix were to pay just 3x that $44M Zhone’s share price would more than triple from today’s levels. At 6x, the share price would reach double-digits. Coincidentally, Zhone CEO Mory Ejabat was at the forefront of the last major Internet build-out as the CEO of Ascend Communications, which Lucent Technologies acquired for $24B in 1999.
With its new-found profitability and a book value of $1.60 per share, Zhone’s stock only represents 30-cents of downside at current levels, while the upside could be as high as $8. On Wall Street, risk to reward ratios like this don’t last long.
Thursday evening, Zhone Technologies reported revenues of $33.7M, up fractionally year over year. On the surface, Q3 was nothing to get excited about, but the conference call revealed a very different story.
As it turns out, Zhone’s lackluster sales masked a significant shift in its balance sheet and operating model profile. It also overshadowed the imminent ramp in Broadband Stimulus revenues, as internet providers around the world begin using generous government subsidies to purchase Zhone equipment to build out their high-speed networks.
Specific to the balance sheet and operating model profile, Zhone sold its Oakland campus and leased back only the square-footage it needs to operate. This took them out of the real estate game, wiped out a big chunk of debt, and set the stage for profitability. In fact, the company turned an adjusted-EBITDA profit and stated that it expects that trend to continue.
Net-net, this transaction changed the complexion and quality of its net asset value, which now represents all but $10M of its market cap. In addition, as Zhone returns to profitability, it will not have to pay taxes, due to a build-up of net operating loss carry-forwards.
From an execution standpoint, revenues were not impacted by weak demand. Rather, difficulty in sourcing components was the culprit. In reality, the company added 20 new customers and enjoy expanding gross margins due to the popularity of its new line of products.
Thus, for a $10M enterprise value, investors get shares of a company with a refreshed product line that attracted 20 new customers in the quarter, $22M in annual R&D, $135M in annual revenue, positive EBIDTA, and pent-up demand for its products, stemming from component shortages that held shipments in check. Most importantly, an investor can sit tight for the next 8-10 quarters, because funding from the U.S. government’s Broadband Stimulus Initiative has begun to kick in. This has yet to be reflected in the stock because Zhone only has one analyst covering the company at this time.
It’s clear that ZHNE has just reached a critical turnaround point. Reminiscent of Occam Networks’ story from Q2, component issues accompanied the start of its Broadband Stimulus demand-ramp. That story came to a head last month when Calix announced its intentions to acquire the company for a 40% premium.
It wouldn’t be surprising to see a repeat of that ending, with Calix acquiring Zhone to further consolidate the space. In such a scenario, Calix would likely replicate its plans for Occam (lay-off all non-critical, non-repetitive personnel, resulting in substantial operating margin accretion). In ZHNE’s case, that accretion would likely lead to 30% operating margins. With $148M in 2011 revenues, $44M would drop to the operating line. With NOLs stemming the tax burden, much of this would flow through to net income.
If Calix were to pay just 3x that $44M Zhone’s share price would more than triple from today’s levels. At 6x, the share price would reach double-digits. Coincidentally, Zhone CEO Mory Ejabat was at the forefront of the last major Internet build-out as the CEO of Ascend Communications, which Lucent Technologies acquired for $24B in 1999.
With its new-found profitability and a book value of $1.60 per share, Zhone’s stock only represents 30-cents of downside at current levels, while the upside could be as high as $8. On Wall Street, risk to reward ratios like this don’t last long.
PetSmart (Nasdaq:PETM): Halloween Costumes for Dogs and Martha Stewart
Refresh introduces the health and wellness section within select stores. In conjunction with the rollout of GNC product in stores, a new Health and Wellness section has been added to the front 1/3 of select stores. The space takes up one full and widened aisle within the store, with three to four stand-alone gondolas added to promote supplements, including the new line of GNC product. GNC product is displayed in 20 linear feet of gondola space in three five-height rack faces.
Additional product includes supplements from other brands as well as natural pet care products. Work was completed by third parties in a series of overnight shifts in stores, limiting disruption to operations during regular store hours. This marks the fourth major floor reset in the past year.
New in-store signage and expansion of runways increases visibility, adds space for seasonal product in high-traffic areas. This refresh also introduced new hanging in-store signage throughout select stores, and has led to a widening of runways in some stores (30% of stores visited.) New signage introduces a more upscale presentation (wood-look displays with a consistent wave pattern) with ceiling-hung signage directing customers to individual sections of the store (Dog, Cat, Grooming Supplies, Health and Wellness etc.) Widening of the runways improves visibility throughout the store and allows for the addition of incremental seasonal displays and Martha Stewart product in high-traffic areas of the store, according to our checks.
Increasing private label penetration in hardgoods. We noted a substantial increase of private label product penetration within the hardgoods section of stores. In particular, a significantly larger portion of leash and collar and chew toy floor sets are now allocated to private label product, 40% of toy product, greater than 60% of leash and collar product. With private label margin benefit of 750-1,000bp, we project possible accretion to margins of 50bp, and $0.16 contribution to EPS over the next three to five years.
Commentary on Martha Stewart product largely positive. Store employees indicated that the initial launch of Martha Stewart product has been favorable, with product helping drive ticket as customers add higher-price point Martha Stewart product to baskets. In addition, traffic is seeing a modest benefit as Martha Stewart customers are more frequent shoppers than the average PetSmart customers. Our checks suggest healthy sell-through with broken assortments of several product lines. Price points have been adjusted on some product to help ensure sell-through, particularly of seasonal product (halloween costumes, select collars.)
Additional product includes supplements from other brands as well as natural pet care products. Work was completed by third parties in a series of overnight shifts in stores, limiting disruption to operations during regular store hours. This marks the fourth major floor reset in the past year.
New in-store signage and expansion of runways increases visibility, adds space for seasonal product in high-traffic areas. This refresh also introduced new hanging in-store signage throughout select stores, and has led to a widening of runways in some stores (30% of stores visited.) New signage introduces a more upscale presentation (wood-look displays with a consistent wave pattern) with ceiling-hung signage directing customers to individual sections of the store (Dog, Cat, Grooming Supplies, Health and Wellness etc.) Widening of the runways improves visibility throughout the store and allows for the addition of incremental seasonal displays and Martha Stewart product in high-traffic areas of the store, according to our checks.
Increasing private label penetration in hardgoods. We noted a substantial increase of private label product penetration within the hardgoods section of stores. In particular, a significantly larger portion of leash and collar and chew toy floor sets are now allocated to private label product, 40% of toy product, greater than 60% of leash and collar product. With private label margin benefit of 750-1,000bp, we project possible accretion to margins of 50bp, and $0.16 contribution to EPS over the next three to five years.
Commentary on Martha Stewart product largely positive. Store employees indicated that the initial launch of Martha Stewart product has been favorable, with product helping drive ticket as customers add higher-price point Martha Stewart product to baskets. In addition, traffic is seeing a modest benefit as Martha Stewart customers are more frequent shoppers than the average PetSmart customers. Our checks suggest healthy sell-through with broken assortments of several product lines. Price points have been adjusted on some product to help ensure sell-through, particularly of seasonal product (halloween costumes, select collars.)
Friday, October 22, 2010
Even the Governator Supports the Legalization of Marijuana
Let's put aside any personal qualms about marijuana and look at a very real problem-debt. The U.S. national public debt now stands at a shade over $13 trillion. To put that number in perspective, our national debt is larger than the total economies of the United Kingdom, China, and Australia combined. Every American worker's share of the national debt is more than $80,000. Do you have 80 grand to toss Uncle Sam?
Now, think about the revenue generated by another one of America's favorite vices-tobacco. The federal tax on a pack of cigarettes is $1.01. Last year, states collected more than $19 billion in cigarette taxes. It doesn't take a genius, or even a halfway smart person, to see the huge fiscal opportunities afforded by the potential legalization and taxation of marijuana. By taking the drug trade out of the hands of dealers and cartels, not only would the exorbitant prices of marijuana go down, but there could potentially be more tax revenue in marijuana than in tobacco or alcohol.
And let's go ahead and dispel some of the myths of marijuana usage. There are approximately 440,000 smoking-related deaths per year in the U.S. Cigarettes are made with an addictive substance called nicotine (maybe you've heard of it). On the other hand, marijuana is non-lethal and is not processed or chemically altered. It is virtually impossible to overdose from smoking weed. In fact, the only way marijuana could kill you is if you were to eat a massive amount of it (like, say, a healthy portion of your body weight),
Over 25,000 deaths per year in the U.S. are a result of drunk-driving accidents, yet alcohol is legal. Why? Because it is something that everybody wants, and it generates big business. Studies show that drivers under the influence of marijuana, unlike drivers under the influence of alcohol, tend to be more aware of their impairment and drive more cautiously. This is not to say you should smoke a joint and jump behind the wheel of a car, but it is only fair to weigh the effects of a substance that is legal but more judgment-impairing versus a substance that is illegal yet safer in many cases.
Some say the wacky tobacky makes you lazy. Aren't we already there? Would the moderate consumption of marijuana make you lazier than, say, the consumption of several beers? Aren't all of these things just a means to kicking back and taking it easy for a while?
We already know some of the positive effects of marijuana. Doctors prescribe it for numerous illnesses such as depression, bipolar disorder, alcohol abuse (oh the irony!), ADHD, Parkinson's Disease, and posttraumatic stress disorder among others. Studies even show that THC, the active ingredient in marijuana, prevents the formation of deposits in the brain associated with Alzheimer's disease.
With all of these proven benefits, plus limited harmful effects when used recreationally, there is no reason that marijuana should not be legal.
Now, think about the revenue generated by another one of America's favorite vices-tobacco. The federal tax on a pack of cigarettes is $1.01. Last year, states collected more than $19 billion in cigarette taxes. It doesn't take a genius, or even a halfway smart person, to see the huge fiscal opportunities afforded by the potential legalization and taxation of marijuana. By taking the drug trade out of the hands of dealers and cartels, not only would the exorbitant prices of marijuana go down, but there could potentially be more tax revenue in marijuana than in tobacco or alcohol.
