Small Order at End of Day Rescues TPAC Honor

200 share order at bell saves the day.

Retail Shareholders Cheer Wal-Mart Court Victory
June 20, 2011
AP
So the Supreme Court this morning ruled in favor of Wal-Mart and kept the women accusing the mega-retailer of gender discrimination from forming a mega-class action lawsuit.

Wal-Mart shares are rising on this, as you’d expect, up 1%. Funny thing is, investors in other retailers apparently like the decision, too. J.C. Penney shares are up 2.5%, Macy’s is up nearly 2%, Kohl’s is up 1.5%, Costco and Target are each up about 1%.

Heck, this could be helping the whole stock market, come to think of it. Who on Wall Street doesn’t love some class-action blockage?

This has got to be a relief to big companies, who are better equipped to fight several small lawsuits simultaneously than to fight one gigantic one. Now they all know they’ll never have to fight a gigantic one, at least not on this issue.

Hooray?

http://blogs.wsj.com/marketbeat/2011/06/20/retail-shareholders-cheer-wal-mart-court-victory/

Theoretically, this removes a potential settlement in the tens of BILLIONS off the table. It should be a good day for WMT and many other large companies which would surely have been attacked had Walmart not prevailed.

Supreme Court Rules for Wal-Mart in Gender Suit; Widespread Implications
By AVI SALZMAN

Wal-Mart Stores (WMT) prevailed at the Supreme Court on Monday after the justices decided in the retail behemoth’s favor in a massive class action gender discrimination suit. The lawsuit had alleged widespread discrimination at Wal-Mart’s stores, as the corporation gave local managers too much discretion in determining pay and promotions. But the court said that the plaintiffs had failed to prove that a corporate policy had led to discrimination.
The plaintiffs had attempted to include about 1.6 million women in the suit, including many who had come to the company after the suit was initially filed. The ruling could help other companies facing class action suits, and it was supported by numerous companies, including General Electric (GE), Bank of America (BAC) and Intel (INTC).
Wal-Mart shares rose after the ruling was announced, and were up about 1% at 10:45 a.m.

http://blogs.barrons.com/stockstowatchtoday/2011/06/20/supreme-court-rules-for-wal-mart-in-gender-suit-widespread-implications/

We are deep into the annual summer malaise, but this time with world economic news indicating cataclysmic events on the horizon. I suspect opportunities abound for those who understand and heed the warnings. Hopefully, Barchenko and company are awake at the wheel.

Sell volume over 60,000 shares today. Where is the confidence?

Keep your friends close; keep your enemies closer. (Know your sellers)

From the most recent 10Q

As part of the acquisition of HAC, the Company assumed $200,000 of obligations under a note payable plus $11,737 of accrued interest. The holder of the note payable (Theodora Kobal) is the mother-in-law of William McKay, the Chairman of the Company’s Board of Directors and Chief Executive Officer. The note bears interest at 7% per annum and principal and interest was due and payable on March 31, 2011. On June 4, 2010, the Company entered into an amended and restated convertible promissory note with Theodora Kobal which amended and restated in its entirety the Promissory Note in the original principal amount of $200,000 issued by HAC to Theodora Kobal on March 16, 2009, and assumed by the Company on February 1, 2010 in connection with its acquisition of the assets of HAC. The amended and restated note had a principal amount of $216,455 which included all outstanding interest due on the note. The amended and restated note included a fixed conversion price of $0.058 per share, 7% interest rate per annum and is due and payable on June 3, 2011. The Company has evaluated the conversion feature of the notes and determined that there was a $216,455 beneficial conversion feature on certain notes as the fixed conversion price of $0.058 was less than the fair value of the common stock at the time of issuance. The beneficial conversion feature was recorded as a debt discount on the accompanying balance sheet. In June 2010, the Company issued 2,200,000 shares of common stock at $.058 per share to the note holder reducing its principal obligation by $127,600 pursuant to conversion requests. On November 22, 2010 the note was further amended which resulted in the reduction of the conversion price from $0.058 to $0.029 per share and a corresponding loss of $55,000 on induced debt conversion was recorded. On January 12, 2011, the Company issued 1,100,000 shares of common stock to the note holder valued at $.029 per share per the agreement reducing its principal obligation by $31,900 pursuant to conversion requests. And on March 12, 2011, the Company issued 1,012,260 shares of common stock to the note holder valued at $.029 per share reducing its principal obligation by $29,356 pursuant to conversion requests. During the six months ended April 30, 2011 and 2010, debt discount expense totaled $44,428 and $0 respectively.

http://www.sec.gov/Archives/edgar/data/1422295/000114420411035729/v225880_10q.htm

We're still growing!


