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Looks like IEAM is on the NASDAQ today
Persistent shortages should push nickel higher
Sun Apr 22, 2007 2:53 AM BST
By Carole Vaporean
NEW ORLEANS (Reuters) - Expect nickel's price to rise beyond its current stratospheric level, as new supply due later this year will fail to satisfy a growing need for the metal in stainless steel, jet engines and hybrid cars, analysts said this week at ISRI's annual convention.
"For nickel, we're likely to see upside price risk for the next two quarters with some of the price pressures alleviated by the end of the year," Jason Schenker, economist at Wachovia Corp. told secondary metal market participants at the Institute of Scrap Recycling Industries' spring conference.
Schenker forecast a 2007 average benchmark London Metal Exchange nickel price of $43,309 a ton, slipping to a $36,000 average in 2008 with the addition of new supply.
Meanwhile, he said he looks for shortages in the face of current robust demand to send second and third quarter averages to $46,000, nearly twice 2006's per-ton average of $24,000.
LME nickel soared to an all-time peak of $50,150 per ton last week and closed Friday at $48,700 per ton.
New supply anticipated by year end or early 2008 will most likely be insufficient to stem new price gains, analysts said.
"Although we've seen some increase in supply, it's barely met the demand needs. We don't really see any new supply coming on line until the back end of this year and really the beginning of next year," said Schenker.
Seven large development projects are scheduled to add about 250,000 new tons of nickel a year by 2010, but mines set to have opened by now have been fraught with construction, environmental and other delays, Mo Ahmadzadeh, President of Mitsui Bussan Commodities (USA) Inc. told the same group.
"When we look forward to the next three years, we can't really see effectively any more than 200,000 (new) tons," he said. He added that nickel stocks at exchange warehouses have fallen to less than a day's worth of global consumption.
In the face of shortages, nickel is more in demand than ever, with rapacious stainless steel producers taking most.
World stainless steel production grew by 13.5 percent in 2006 to 28.1 million tons. Ahmadzadeh said that should increase by an average of five percent annually through 2009.
China, with a 45 percent increase to greater than 5 million tons of stainless steel last year, surpassed Japan as the world's top producer. It plans more capacity for 2007.
Skyrocketing nickel prices have impelled India and China to step up development of no-nickel or low-nickel stainless steel, said Vikram Kochar, vice president at Universal Metals Inc., a secondary stainless steel merchant.
While they have been used in many applications in those countries, he said the low nickel content makes the steel harder to work with and drives up manufacturing costs.
In addition, the lower-grade metal's surface appearance is less appealing and more corrosive, and many U.S. specifications require manufacturers to produce higher-grade steel.
Along with stainless steel, Schenker said nickel's use in the booming jet engine business, oil rig rebuilding and consumer appliances in new homes is growing.
He added that expensive gasoline should increase purchases of hybrid cars, which require about 150 pounds of nickel each.
Remembering Toyota's promise to eventually turn every car it makes into a hybrid, Schenker estimated about 500,000 tons of nickel would be needed every year.
"That's one-third of all the nickel produced. It's not going to happen. There's not enough supply. But that's not going to stop Toyota from trying," he said.
Bought some of that IYXI.ob (although it's IYXIE.ob at present). Hopefully this offer is for real and it gets approved. The $3.01 buyout offer price presents a good precentage gain from the current ask of $2.40.
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Buyout Group Reaffirms $3.01 Per Share All-Cash, Go-Private Offer For Inyx
Monday April 16, 8:29 am ET
NEW YORK, April 16 /PRNewswire-FirstCall/ -- Inyx, Inc. (OTC Bulletin Board: IYXI - News), a specialty pharmaceutical company focused on niche drug-delivery technologies and products, reported today that the company's Chairman and CEO, Jack Kachkar, M.D., reaffirmed to the special committee of the Inyx board of directors his all-cash offer priced at $3.01 per share to take the company private that was originally announced on March 26, 2007.
The special committee, with the assistance of an independent investment- banking firm it has selected, is in the process of evaluating the fairness of the going-private offer. It expects to complete its evaluation after the company reports its audited operating results for 2006. The special committee will then issue a recommendation to Inyx stockholders, who will be asked to vote on the offer.
The $3.01 per share offer, which matches the all-time-high closing price for Inyx's common stock recorded on March 23, 2006, has the support of Inyx's entire senior management team, which is participating in the offer along with a strategic outside financial investor.
About Inyx
Inyx, Inc. is a specialty pharmaceutical company with niche drug-delivery technologies and products for the treatment of respiratory, allergy, dermatological, topical, cardiovascular and pain-management conditions. Inyx focuses its expertise on both prescription and over-the-counter pharmaceutical products, and provides specialty pharmaceutical development and production consulting services. In addition, Inyx is developing its own proprietary products.
Wade-
I saw a large block of about 175K shares go off this afternoon. Was that yours? (joking....or am I?)
Glad you are on board with IEAM and hope it works out well for us. You may also want to direct any question you may have to IEAM's IR:
Lippert/Heilshorn & Associates
Chris Witty / Jody Burfening, 212-838-3777
cwitty@lhai.com
I've asked a few superficial questions and received prompt responses.
Wade-my strength lies in copying and pasting rather than analysis, so you may want some deeper input from abh3vt, etc...
IEAM's FY07 ends at the end of June, so there are 2 quarters left to report until FY08 begins. IEAM has publicly stated that the non-cash charges will be gone and converted by the end of FY07, so we only have 2 more quarters to report until they can start reporting normal (GAAP) EPS without all this confusion. Until that time, IEAM has been reporting both EBIDTA and GAAP earnings (showing a loss do to the almost gone non-cash charges). Since these charges are almost gone, and since IEAM has $30 million in NOLs (according to Mazzuto, roughly 2 years worth), I prefer to focus on the EBIDTA at this point in time. IEAM is forcasting EBIDTA of .32 for F3Q07 and .50 for F4Q07. FY07 GAAP numbers won't be nearly as pretty, but this is short-term in nature...
At their Pitt Penn facility, IEAM added a second shift in Febuary which effectively doubled output. Optimal capacity would be 3 shifts per day, 7 days a week, and this could/should be implemented sometime in the near future. With 3 shifts, management believes annual sales can reach up to $200M at just the Pitt Penn facility. Mazutto thinks this EMC Packaging aerosol JV in China could triple IEAM's overall revenue down the road (!), but it seems premature to talk about how much of an impact it will have until we see the operations up and running in China, and see some preliminary results. If all goes as planned, I think GAAP EPS could be @ $2 in FY08 and more in 2009. We'll see...