And let's go ahead and dispel some of the myths of marijuana usage. There are approximately 440,000 smoking-related deaths per year in the U.S. Cigarettes are made with an addictive substance called nicotine (maybe you've heard of it). On the other hand, marijuana is non-lethal and is not processed or chemically altered. It is virtually impossible to overdose from smoking weed. In fact, the only way marijuana could kill you is if you were to eat a massive amount of it (like, say, a healthy portion of your body weight),
Over 25,000 deaths per year in the U.S. are a result of drunk-driving accidents, yet alcohol is legal. Why? Because it is something that everybody wants, and it generates big business. Studies show that drivers under the influence of marijuana, unlike drivers under the influence of alcohol, tend to be more aware of their impairment and drive more cautiously. This is not to say you should smoke a joint and jump behind the wheel of a car, but it is only fair to weigh the effects of a substance that is legal but more judgment-impairing versus a substance that is illegal yet safer in many cases.
Some say the wacky tobacky makes you lazy. Aren't we already there? Would the moderate consumption of marijuana make you lazier than, say, the consumption of several beers? Aren't all of these things just a means to kicking back and taking it easy for a while?
We already know some of the positive effects of marijuana. Doctors prescribe it for numerous illnesses such as depression, bipolar disorder, alcohol abuse (oh the irony!), ADHD, Parkinson's Disease, and posttraumatic stress disorder among others. Studies even show that THC, the active ingredient in marijuana, prevents the formation of deposits in the brain associated with Alzheimer's disease.
With all of these proven benefits, plus limited harmful effects when used recreationally, there is no reason that marijuana should not be legal.
Servidyne (NASDAQ:SERV) Jumps +43%: Starts Work on $5.8M Georgia Project
Shares of Servidyne (NASDAQ:SERV) jumped nearly 43 percent today after announcing that it has started work on its $5.8 million Georgia project. In mid-day trading, shares of Servidyne had given back some ground to $2.81 per share on heavy volume of nearly 300,000 shares compared to its average daily volume of only 4,000 shares. This lightly traded stock has a market cap. of just over $10 million and a 52-week range between $1.53 and $7.24.
Servidyne announced that it is starting work on an approximately $5.8 million design-build retro-commissioning (RCx) project for the Georgia Department of Corrections (GDC), under a contract with the Georgia Environmental Finance Authority (GEFA). The project is the second largest of the 135 energy efficiency projects being coordinated by GEFA as a result of the State’s receipt of $63.1 million through the American Recovery and Reinvestment Act (ARRA). Upon its completion, the State estimates that this RCx project will save Georgia’s taxpayers more than $2 million a year in avoided energy costs.
Servidyne’s engineers will immediately commence the process of auditing more than 170 buildings at 60 GDC locations in order to identify and prioritize the energy savings opportunities that can be achieved through retro-commissioning. Servidyne will then perform the energy savings work at the approximately 5.64 million square feet of GDC facilities over the next 12 to 15 months, with the assistance of local contractors and other small businesses.
“Servidyne was awarded this project in August, as we reported in our recent SEC Form 10-Q Quarterly Report, and it represents a significant contract for our Company on many levels,” noted Alan R. Abrams, Servidyne’s Chairman and CEO. “First and foremost, it is a great honor and opportunity, and we are pleased to have been selected by GEFA based on our corporate experience and expertise. It also is an important and ambitious endeavor for our home state, and we believe it represents one of the nation’s largest retro-commissioning projects currently underway. This energy savings project will employ dozens of contractors, and should benefit a number of small business owners throughout the State.”
Retro-commissioning is the systematic process of assessing and then improving the overall energy efficiency of existing building systems. Upgrades and changes implemented during RCx projects may include optimizing building controls, restoring building equipment and systems to their original settings, optimizing HVAC systems, and reducing facility water consumption. The focus of RCx is to identify low cost energy efficiency improvement opportunities that offer short and simple financial paybacks.
Established in 1925, Servidyne, Inc. is headquartered in Atlanta, Georgia, and operates globally through its wholly–owned subsidiaries. The Company provides comprehensive energy efficiency and demand response solutions, sustainability programs, and other products and services that significantly enhance the operating and financial performance of existing buildings.
For more information, please visit www.servidyne.com
US Cannabis, Inc. Signs Letter Of Intent To Control Marketing & Advertising for 10 medical marijuana clinics
Costa Mesa, California – October 22, 2010 (GLOBENEWSWIRE) -- LC LUXURIES LIMITED (OTCPK: LLUX) (the “Company”) today announced that through its subsidiary, US Cannabis, Inc., it has entered into a Letter of Intent with Synergistic Resources, LLC dba Marijuana Medicine Evaluation Centers, to assume all marketing and advertising responsibilities for 10 medical marijuana offices located in California. Synergistic Resources, LLC specializes in providing management expertise to the medical marijuana industry including, but not limited to, site location, staffing, administration and human resources.
Brent Inzer, President of Synergistic Resources, states: “LC Luxuries has exceptional SEO talent and we truly believe they’re the best in the internet industry to drive traffic to the clinics. In addition, their seasoned management team truly understands the medical marijuana industry. We could not have found a better partner.”
Doug Francis, CEO of the Company agrees: “By providing our internet expertise to the existing template that Synergistic Resources has created, we believe we will create growth for both companies.”
About LC Luxuries Limited (OTCPK: LLUX)
LC Luxuries Limited (OTCPK:LLUX), a Nevada based company with headquarters in Newport Beach, California, continues to operate its historical merchant processing business that was started as a compliment to its online makeup business. The Company is also pursuing complimentary lines of business through its new subsidiary.
About U.S. Cannabis, Inc.
U.S. Cannabis, Inc., a wholly-owned subsidiary of LC Luxuries Limited, is committed to the management of medical clinics for the lawful diagnosis and treatment of patients that may derive benefit from medical marijuana treatments.
About The Equities Group, Inc.
The Global Online Investment Community… The Equities Group, Inc. (herein “TEG”) is a global financial media network which owns and operates our branded specialty divisions, such as www.equities.com and www.worldmarketmedia.com, and manages our strategic network partnerships. TEG is expanding our interlinking portfolio of web properties to create a social network that bridges the world’s financial markets and investment communities. Collectively our sites provide a unique array of news and data on the world’s capital markets and economies.
The TEG team provides interactive advertising, digital IR/PR, journalism, market intelligence, media/marketing, news dissemination, research, video production and ancillary specialty communications services to publicly traded companies worldwide.
Safe Harbor Notice
Certain statements contained herein are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995). LC Luxuries Limited cautions that statements made in this news release relating to the change of control and new business direction constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections or implied results. LC Luxuries Limited undertakes no obligation to revise these statements following the date of this news release.
For info please contact:
LC Luxuries Limited (OTCPK: LLUX)
James Pakulis – President
1-866-347-5057
Brent Inzer, President of Synergistic Resources, states: “LC Luxuries has exceptional SEO talent and we truly believe they’re the best in the internet industry to drive traffic to the clinics. In addition, their seasoned management team truly understands the medical marijuana industry. We could not have found a better partner.”
Doug Francis, CEO of the Company agrees: “By providing our internet expertise to the existing template that Synergistic Resources has created, we believe we will create growth for both companies.”
About LC Luxuries Limited (OTCPK: LLUX)
LC Luxuries Limited (OTCPK:LLUX), a Nevada based company with headquarters in Newport Beach, California, continues to operate its historical merchant processing business that was started as a compliment to its online makeup business. The Company is also pursuing complimentary lines of business through its new subsidiary.
About U.S. Cannabis, Inc.
U.S. Cannabis, Inc., a wholly-owned subsidiary of LC Luxuries Limited, is committed to the management of medical clinics for the lawful diagnosis and treatment of patients that may derive benefit from medical marijuana treatments.
About The Equities Group, Inc.
The Global Online Investment Community… The Equities Group, Inc. (herein “TEG”) is a global financial media network which owns and operates our branded specialty divisions, such as www.equities.com and www.worldmarketmedia.com, and manages our strategic network partnerships. TEG is expanding our interlinking portfolio of web properties to create a social network that bridges the world’s financial markets and investment communities. Collectively our sites provide a unique array of news and data on the world’s capital markets and economies.
The TEG team provides interactive advertising, digital IR/PR, journalism, market intelligence, media/marketing, news dissemination, research, video production and ancillary specialty communications services to publicly traded companies worldwide.
Safe Harbor Notice
Certain statements contained herein are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995). LC Luxuries Limited cautions that statements made in this news release relating to the change of control and new business direction constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections or implied results. LC Luxuries Limited undertakes no obligation to revise these statements following the date of this news release.
For info please contact:
LC Luxuries Limited (OTCPK: LLUX)
James Pakulis – President
1-866-347-5057
5 Things to Know Before Trading
Stocks were mixed in Asian trade. The Nikkei and Australia both managed a gain of a half percent, while the Hang Seng lost that much and Shanghai was down a quarter percent. European indexes are little changed on the session; the Footsie is off by a quarter percent and the Dax is essentially unchanged. US stock futures are up a fraction.
*The Q3 reading of Australia’s Import Price Index rose 0.7% on a quarter on quarter basis, more than the unchanged forecast; the Export Price Index was up 7.8%, almost double the expectation, but well below the 16.1% Q1 gain.
*The October reading of Germany’s IFO index of the Business Climate was up almost one point to 107.6; that’s a new high for the move and the best reading since May 2007.
*G20 finance ministers and central bankers are meeting in Gyeongju, South Korea in a two day session that is meant to set the stage for the G20 leadership meeting next month. Currency is likely to be the heart of the debate.
*The Fed is scheduled to buy Treasuries today that are due to mature between 4/15/13 and 9/30/14; the results of the operation will be announced just after 10:00am CDT.
*Philly Fed boss Plosser is scheduled to speak about regulatory reform at noon CDT.
*The Q3 reading of Australia’s Import Price Index rose 0.7% on a quarter on quarter basis, more than the unchanged forecast; the Export Price Index was up 7.8%, almost double the expectation, but well below the 16.1% Q1 gain.
*The October reading of Germany’s IFO index of the Business Climate was up almost one point to 107.6; that’s a new high for the move and the best reading since May 2007.
*G20 finance ministers and central bankers are meeting in Gyeongju, South Korea in a two day session that is meant to set the stage for the G20 leadership meeting next month. Currency is likely to be the heart of the debate.