As of June 10, 2011, the registrant had 45,960,546 shares of its $0.001 par value common stock issued and outstanding.

A new bankruptcy court document, filed on 6/8/11, names certain current directors, certain former directors, certain current officers, certain former officers, at least one reputed member of organized crime in New York, a reputed associate of organized crime in the Philadelphia area, certain auditors, certain law firms, certain lawyers, so called businesses invested in by FPFX after June 2007, and others. The document appears to indicate trustee, Matthew Orwig intends to attempt a wide ranging recovery effort against persons and entities he apparently believes were involved in the loss or theft of significant assets at FPFX. The document can be viewed at pacer.gov under case #09-33918 (Texas Northern District Bankruptcy Court).

The Walmart case before the Supreme Court represents potential liability for WMT in the tens of BILLIONS. In my mind, it is hard to see how a favorable ruling for Walmart would not give a huge boost to Walmart stock and the stock market in general.



Wal-Mart Tops U.S. High Court Agenda as Violent Video Game Ruling Looms
By Greg Stohr - Jun 6, 2011

Violent video games, climate change and a million Wal-Mart Stores Inc. (WMT) employees will preoccupy the U.S. Supreme Court in the homestretch of its nine-month term.

The justices will issue 31 rulings over the next four weeks, beginning today when they take the bench at 10 a.m. in Washington. The June flurry has become a tradition at a court where the combination of summer plans and calendar realities can leave the justices resembling high school students rushing to complete their term papers.

The lingering disputes include two securities-fraud clashes, two patent cases, a campaign-finance test, a free- speech case involving pharmaceutical marketing and a fight over suits against generic-drug makers. Those rulings ultimately may be overshadowed by higher-profile decisions, particularly the class-action case that will determine whether potentially a million workers can unite in a suit accusing Wal-Mart of gender bias.

“There are three major rulings coming that will set the tone for the term: global warming, class actions and violent video games,” said Tom Goldstein, a lawyer at Goldstein, Howe & Russell PC and the creator of the Scotusblog website.

The March 29 argument in the Wal-Mart case suggested skepticism among the justices about the scope of the class approved by a federal appeals court. Should the justices rule in Wal-Mart’s favor, they could either kill the lawsuit outright or kick the case back to a lower court.

The ruling will be the court’s first in a dozen years on the standards for certifying a class action. In a testament to the importance of the case, more than 20 companies are supporting Wal-Mart, the country’s biggest private employer.

Climate Change

Companies may get another victory in the climate change case, which involves six states seeking to force five companies including American Electric Power Co. to cut their emissions of the gases that contribute to climate change.

During arguments in April, justices across the ideological spectrum said the U.S. Environmental Protection Agency was better equipped than a federal court to sort through the costs and benefits of reducing carbon emissions.

The climate change ruling “could have the greatest potential impact on business, given that virtually every business is an emitter of greenhouse gases and therefore a potential defendant” in a similar lawsuit, said former U.S. Solicitor General Gregory Garre, now a lawyer at Latham & Watkins LLP in Washington. He filed a brief in the case on behalf of the U.S. Chamber of Commerce.

Violent Games

The video-game industry is focused on its challenge to a California law that would bar the sale of violent games to minors. California is asking the court to put new limits on the Constitution’s free-speech clause and to let states treat violent games like pornography and restrict youth access.

The Nov. 2 argument session signaled the court was poised to strike down the law. The five-month wait since then has fostered new uncertainty, as the dispute has become the longest- pending case.

An industry victory “seemed very likely at first but seems far more uncertain now,” said Roy Englert, an appellate lawyer at Robbins Russell Englert Orseck Untereiner & Sauber LLP.