Have you listened to their latest CC from B Riley? It can be found at:
http://www.ieam-inc.com
or, for the direct link:
http://www.wsw.com/webcast/brileyco8/register.aspx?conf=brileyco8&page=ieam.ob&url=http%3A//....
Industrial Enterprises of America Acquires Hi-Tach Oil
Thursday April 19, 8:00 am ET
NEW YORK--(BUSINESS WIRE)--Industrial Enterprises of America, Inc. (OTC BB:IEAM - News), a specialty automotive aftermarket supplier, today announced that the Company has purchased Hi-Tach Oil, Co., Inc. for $350,000 in a combination of cash and promissory notes. Hi-Tach, based in Kannapolis, North Carolina, sells and markets a distinct line of high quality oil additives and lubricants. As part of the purchase agreement, IEAM acquired all inventory, purchase orders, marketing materials, formulae and copyrights from Hi-Tach. Additional terms of the transaction were not disclosed.
Hi-Tach's high quality products may be found in independent auto parts stores, automotive chain stores, fast lubes and other retail outlets from coast to coast.
John Mazzuto, Chief Executive Officer of Industrial Enterprises, commented, "Hi-Tach Oil is a perfect complement to our existing Pitt Penn and Unifide product lines, and the transaction represents the purchase of another virtual marketing company that can leverage our existing operations. We will package the Hi-Tach products utilizing capacity at our Pitt Penn facility, thus increasing utilization rates while expanding our distribution footprint. Hi-Tach's stabilizers and lubricants are known for providing superior performance at reasonable prices, completely in sync with our business model."
To learn more Hi-Tach, visit www.hi-tach.com.
About Industrial Enterprises of America
Industrial Enterprises of America, Inc., headquartered in New York, NY, is an automotive aftermarket supplier that specializes in the sale of anti-freeze, auto fluids, charcoal fluids, and other additives and chemicals. The company has distinct proprietary brands that collectively serve the retail, professional and discount automotive aftermarket channels.
Contact:
Lippert/Heilshorn & Associates
Chris Witty / Jody Burfening, 212-838-3777
cwitty@lhai.com
Industrial Enterprises of America Approved for Trading on NASDAQ
Thursday April 19, 7:30 am ET
NEW YORK--(BUSINESS WIRE)--Industrial Enterprises of America, Inc. (OTC BB:IEAM - News), a specialty automotive aftermarket supplier, today announced that it has been approved to list its common shares on The Nasdaq Capital Market. It is expected that the Company's stock will begin trading on the Nasdaq under its current symbol "IEAM" sometime next week.
"This is an exciting milestone for Industrial Enterprises. Listing on the Nasdaq will provide increased visibility for the company and improved liquidity for our shareholders." stated John Mazzuto, Chief Executive Officer.
About Industrial Enterprises of America
Industrial Enterprises of America, Inc., headquartered in New York, NY, is an automotive aftermarket supplier that specializes in the sale of anti-freeze, auto fluids, charcoal fluids, and other additives and chemicals. The company has distinct proprietary brands that collectively serve the retail, professional and discount automotive aftermarket channels.
Contact:
Lippert/Heilshorn & Associates
Chris Witty / Jody Burfening, 212-838-3777
cwitty@lhai.com
--------------------------------------------------------------------------------
Source: Industrial Enterprises of America, Inc.
GORO.ob news
Gold Resource Corporation Returns Additional High-Grade Silver Surface Samples From Its Las Margaritas Property and High-Grade Gold From New Area at Its El Aguila Project in Oaxaca, Mexico
Wednesday April 18, 1:12 pm ET
DENVER, April 18 /PRNewswire-FirstCall/ -- Gold Resource Corporation (GRC) (OTC Bulletin Board: GORO - News) announces continued high-grade rock chip surface samples, up to 1395 g/t Ag (40.7 ounces/ton Ag), from its 100% owned Las Margaritas property, Oaxaca, Mexico.
Recent highlights from a surface sampling program at Las Margaritas include silver samples of 374 g/t Ag, 491 g/t Ag, 408 g/t Ag, 168 g/t Ag and 1395 g/t Ag.
William Reid, President of Gold Resource Corporation stated, "With the continued exploration at our Las Margaritas property, including the highest grade surface sample taken by us to date, we are gaining a better understanding of the geology and are generating drill targets. We are excited to be the first to put a drill hole in this historical high-grade silver mining district."
The Las Margaritas high-grade silver property comprises the four northwest kilometers of the important N 70 W structural corridor which is an extension of GRC's El Aguila system eight kilometers away. Las Margaritas is one of four potential high-grade gold and silver properties whose ore could be trucked to GRC's proposed El Aguila mill.
Mr. Reid continued, "The recent sampling program has also returned a high-grade gold surface sample of 13.25 g/t Au (0.39 ounces/ton Au) and 82.6 g/t Ag from an apparent manto outcrop in a new area within the El Aguila project called El Pilon. This sample was located across the valley from our current exploration and drilling program along our N 70 W fault corridor which is believed to be the main feeder zone."
"This high-grade gold surface sample in this new area potentially expands the area previously thought to contain mineralized mantos. Obviously more sampling and exploration must be conducted but to return high-grade gold from a surface sample across the valley from our current focus may be indicative of the robust system that feeds the El Aguila project." concluded Mr. Reid.
R59, MESA. Thanks. In my haste upon reading the newswire headline, I thought Delta had selected MESA for a $300M pact. Reading the pr, looks like it was MESA who selected Delta for their engine repair.
MESA-$7.24. I think Researcher59 was in MESA? Any thoughts?
Mesa Air Group Selects Delta TechOps for 12-Year CF34 Engine Repair Services
Wednesday April 18, 10:00 am ET
Program expected to realize $300 million in revenue
ATLANTA, April 18, 2007 (PRIME NEWSWIRE) -- Delta Air Lines and Mesa Air Group have reached agreement on a 12-year deal to support Mesa's CF34 engine program. The deal is valued at approximately $300 million over the course of the agreement.
As a result of this agreement, Delta's Technical Operations division -- TechOps -- will manage the entire Mesa engine fleet and will provide on-site program management with representatives based in Phoenix, where Mesa is headquartered.
``We are thrilled to be partnering with Mesa on such an exciting and substantial agreement,'' said Tony Charaf, senior vice president for Delta TechOps. ``This deal represents a long-term commitment which Mesa clearly shows their faith in the people, customer service and top-notch quality Delta TechOps has earned a reputation for delivering.''