*The Fed is scheduled to buy Treasuries today that are due to mature between 4/15/13 and 9/30/14; the results of the operation will be announced just after 10:00am CDT.
*Philly Fed boss Plosser is scheduled to speak about regulatory reform at noon CDT.
Thursday, October 21, 2010
VyStar (OTCBB:VYST): A Leader in Natural Rubber Latex
Bill Doyle is President and CEO of Vystar® Corporation. Prior to joining Vystar, Mr. Doyle was Vice President of Marketing, Women’s Health for Matria Healthcare, Inc. (now Alere) where he spearheaded the initial branding efforts and held responsibility for sales development, training, public relations, and marketing. He has worked in many aspects of healthcare for over 30 years encompassing manufacturing, sales, marketing and advertising with such companies as Isolyser Company, Inc., McGaw, Inc., Lederle Laboratories (now Pfizer), and in an advertising capacity for Novartis Ophthalmics.
Vystar was founded in 2000 and has been dedicated to creating natural rubber latex with all the desired properties of latex while significantly reducing the allergy-causing proteins. The company spent the early years of 2001 to 2007 focusing on the development and testing of the product that is now multi-patented and known as Vytex® Natural Rubber Latex (NRL).
In 2008 and 2009, Vystarfinalized a series of manufacturing agreements. Later in 2009, the first product made with the revolutionary Vytex NRL, the Envy™ Ultra Thin condom, was manufactured by Alatech Healthcare LLC of Eufaula, Alabama. Vystar is working with manufacturers across a broad range of consumer and medical products to bring Vytex NRL to market in adhesives, surgical and exam gloves and other medical devices elastic threads and natural rubber latex foam mattresses, pillows and sponges.
Below is a recent interview I thought interesting:
MO:
This is a remarkable development, creating natural rubber latex without the properties that potentially can cause allergic reactions. The question comes to mind, why didn’t anyone do this sooner? What was the driver that caused you to take on this development challenge of creating Vytex® NRL?
Bill:
Researchers had been searching for many years for a process that could reduce the amount of allergy-causing proteins in natural rubber latex. The major step leading to the production of Vytex® NRL arrived several years ago, with the scientific discovery that a well-known protein binding chemical known as aluminum hydroxide, or Al(OH)3, could play a key role in the process. By adding aluminum hydroxide to natural rubber latex while the latter is still in liquid form, the compound acts as a binding agent, producing protein complexes within the latex. These complexes can subsequently be removed from the latex using existing industry practices. This removal process has received multiple patents for Vystar, and has served as a motivation for us to market Vytex NRL to a wide range of manufacturers who employ natural rubber latex and synthetic alternatives in their product lines.
MO:
With latex used in many situations, including the medical field, this has to be ground breaking. What are some of the applications of this newly developed alternative?
Bill:
More than 40,000 types of commercial products are made from natural rubber latex, so the potential applications of Vytex NRL are extremely wide-ranging. In addition to the Envy™ Ultra Thin condom already on the market, we envision Vytex as a component in surgical and examination gloves, toy balloons, foam mattresses and pillows, adhesive bandages, and threads. It could also be used in food and medical packaging and spray adhesives used in the furniture industry. Other medical applications could include catheters, rubber masks, head straps, rubber tourniquets, rubber nasal-oropharyngeal airways, teeth protectors, bite blocks, blood pressure cuffs, tubing and breathing bags, and that’s just a start.
MO:
How does this new, better latex product fit into the “green” movement? Are there environmental considerations at work here as well?
Bill:
Natural rubber latex is biodegradable, and unlike most synthetics, Vytex NRL uses green chemistry to modify pure latex and so retains its biodegradability. In contrast, many alternatives such as PVC vinyl, styrene, nitrile, choloroprene and polyurethane, which are made from petrochemical derivatives, are neither biodegradable nor compostable. The incineration of those synthetic products can lead to the liberation of toxins and carcinogens, such as dioxin, cyanide, vinyl chlorides, and hydrogen chloride.
One study conducted at a latex surgical glove manufacturing plant in India further illustrates Vytex’s green properties. During a period when the plant was producing 110,000 pairs of latex gloves daily, the amount of water consumed during the traditional rinsing and leaching procedure associated with standard latex was 36 kiloliters per day. In comparison, using Vytex would require only 14.4 kiloliters per day. The difference amounted to a savings of $108,000 annually. At the same plant, the daily energy consumption associated with the use of standard latex amounted to 684,000 kilocalories per kilowatt-hour; the corresponding figure for Vytex would be 288,000 Kcal/Kwh. Here the annual savings came to $364,500. Summing these figures shows that the plant could save itself $472,500 by using Vytex.
MO:
I’ve read about some of the benefits of using Vytex NRL, such as the fact that balloons made with the material can retain air and helium longer than untreated NRL. Are there other benefits that result as byproducts of the drive to reduce allergic reactions?
Bill:
Yes there are. The protein removal process yields latex products that exhibit significantly greater clarity and less odor without giving up the characteristics that give NRL its specific advantages. In addition, results from field evaluations suggest that Vytex NRL paves the way for products with a cleaner appearance, an improved color, and better shear stability and gel time compared to untreated natural rubber latex, in addition to the improved air and helium retention rates in balloons.
MO:
What means are you using to market and spread the word about Vytex NRL? What has the industry reaction been?
Bill:
We are spreading the word by presenting research at industry conferences, waging an ambitious public relations campaign, and conducting outreach to prospective corporate partners across various industries. I maintain a busy speaking schedule; this past March, I traveled to Amsterdam in the Netherlands to present a paper I co-wrote on the cost and performance benefits of Vytex NRL to the Sixth International Latex & Synthetic Polymer Dispersions Conference there. At the end of September, Dr. Ranjit Matthan, VystarTechnical Consultant and a leading expert in latex technology, will present the paper at the 5th International Rubber Glove Conference & Exhibition 2010 in Kuala Lumpur, Malaysia. Articles on Vytex continue to appear in publications targeting specific industries. The reaction has been quite positive to date. Alatech was the first to incorporate Vytex into a consumer product, the Envy™ Ultra Thin condom. More recently, we have secured a licensing agreement with Central America’s largest latex producer to manufacture and sell Vytex throughout South America. And we are negotiating with an Asian-based company that has expressed interest in developing and marketing surgical gloves featuring Vytex within Europe, the US and Asia.
MO:
Was there ever a point in the development process where you thought that you might not be able to produce the product you had envisioned? If so, what got you through those times? If not, how did you manage that much faith?
Bill:
The development of what would become Vytex NRL lingered for several years while our founder dabbled in other projects and tested multiple methods to achieve the necessary protein reduction. The results were mixed and the project shelved in 2003. I came on-board in 2004, creating the business plan that would evolve into the first of four PPM raises and the initial cash, primarily from healthcare personnel, needed to fund the next stage R&D. A second PPM followed in 2005 but was hindered by the stagnant investment market and it closed with only a third raised and the company ran out of money that year. To keep the doors open I secured other investments to fund mandatory operations and keep R&D on track.
During this critical time came the breakthrough research and the first of two patents for aluminum hydroxide modified latex prior to vulcanization. Vytex NRL was now a reality and the next three years eventful; full scale production in Malaysia and commercial launch of Vytex NRL, two more PPMs, two FDA 510(k) market clearances for exam gloves and condoms, toll manufacturing and licensing agreements with leading processors in Malaysia and Guatemala, and, mid 2009, Vystar became a public company (OTCCBB: VYST).
Confidence in the final product and the science behind it were the hallmarks that kept the Vystar team focused and determined during the financial crisis that almost robbed Vystar’s future.
Vystar was founded in 2000 and has been dedicated to creating natural rubber latex with all the desired properties of latex while significantly reducing the allergy-causing proteins. The company spent the early years of 2001 to 2007 focusing on the development and testing of the product that is now multi-patented and known as Vytex® Natural Rubber Latex (NRL).
In 2008 and 2009, Vystarfinalized a series of manufacturing agreements. Later in 2009, the first product made with the revolutionary Vytex NRL, the Envy™ Ultra Thin condom, was manufactured by Alatech Healthcare LLC of Eufaula, Alabama. Vystar is working with manufacturers across a broad range of consumer and medical products to bring Vytex NRL to market in adhesives, surgical and exam gloves and other medical devices elastic threads and natural rubber latex foam mattresses, pillows and sponges.
Below is a recent interview I thought interesting:
MO:
This is a remarkable development, creating natural rubber latex without the properties that potentially can cause allergic reactions. The question comes to mind, why didn’t anyone do this sooner? What was the driver that caused you to take on this development challenge of creating Vytex® NRL?
Bill:
Researchers had been searching for many years for a process that could reduce the amount of allergy-causing proteins in natural rubber latex. The major step leading to the production of Vytex® NRL arrived several years ago, with the scientific discovery that a well-known protein binding chemical known as aluminum hydroxide, or Al(OH)3, could play a key role in the process. By adding aluminum hydroxide to natural rubber latex while the latter is still in liquid form, the compound acts as a binding agent, producing protein complexes within the latex. These complexes can subsequently be removed from the latex using existing industry practices. This removal process has received multiple patents for Vystar, and has served as a motivation for us to market Vytex NRL to a wide range of manufacturers who employ natural rubber latex and synthetic alternatives in their product lines.
MO:
With latex used in many situations, including the medical field, this has to be ground breaking. What are some of the applications of this newly developed alternative?
Bill:
More than 40,000 types of commercial products are made from natural rubber latex, so the potential applications of Vytex NRL are extremely wide-ranging. In addition to the Envy™ Ultra Thin condom already on the market, we envision Vytex as a component in surgical and examination gloves, toy balloons, foam mattresses and pillows, adhesive bandages, and threads. It could also be used in food and medical packaging and spray adhesives used in the furniture industry. Other medical applications could include catheters, rubber masks, head straps, rubber tourniquets, rubber nasal-oropharyngeal airways, teeth protectors, bite blocks, blood pressure cuffs, tubing and breathing bags, and that’s just a start.
MO:
How does this new, better latex product fit into the “green” movement? Are there environmental considerations at work here as well?