For business, victories in those cases would take the sting out of what so far has been a disappointing term. The Chamber of Commerce has lost seven of the 12 cases in which it has filed a brief, including its own challenge to an Arizona law that imposes penalties on companies that hire illegal aliens.

Patents and Drugs

The court also will rule in a patent case that led to changes in Microsoft Corp. (MSFT)’s Word software and may force the company to pay a $300 million award. A ruling in favor of Microsoft, which is fighting a lawsuit by I4i LP, could make it easier for large technology companies to invalidate patents.

And in another free-speech case, the justices may overturn a Vermont law that would limit the ability of brand-name drugmakers to target individual doctors with sales pitches.

As with the video-game dispute, the court’s reasoning may have implications well beyond the industry involved in the case.

“The First Amendment is always an important area,” said Lisa Blatt, an appellate lawyer with Arnold & Porter LLP. “Whatever the court says about the First Amendment has ripple effects.”

To contact the reporter on this story: Greg Stohr in Washington at gstohr@bloomberg.net.

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net.


http://www.bloomberg.com/news/2011-06-06/wal-mart-tops-u-s-high-court-agenda-as-video-game-ruling-looms.html

The Athens franchise seems to be actively promotional. I hope that translates into bottom line profits.

http://www.connect2athens.com/epps/epsend.cfm?id=140

Wal-Mart Bucks Market On $15B Buyback Plan
By TIERNAN RAY

Shares of Wal-Mart Stores (WMT) are up 13 cents, a fraction of a percent, at $53.66, in a weak market, after the company this morning said its board of directors approved a $15 billion buyback program, replacig a prior repurchase agreement of the same amount that was down to just $2 billion.
Wal-Mart had bought roughly $13 billion of its shares in the last year, reclaiming more than 244 million shares.


http://blogs.barrons.com/stockstowatchtoday/2011/06/03/wal-mart-bucks-market-on-15b-buyback-plan/

Walmart Board Approves New $15 Billion Share Repurchase Program
Wal Mart Stores (NYSE:WMT)
Intraday Stock Chart
Today : Friday 3 June 2011


Wal-Mart Stores, Inc. (NYSE: WMT) announced at its 41st Annual Meeting of Shareholders today that its Board of Directors approved a new program authorizing the company to repurchase $15 billion of its shares. This program replaces the previous $15 billion program, announced on June 4, 2010, that had approximately $2 billion of remaining authorization. Under the program, repurchased shares are constructively retired and returned to unissued status.

“Our purchase of almost $13 billion of Walmart stock since last June is indicative of our strong free cash flow position,” said Charles Holley, Walmart executive vice president and chief financial officer. “We are pleased to continue our share repurchase program with this new $15 billion authorization.”

Through June 2, under the 2010 authorization, the company had spent more than $12.9 billion to repurchase more than 244 million shares. In addition to share repurchase, the company continues to return value to shareholders through dividends. Walmart increased the current fiscal year dividend per share by approximately 21 percent to $1.46, from $1.21 in fiscal 2011. During the first quarter of this year, the company distributed $1.3 billion in dividends.

“The combination of our annual dividend and share repurchase program indicates the strength of our company and its commitment to returning value to Walmart shareholders,” Holley added. “Walmart has increased its dividend every year since March of 1974, when we began paying a dividend of five cents per share.”

About Walmart

Wal-Mart Stores, Inc., (NYSE: WMT) serves customers and members more than 200 million times per week at more than 9,000 retail units under 60 different banners in 15 countries. With fiscal year 2011 sales of $419 billion, Walmart employs more than two million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy and employment opportunity. Additional information about Walmart can be found by visiting www.walmartstores.com

The registrant had 3,491,198,520 shares of common stock outstanding as of March 21, 2011

Bag holders are probably feeling a little lighter this week with the new and improved "Monarch Bay Way" stock weight loss program instituted last week.

Looking for the next entry point.

I look at this and just want to cry. 500% gain in two years! Why, oh why, did I not hold? - The Spilled Milk Chronicles

News? We don't need no stinkin' news! (LOL)

Yawwwwnnnn...........

