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Defense Industries (DFNS) reports on 8/12. They have an easy comparison to last year, which may explain the 39% share price increase the past 3 days from .36 to .50
DFNS has a lot in common w/ DHB, but due to lack of exposure, DFNS has less than 1/2 the price/sales ratio and about 1/2 of the forward PE.
Worth a look. This is a real company being kept down by things beyond their control, such as their OTCBB listing.
Wow mflutie. Didn't know you had such disdain for "john". Also didn't know you kept tabs on that board still. Regardless, you may be right about a rally now that the naysayers are getting so numerous. Buy the Fear!
-steel
Volume spike on DFNS.
Keep an eye on it. This volume came out of nowhere, and I haven't found any news yet.
DFNS is a microcap sympathy play to DHB.
Have posted more than enuf DD here in the past, so won't rehash.
Bottom line is that there is HUGE demand for the personal and vehicle protection products...US Army is just one facet.
Good luck,
steel
TRAC nice play on BRUT sympathy
good find kdkd.
Feels like GEPT as a stock is beginning to gain the momentum that its businesses are. I like their investment in award-winning surveillance camera maker CMCA, and that GEPT's revenues are ramping. Position trade here.
steel
SRSL/ALVR/ACTI loving entry points on these today. Unless market continues spiral, they should bounce nicely.
SRSL had nice news today w/ STM
ACTI had nice news today w/ British Telecom
ALVR was upgraded, but I love this wireless company and am very pleased to have the opportunity to have shares under $10.
Also picked up more AIDO.ob, one of my favorite RFID plays with strong inroads into the Asian livestock tagging industry.
steel
I tried briefly to get in to the chat room this morning using mIRC, but didn't quite succeed. How many people were in the room today?
AIDO one of the best RFID plays out there right now. Fundamentals will improve as AIDO starts collecting on their myriad contracts. Read the latest 2 press releases; one regarding the addressing of naked short selling (a huge positive for AIDO), and the other regarding an update of company progress (also huge).
I'm in here (.54) and looking to add.
steel
Buckscent,
Can't reply privately, but as for DFNS, I'm a little surprised by the tepid response to obviously important news. The company is warming to the fact that they need to be proactive in getting their story out there. One of the problems is that they get a ton of small orders (in the thousands/10's of thousands range), and so it makes no sense to have PR's about that. So they may aggregate these small orders in order to have a meaningful PR. But that is NOT what happened today. Today's news included larger contracts...even better.
steel
Nice DFNS contract news:
Defense Industries International Receives Orders Totaling $1.8 Million from Customers in North & South America
Business Wire - May 05, 2004 09:01
Follow-On Business from Key Customers Underscores Successful Implementation of International Growth Strategy
ASHKELON, Israel, May 5, 2004 (BUSINESS WIRE) -- Defense Industries International, Inc. (OTCBB:DFNS), a leading manufacturer and global provider of personal military and civilian protective equipment and supplies, announced today that it has received follow-on orders totaling $1.8 million from customers in North and South America.
The Company received an order for approximately $1 million of its vehicle armoring kits from a North American customer. This order comes following the sale of approximately $1.7 million of vehicle armoring kits to this customer in the first quarter of 2004. Product is expected to be delivered in the second and third quarters of 2004 and the Company believes that significant potential exists for additional orders from this customer later in the year.
Additionally, Defense Industries has received orders, worth a total of $800,000 from customers in South & Central America. These follow-on orders, for the Company's bulletproof vests, were the result of Defense Industries' joint venture and increased sales and marketing efforts in the region. The Company expects these orders to be supplied in full during the second quarter of 2004.
Joseph Fostbinder, CEO of Defense Industries said, "These recent orders from key customers in North and South America speak to the quality of Defense Industries' products. While the vehicle armor kits are a fairly new addition to our product family, we are extremely encouraged by the initial results, as this is the second large order we have received since the beginning of 2004. This customer has informed us that it expects to place additional orders for vehicle armor kits later in the year."
He continued, "In the year since our initial sales into South America, our products have developed a reputation within the market as being among the highest quality available. This word of mouth advertising, in conjunction with our aggressive sales and marketing efforts and those of our joint venture partner, has allowed us to continue growing our business in the region and has created a steady stream of new interest in our products from a number of potential customers. We are extremely pleased with the progress that we have made in penetrating the international markets and are confident in our ability to continue expanding our export business, both securing new customers and enhancing relationships with our existing customers."
About Defense Industries International, Inc.
Defense Industries International, Inc. ("Defense Industries") (www.defense-industries.com) is a leading manufacturer and global provider of personal military and civilian protective equipment and supplies. Defense Industries' subsidiary, Export Erez Ltd., was formed and registered in 1983. Defense Industries' main products include body armor, bomb disposal suits and bullet-resistant vests and jackets; ballistic wall covers, helmets, plates and one-way protective windows; personal military equipment, battle pouch units and combat harness units; dry storage units, liquid logistics, tents and vehicle covers; and winter suits, sleeping bags and backpacks.