Bill:
Natural rubber latex is biodegradable, and unlike most synthetics, Vytex NRL uses green chemistry to modify pure latex and so retains its biodegradability. In contrast, many alternatives such as PVC vinyl, styrene, nitrile, choloroprene and polyurethane, which are made from petrochemical derivatives, are neither biodegradable nor compostable. The incineration of those synthetic products can lead to the liberation of toxins and carcinogens, such as dioxin, cyanide, vinyl chlorides, and hydrogen chloride.
One study conducted at a latex surgical glove manufacturing plant in India further illustrates Vytex’s green properties. During a period when the plant was producing 110,000 pairs of latex gloves daily, the amount of water consumed during the traditional rinsing and leaching procedure associated with standard latex was 36 kiloliters per day. In comparison, using Vytex would require only 14.4 kiloliters per day. The difference amounted to a savings of $108,000 annually. At the same plant, the daily energy consumption associated with the use of standard latex amounted to 684,000 kilocalories per kilowatt-hour; the corresponding figure for Vytex would be 288,000 Kcal/Kwh. Here the annual savings came to $364,500. Summing these figures shows that the plant could save itself $472,500 by using Vytex.
MO:
I’ve read about some of the benefits of using Vytex NRL, such as the fact that balloons made with the material can retain air and helium longer than untreated NRL. Are there other benefits that result as byproducts of the drive to reduce allergic reactions?
Bill:
Yes there are. The protein removal process yields latex products that exhibit significantly greater clarity and less odor without giving up the characteristics that give NRL its specific advantages. In addition, results from field evaluations suggest that Vytex NRL paves the way for products with a cleaner appearance, an improved color, and better shear stability and gel time compared to untreated natural rubber latex, in addition to the improved air and helium retention rates in balloons.
MO:
What means are you using to market and spread the word about Vytex NRL? What has the industry reaction been?
Bill:
We are spreading the word by presenting research at industry conferences, waging an ambitious public relations campaign, and conducting outreach to prospective corporate partners across various industries. I maintain a busy speaking schedule; this past March, I traveled to Amsterdam in the Netherlands to present a paper I co-wrote on the cost and performance benefits of Vytex NRL to the Sixth International Latex & Synthetic Polymer Dispersions Conference there. At the end of September, Dr. Ranjit Matthan, VystarTechnical Consultant and a leading expert in latex technology, will present the paper at the 5th International Rubber Glove Conference & Exhibition 2010 in Kuala Lumpur, Malaysia. Articles on Vytex continue to appear in publications targeting specific industries. The reaction has been quite positive to date. Alatech was the first to incorporate Vytex into a consumer product, the Envy™ Ultra Thin condom. More recently, we have secured a licensing agreement with Central America’s largest latex producer to manufacture and sell Vytex throughout South America. And we are negotiating with an Asian-based company that has expressed interest in developing and marketing surgical gloves featuring Vytex within Europe, the US and Asia.
MO:
Was there ever a point in the development process where you thought that you might not be able to produce the product you had envisioned? If so, what got you through those times? If not, how did you manage that much faith?
Bill:
The development of what would become Vytex NRL lingered for several years while our founder dabbled in other projects and tested multiple methods to achieve the necessary protein reduction. The results were mixed and the project shelved in 2003. I came on-board in 2004, creating the business plan that would evolve into the first of four PPM raises and the initial cash, primarily from healthcare personnel, needed to fund the next stage R&D. A second PPM followed in 2005 but was hindered by the stagnant investment market and it closed with only a third raised and the company ran out of money that year. To keep the doors open I secured other investments to fund mandatory operations and keep R&D on track.
During this critical time came the breakthrough research and the first of two patents for aluminum hydroxide modified latex prior to vulcanization. Vytex NRL was now a reality and the next three years eventful; full scale production in Malaysia and commercial launch of Vytex NRL, two more PPMs, two FDA 510(k) market clearances for exam gloves and condoms, toll manufacturing and licensing agreements with leading processors in Malaysia and Guatemala, and, mid 2009, Vystar became a public company (OTCCBB: VYST).
Confidence in the final product and the science behind it were the hallmarks that kept the Vystar team focused and determined during the financial crisis that almost robbed Vystar’s future.
There is No Such Thing as Bad Publicity
High-tech basketball shoes banned by NBA? Advertising is a funny thing.
Somebody once said that there is no such thing as bad publicity, and that is being proved today in the news and on blogs nation-wide, today.
Athletic Propulsion Labs has designed and produced a new kind of shoe for basketball players.
It is not uncommon for a sports shoe manufacturer to imply that you can run faster, jump higher, and perform better all around with whatever shoe they have to sell.
This time, it seems, there is some truth to it.
The Concept 1 shoe at $300 a pair has been designed to help increase the wearer’s vertical jump, and they show the results of the study of a pair of PHDs on their site.
While the results shown are not a radical increase in the height of a jump, if the numbers are true, the amount of increase is significant statistically.
The self-funded and presented report is not what sells this expensive shoe. What sells it is the NBA’s decision to BAN the shoe from professional sports.
One blogger (KicksOnFire) had the opportunity to try out these new shoes, and wrote a glowing review of them.
LALate is discussing why these shows are being banned from play by the NBA, and The Business Insider Sports Page agrees with us that the NBA’s move to ban this shoe will pretty much ensure that they are commercial success.
While an endorsement by the NBA would have been a real feather in their caps, Athletic Propulsion Labs will not, at the end of the day, be hurt in any way by the banning of the Concept 1 shoe.
More to the point, as there are a great many more basketball player wannabes than there are professional players, the non-pro market is an incredible niche to be in.
We foresee that the Concept 1 shoe, and those that come after it, will be a huge success.
We are guessing that even now knockoff shoes are being planned, and possibly are already on the way to the market.
For more information, visit: http://www.athleticpropulsionlabs.com/.
Somebody once said that there is no such thing as bad publicity, and that is being proved today in the news and on blogs nation-wide, today.
Athletic Propulsion Labs has designed and produced a new kind of shoe for basketball players.
It is not uncommon for a sports shoe manufacturer to imply that you can run faster, jump higher, and perform better all around with whatever shoe they have to sell.
This time, it seems, there is some truth to it.
The Concept 1 shoe at $300 a pair has been designed to help increase the wearer’s vertical jump, and they show the results of the study of a pair of PHDs on their site.
While the results shown are not a radical increase in the height of a jump, if the numbers are true, the amount of increase is significant statistically.
The self-funded and presented report is not what sells this expensive shoe. What sells it is the NBA’s decision to BAN the shoe from professional sports.
One blogger (KicksOnFire) had the opportunity to try out these new shoes, and wrote a glowing review of them.
LALate is discussing why these shows are being banned from play by the NBA, and The Business Insider Sports Page agrees with us that the NBA’s move to ban this shoe will pretty much ensure that they are commercial success.
While an endorsement by the NBA would have been a real feather in their caps, Athletic Propulsion Labs will not, at the end of the day, be hurt in any way by the banning of the Concept 1 shoe.
More to the point, as there are a great many more basketball player wannabes than there are professional players, the non-pro market is an incredible niche to be in.
We foresee that the Concept 1 shoe, and those that come after it, will be a huge success.
We are guessing that even now knockoff shoes are being planned, and possibly are already on the way to the market.
For more information, visit: http://www.athleticpropulsionlabs.com/.
World Market Media and Equities.com Merge – Name Changed to The Equities Group
A global financial-media network delivering superior stock market news, data, investor education and research for active investors.
Los Angeles, CA -- October 21, 2010 (GLOBE NEWSWIRE) -- World Market Media, Inc., announced today that the Company has completed its merger with Equities.com and has been renamed The Equities Group, Inc.
The Equities Group is expanding its interlinking portfolio of Web properties to create a social network that bridges the world’s financial markets and investment communities. The company is beta-testing its flagship financial information portal, Equities.com. WorldMarketMedia.com will continue to deliver market news coverage and commentary on emerging growth companies in the U.S. and abroad.
David Bernard, the former Executive Editor of Equities Magazine, has become chairman of the company. Michael Avatar has taken the role of president and Ronald Russo, the founder of World Market Media, will serve as CEO.
Ronald Russo stated, “Since launching WorldMarketMedia.com in January of 2009, we have seen a significant increase in Web traffic, including followers of our commentary and financial media programming. With the merger of Equities.com, we will be able to leverage revenue and cost synergies that will allow us to expedite the growth of our Global Listing Exchange and our combined global audiences.”
David Bernard added, “We are very excited and extremely pleased that World Market Media, and its partners, have teamed with us to build out the best financial-media and social network portal in the world. Our combined family of sites will have more of the insights, commentary, education and information that retail and active investors crave.”
“The combination of our two organizations provides an extensive network and knowledge base in the financial-media industry. As with our other past endeavors, we are focused on providing the best quality content and experience for our readers and users of our family of sites,” said Michael Avatar, president.
Additionally Enzo Villani, president and CEO of Villani Advisors, a WorldMarketMedia.com seed investor and advisory board member, will continue his role. Brett Pojunis, CEO of NewMediaPlus, a WorldMarketMedia.com advisory board member, will also continue. Jeffrey Hart of Hart Partners introduced the merger candidates and has joined as advisory board member.
About The Equities Group
The Global Online Investment Community … The Equities Group, Inc., is a global financial-media network that owns and operates its branded specialty divisions and manages its strategic network partnerships. The Equities Group is expanding its interlinking portfolio of Web properties to create a social network that bridges the world’s financial markets and investment communities. Collectively, its sites provide a unique array of news and data on the world’s capital markets and economies.
The Equities Group provides interactive advertising, digital IR/PR, journalism, market intelligence, media/marketing, news dissemination, research, video production and ancillary specialty communications services to publicly traded companies worldwide.
Disclaimer/Disclosure: Certain statements contained herein are “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995). The Equities Group, Inc. cautions that statements made in this news release relating to the change of control and new business direction constitute forward-looking statements and makes no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from current projections or implied results. The Equities Group, Inc. undertakes no obligation to revise these statements following the date of this news release.