Added Mesa Air Group Chairman and CEO Jonathan Ornstein: ``We are truly delighted to conclude this important long term engine MRO contract with our partner Delta Air Lines. Delta has consistently treated Mesa as a true partner and we are very appreciative of the relationship that has developed between our companies. We view this contract as an extension of our strong partnership.''
``Mesa selected Delta TechOps based on their proven record of customer support, industry leading quality and their unique ability to anticipate the needs of an airline,'' said Gary Appling, Mesa's director of MRO Services. ``In addition to quality engine maintenance, the Delta TechOps team will provide complete management of the CF34 fleet, including on-wing planning, engineering, ECTM, reliability and engine shop planning. This is truly a total support program.''
The Mesa partnership will complement Delta TechOps' growing list of engine capabilities, which also include CFM56-3, CFM56-7, PW2000, PW4000, CF6-80A/A2, CF6-80C2 and JT8D-219.
``The people of Delta TechOps have worked hard to turn TechOps from a cost center into a business,'' Charaf said. ``They are directly responsible for creating the largest airline MRO in North America and for continuing to deliver a premium product to our customers.''
Delta TechOps is the largest airline MRO in North America, earning more than $312 million in revenue in 2006. In addition to providing maintenance and engineering support for Delta's fleet of 440 aircraft, Delta TechOps serves more than 100 aviation and airline customers from around the world, specializing in high-skill work like engines, components, hangar and line maintenance. Delta TechOps employs more than 6,500 maintenance professionals and is one of the most experienced MRO providers in the world with more than seven decades of aviation expertise.
SDGL.ob
Secured Digital Revenue Up 53 Percent in 2006; Net Earnings Per Common Share Climb 418 Percent
Wednesday April 18, 8:30 am ET
SADDLE BROOK, N.J.--(BUSINESS WIRE)--Secured Digital Applications, Inc. (OTCBB:SDGL - News), a leading provider of outsourced business consulting services, today reported that its revenue had increased by 53 percent in 2006 to a record $36.95 million, while net income increased by more than 400 percent.
In its annual report filed with the Securities and Exchange Commission, the Company said that it had net earnings for the year ended December 31, 2006 of $657,384, or one cent per common share of stock, compared with a loss of four cents per share of common stock in 2005 on revenue of $24.19 million in 2005.
Patrick Lim, Chairman and Chief Executive Officer of SDA, said the increase in revenue was due to increased sales in the company's multi-media production, security and information technology outsourcing businesses. "We continue to see improvement in the revenue generated by these core businesses," Lim said. "Management believes that as we move more directly into providing back-office functions for new customers, primarily in the United States and Australia, there is good potential for further expansion of our sales base."
SDA, which provides outsourced multi-media production, technology consulting and securities services in Southeast Asia, released details of its strategy to expand its outsourcing activities into back office functions that include accounting and financial reporting, document management and accounts payable and receivable.
The Company revealed that it had developed an integrated technology system, available to customers through ordinary internet connections, to manage accounting, document management and other "core" office functions, which will be offered with staffing provided through its offshore center in Malaysia. The technology package is scheduled for introduction this Spring, the company reported, and has been designed to meet the needs of small and medium-sized enterprises.
"SDA believes that its outsourced business services product will provide a unique bridge between the best of American technology and a well-trained, but competitively priced Asia labor market," Lim explained. "Our goal is to make the same competitive tools enjoyed by major corporations available to the small and medium-sized US enterprises."
The Company reported a significant increase in administrative and marketing expenses for 2006, with operating expenses increasing by about $1.2 million, from $1.42 million to $2.67 as a result of increased sales, marketing and general administrative expenses.
SDA's results reflected the results of a reorganization completed in the third quarter of 2006 in which the company realigned its operating subsidiary and disposal of its retail computer and secured shipping operations. The results included several results of those discontinued operations as well as several extraordinary income items.
ACLO.ob
ACL Semiconductors Announces Year End Results
Wednesday April 18, 8:30 am ET
EBITDA Improves by 134%
Net Income Increases 114%
HONG KONG--(BUSINESS WIRE)--ACL Semiconductors, Inc. (OTCBB:ACLO - News) today announced its audited financial results for the year ending December 31, 2006.
The company reported sales for the year ending December 31, 2006 of $105,642,123 compared with $110,207,743 for the prior year ending December 31, 2005, a decrease of 4.5% over the comparable period. Gross profit improved to $4,098,025 for the year-end period an increase of 22% over the prior year. EBITDA for the year was $1,568,903 versus $669,258 for the same period in 2005, an increase of 134%. The company reported a 114% increase in net income for the 2006 calendar year to $555,404 compared with $259,515 for the prior 2005 calendar year.
In announcing the results, Chairman and CEO Alan Yang stated, "Clearly the financial performance for the year is our most successful report since we became a publicly traded company in 2003. Our triple digit gain in net profit over the prior year is a significant accomplishment and not only underscores the company's improvement in gross and net margins, but demonstrates our company's commitment to enhance shareholder value."
About the ACL Semiconductors, Inc.
ACL has been a leading distributor of Samsung and other memory chip products, including DRAM, Flash, SRAM and Mask ROM products for the Hong Kong and Southern China markets since 1991, and has achieved annual sales in excess of one hundred million dollars since 2004. ACL Semiconductors has been in business in Asia for the past 15 years and, during that time, has evolved as an integral part of southern China's development while serving the OEM and ODM manufacturing base for mobile phones, PDA's, digital cameras, laptop computers, MP3 players and other consumer electronics worldwide. The company has more than 200 customers in Hong Kong and southern China. ACL Semiconductors, Inc. trades on the OTCBB under the symbol, ACLO.
Realtors group says median home prices will decline for first time in 4 decades
April 11, 2007
WASHINGTON (AP) -- The National Association of Realtors on Wednesday said it expects the national median price for existing homes to drop this year for the first time since the trade group began keeping records in the late 1960s.
The group also lowered its 2007 sales forecast for new and existing homes. Tighter lending standards and the continued fallout from the subprime mortgage market are to blame, NAR spokesman Walter Molony said in an interview.
NAR is forecasting a 0.7 percent dip in 2007 for the national median price for existing homes after a 1 percent gain last year.
The national median new home sale price is projected to rise 0.4 percent after a 1.8 percent gain last year, according to the association.
However, NAR forecasts a 14.2 percent decline in new home sales compared to its previous estimate of a 10.4 percent slide.
The group estimates that existing home sales will fall 2.2 percent this year, compared to a previous forecast of a 0.9 percent decline.