Defense Industries' products are used by military, law enforcement, border patrol enforcement and other special security forces, corporations, non-governmental organizations and individuals throughout the world. Customers include the Israel Defense Forces, the North Atlantic Treaty Organization (NATO), the United Nations Peacekeeping Forces and other U.N. organizations.
Defense Industries manufactures its own products, thereby enabling it to offer highly competitive pricing and to fulfill product orders on a rapid and efficient basis. Its manufacturing facilities meet American EQNET and international ISO 9002 standards. Quality control in the Company's manufacturing facilities is performed according to ISO 9002; MIL.STD.105D; MIL-I-45208A (for the U.S. Armed Forces); AQAP (for the German Armed Forces and NATO); and the National Institute of Justice (N.I.J.).
Defense Industries' strategic objective is to be the leading global provider of personal military and civilian protective equipment and supplies. Defense Industries intends to realize its strategic objective by, amongst other methods, selectively pursuing strategic acquisitions that enhance its product lines and geographic presence in an effort to consolidate its highly fragmented industry and to create a more diverse and global reach in its marketplace.
Exactly mflutie, which supports my point to Curmudgeon that simply standing on the sidelines can cause one to lose many opportunities. I can't stand taking non-tropical vacations for that reason.
steel
===============================
steeledge- the one other true constant is always that stocks drop faster & harder than they go up. Simply because panic is a stronger emotion thn greed.
Therefore the idea is simply to take what is given.
When a stock shows a solid short side history, whether it be on a Major_Poper or a Major_Dropper, go with the flow. At the same time, when mkts are saying 'no confidence' know when to pull back on trading Channel_Players & move $$ into more assured trades.
No one is perfect. No one is even close. All wee try to do is find the opportunities that are always there. And the way to find the opportunities is with tools that work, most often disregarding the emotional side of the trade.
Appreciate the time you took to put together this post. But what you're really saying by taking a non-tropical vacation is that you don't know how to trade a market that's not going up. I suggest the teachings of the unbiased mflutie system that doesn't really give a rat's a$$ whether the market is going up or down.
The opportunities on the downside are often MORE pronounced than on the upside. We just saw a prime example of it!
steel
================================================
<<Sometimes the best thing you can do is nothing! Hence...vacation.
Take a look at a lot of the messages posted the last day or so. The markets been down, people are watching their stocks tank and blood pressure rise, while looking for anyone to blame. What's the problem? Watching the market drop increases anxiety! Damn Mfultie, Tag and Magiician for not being able to see the future with perfect vision, Oh please!
I hold what I think are good positions in good stocks. FWIW, I'm down from a 35% return for the year to around 10%. Now some folks may be higher or lower but the fact remains a 25% loss in the account is a big whack! Because of the vacation though, I still have a positive attitude and have not been through the emotional wringer many have over the last few days. I also haven't been tempted to catch the many falling knives that have been thrown. In other words, the vacation allowed me to keep my perspective and not panic.
Opportunities in the market are like buses. There's another one coming down the road soon. I TRY not to get all caught up in the "opportunites" of the market because it adds emotion and my trading gets worse. If there were only 1 or 2 good opportunities in the market, then I would have that sense of urgency but there are lots more so what do I care if some pass me by?
I want to thank Magician for taking the vacation. His reminded me of this strategy to use when everything seems to be turning to sh^T.
Vacation? I wish the markets were open on Saturdays, and Sundays during non-football seasons. Too many opportunities out there right now for a vacation.
steel
singh: T&S link
Just so you know, that T&S info is an aggregation of trades for a 90-second window (at least), depending on volume. The only time you'll see SPECIFIC trades is if they're spaced out by more than 90 seconds.
-steel
Tag, I'd prefer just the opposite to be true. To those that are making $ in the decline, PLEASE POST how you're doing it so that there are a goodly # of ideas floating around. We know that mflutie can make $ while he's asleep, and there's nothing wrong with posting shorts...as long as you're not bashing needlessly.
steel
In TIII here. Earnings out soon; easy comparison to last year could open eyes when released.
========
From last quarter's earnings release:
The Company anticipates that sales for the balance of fiscal 2004 will exceed sales for the similar period of fiscal 2003.
Gross profit for the second quarter of fiscal 2004 was $2.1 million compared to $1.2 million for the comparative period of fiscal 2003, an increase of approximately $897,000 or 76.5%, while gross profit margins for the comparative quarters were 29.6% and 21.1%, respectively. Gross profit for the six months ended December 26, 2003 was $4.9 million compared to $3.0 million for the same prior year period, an increase of approximately $1.8 million or 61.0%, while gross profit margins for those periods were 30.0% and 23.9%, respectively. The improved gross profit levels and gross margins over the prior year ago periods were primarily due to the increased sales levels and the actions that the Company has been taking to reduce the cost of producing its products.