For more information on The Equities Group, please visit Equities.com and sign up for Free Real-Time Quotes or contact:
David Bernard, Chairman
+1 310 413 5788
+1 310 919 2993 fax
david@equities.com
5 Things to Know Before Trading Today
*Stocks were mixed in Asian trade. The Hang Seng gained 0.4%, but Shanghai was lower by 0.7% and the Nikkei and Australia were down a slight fraction. European indexes are broadly higher on the session, with the Dax and Footsie both currently higher by about 0.8%. US stock futures are up by about a half percent.
*China released several bits of data overnight, all measured on a year over year basis, including: the Q3 reading of GDP was one tenth higher than forecast at +9.6%, down from +10.3% the previous quarter; the September reading of the Producer Price Index was unchanged on the month at 4.3%, but that was two tenths more than expected; the September reading of the Consumer Price Index was up one tenth on the month at 3.6%, matching the forecast; the September reading of Retail Sales at 18.8% was three tenths higher than expected and up four tenths from the month before; and the September reading of Industrial Production was the one negative surprise, it fell six tenths from the month before to 13.3% and that was seven tenths below the estimate.
*The preliminary October reading of Germany’s manufacturing sector Purchasing Managers Index is 56.1, up one point from the month before and well above the estimate of 54.6; and the service sector PMI is 56.6, up from 54.9 in September and better than the forecast that called for a steady reading.
*The September reading of Switzerland’s Balance of Trade showed a 3.8% decline in exports, reflecting the strength of the Franc and slower growth in parts of Europe, but imports fell more on the month, and that caused a larger trade surplus than expected at SF1.69 billion.
*The October reading of the Swiss ZEW survey of Expectations of Economic Growth fell sharply from -5.1% down to -27.5% , according to Credit Suisse; the lowest result since April 2009.
*The September reading of UK Retail Sales were -0.2% on month on month basis, missing the forecast for a gain of 0.3%.
*The weekly report on Initial Jobless Claims is due out at 7:30am CDT, it is expected to be 455k. The October reading of the Philly Fed Business Activity Index is set to be released at 9:00am CDT, it is forecast to rise to +2.0 from a September result of -0.7. Also due out at 9:00am is the September reading of the Leading Economic Indicators, which is estimated to be +0.3%.
*St. Louis Fed boss Bullard is scheduled to speak at a conference on monetary policy being hosted by his bank at 9:00am CDT.
*The weekly report on inventories of Natural Gas is due out at 9:30am CDT, it is expected to show an increase of 88 bcf.
*The Treasury is at 10:00am CDT expected to announce the details for next week’s auctions of 5 Year TIPS, 2 Year Notes, 5 Year Notes and 7 Year Notes.
*Kansas City Fed’s Hoenig is scheduled to give a speech on the economic outlook at 8:45pm CDT.
*China released several bits of data overnight, all measured on a year over year basis, including: the Q3 reading of GDP was one tenth higher than forecast at +9.6%, down from +10.3% the previous quarter; the September reading of the Producer Price Index was unchanged on the month at 4.3%, but that was two tenths more than expected; the September reading of the Consumer Price Index was up one tenth on the month at 3.6%, matching the forecast; the September reading of Retail Sales at 18.8% was three tenths higher than expected and up four tenths from the month before; and the September reading of Industrial Production was the one negative surprise, it fell six tenths from the month before to 13.3% and that was seven tenths below the estimate.
*The preliminary October reading of Germany’s manufacturing sector Purchasing Managers Index is 56.1, up one point from the month before and well above the estimate of 54.6; and the service sector PMI is 56.6, up from 54.9 in September and better than the forecast that called for a steady reading.
*The September reading of Switzerland’s Balance of Trade showed a 3.8% decline in exports, reflecting the strength of the Franc and slower growth in parts of Europe, but imports fell more on the month, and that caused a larger trade surplus than expected at SF1.69 billion.
*The October reading of the Swiss ZEW survey of Expectations of Economic Growth fell sharply from -5.1% down to -27.5% , according to Credit Suisse; the lowest result since April 2009.
*The September reading of UK Retail Sales were -0.2% on month on month basis, missing the forecast for a gain of 0.3%.
*The weekly report on Initial Jobless Claims is due out at 7:30am CDT, it is expected to be 455k. The October reading of the Philly Fed Business Activity Index is set to be released at 9:00am CDT, it is forecast to rise to +2.0 from a September result of -0.7. Also due out at 9:00am is the September reading of the Leading Economic Indicators, which is estimated to be +0.3%.
*St. Louis Fed boss Bullard is scheduled to speak at a conference on monetary policy being hosted by his bank at 9:00am CDT.
*The weekly report on inventories of Natural Gas is due out at 9:30am CDT, it is expected to show an increase of 88 bcf.
*The Treasury is at 10:00am CDT expected to announce the details for next week’s auctions of 5 Year TIPS, 2 Year Notes, 5 Year Notes and 7 Year Notes.
*Kansas City Fed’s Hoenig is scheduled to give a speech on the economic outlook at 8:45pm CDT.
Wednesday, October 20, 2010
California Moms Speak Out for Legalizing Marijuana
The push to legalize marijuana in California has borne witness to a bevy of strange sleeping arrangements. Medical marijuana dispensaries are now bedfellows with unions; retired law enforcement officers have linked arms with longhairs; and Democrats like Sen. Barbara Boxer have ditched their progressive stances on personal freedom in order to appear tough on crime, even as one of Boxer’s own staffers was arrested on Capitol Hill for possessing weed.
As the days tick down to a vote on Prop. 19, yet another coalition of drug reformers has stepped forward with a new angle. The reformers are mothers, and their rallying cry is “do it for the children.”
On Tuesday, a contingent of California moms outlined the parental case for legalizing marijuana. During a press conference early in the day and a later conference call with reporters outside of California, the marijuana moms argued that it is in every child’s best interest for California to legalize the very same drug that schools and parents have religiously dogged since before the creation of first lady Nancy Reagan’s “Drug Abuse Resistance Education” program in the 1980s.
“It might be counterintuitive,” said Hanna Dershowitz, an attorney and mother of two, ages seven and five. “I have the conversation [with my kids] every day about how much sugar is appropriate,” she said. “The right thing is to have a reasonable conversation in the context of controlled, regulated marijuana.”
A member of the Women’s Marijuana Party, Dershowitz was one of several mothers who said during a conference call with reporters that the state’s punitive reactions to drug possession are not only drastic, but also anti-parent and anti-family.
“I am the mother of two sons, both are in their 30s, but once a mom, you’re always advocating for your children and your children’s children,” said Gretchen Burns Bergman, a substance abuse counselor who helps families overcome addiction. In 1990, Bergman’s oldest son was arrested for marijuana possession. That charge, she wrote on the Huffington Post, “led to a decade of cycling in and out of the prison system for non-violent, low-level drug possession charges.”
It’s first-hand experience with the horrors of incarceration that sold Bergman on the need to change California’s drug laws. “Mothers are leading the charge, just as during the 30s,” she said. “Not because we love drugs and alcohol, but because we love our children and we cannot stand the costs of our punitive policies. The money raised through taxation could be spent on prevention, harm reduction, [and] education.”
Also, some of the Hollywood stars have come out for the legalization of marijuana with the latest being Melissa Etheridge and Danny Glover.
3 Things to Know Before the Open
*Stocks were generally lower in Asian trade. The Nikkei lost 1.6%, the Hang Seng was down 0.9% and Australia dropped two thirds of a percent, but Shanghai managed a slight gain. European indexes are mostly higher on the day, but not by much; the Footsie and Dax are both currently higher by a quarter percent. US stock futures are higher by about a quarter to a half percent as I write.
*The August reading of Australia’s Westpac Leading Index was -0.1%, that is down from +0.3% the month before the second negative reading in three months.
*The September reading of the German Producer Price Index was +0.3% on a month on month basis, one tenth higher than forecast.
*The Bank of England voted 7 – 1 – 1 to keep rates steady and maintain their bond purchase plan at BP200 billion , according to the minutes from their latest policy meeting. Andrew Sentance wanted to raise the key rate by 0.25%, but Adam Posen voted to hike the bond purchase plan by BP50 billion. Although the policy committee thought the CPI risk in either direction remained great, but that at the current time there was no evidence compelling enough to change policy in either direction.
* UK Chancellor of the Exchequer George Osborne is presenting the government’s Comprehensive Spending Review to parliament. “Today is the day when Britain steps back from the brink” he said as he delivered the details of Cameron’s austerity budget.
*US mortgage applications were down 10.5% in the week ended October 15, according to the Mortgage Bankers Association. Both key components, Refis and Purchases, were lower from the week before.
*The weekly report on energy inventories is due out at 9:30am CDT. Stocks of Crude Oil are forecast to increase 1.5 million barrels, but Gasoline inventories are expected to fall 1.5 million and the estimate for Distillates is -1.0 million.
*The Fed is scheduled to buy TIPS today that are due to mature between 1/15/11 and 2/15/40; the results of the operation are due to be announced just after 10:00am CDT.
*Philly Fed boss Plosser is scheduled to speak about “Incentives and Regulation” at 11:45am CDT and later on, at 3:00pm CDT, Richmond Fed’s Lacker will talk about the US economic outlook.
*The Fed’s Beige Book is scheduled to be released at 1:00pm CDT.
Tuesday, October 19, 2010
Biopack (OTC:BPAC) Jumps +36% on Latin America Distribution Agreement
Shares of Biopack Environmental Solutions (OTC:BPAC) jumped nearly 36 percent today to $0.19 per share on very heavy volume of 3.5 million shares compared to its average daily volume of only about 52,000 shares. This lightly traded SmallCap stock has a 52-week range of $0.06 to $0.69 and a market cap. of $7 million. The buyers came a running today after Biopack issued fresh news this morning about a new distribution agreement in Latin America.
Biopack is a designer, manufacturer, and supplier of 100% biodegradable and compostable packaging products, is pleased to announce it has entered into an agreement with Solupack Sistemas de Embalagens Ltda (“Solupack”) for distribution in Latin America.
The distribution agreement will include the Latin American countries of Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela.
With their head office in Sao Paulo, Brazil, Solupack is an established distributor of many types of packaging products and machines throughout Latin America. They will use Biopack’s products to launch into the biodegradable and environmentally friendly packaging market.
Brazil is the world’s largest producer of sugarcane, and its related waste by-product called “Bagasse” which is the source of Biopack’s products, but has few manufacturers of packaging products using this ingredient. Brazil uses most of this waste as an energy source by burning it.