Lynn Tillotson Pinker & Cox, LLP

At LTPC, we represent you in the way that we would want to be represented: aggressively, creatively and effectively. Our track record is a product of unique talent, inspiration and hard work.

We represent Fortune 500 corporations, major financial institutions, and prominent individuals. We have tried business disputes of all types, including breach of contract, intellectual property and trade secret, class action, financial services, securities, breach of fiduciary duty, employment, as well as professional malpractice cases. We have tried these cases to judges and juries throughout the country with a consistent track record of success.

http://www.lynnllp.com/about

The momentum continues. I wonder what secrets await?

VivaGel(R) Demonstrates Efficacy in Bacterial Vaginosis

http://ih.advfn.com/p.php?pid=nmona&article=47780812

The Monarch Bay Way

Item 8.01 Other Events.

Our board of directors has declared, and our stockholders have approved, a 1-for-10 reverse split of our Common Stock, to be effective as of the close of business on May 25, 2011 (the “Effective Date”). The reverse split will be accomplished by amending our articles of incorporation on the Effective Date to reclassify our existing shares of Common Stock (“Old Common Stock”) as follows: Each ten shares of Old Common Stock outstanding immediately before the Effective Date, and each ten shares of Old Common Stock issuable pursuant to an instrument exercisable for shares of Old Common Stock, shall, on the Effective Date, be reclassified and converted into, and become a right to receive, and the holders of the outstanding Old Common Stock or instruments exercisable for such Old Common Stock shall be entitled to receive therefor, one share of Common Stock.

Company stockholders do not need to surrender their stock certificates on the Effective Date, as the reverse split will be immediately reflected on the Effective Date on the stock books and records of the Company. However, when physical certificates representing shares are actually surrendered to the transfer agent for exchange, the new certificates issued in exchange therefor will be adjusted for the reverse split.

The reverse split will be deemed to be a tax-free recapitalization to the Company and its stockholders to the extent that outstanding shares of Common Stock are exchanged for a reduced number of shares of Common Stock. Therefore, neither the Company nor its stockholders will recognize any gain or loss for federal income tax purposes as a result thereof.

It's going to be a long summer, absent any news.

Bid $7.10 / Ask $1220.00; now that's what I call a spread!

Make no mistake, the Supreme Court ruling on the Dukes case will be huge. The link below provides some excellent historical context and analysis, in my opinion.

The Tort Plague Hits Wal-Mart
http://www.city-journal.org/html/eon_06_24_04sm.html

Recommendation (Zacks)

We remain encouraged by the company's significant presence in the international market. The international segment of the company consists of retail operations in 14 countries and Puerto Rico. Moreover, the company earns the trust of its customers by providing a broad assortment of quality merchandise and services at 'every day low prices' (EDLP).

Currently, Walmart which faces stiff competition from Target Corp. (NYSE: TGT) and Costco Wholesale Corporation (Nasdaq: COST) has a Zacks #2 Rank, implying a short-term Buy recommendation.

Get the full analysis of all these stocks by going to

http://at.zacks.com/?id=2649.

Wal-Mart Profit Rises 3% on International-Sales Strength

http://online.wsj.com/article/SB10001424052748703421204576328894262766136.html

Walmart reports FY12 first quarter EPS from continuing operations of $0.98, above guidance
Wal Mart Stores (NYSE:WMT)
Intraday Stock Chart
Today : Tuesday 17 May 2011


Wal-Mart Stores, Inc. (NYSE: WMT) today reported financial results for the first quarter ended April 30, 2011. Net sales for the first quarter of fiscal year 2012 were $103.4 billion, an increase of 4.4 percent from $99.1 billion in the first quarter last year. Net sales for the quarter included a currency exchange rate benefit of $1.3 billion.

Income from continuing operations attributable to Walmart for the quarter was $3.4 billion, up 3.8 percent from the first quarter last year. Diluted earnings per share from continuing operations attributable to Walmart (EPS) for the first quarter of fiscal year 2012 were $0.98, which included a benefit of $0.01 per share related to currency translation. By comparison, last year’s EPS were $0.87, which benefitted from currency translation of $0.02.