DJ BASE METALS: Lower On Profit Taking, Fund Rollovers
Wednesday, April 11, 2007 5:17:52 PM
http://www.osterdowjones.com/
DJ BASE METALS: Lower On Profit Taking, Fund Rollovers
By Melanie Burton
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Fund rollovers and profit-taking pressured the base
metals complex lower Wednesday as the markets paused for breath before the next
leg up.
LME copper, the star of recent days, gave back 2.5% of an early rally which
saw the metal post a fresh 10-month high of $7,950 a metric ton. "Copper is
higher on a combination on short covering and fresh (speculative) buying," said
Barclays analyst Sudakshina Unnikrishnan. "Even if it does come down further,
that doesn't mean that the uptrend will be broken. Prices will find a firmer
footing and move higher again."
Investors flush with second-quarter cash are fueling bullish momentum,
analysts said, capitalizing on the start of the seasonally strong second
quarter and strong Chinese demand, evident in recent record March import
figures.
As of 1648 GMT, copper traded at $7,830/ton, up 1.4% on the day, and still in
sight of the key psychological level of $8,000/ton.
Fund rollovers were also pressuring the base metals complex, said a broker,
as a predominantly long market sold the front end contract.
"At the moment funds are doing their rolls in the May-June positions," said a
broker.
Profit taking in the copper market spilled over into the nickel, lead, zinc
and aluminum contracts.
"Since lead and nickel were the markets that have gone up the most (this
year), where we've seen the biggest price movements (Wednesday's correction) is
not anything that significant," Barclays' Unnikrishnan said.
As of GMT 1750, three-month lead was 2.4% lower than Tuesday's kerb, at
$1,970/ton.
Whether LME nickel prices will set another high remains to be seen, she
added. "The key indicator will be a slackening off in the stainless sector,"
she said, "which doesn't appear to be happening."
As of 1450 GMT, nickel was down 3% at 46,900/ton.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Tuesday PM kerb
Copper 7829.0-7830.0 Up 109
Lead 1970.0-1975.0 Dn 50
Zinc 3520.0-3525.0 Dn 30
Aluminum 2871.0-2873.0 Dn 2
Nickel 46875.0-46900.0 Dn 275
Tin 14125.0-14150.0 Unch
Aluminum Alloy 2220.0-2230.0 Dn 60
Aluminum Alloy 2245.0-2250.0 Dn 30
(-NASAAC)
-By Melanie Burton, Dow Jones Newswires; +44 (0)20 7842 9412;
melanie.burton@dowjones.com
(END) Dow Jones Newswires
04-11-07 1317ET
Copyright (c) 2007 Dow Jones & Company, Inc.
re: JCTCF stock split
Good catch, mandjb. Thanks for pointing that out.
OPBL / NYMEX news
NYMEX Completes Transaction to Purchase 19 Percent Stake In Optionable
Tuesday April 10, 7:42 pm ET
NEW YORK, April 10 /PRNewswire-FirstCall/ -- NYMEX Holdings, Inc. (NYSE: NMX - News), parent company of the New York Mercantile Exchange, Inc. (NYMEX), today completed and signed definitive agreements with Optionable, Inc. (OTCBB: OPBL - News), a leading provider of natural gas and other energy derivatives brokerage services, and its founding stockholders, to acquire 19 percent of Optionable.
In addition to the 19 percent stake, Optionable has issued a warrant that would permit NYMEX to increase its stake in the company to 40 percent. The warrant is exercisable for 18 months at an exercise price of $4.30 per share. The agreements also provide for certain marketing and technology initiatives between the companies.
NYMEX is entitled to nominate one Director to the Optionable Board, which has increased in size to five Directors from four, and elected Benjamin Chesir, NYMEX vice president of new product development, as a Director
NYMEX Chairman Richard Schaeffer said, "The closing of this agreement marks an important milestone for NYMEX. We are looking forward to working with Optionable as a key contributor to our future expansion in the options markets."
Optionable CEO Kevin Cassidy said, "The completion of this transaction is a major strategic step for Optionable, allying us closely with the world's largest exchange for the trading of energy futures and options contracts. I am convinced that our close relationship with NYMEX will be an important catalyst in helping drive and accelerate our future growth."
About NYMEX Holdings, Inc.
NYMEX is the parent company of the New York Mercantile Exchange, Inc., the world's largest physical commodity exchange. NYMEX offers futures and options trading in energy and metals contracts and clearing services for more than 250 off-exchange energy contracts. Through a hybrid model of open outcry floor trading and electronic trading on CME Globex® and NYMEX ClearPort®, NYMEX offers crude oil, petroleum products, natural gas, coal, electricity, gold, silver, copper, aluminum, platinum group metals, and soft commodities contracts for trading and clearing virtually 24 hours each day. For more information on NYMEX or the New York Mercantile Exchange, Inc., please visit www.nymex.com.
About Optionable
Optionable, Inc. is a leading provider of natural gas and other energy derivatives trading and brokerage services, headquartered in Valhalla, NY. The company provides its services to brokerage firms, financial institutions, energy traders and hedge funds nationwide. In addition to the traditional voice brokerage business, Optionable developed an automated derivatives trading platform. OPEX® is a real-time electronic trade matching and brokerage system designed to improve liquidity and transparency in the energy derivatives market. For more information about Optionable and OPEX please visit www.optionable.com.
JCTCF out with their earnings. Minus a one time gain last year, EPS was .20 vs. .16. Revs were down from 18.9M to 16.4M. However, JCTCF recently signed on PetSmart and Fred Meyer to sell items from their new pet product line. On March 20th, they announced contracts w/ 2 major national home centers (724 stores) to sell their proprietary Adjust-A-Gate system. Once these new contracts start bearing fruit, JCTCF should start showing some improved numbers. Even if you annualize this Q, JCTCF is trading with a p/e of just 8.9 based on today's closing price of $7.12.
----------------------------------------------------------------
Jewett-Cameron Announces Second Quarter 2007 Results
Tuesday April 10, 6:46 pm ET
Sales for the Quarter Were Down 14%, but Earnings from Operations Were up 29% vs. the Same Period a Year Ago; Outlook is Positive
NORTH PLAINS, Ore.--(BUSINESS WIRE)--Jewett-Cameron Trading Company Ltd. (NASDAQ:JCTCF - News; TSX:JCT - News) today reported financial results for the second quarter and six months ended February 28, 2007.