Mauro Kernkraut, a founder of Solupack, said, “Solupack is delighted to have Biopack as our new strategic partner. Biopack’s fully compostable packages represent an exceptional opportunity for us to distribute in Latin America their innovative products which are very much in tune with our philosophy to the conservation of our global environment with better packages. This partnership will strengthen and expand our presence in the region and contribute to our long-term growth objectives.” Biopack Latin America’s new website should be launched by Solupack within the next few weeks.
Gerald Lau, CEO of Biopack says, “We are extremely happy to have Solupack as our new distributor for Latin America. They have very established operations there, and are making a strong commitment to expanding their market with the sale of our products.” He continues, “Given the fact Brazil is the world’s largest producer of sugarcane and Bagasse, it is surprising that their market for Bagasse packaging is relatively underdeveloped. We believe this shows the exceptional quality of Biopacks products around the world. Latin American countries are also a huge source of all the fresh fruits and vegetables exported all year long on a global basis. The packaging needs for these producers are immense, and we look forward to penetrating this market.”
Biopack manufactures 100% biodegradable consumer packaging products from locally available sugar cane waste called Bagasse. Based in Hong Kong with manufacturing facilities in Jiangmen, China, Biopack has earned the “premium brand” label in the biodegradable packaging market in Europe. Distributed under the “Roots Biopack” trademark, Biopack’s unique line of compostable packaging is sold in 12 European countries, North America, Hong Kong, Taiwan and South Africa.
For investor inquiries and information about our comprehensive line of biodegradable packaging solutions, please visit our website at http://www.biopackenvironmental.com.
Biopack is a designer, manufacturer, and supplier of 100% biodegradable and compostable packaging products, is pleased to announce it has entered into an agreement with Solupack Sistemas de Embalagens Ltda (“Solupack”) for distribution in Latin America.
The distribution agreement will include the Latin American countries of Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Uruguay and Venezuela.
With their head office in Sao Paulo, Brazil, Solupack is an established distributor of many types of packaging products and machines throughout Latin America. They will use Biopack’s products to launch into the biodegradable and environmentally friendly packaging market.
Brazil is the world’s largest producer of sugarcane, and its related waste by-product called “Bagasse” which is the source of Biopack’s products, but has few manufacturers of packaging products using this ingredient. Brazil uses most of this waste as an energy source by burning it.
Mauro Kernkraut, a founder of Solupack, said, “Solupack is delighted to have Biopack as our new strategic partner. Biopack’s fully compostable packages represent an exceptional opportunity for us to distribute in Latin America their innovative products which are very much in tune with our philosophy to the conservation of our global environment with better packages. This partnership will strengthen and expand our presence in the region and contribute to our long-term growth objectives.” Biopack Latin America’s new website should be launched by Solupack within the next few weeks.
Gerald Lau, CEO of Biopack says, “We are extremely happy to have Solupack as our new distributor for Latin America. They have very established operations there, and are making a strong commitment to expanding their market with the sale of our products.” He continues, “Given the fact Brazil is the world’s largest producer of sugarcane and Bagasse, it is surprising that their market for Bagasse packaging is relatively underdeveloped. We believe this shows the exceptional quality of Biopacks products around the world. Latin American countries are also a huge source of all the fresh fruits and vegetables exported all year long on a global basis. The packaging needs for these producers are immense, and we look forward to penetrating this market.”
Biopack manufactures 100% biodegradable consumer packaging products from locally available sugar cane waste called Bagasse. Based in Hong Kong with manufacturing facilities in Jiangmen, China, Biopack has earned the “premium brand” label in the biodegradable packaging market in Europe. Distributed under the “Roots Biopack” trademark, Biopack’s unique line of compostable packaging is sold in 12 European countries, North America, Hong Kong, Taiwan and South Africa.
For investor inquiries and information about our comprehensive line of biodegradable packaging solutions, please visit our website at http://www.biopackenvironmental.com.
Federal Reserve Bosses All Chime In Today
You are nobody at the Fed if you are not scheduled to speak today. NY Fed’s Dudley gives an economic briefing at 8:30am CDT, Chicago’s Evans talks economy at 8:40am CDT, Atlanta’s Lockhart is on at 10:30am CDT, Dallas Fed boss Fisher talks in NYC at 11:50am CDT, Minneapolis Fedster Kocherlakota will speak at 12:20pm CDT, Chairman Bernanke will give brief remarks at the grand opening of the Junior Achievement Finance Park (a new competitor to Disney World?) at 3:00pm CDT and Governor Duke will chat in NYC at 6:00pm CDT.
Atlanta Fed’s Lockhart
Says he is leaning toward supporting QE2 and thinks it will assist the economy
Says it will influence rates to some degree
Thinks Q4 growth will improve on Q3
Concerned about possibility of more disinflation and the risk of deflation, but doesn’t see it as a base case scenario.
Slow growth or “stall speed” growth also a concern
Although he does not want to put a number on QE2, he says it must be large enough to make a difference. Says $100 billion per month would be consistent with the previous effort, but that a number that only totaled $100 billion is far too small.
Says more downside risks to inflation than upside risks.
New York Fed’s Dudley
Says momentum of recovery has slowed, but he does not elaborate on QE2.
Says Fed can help economy via accommodative policy.
Chicago Fed’s Evans
“We need stronger growth for some time before we return to a more normal level of economic activity”
Says resource slack and low inflation suggest “it would be desirable to increase monetary policy accommodation”
He favors price targets and makes the case that getting 2% inflation would call for “a series of large scale asset purchases to recover the shortfall in inflation.
Sees “extraordinary instance of Liquidity trap”
5 Things to Know Before the Market Opens
THE DAY AHEAD
October 19
*Stocks were mixed in Asian trade, but the key indexes all showed a gain. Shanghai was up more than one and a half percent, the Hang Seng added one and a quarter percent, the Nikkei rose 0.4% and Australia was up a fraction. European indexes are little changed at the moment, with the Footsie down one third of a percent and the Dax down a fraction. US stock futures are lower than fair value by a half to one percent as I write.
*The Reserve Bank of Australia said the decision to leave rates unchanged in October was “finely balanced”, according to the minutes from their latest meeting. A case could be made for further rate hikes but the strength of the Aussie was by itself tightening monetary conditions.
*China’s central bank raised its one year lending and deposit rates by 25 basis points this morning, according to a statement on the PBOC website, the move is effective as of October 20.
*Japan’s Fin Min Noda once again groused about excessive currency moves and once again warned that they will not hesitate to intervene should they see the need to do so. He added that he expected currencies to be a key topic at next month’s G20 meeting in Seoul.
*The October reading of Germany’s ZEW Survey of the Current Situation jumped thirteen points to 72.6, well above the estimate and is now at a three year high. However the ZEW survey of Economic Sentiment fell to -7.2 from -4.3; it was the sixth drop in a row, was a bigger decline than expected and is the lowest level since January 2009.
*The weekly report on chain store sales from ICSC showed sales a decline of 0.7% on a week on week basis for the week ended October 16. Sales were up 1.7% for the week when compared to the corresponding week from a year ago. The Johnson Redbook report on the same thing is due out at 7:55am CDT.
*The September reading of Housing Starts is due out at 7:30am CDT. Starts are expected to fall 3.0% from the month before for an annualized rate of 580k and the estimate for Building Permits is 575k, or up 0.7% on the month.
*You are nobody at the Fed if you are not scheduled to speak today. NY Fed’s Dudley gives an economic briefing at 8:30am CDT, Chicago’s Evans talks economy at 8:40am CDT, Atlanta’s Lockhart is on at 10:30am CDT, Dallas Fed boss Fisher talks in NYC at 11:50am CDT, Minneapolis Fedster Kocherlakota will speak at 12:20pm CDT, Chairman Bernanke will give brief remarks at the grand opening of the Junior Achievement Finance Park (a new competitor to Disney World?) at 3:00pm CDT and Governor Duke will chat in NYC at 6:00pm CDT.
October 19
*Stocks were mixed in Asian trade, but the key indexes all showed a gain. Shanghai was up more than one and a half percent, the Hang Seng added one and a quarter percent, the Nikkei rose 0.4% and Australia was up a fraction. European indexes are little changed at the moment, with the Footsie down one third of a percent and the Dax down a fraction. US stock futures are lower than fair value by a half to one percent as I write.
*The Reserve Bank of Australia said the decision to leave rates unchanged in October was “finely balanced”, according to the minutes from their latest meeting. A case could be made for further rate hikes but the strength of the Aussie was by itself tightening monetary conditions.
*China’s central bank raised its one year lending and deposit rates by 25 basis points this morning, according to a statement on the PBOC website, the move is effective as of October 20.
*Japan’s Fin Min Noda once again groused about excessive currency moves and once again warned that they will not hesitate to intervene should they see the need to do so. He added that he expected currencies to be a key topic at next month’s G20 meeting in Seoul.
*The October reading of Germany’s ZEW Survey of the Current Situation jumped thirteen points to 72.6, well above the estimate and is now at a three year high. However the ZEW survey of Economic Sentiment fell to -7.2 from -4.3; it was the sixth drop in a row, was a bigger decline than expected and is the lowest level since January 2009.
*The weekly report on chain store sales from ICSC showed sales a decline of 0.7% on a week on week basis for the week ended October 16. Sales were up 1.7% for the week when compared to the corresponding week from a year ago. The Johnson Redbook report on the same thing is due out at 7:55am CDT.
*The September reading of Housing Starts is due out at 7:30am CDT. Starts are expected to fall 3.0% from the month before for an annualized rate of 580k and the estimate for Building Permits is 575k, or up 0.7% on the month.
*You are nobody at the Fed if you are not scheduled to speak today. NY Fed’s Dudley gives an economic briefing at 8:30am CDT, Chicago’s Evans talks economy at 8:40am CDT, Atlanta’s Lockhart is on at 10:30am CDT, Dallas Fed boss Fisher talks in NYC at 11:50am CDT, Minneapolis Fedster Kocherlakota will speak at 12:20pm CDT, Chairman Bernanke will give brief remarks at the grand opening of the Junior Achievement Finance Park (a new competitor to Disney World?) at 3:00pm CDT and Governor Duke will chat in NYC at 6:00pm CDT.