1 See additional information at the end of this release regarding non-GAAP financial measures.
For comparative purposes, in addition to the impact of currency translation, the company had certain discrete, pre-tax items in the first quarter of this year which are described below:

Approximately $117 million from mark-to-market gains on certain foreign currency derivative positions.
ASDA recorded approximately a $67 million charge for the realization of expenses in the current period related to the removal of future benefit accruals and the effect of future pay increases associated with its defined benefit plan.
Walmart Japan recorded approximately a $51 million charge for casualty losses related to the March earthquake and tsunami.
Walmart Chile recorded approximately a $51 million gain from the sale of an investment.
All of these items are included in operating expenses, with the exception of the gain from the sale in Chile, which is recorded in membership and other income. In summary, the net of these items accounted for approximately $0.01 of the company’s EPS for the quarter.

Strong earnings performance

“Walmart is reporting first quarter earnings from continuing operations of $0.98 per share, which was above guidance,” said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. “This reflects the stability and strength of our global operations.

“Walmart U.S. comp sales for the first quarter were within our guidance range,” Duke continued. “We recognize we still have work to do and comp sales growth remains the greatest priority for me and the entire Walmart U.S. team. The good news is that the plan Bill Simon and his team are executing is gaining traction. We’re focused on delivering every day low price and a wide assortment.”

Walmart International grew first quarter net sales by 11.5 percent over last year to almost $28 billion, with all countries except Japan showing sales increases. The March 11 earthquake and tsunami negatively affected sales in Japan. Because of the calendar shift, the majority of Easter holiday sales for International will fall in the company’s second quarter.

“International remains the key growth driver for our company, and the segment is seeing continued growth through a combination of comp sales and new stores,” Duke said. “Mexico, China and Chile had the highest percentage sales increases for the first quarter compared to last year.”

Duke also highlighted the strong Sam’s Club performance.

“Sam’s Club delivered really good results this quarter, with a 4.2 percent comp that was well above our guidance,” he explained. “Sam’s momentum is reflected in comp sales and increases in new members. The warehouse channel is increasing in importance in the retail landscape and Sam’s is gaining further momentum. We expect Sam’s to add even more value to the company’s overall portfolio.”

According to Duke, Walmart has tremendous growth opportunities in e-commerce.

“The recent acquisition of Kosmix is now integrated into @Walmartlabs in Silicon Valley, and allows us to expand our capabilities in the online social commerce environment,” Duke said. “On Friday, we announced that we are acquiring a minority stake in Yihaodian, one of the leading online retailers in China. We expect ongoing activity in the e-commerce area around the world.”

The company leveraged operating expenses for the first quarter.

Walmart ended the quarter with negative free cash flow of approximately $400 million1, compared to a negative $1.6 billion1 in the previous year. ROI for the trailing 12 months ended April 30, 2011 was 18.5 percent, compared to 19.2 percent for the prior year. The primary drivers of the change in ROI were the impact from currency exchange and cash held for pending acquisitions.

“In March, we were pleased to report that our board declared an annual dividend of $1.46 per share for this fiscal year, a 21 percent increase over the previous year’s dividend,” said Charles Holley, executive vice president and chief financial officer. “We returned $3.4 billion to our shareholders during the first quarter through dividends and share repurchases. We remain committed to returning value to shareholders.”

1 See additional information at the end of this release regarding non-GAAP financial measures.

Guidance

“Based on our views of the economic and sales environment in the United States and around the world, we expect second quarter fiscal 2012 diluted earnings per share from continuing operations to range between $1.05 and $1.10, compared to last year’s reported EPS of $0.97. These estimates assume that currency exchange rates remain at current levels,” said Holley. “We are committed to growing sales throughout all our businesses. Leverage will continue to be a key focus, as it drives both growth and returns.

http://ih.advfn.com/p.php?pid=nmona&article=47710390&symbol=WMT

Hatteras Funds 7.8%

http://ih.advfn.com/p.php?pid=nmona&article=47616499

https://hatterasfunds.com/about_us-overview.lasso?-session=hatterasfp:472D7A500c93717518LLG241ACA1

From Raging Bull website, FPFX board. This is HUGE!