Sales for the second quarter of 2007 totaled $16.4 million compared to sales of $18.9 million for the second quarter of 2006. The company reported net income of $0.3 million or $.20 per diluted share compared to net income of $0.6 million or $.39 per diluted share in the same period a year ago. However, the year ago period included a pre-tax gain of $0.6 million related to the sale of the company's distribution center in Utah, and excluding this item net income a year ago was $.16 per diluted share.
For the six months ended February 28, 2007 Jewett-Cameron reported sales of $31.9 million compared to $37.2 million for the same period a year ago. Net income for the first six months of fiscal 2007 was $0.6 million or $.38 per diluted share compared to net income of $1.2 million or $.74 per diluted share in the same period a year ago. The year ago period included the gain on the sale of the distribution center, and if this is excluded, net income for that period was $.51 per diluted share.
"Total company sales for the second quarter were down about 14% from the prior year, yet net income and earnings per share excluding the gain from the sale of property last year were up about 29%," said CEO Don Boone. "This reflects a coupling of a year over year sales decline in our industrial wood segment with more steady sales in our lumber and building materials segment, which includes higher profit sales than the industrial segment. In fact we continue to experience good sales increases in our non-wood specialty products like dog kennels, our proprietary fence gate systems, perimeter fencing, and greenhouses."
Mr. Boone went on to add, "Market conditions are continuing to be difficult for our industrial wood segment. However, in the lumber and building materials segment the third quarter is shaping up to be a good one. A seasonal surge in fencing sales will positively impact our third quarter, and we continue to have good success in increasing sales of our specialty non-wood products."
Stock Split
At Jewett-Cameron's annual meeting, which was held on March 9, 2007, shareholders approved a three for two stock split, which was distributed on or about March 23, 2007 to holders of record on March 19, 2007. The stock started trading on a post-split basis on March 15, 2007.
Financial results for the second quarter and six months ended February 28, 2007 do not reflect this stock split.
About Jewett-Cameron Trading Company Ltd.
Jewett-Cameron is a wholesale distributor of specialty wood products principally for applications in the marine and transportation industries. The company is also a wholesaler of building materials and a manufacturer and distributor of specialty wood and metal products for home centers and other retailers. Other activities at Jewett-Cameron include the processing and distribution of agricultural seed and the distribution of pneumatic air tools and industrial clamps. The area of most significant growth within Jewett-Cameron is the manufacture and distribution of specialty metal products like dog kennels, gate support systems, perimeter fencing, and greenhouses.
re: Quicken. I've found Gainskeeper to be the least complicated way for me to accurately keep track of my trades. Just import the trades from your online broker to your Gainskeeper account and it does the thinking for you.
---------------------------------------------------------------
GainsKeeper
www.gainskeeper.com
Tax saavy armchair portfolio gurus will want to dig into this site. Enter your positions in various holdings and track tax implications. The site will endlessly adjust your portfolio for trading activity to your advantage. It can automatically tell you the tax implications of a wash sale or calculate the long- and short-term gains or losses of all sales activities. This is handy information on Apr. 15. It can also adjust your gains and losses for stock splits and, again, adjusts your portfolio accordingly. A nifty feature: DivTracker, which can automatically break down a stock's dividend into ordinary and qualified income--handy since qualified income is taxed at lower rates.
BEST: High-end, complicated tax calculations for portfolios.
WORST: Not much free content. Yearly subscriptions start at $49.
http://www.forbes.com/bow/b2c/review.jhtml?id=2813
Scientists issue bleak forecast for global warming
April 6, 2007
Brussels, Belgium - Scientists today issued a grim forecast for life on earth in publishing their latest assessment of the impact of climate change.
A warming world will place hundreds of millions of people at greater risk of food and water shortages and threaten the survival of thousands of species of plants and animals, the scientists said. Floods, heat waves, storms and droughts are all expected to increase, with people in poor countries suffering the worst effects.
Rajendra Pachauri, chair of the expert panel that published the report, said: "It's the poorest of the poor in the world, and this includes poor people even in prosperous societies, who are going to be the worst hit."
Martin Parry, who co-chaired the working group that produced the report, said there was evidence that climate change was having a direct effect on animals, plants and water. "For the first time, we are no longer arm-waving with models. This is empirical data, we can actually measure it."
He said four areas of the world were particularly vulnerable: "The Arctic, where temperatures are rising fast and ice is melting; sub-Saharan Africa, where dry areas are forecast to get dryer; small islands, because of their inherent lack of capacity to adapt, and Asian mega-deltas, where billions of people will be at increased risk of flooding."
The report was issued in Brussels by the UN Intergovernmental Panel on Climate Change (IPCC). Its release was delayed by arguments between scientists who wrote a draft, based on published evidence, and some government representatives present, who had to agree upon the final text and insisted some of its conclusions be watered down. "The authors lost," one scientist in the negotiations told the Associated Press. "A lot of authors are not going to engage in the IPCC process anymore. I have had it with them." Scientists, who at one stage walked out of the talks in protest, said delegations from Saudi Arabia, Russia and China had raised the most objections. The US also wanted some passages removed.
The final report says that natural systems on all continents and in some oceans are being affected by rising temperatures. It says warming caused by human activity has "likely had a discernible impact on the global level on many physical and biological systems". Up to 30% of species face "an increasing risk of extinction" if temperatures climb by 1-4C, as they are predicted to this century if emissions continue to rise. A temperature rise beyond 4C would bring "significant extinctions around the globe". Coral reefs, boreal forests and alpine ecosystems could also be damaged irreversibly as temperatures continue to rise.
Neil Adger, a scientist at the Tyndall Centre for Climate Change Research, at the University of East Anglia, who helped to write the new report, said: "There are no winners from the impacts of climate change. No country is immune. All around the world, from retreating glaciers, through to earlier fish migrations in rivers, the impacts of climate change are upon us."
Ian Pearson, the environment and climate change minister, said: "This report provides further evidence of why all countries need to work urgently to agree a global deal to combat climate change. People are already being affected, and if we don't act now millions more will suffer. But reducing emissions is not enough. Because we can't avoid some of the impacts of climate change that are already happening, we must anticipate and plan for the changes ahead, including changed stability and security conditions. The European heat wave of 2003 and the 2005 North Atlantic hurricane season show that developed countries are also vulnerable to climate change and so must adapt."
Professor Adger said: "Adaptation is necessary but not a panacea. The report highlights new observations that adaptation is occurring now - local governments and individual farmers, home owners and water and insurance companies are all changing their locations, business practices and policies. At present, these efforts at adaptation are nowhere near sufficient."