Monday, October 18, 2010
Highway Holdings (NASDAQ: HIHO) Gets +58% Gain After Announcing New Orders
One of the biggest gainers from the SmallCap space today was Highway Holdings (NASDAQ:HIHO) gaining an incredible 58 percent to $3.30 per share before giving back some ground in late trading. As I write, Highway Holdings were trading up more than 38 percent to $2.89 per share on heavy volume of nearly 300,000 shares. This lightly traded stock only averages about 4,000 shares traded per day.
Highway Holdings today announced it has received orders valued at approximately $5.56 million for protective cases for a popular mobile phone from a U.S.-based supplier of these accessories.
The manufacture of protective cases for the initial two-month order has commenced and delivery is expected to be completed within sixty days. Highway Holdings anticipates receiving similar ongoing monthly orders upon achieving full production capacity.
"We are gratified by the confidence of this new customer in our quality and technical capabilities and look forward to developing a long-term business relationship as a key supplier," said Roland Kohl, president and chief executive officer.
He noted that the mobile phone protective cases will be produced by the company's Golden Bright Plastic Manufacturing subsidiary, which was acquired in 2006 and subsequently integrated to further enhance Highway Holdings' manufacturing capabilities.
Highway Holdings produces a wide variety of high-quality products for blue chip original equipment manufacturers -- from simple parts and components to sub-assemblies. It also manufactures finished products, such as light fixtures, LED lights, radio chimes and other electronic products.
Highway Holdings is headquartered in Hong Kong, and currently operates with its principal manufacturing facility in Shenzhen and a factory in Wuxi in the People's Republic of China.
Highway Holdings today announced it has received orders valued at approximately $5.56 million for protective cases for a popular mobile phone from a U.S.-based supplier of these accessories.
The manufacture of protective cases for the initial two-month order has commenced and delivery is expected to be completed within sixty days. Highway Holdings anticipates receiving similar ongoing monthly orders upon achieving full production capacity.
"We are gratified by the confidence of this new customer in our quality and technical capabilities and look forward to developing a long-term business relationship as a key supplier," said Roland Kohl, president and chief executive officer.
He noted that the mobile phone protective cases will be produced by the company's Golden Bright Plastic Manufacturing subsidiary, which was acquired in 2006 and subsequently integrated to further enhance Highway Holdings' manufacturing capabilities.
Highway Holdings produces a wide variety of high-quality products for blue chip original equipment manufacturers -- from simple parts and components to sub-assemblies. It also manufactures finished products, such as light fixtures, LED lights, radio chimes and other electronic products.
Highway Holdings is headquartered in Hong Kong, and currently operates with its principal manufacturing facility in Shenzhen and a factory in Wuxi in the People's Republic of China.
Highway Holdings (NASDAQ:HIHO) Gets +58% Gain After Announcing New Orders
One of the biggest gainers from the SmallCap space today was Highway Holdings (NASDAQ:HIHO) gaining an incredible 58 percent to $3.30 per share before giving back some ground in late trading. As I write, Highway Holdings were trading up more than 38 percent to $2.89 per share on heavy volume of nearly 300,000 shares. This lightly traded stock only averages about 4,000 shares traded per day.
Highway Holdings today announced it has received orders valued at approximately $5.56 million for protective cases for a popular mobile phone from a U.S.-based supplier of these accessories.
The manufacture of protective cases for the initial two-month order has commenced and delivery is expected to be completed within sixty days. Highway Holdings anticipates receiving similar ongoing monthly orders upon achieving full production capacity.
"We are gratified by the confidence of this new customer in our quality and technical capabilities and look forward to developing a long-term business relationship as a key supplier," said Roland Kohl, president and chief executive officer.
He noted that the mobile phone protective cases will be produced by the company's Golden Bright Plastic Manufacturing subsidiary, which was acquired in 2006 and subsequently integrated to further enhance Highway Holdings' manufacturing capabilities.
Highway Holdings produces a wide variety of high-quality products for blue chip original equipment manufacturers -- from simple parts and components to sub-assemblies. It also manufactures finished products, such as light fixtures, LED lights, radio chimes and other electronic products.
Highway Holdings is headquartered in Hong Kong, and currently operates with its principal manufacturing facility in Shenzhen and a factory in Wuxi in the People's Republic of China.
Highway Holdings today announced it has received orders valued at approximately $5.56 million for protective cases for a popular mobile phone from a U.S.-based supplier of these accessories.
The manufacture of protective cases for the initial two-month order has commenced and delivery is expected to be completed within sixty days. Highway Holdings anticipates receiving similar ongoing monthly orders upon achieving full production capacity.
"We are gratified by the confidence of this new customer in our quality and technical capabilities and look forward to developing a long-term business relationship as a key supplier," said Roland Kohl, president and chief executive officer.
He noted that the mobile phone protective cases will be produced by the company's Golden Bright Plastic Manufacturing subsidiary, which was acquired in 2006 and subsequently integrated to further enhance Highway Holdings' manufacturing capabilities.
Highway Holdings produces a wide variety of high-quality products for blue chip original equipment manufacturers -- from simple parts and components to sub-assemblies. It also manufactures finished products, such as light fixtures, LED lights, radio chimes and other electronic products.
Highway Holdings is headquartered in Hong Kong, and currently operates with its principal manufacturing facility in Shenzhen and a factory in Wuxi in the People's Republic of China.
Can the iPhone Ward Off Android's Onslaught
If you want a smartphone powered by Google’s Android software, you could get Motorola’s Droid 2 or its cousin, the Droid X. Then there is the Droid Incredible from HTC, the Fascinate from Samsung and the Ally from LG.
That’s just on Verizon Wireless. An additional 20 or so phones running Android are available in the United States, and there are about 90 worldwide.
But if your preference is an Apple-powered phone, you can buy — an iPhone.
That very short list explains in part why, for all its success in the phone business, Apple suddenly has a real fight on its hands.
Americans now are buying more Android phones than iPhones. If that trend continues, analysts say that in little more than a year, Android will have erased the iPhone’s once enormous lead in the high end of the smartphone market.
But this is not the first time Apple has found itself in this kind of fight, where its flagship product is under siege from a loose alliance of rivals selling dozens of competing gadgets.
In the early 1980s, the Macintosh faced an onslaught of competition from an army of PC makers whose products ran Microsoft software. The fight did not end well for Apple. In a few years, Microsoft all but sidelined Apple, and the company almost went out of business.
Can Apple, which insists on tight control of its devices, win in an intensely competitive market against rivals that are openly licensing their software to scores of companies? It faces that challenge not only in phones, but also in the market for tablet computers, where the iPad is about to take on a similar set of rivals.
“This is a really big strategic question,” said Toni Sacconaghi, an analyst with Sanford C. Bernstein and Company. “No one knows whether openness will ultimately prevail as it did on the PC.”
Apple declined to comment on the issue.
By some measures, the competition Apple faces this time is even more formidable than it was in PCs. In addition to the Android family, Apple already competes with Research In Motion, maker of the BlackBerry.
And the iPhone will soon have one more powerful, and familiar, foe: Microsoft. That company’s well-reviewed Windows Phone 7 software will appear in as many as nine new smartphones beginning next month. Others like Nokia cannot be counted out.
The stakes are huge, as the mobile computing market could prove to be larger than the PC market ever was.
No one is counting out Apple, of course. The iPhone 4, which Apple began selling this year, has been its most successful phone introduction yet. On Monday, when the company reports financial results, it is expected to announce that it sold nearly 12 million iPhones in the quarter ending Sept. 25, according to analysts’ estimates. That would represent a 60 percent increase from a year earlier.
And with Apple expected to bring the iPhone to Verizon early next year — most likely in an attempt to slow Android’s momentum — the sales growth may well accelerate.
Among investors, there is little doubt that Apple’s strategy is the right one. The company’s stock has soared nearly 50 percent this year, and on Friday it closed at an all-time high of $314.74.
But the rise of Android has been both sudden and unexpected, and its ascent highlights some of the advantages of an open approach.
“There is much more rapid innovation taking place in an open environment,” said David B. Yoffie, a professor at the Harvard Business School who has written recent case studies on Apple. While Apple comes out with a new iPhone model once a year, slick Android phones with new features hit the market often.
That leaves little room for error at Apple. The company must continue to create hit products, as a single misstep could give Android and other rivals an opportunity to make inroads and steal market share.
Also, as the number of people with Android phones grows, Android will grow more attractive for app developers. For now, Apple’s App Store, with more than 250,000 applications, enjoys a large advantage over the Android Market, which has about 80,000. And those numbers don’t tell the whole story. Apps made for the iPhone tend to be of better quality, are more frequently downloaded and on average are more profitable for developers.
But that edge may not last, especially as many developers fret about Apple’s tight control over the App Store.
“Having a tightly controlled ecosystem, which is what Apple has, is a large short-term advantage and a large long-term disadvantage,” said Mitchell Kapor, who as founder of the Lotus Development Corporation is a veteran of the PC-versus-Mac wars, and is now an investor in app makers. “The question is, how long is the short term?”
But for all the similarities in Apple’s approaches to mobile computing and desktop computing, there are plenty of differences, and most analysts doubt that history will repeat itself.
For starters, Apple is the richest company in the technology industry. With $45.8 billion in cash, it can afford to invest heavily in research and development. Apple’s large early lead in devices and developers puts it in a much stronger position than it ever had in the PC market. And because it is one of the largest purchasers of Flash memory, which is one of the most expensive components of a smartphone, it has “enormous economies of scale,” Professor Yoffie said.
What’s more, the iPhone isn’t really fighting alone. The two other devices that run Apple’s iOS mobile software, the iPad and the iPod Touch, further strengthen the iPhone, because consumers like being able to access the content and applications they bought on iTunes and the App Store on multiple devices. Apple has sold more than 120 million iOS devices.
And while Apple’s personal computers were by and large technically superior to Microsoft-based PCs, they were also far more expensive. In the smartphone market, carriers, who play a vital role in distribution, have been willing to subsidize the iPhone so that its cost to consumers is roughly the same as that of comparable Android phones.