New docket entry on Judge Hales website:

09:30 AM Misc. Motion Docket (20 day notice)
09-33918-11 FirstPlus Financial Group, Inc.
1. 00:10
Application to employ Jeffrey M. Tillotson, John Volney, and the firm of Lynn Tillotson Pinker & Cox, LLP as Special Counsel filed by Trustee Matthew D. Orwig (565)

From that website:

At Lynn Tillotson Pinker & Cox, LLP, the courtroom is where we shine. When you have to go to trial, we're exactly the kind of team you want on your side. We prepare each case as though it was going to trial from the minute we get involved, which is why we're always one step ahead of our competition.

Further, from the order in question:

"Trustee seeks to employ and retain the Attorneys as his special counsel with regard to the evaluation and prosecution of litigation against current and former members of the Board of Directors of the Debtor, against certain of the legal, accounting, and other professionals who allegedly provided services to the Debtor, and potentially Persons who contracted with those professionals who provided such services against those who conspired with and/or aided and abetted with such persons in the breach of their fiduciary duties and other duties to the detriment of the Debtor and its bankruptcy estate. Accordingly, the Trustee respectfully requests the entry of an order pursuant to Section 327 of the Bankruptcy Code authorizing him to employ and retain the Attorneys to perform these legal services."


http://ragingbull.quote.com/mboard/boards.cgi?board=FPFX&read=41220

From 10Q filed yesterday

LIQUIDITY AND CAPITAL RESOURCES

We believe that cash on hand, together with anticipated collection of accounts receivable during the short term, will be sufficient to provide for our working capital needs for the next twelve months. However, we may need to raise funds in order to allow for shortfalls in anticipated revenue or to expand existing capacities and/or to satisfy any additional significant purchase order that we may receive. At the present time, we have no commitments or assurances of additional revenue beyond the firm purchase orders we have received. However, in March 2011, we entered into, through our wholly owned subsidiary, ECSI International Inc., a credit facility with a New Jersey based commercial bank enabling us to borrow up to $475,000 for working capital purposes on an as needed basis. Additionally, a leading provider of receivables-based financing has advised us that it is affording us a $3.5 million (or more as our business grows) line of credit for large government and/or private sector contracts which we used previously during the Integrated Base Defense Security System (IBDSS) program. The line of credit has been reaffirmed (on an informal basis).

At March 31, 2011, we had working capital of approximately $1,500,000 compared to approximately $1,300,000 at June 30, 2010. Net cash provided by operating activities for the 2011 period was $523,115 as compared to $292,653 for the 2010 period.

Inventory increased by $261,265 during the nine months ended March 31, 2011 over the corresponding nine months in 2010. Inventories have still remained relatively high due to an increase of our work in process in preparation for shipments on our committed projects.

Accounts receivable have decreased by $1,406,939 to $525,971 for the nine months ended March 31, 2011 over the corresponding nine months in 2010. The decrease is due to a change in our payment terms and conditions and to more vigorous collection efforts.

Accounts payable and accrued expenses have decreased by $1,247,285 to $1,195,398 for the nine months ended March 31, 2011 over the corresponding nine months in 2010. Included in accrued expenses are accrued salaries to officers and other key employees in the amount of $550,553. The increased collection of accounts receivable allowed us to pay down our trade payables and reduce the accrued salaries due to officers and other key employees.

We purchased equipment in the aggregate of $387,515 during the nine months ended March 31, 2011. This equipment was directly related to our new integrated entry control systems and to the WISE® Water Infrastructure Sensing Equipment, both of which will generate significant sales in the years ahead. We do not have any material commitments for capital expenditures going forward.

From 10Q filed yesterday

For the three months ended March 31, 2011, we had income from operations of $31,104 compared to $227,282 for the corresponding three months in 2010. The decrease in income from operations in the 2011 Period and the three months ended March 31, 2011 as compared to the corresponding periods in 2010 is due to the delays incurred on the U.S. Navy project with Lockheed Martin as well as the receipt of lower gross margin purchase orders and a less profitable mix of design and engineering support services billings.