Yesterday's summary of the report for policy makers follows a similar UN summary of the science of global warming, which concluded in February that human activity was "very likely" to blame for recent warming. A third IPCC summary report, on possible ways to tackle the problem, will be published next month. Together, they will underpin international negotiations on a new global treaty to regulate carbon emissions to replace the Kyoto protocol in 2012.
Jim Footner, a climate campaigner with Greenpeace, said: "It's clearer than ever that millions are at risk from devastating climate change. The poorest people will be hardest hit, despite being least to blame. The UK has played a major role in causing the problem and we must play a leading role in solving it - but, appallingly, our CO2 emissions are rising. It's time for solutions that match the scale of the threat. To avert disaster, the government needs to stop sitting on its hands and start implementing the solutions that already exist - decentralised energy, renewable energy and energy efficiency."
Good article mentioning RGRP.ob (Roo Group). I've never heard of Narrowstep (NRWS.ob) but I am going to look into the company....
As Online Video Spreads, Time To Look At Smaller Players
Last update: 4/4/2007 2:58:41 PM
NEW YORK (Dow Jones)--Google's (GOOG) YouTube, Yahoo (YHOO) and Microsoft Corp.'s (MSFT) MSN may be the Hollywood studios of the Internet, but there are plenty of small independent Web-video companies worth a look for investors.
Video has become a standard feature for Web sites, and a cottage industry has quickly grown around the creation, delivery and support of these moving pictures. A host of small and mid-cap companies such as Roo Group (RGRP), Ciena Corp. (CIEN) and Akamai Technologies Inc. (AKAM) participate in the trend. Further, this Internet offshoot offers what drew investors to the Web in the first place: rapid growth.
Pollster AccuStream Research estimated the number of videos played on entertainment and media Web sites rose 39% to 24.92 billion in 2006, a trend expected to continue.
"Nearly every site we touch now has some sort of video integration," said Stephen Martin, an executive producer for closely held Fantasy Interactive, which has designed Web sites for Time Warner Inc. (TWX) and Viacom's (VIA VIAB) MTV from offices in New York and Sweden. "The demand for video content will not stop at a simple clip of some guy running through a fence that you can see on YouTube, or some other short snippets. Users need something more to grab at and a slicker, sexier interface to handle."
Tim Savageaux, director of research at Merriman Curhan Ford, divides the online-video plays into three categories, roughly analogous in television-business terms to the studios and networks, the cable companies and the cable layers.
In the content category, Savageaux recommends Roo Group, which functions like a TV network and advertising agency rolled together. While analysts await Google's strategy for making advertising money on YouTube, Roo is already generating revenue from commercials.
"Online video advertising has been growing like a weed," said Savageaux.
Web sites that want a video corner hire New York-based Roo to set it up, tapping its library of news and entertainment footage and its expertise in rounding up advertisers. Roo expects revenue to double this year from about $9.8 million in 2006; after trading for $4.50 in February, shares of Roo dropped back to around $3 for a market capitalization of about $84.2 million.
Typically, Roo provides customers such as News Corp.'s (NWS) The Sun daily tabloid in Britain with clips of an average three-to-five minutes preceded by ads of about 15 seconds long, said Chief Executive Robert Petty. This year, Petty expects to distribute longer programs as Web surfers' average watching span grows.
Roo's customers also have the ability to post their own footage. Recently, The Sun broadcast film shot from the cockpit of a U.S. aircraft in Iraq, including the U.S. airmen's realization that they had mistakenly fired and hit British allies.
Other content outlets open to investors include Narrowstep (NRWS), which calls itself "the TV on the Internet company," and supports the broadcast of channels in niches too narrow even for cable TV. Among those channels: SingleMalt TV, which airs programs devoted to all things whiskey, a field-hockey station and a martial arts station.
"You've got 20,000 channels to chose from because the cost structure for broadcasting over the Internet is far less than on TV," said Petty, of Roo Group.
Trading at around 70 cents a share - about halfway between its highs and lows for the year - Narrowstep's market value is currently around $45 million.
For a company that manages and helps transmit video traffic, Savageaux tipped Akamai. The Cambridge, Mass., company smoothes out the wrinkles on the Internet for organizations such as General Electric Co.'s (GE) NBC and car maker Audi (NSU.XE), expediting the download of video and other software. A mid-cap stock, Akamai's trading around $51 a share - around 70% higher than its 52-week low - for a market cap of about $8.21 billion.
One telecommunications play linked to transmission, WorldGate Communications (WGAT), is struggling in its efforts to bring the videophone from the science-fiction realm into a commercial package. WorldGate has had a bad run amid dwindling revenue, falling to around 70 cents recently, compared with its 52-week high of $2.16.
As for the infastructure end, Savageaux said demand for online film has touched off another bout of spending - good news for network builders. As an infant's gullet lacks the capacity to digest solids, most Internet cables in the U.S. don't have the "bandwidth" or capacity to process high-definition video. According to the International Telecommunication Union, the U.S. trailed nations such as Israel and Iceland in terms of number of the percentage of households reached by broadband at the end of 2005, the latest data available. To close that gap and to increase the capacity of existing connections, Savageaux says investment will dwarf the spending in the late 1990s, the fuel for the first Internet boom.
And to profit from the broadening of broadband, Savageaux recommends network-gear provider Ciena, currently hovering around $29, giving it a market-cap of around $2.47 billion. Ciena has swung between a low of $22.04 and a high of $35.38 over the past 52 weeks.
As with the last Internet gold rush, the challenge for small-cap investors will be distinguishing the nuggets from the flashes in the pan. For every WebEx Communications (WEBX) out there, a computerized videoconferencing concern that agreed to a lucrative $3.2 billion buyout from Cisco Systems (CSCO) in March, there is a Handheld Entertainment (ZVUE). Shares of the MP3 player maker jumped to $6 in two sessions after it agreed to buy YouTube copycat Dorks.com in November. Since then, however, Handheld shares have dropped back to around $2.70, still up compared with the Nov. 10 low of $1 but leaving those who bought near the highs with losses of around 60%.
I stumbled upon these 2 juniors. First Nickel (FNI.TO) has doubled in 2007. Hard Creek Nickel (HNC.V) is up over 300% in 2007. Wow! These Canucks can move...
Bobwins' SUWN.ob off to a good start today.