For now, the smartphone market is growing so rapidly that the rise of Android has not necessarily been at the expense of the iPhone. That will change as the market matures. But most experts predict that no single company or operating system will rule the mobile market like Microsoft ruled the PC.
“I don’t think we’ll be in a situation where there is one operating system,” said Matt Murphy, a partner at the venture capital firm Kleiner Perkins Caufield & Byers, where he manages a fund that invests in applications for iOS devices. “This market will be more fragmented than the PC market.” Mr. Murphy said he expected one or two operating systems to co-exist with Apple’s.
Professor Yoffie agreed: “Apple will lose its overall leadership, but maintain a share of the market that could easily be in the 25 percent to 30 percent range.” He added: “That’s enough to sustain a very large and very profitable business.”
This article comes from the New York Times and Apple is scheduled to report its earnings after the market close today.
That’s just on Verizon Wireless. An additional 20 or so phones running Android are available in the United States, and there are about 90 worldwide.
But if your preference is an Apple-powered phone, you can buy — an iPhone.
That very short list explains in part why, for all its success in the phone business, Apple suddenly has a real fight on its hands.
Americans now are buying more Android phones than iPhones. If that trend continues, analysts say that in little more than a year, Android will have erased the iPhone’s once enormous lead in the high end of the smartphone market.
But this is not the first time Apple has found itself in this kind of fight, where its flagship product is under siege from a loose alliance of rivals selling dozens of competing gadgets.
In the early 1980s, the Macintosh faced an onslaught of competition from an army of PC makers whose products ran Microsoft software. The fight did not end well for Apple. In a few years, Microsoft all but sidelined Apple, and the company almost went out of business.
Can Apple, which insists on tight control of its devices, win in an intensely competitive market against rivals that are openly licensing their software to scores of companies? It faces that challenge not only in phones, but also in the market for tablet computers, where the iPad is about to take on a similar set of rivals.
“This is a really big strategic question,” said Toni Sacconaghi, an analyst with Sanford C. Bernstein and Company. “No one knows whether openness will ultimately prevail as it did on the PC.”
Apple declined to comment on the issue.
By some measures, the competition Apple faces this time is even more formidable than it was in PCs. In addition to the Android family, Apple already competes with Research In Motion, maker of the BlackBerry.
And the iPhone will soon have one more powerful, and familiar, foe: Microsoft. That company’s well-reviewed Windows Phone 7 software will appear in as many as nine new smartphones beginning next month. Others like Nokia cannot be counted out.
The stakes are huge, as the mobile computing market could prove to be larger than the PC market ever was.
No one is counting out Apple, of course. The iPhone 4, which Apple began selling this year, has been its most successful phone introduction yet. On Monday, when the company reports financial results, it is expected to announce that it sold nearly 12 million iPhones in the quarter ending Sept. 25, according to analysts’ estimates. That would represent a 60 percent increase from a year earlier.
And with Apple expected to bring the iPhone to Verizon early next year — most likely in an attempt to slow Android’s momentum — the sales growth may well accelerate.
Among investors, there is little doubt that Apple’s strategy is the right one. The company’s stock has soared nearly 50 percent this year, and on Friday it closed at an all-time high of $314.74.
But the rise of Android has been both sudden and unexpected, and its ascent highlights some of the advantages of an open approach.
“There is much more rapid innovation taking place in an open environment,” said David B. Yoffie, a professor at the Harvard Business School who has written recent case studies on Apple. While Apple comes out with a new iPhone model once a year, slick Android phones with new features hit the market often.
That leaves little room for error at Apple. The company must continue to create hit products, as a single misstep could give Android and other rivals an opportunity to make inroads and steal market share.
Also, as the number of people with Android phones grows, Android will grow more attractive for app developers. For now, Apple’s App Store, with more than 250,000 applications, enjoys a large advantage over the Android Market, which has about 80,000. And those numbers don’t tell the whole story. Apps made for the iPhone tend to be of better quality, are more frequently downloaded and on average are more profitable for developers.
But that edge may not last, especially as many developers fret about Apple’s tight control over the App Store.
“Having a tightly controlled ecosystem, which is what Apple has, is a large short-term advantage and a large long-term disadvantage,” said Mitchell Kapor, who as founder of the Lotus Development Corporation is a veteran of the PC-versus-Mac wars, and is now an investor in app makers. “The question is, how long is the short term?”
But for all the similarities in Apple’s approaches to mobile computing and desktop computing, there are plenty of differences, and most analysts doubt that history will repeat itself.
For starters, Apple is the richest company in the technology industry. With $45.8 billion in cash, it can afford to invest heavily in research and development. Apple’s large early lead in devices and developers puts it in a much stronger position than it ever had in the PC market. And because it is one of the largest purchasers of Flash memory, which is one of the most expensive components of a smartphone, it has “enormous economies of scale,” Professor Yoffie said.
What’s more, the iPhone isn’t really fighting alone. The two other devices that run Apple’s iOS mobile software, the iPad and the iPod Touch, further strengthen the iPhone, because consumers like being able to access the content and applications they bought on iTunes and the App Store on multiple devices. Apple has sold more than 120 million iOS devices.
And while Apple’s personal computers were by and large technically superior to Microsoft-based PCs, they were also far more expensive. In the smartphone market, carriers, who play a vital role in distribution, have been willing to subsidize the iPhone so that its cost to consumers is roughly the same as that of comparable Android phones.
For now, the smartphone market is growing so rapidly that the rise of Android has not necessarily been at the expense of the iPhone. That will change as the market matures. But most experts predict that no single company or operating system will rule the mobile market like Microsoft ruled the PC.
“I don’t think we’ll be in a situation where there is one operating system,” said Matt Murphy, a partner at the venture capital firm Kleiner Perkins Caufield & Byers, where he manages a fund that invests in applications for iOS devices. “This market will be more fragmented than the PC market.” Mr. Murphy said he expected one or two operating systems to co-exist with Apple’s.
Professor Yoffie agreed: “Apple will lose its overall leadership, but maintain a share of the market that could easily be in the 25 percent to 30 percent range.” He added: “That’s enough to sustain a very large and very profitable business.”
This article comes from the New York Times and Apple is scheduled to report its earnings after the market close today.
5 Things to Know Before the Market Opens
THE DAY AHEAD
October 18
*Stocks were generally lower in Asian trade overnight. The Hang Seng lost 1.2%, Australia fell 0.8% and Shanghai was down a half percent, while the Nikkei was essentially unchanged. European indexes are currently mixed, with the Dax up a quarter percent and the Footsie has a fractional gain. US stock futures are down almost a half percent as I write.
*The September reading of Japan’s Nationwide Department Store Sales is -5.2% on a year over year basis; continuing a streak that has continued unabated since March 2008.
*A couple of Chinese central bank officials are out with comments that suggest a faster pace of Yuan appreciation is possible by increasing foreign exchange flexibility by widening the daily trading band of the currency, a move they say will also help curb inflation.
*Fedsters continued to talk at the Boston Fed conference over the weekend even after the chairman had his say Friday morning. Boston Fed boss Rosengren sounded as though he was on board with the program when he said, “Insuring against the risk of deflation may be much cheaper than waiting until it has occurred and they trying to address it, “ adding that, “the fact that Japan is still battling deflation highlights how pernicious deflation can be, and how difficult it is to counteract once it has been firmly established.” Chicago’s Evans is playing along as well, he said the US is in a “bona fide liquidity trap” and needs “much more” monetary accommodation. He suggested that “if you reach the conclusion that we are in a liquidity trap, or even near a perilous liquidity trap, more accommodation is not data-dependent or a close call.”
*Among the firms reporting earnings today are Citigroup before the close and Apple after the close.
*The Treasury is set to announce at 8:00am CDT the August net change in foreign holdings of long-term US securities; there is no Bloomberg survey estimate on the report; it was +$63.7 billion in July. The September readings of Industrial Production and Capacity Utilization are due out at 8:15am CDT; Production is forecast to increase 0.2% on a month on month basis and the estimate for Capacity usage is 74.8%, up one tenth from the month before. The October reading of the NAHB Housing Market Index is due out at 9:00am CDT, it is expected to rise one point on the month to 14.
*Atlanta Fed boss Lockhart is scheduled to give a speech on the economy at 11:55am CDT.
October 18
*Stocks were generally lower in Asian trade overnight. The Hang Seng lost 1.2%, Australia fell 0.8% and Shanghai was down a half percent, while the Nikkei was essentially unchanged. European indexes are currently mixed, with the Dax up a quarter percent and the Footsie has a fractional gain. US stock futures are down almost a half percent as I write.
*The September reading of Japan’s Nationwide Department Store Sales is -5.2% on a year over year basis; continuing a streak that has continued unabated since March 2008.
*A couple of Chinese central bank officials are out with comments that suggest a faster pace of Yuan appreciation is possible by increasing foreign exchange flexibility by widening the daily trading band of the currency, a move they say will also help curb inflation.
*Fedsters continued to talk at the Boston Fed conference over the weekend even after the chairman had his say Friday morning. Boston Fed boss Rosengren sounded as though he was on board with the program when he said, “Insuring against the risk of deflation may be much cheaper than waiting until it has occurred and they trying to address it, “ adding that, “the fact that Japan is still battling deflation highlights how pernicious deflation can be, and how difficult it is to counteract once it has been firmly established.” Chicago’s Evans is playing along as well, he said the US is in a “bona fide liquidity trap” and needs “much more” monetary accommodation. He suggested that “if you reach the conclusion that we are in a liquidity trap, or even near a perilous liquidity trap, more accommodation is not data-dependent or a close call.”
*Among the firms reporting earnings today are Citigroup before the close and Apple after the close.
*The Treasury is set to announce at 8:00am CDT the August net change in foreign holdings of long-term US securities; there is no Bloomberg survey estimate on the report; it was +$63.7 billion in July. The September readings of Industrial Production and Capacity Utilization are due out at 8:15am CDT; Production is forecast to increase 0.2% on a month on month basis and the estimate for Capacity usage is 74.8%, up one tenth from the month before. The October reading of the NAHB Housing Market Index is due out at 9:00am CDT, it is expected to rise one point on the month to 14.
*Atlanta Fed boss Lockhart is scheduled to give a speech on the economy at 11:55am CDT.
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