From 10Q filed yesterday

Gross margins were $485,354, or approximately 48% of revenue for the three months ended March 31, 2011 compared to $739,015 or 57% for the corresponding three-month period in 2010. The decrease of 9% in gross margins for the three months ended March 31, 2011 represents an anticipated fluctuation from period to period. Our sales and gross margins were adversely affected during this period due to delays in approval and release of our backlog relating to the U.S. Navy project with Lockheed Martin, on which we serve as subcontractor.

From 10Q filed yesterday

Net revenues for the three months ended March 31, 2011 were $1,006,662 as compared to $1,287,677 for the corresponding three month period in 2010, representing a decrease of 22%. The decrease in net revenues during the 2011 period and the three months ended March 31, 2011 compared to the corresponding periods in 2010 is primarily attributable to delays by the U.S. Navy in finalizing its design and issuing approvals on the Lockheed Martin contract, on which we serve as sub-contractor.

Glad you asked! Note the steady reduction in the number of outstanding shares, presumably a result of the share buy back program. Besides the obvious confidence Walmart is showing for its common stock, the long term implications of a significantly lower number of outstanding shares seem very positive to me. Combine that with the likelihood of a positive outcome in the pending Supreme Court decision on the class action discrimination lawsuit, and I think there is a distinct possibility of analyst upgrades coming soon after the upcoming, and likely disappointing, quarterly report. Of course, much is riding on the course of political events currently playing out in Washington DC, but we can't discuss that here without violating IH TOS.

3,491,198,520 shares of common stock outstanding as of March 21,2011

3,759,007,514 shares of common stock outstanding as of March 26, 2010

3,915,118,871 shares of common stock outstanding as of March 27, 2009

3,954,458,057 shares of common stock outstanding as of March 21, 2008

Yesterday's decline on higher than usual volume certainly doesn't seem to indicate much confidence in the upcoming quarterly report, but perhaps it was simply an investor(s) with liquidity issues unrelated to EKCS. We should know soon.

For today 4/18/11 -- Sell Volume 29845 / Buy Volume 3180. (per IH "Trades" tab)

The upcoming quarterly report will hopefully show continued progress on the current business plan focusing on solid profitability for the fiscal year. Considering the reluctance of banks to loan money in the post meltdown environment, I assume the company must have presented convincing evidence of a high likelihood they will be able to repay any money borrowed. All in all, the prospects continue to look good for significant gains this fiscal year and beyond.


ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On March 23, 2011, Electronic Control Security Inc. (the “Company”), through its wholly owned subsidiary, ECSI International Inc. (the “Subsidiary”), and Atlantic Stewardship Bank (the “Bank”) entered into definitive agreements pursuant to which the Bank agreed to advance (each an “Advance” and together the “Advances”) to the to the Subsidiary, from time to time and as needed, up to $475,000 for working capital purposes. Interest on outstanding amounts accrues at the Prime Rate plus 0.25%.

Events of default (“Events of Default”) are comprised of the following: (i) Company’s failure to make any payment when due, (ii) Company’s breach of any term, obligation, covenant or term contained in the Note or in any related document or to comply with or perform with any such contained in any other agreement between the Company and the Bank, (iii) any representation or warranty that the Company makes in the Note or any related document shall be false or misleading in any material respect; (iv) the Company’s insolvency or liquidation or a bankruptcy event; (v) any change in ownership of 25% or more of the Company’s Common Stock; (vi) the occurrence of a material adverse change in the Company’s financial condition; (vii) Bank believes in good faith that it is not secure.

The Subsidiary’s obligations under the facility are secured by a security interest in the Subsidiary’s inventory, accounts and general intangibles pursuant to a Security Agreement dated as of March 15, 2011 between the Subsidiary and the Bank.

On extremely small volume, the sells exceeded the buys by a factor of 4, per the IH "Trades" data....... Okay, I posted just for the sake of posting - I admit it.

"ECSI was awarded a new multi-million dollar five-year ID/IQ (indefinite delivery/indefinite quantity) subcontract for Defense Department support services in the U.S. and overseas. It is on projects such as this where the Company's operations will be facilitated by the availability of the recently-announced financial facilities and the new revolving line of credit."