Sunwin International Neutraceuticals Announces Its Hypericin-Based Veterinary Disinfectant Is Proven to Be Effective in Killing Bird Flu Virus (H5N1) in an Independent Study
Wednesday April 4, 8:30 am ET
QUFU, CHINA--(MARKET WIRE)--Apr 4, 2007 -- Sunwin International Neutraceuticals, Inc. (OTC BB:SUWN.OB - News), a leader in the production and distribution of Chinese herbs, veterinary medicines and low calorie sweetener (Stevia) in China, announced today its Hypericin-based veterinary disinfectant has proven to be effective in killing 100% of bird flu virus (H5N1) in research tests involving H5N1-infected Chicken embryos. The research was independently conducted by a group of scientists from Ha'erbing Veterinary Institute of the Chinese Academy of Agricultural Sciences, Animal Influenza Laboratory of the Ministry of Agriculture, and National Bird Flu Reference Laboratory. Hypericin is a derivative of St. Johns Wort.
The test results demonstrated that Sunwin's Hypericin-based veterinary disinfectant eliminates 100% of bird flu virus (H5N1) in the infected chicken embryos within 10 minutes when the Hypericin-based disinfectant was diluted at ratios of 1:5, 1:10, 1:25 and 1:50. No significant toxicities to healthy chicken embryos were observed when the disinfectant was diluted at these same levels.
In November 2005, the Department of Livestock Farming for Shandong Province Government submitted a fast-track application to the Livestock Farming Bureau of China Ministry of Agriculture for approval of Hypericin related products as a class one new veterinary medicine to treat strands of the avian flu virus. This independent study was a requirement of the approval process for the application.
Laiwang Zhang, President and Chairman of Sunwin International Neutraceuticals, commented "We are extremely pleased with these independent study results. We believe they validate the effectiveness of Hypericin which will help pave the way for approval of our Hypericin-based veterinary disinfectant as class one veterinary medicine in China. If the use of this medicine is determined to be the best way to prevent and deter the spread of bird flu virus by tens of millions of poultry farmers in China, the economic impact on our company could be enormous as we are one of only a few manufacturers of these products in China."
I picked up a few shares of TSTC @ $8. They just announced fully diluted earnings of .19 for Q4 and .53 for the full year 2006. Management is anticipating at least a 30% rising in rev. and net earnings in 2007, not including any contribution from their 3G business. The stock might go a little lower, but I think TSTC seems like a good risk/reward at these levels, especially considering their growth rate and hot industry (wireless in China). Recent private placement was at $9/share...we can buy TSTC today for less.
"Management of the Company currently anticipates 2007 fiscal year to be specifically above 30% growth in revenue and net earnings after taxes, as compared to 2006. This is without the inclusion of revenue generated from the upcoming 3G deployments in China. Management does expect a positive impact in revenue upon the arrival 3G, but at this time they are not able to predict the specific impact for 2007 due to the uncertainty of when the licenses will be issued to the Chinese mobile operators during the year. "The management team is pleased with the financial results of our company for 2006 fiscal year. We insist that we will achieve our planned business targets in fiscal 2007."
Did a Google News search on "Industrial Enterprises of America" and came up w/ a few links. Nothing too exciting, but I'll post the results anyway...
From Dec. '06:
http://investorideas.com/insiderscorner/Articles/120806.asp
From this past week, same author as the link above:
http://www.homelanddefensestocks.com/insiderscorner/Articles/032907.asp
A sponsor at the UCF Lou Frey Symposium next week? A bit random!?!?
http://news.ucf.edu/UCFnews/index?page=article&id=0024004102c4c1d99011146fc1c32007ba6
SIMC up $1.55 afterhours to $7.35 on low volume. Q4 looks good w/ $33.2M vs. $18.1M revs. and EPS of .15 vs. .03.
Simclar Announces 2006 Results
Friday March 30, 5:01 pm ET
HIALEAH, Fla.--(BUSINESS WIRE)--Simclar, Inc. (Nasdaq:SIMC - News) today announced financial results for the fourth quarter of 2006 and for the full year that ended December 31, 2006. Results for the fourth quarter and for the full year of 2006 include the consolidated operations of Simclar, Inc. and its subsidiaries. For the fourth quarter of 2006, Simclar had net income of $949,000 or $0.15 per share, compared to net income of $192,000 or $0.03 per share for the fourth quarter of 2005. For the calendar year 2006, Simclar had net income of $2.9 million or $0.44 per share, compared to net income of $947,000 or $0.15 per share for 2005.
For the year 2006, Simclar reported total revenues of $116.0 million compared to $61.0 million in 2005, a 90% increase. For the fourth quarter of 2006, revenues increased $15.1 million or 83.5% to $33.2 million compared to $18.1 million for the fourth quarter of 2005.
Sam Russell, Chairman, stated, "I am pleased with the growth in revenues and profits resulting from our adding the backplane interconnect process to our existing capabilities in metal fabrication, cabling solutions, printed circuit board assemblies, and higher level assemblies. Our growth has come from both new and existing customers who are looking to consolidate their business with suppliers that can meet all their needs. We continue to seek operating efficiencies and opportunities to leverage all our capabilities to bring higher value to our customers."
Simclar, Inc., with five North American manufacturing locations, and two regional Sales/NPI locations, has been engaged in contract manufacturing of electronic and electro-mechanical products for OEMs for 31 years.
Some new insider filings on IEAM. Alydar Partners, LLC is a new 6.2% owner. Also, per today's filing, IEAM's CEO John Mazzuto purchased 100K more shares at $6, making his current total 557,500 shares (all purchased in the open market). I don't ever recall seeing insider purchasing of this magnitude on a OTC:BB listed stock.
Another 100,000? "Sure," says Mazzuto.
http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001166944%252D07...
Alydar Partners LLC a new 6.2% owner of IEAM. Here is a link to their other recent transactions, if anyone is interested...
http://fatpitch.ecoin.net/cgi-bin/f.cgi/psp/extn/lmt_entry/cik.1279895.955.html
LMGGF = $16.45 x $16.50
I sound like a broken record but....Pike keeps adding!
http://www.secform4.com/insider-trading/1365921.htm
Some "talking head" on CNBC just mentioned MOLY. He was bullish and explained what moly is used for. He mentioned NTO and FCX.
Yes, your right. Might be a good short in the $9's.
CTIB reports .49 v. .02.
CTI Industries Corporation Reports 2006 Financial Results
Thursday March 22, 12:29 pm ET
BARRINGTON, Ill.--(BUSINESS WIRE)--CTI Industries Corporation (NASDAQ Capital Market:CTIB), a manufacturer and marketer of novelty balloons, printed and laminated films and flexible packaging and storage products, today announced its full-year results of operations for 2006, as well as for the three months ended December 31, 2006.
ADVERTISEMENT
Year End Results
For the year ended December 31, 2006, consolidated net sales totaled $35,428,000 compared to consolidated net sales of $29,190,000 for the year ended December 31, 2005, an increase of 21.4%. For the year, CTI achieved net income of $1,895,000 or $0.91 per share (basic) and $0.85 per share (diluted). During the year ended December 31, 2005, CTI incurred a net loss of $333,000 or $(0.17) per share basic and diluted.
CTI's net income for 2006 included net income before taxes of $1,122,000 and an income tax benefit of $774,000. Absent the income tax benefit, CTI's earnings per share were $0.54 (basic) and $0.50 (diluted). The income tax benefit arose because of the determination by management of the Company to reduce the reserve previously taken against the Company's deferred tax asset. This action was taken, and the tax benefit recorded, because of management's determination that it is more likely than not that CTI will recover the recorded value of its deferred tax asset.
Fourth Quarter Results
Consolidated net sales for the fourth quarter of 2006 were $9,672,000 compared to consolidated net sales of $6,480,000 for the fourth quarter of 2005, an increase of 49.3%. CTI had net income of $1,154,000 or $0.54 per share (basic) and $0.49 per share (diluted) for the fourth quarter of 2006 compared to net income of $52,000 or $0.03 per share (basic) and $0.02 per share (diluted) for the fourth quarter of 2005. CTI's income for the fourth quarter of 2006 included a tax benefit of $834,000. Absent the tax benefit, CTI's earnings before tax for the fourth quarter were $319,000.
Key Factors and Trends
During 2006, CTI experienced an increase in revenues of more than 21% over 2005 revenues. Most of that increase was derived from sales of metalized and latex balloons, although sales of commercial film products also increase by 10% during the year. CTI also achieved an increase in gross margins from 22.1% in 2005 to 25.1% in 2006.
CTI Industries Corporation, based in suburban Chicago, designs, develops, produces and markets a line of novelty balloon products, laminated and printed films for packaging applications and flexible packaging and storage products.
News Corp/Roo partnership:
This could be big for Roo, if they are involved....
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NBC, News Corp. Plan Their Own YouTube
March 22, 2007, 7:43 am
Several media giants are teaming up to fight YouTube on its own turf. News Corp. and NBC Universal plan to announce as soon as Thursday that they are creating an online video site stocked with TV shows and movies, plus clips that users can modify and share with friends, according to The Los Angeles Times.
Although talks of alliance between the two media groups had been circulating for awhile, PaidContent reported late Wednesday that “another big push is on to get it done.”
The Los Angeles Times said the partnership, enlisting help from some of Google’s biggest Internet rivals, has deals with Yahoo, Microsoft, Time Warner’s AOL and News Corp.’s MySpace to place videos in front of their collective audience of hundreds of millions.
Conspicuously missing from the list is Viacom, which last week announced it was suing YouTube parent Google for $1 billion for copyright infringement after unauthorized clips of some of the media company’s most popular shows kept popping up on YouTube.
While Viacom gets litigious, News Corp. and NBC are taking a different route in their effort to control the Internet distribution of their programming.
The L.A. Times said that the new venture, which could launch this summer, is envisioned as an advertiser-friendly destination for some of TV’s most popular shows, including NBC’s “Heroes” and “The Office,” and “Family Guy” and “24″ from News Corp.’s Fox. The companies also plan to sell downloads of Universal Pictures and 20th Century Fox movies.
LME zinc stocks have risen 9,300 tonnes just in the last 2 days.
Pike still buying, adding 10380 shares at $5.94. They now own 318,980 shares.
http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001013594%252D07...
Wow. Again, look at the volume! For such a low float stock (with many of the shares tied up w/ insiders and Pike (and me;)), I wonder who is selling and if their shares are almost exhausted?!
From the sounds of the cc, things are unfolding nicely and, w/ China, the additional lines coming on stream, extending geographic reach, etc, IEAM's earnings could really ramp over the next 2 years. Looking a year or two into the future, I think a stock price of $20+ is very probable, $40+ possible. The business might not be "sexy," but I'm betting the earnings will be! EPS is Mazzutto's singular focus....
Here is a pdf overview of IEAM from the B Riley conference on March 14th:
http://www.ieam-inc.com/IEAM-BRiley-Final.pdf
and webcast:
http://www.wsw.com/webcast/brileyco8/ieam.ob/
OT: CKYS.pk
Glad to see the SEC going after a pinksheet company....
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Litigation Release No. 20049 / March 20, 2007
SEC v. Cyberkey Solutions, Inc. and James E. Plant, Civ. Action No. 07 1084 (CMR) (E.D. Pa)
SEC Charges That Company and CEO Promoted Stock With Phony Homeland Security Deal
The Securities and Exchange Commission ("Commission") today announced the filing of a civil injunctive action alleging that a Utah-based corporation and its Chief Executive Officer made at least $1.5 million selling shares while disseminating false claims of a lucrative purchase order from the Department of Homeland Security.
In its complaint, filed today in the United States District Court for the Eastern District of Pennsylvania, the Commission alleged that CyberKey Solutions, Inc. of St. George, Utah ("CyberKey") and its CEO James E. Plant ("Plant," collectively, the "Defendants"), between November 2005 and the present, have engaged in an ongoing unregistered offering of Cyberkey shares, promoted with a series of false press releases describing a putative purchase order worth in excess of $24 million from the U.S. Department of Homeland Security ("DHS") to buy CyberKey's flash memory drives. In fact, the Commission's complaint alleges, CyberKey had no business relationship at all, either directly or indirectly, with DHS. Additionally, according to the complaint, CyberKey and Plant made other false statements to unsuspecting investors, including statements claiming CyberKey had shipped products to DHS and received payments pursuant to the phony purchase order, and that CyberKey was in the process of preparing and releasing audited financials.
The Commission's complaint further alleges, that, as a result of their scheme, the Defendants violated Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks as relief permanent injunctions against future violations of these provisions by the Defendants, and disgorgement of all the Defendants' ill-gotten gains, including prejudgment interest and civil penalties.
In a related criminal action, Plant was arrested on March 13, 2006, in St. George, Utah, by agents of the Federal Bureau of Investigation's Philadelphia Economic Crimes Squad on charges of securities fraud and aiding and abetting securities fraud.
The Commission acknowledges the assistance and cooperation of the Federal Bureau of Investigation, the United States Attorney's Office for the Eastern District of Pennsylvania and the National Association of Securities Dealers in the investigation of this matter.