Net earnings for the second quarter of fiscal 2004 were $320,000 or $0.02 per diluted share, compared to a net loss of $730,000 or $0.06 per diluted share, in the year ago quarter. Net earnings for the six months ended December 26, 2003 was $1.2 million or $0.10 per diluted share compared to a net loss of $669,000 or $0.06 per diluted share, in the year ago six month period.
Commenting on the fiscal year 2004 first quarter results, Timothy J. Roach, President and Chief Executive Officer, stated, "The increase in sales and earnings over the prior year comparable periods reflects both a general improvement in the telecommunications industry and the success of our efforts in reducing our cost structure in order to operate profitably. We have also been increasing our marketing efforts in order to accelerate our strategy of diversifying our customer base and strengthening our product offerings.
"Looking ahead, we will focus on opportunities in broadband communications, power and data-line protection and a multi-service residential gateway sold through our traditional distribution channels. While we expect some industry trends to adversely affect sales to certain of our customers, we remain confident about the Company's prospects and our ability to sustain profitability for the balance of the fiscal year."
Dantes, I agree with you. From now on any post that doesn't have a ticker in the title is going to get ignored :^)
Posts re: The Other Board
Folks, let me start by saying that I am generally a swing/position trader that occasionally thinks he's a daytrader. I do fairly well overall, but much better at the swing/position trades.
I check this board a couple times a day, and am often surprised by the time spent complaining about the Lion board. It has been my experience that the Lion board is full of good ideas each and every day. Not every idea is a good idea...far from it. In fact many are baseless hypes. But with a little experience, it's pretty easy to spot the winners from the losers. But I've made really good $ from posts on that board, and I think that many have benefited from my DD as well.
I also feel like the Lion board complements this one, from a duration perspective. I find WC to be more of a swing/position board while Lion's provides more real-time trades.
I continue to enjoy making $$$ using both boards, and hope to see many of you at both.
-steel
Some updated DFNS info (anti-ballistic product)
I have been in touch with a newsletter writer (won't drop any names here) whom I highly regard. We were talking about DFNS, and as it turns out, he met with the the U.S. contingent of DFNS (remember they're an Israeli defense/security firm) some time ago. He left the meeting in awe of their products, and was especially high on the anti-ballistic wall covering.
http://defense-industries.com/main/siteNew/index.php?page=21
This stuff is patented, and seeks to protect people inside of buildings from explosions outside of them. The newsletter writer feels like this particular product has tremendous upside for DFNS considering the raw square footage that it could be applied to, both in the U.S. and in areas of more severe confrontations.
Just thought I'd put this out there in a timely fashion, considering the current buying opportunity available on DFNS shares.
-steel
Sounds like a good % play mflutie, although after seeing what happened to TBUS, IEIB, and IPIX after earnings were released, I'm not so sure I'd hold THROUGH earnings. That said, if any of the security plays are going to blow away EPS estimates, it would be MAGS.
steel
Very happy w/ new positions established today:
HSR - great little defense company that has inroads into space, defense, and automotive industries.
APIEF - highly unknown pure play on the defense sector. nice acquisition just recently.
DFNS - added big time today thanks to one big seller dumping, and then triggering stops...thanks!
-steel
mflutie, couldn't find shares of BTHS to short via AMTD.
No IPIX or TBUS either...bastages
michigan, re: chip play
My favorite microcap/undiscovered chip equipment play is CVV.
I have posted DD here before, so won't repeat it.
Should be well over $2 imo.
VSYS biometrics news
From 3/4 release:
Viscount's development of their first Biometric Security application for its new MESH™ Security Server control system, using Bioscrypt's V-Pass fingerprint readers, is now complete and ready for deployment. MESH™ is Viscount's recently released, next generation access-control product that converges all aspects of voice (intercom, paging, emergency), data (card access, elevators, alarms) and video (CCTV) in large complexes or series of complexes.
Pierre Donaldson, President and CEO of Bioscrypt commented: "The range of applications using our technology is further extended by this project. Our vision is to have bioscrypt on board wherever fingerprint verification is performed. This is an additional example of the integration of our technology to strengthen an evolutionary application. We believe this trend will continue as the adoption of commercial biometrics increases."
"This is an important milestone for Viscount and MESH™", noted Stephen Pineau, President and CEO of Viscount. "The speed with which we managed to develop biometric integration software shows the flexibility of the MESH™ platform and signals the ability of MESH™ to secure the most sensitive areas of airports, industrial facilities and government buildings."
"The process of adding Bioscrypt fingerprint readers was part of a larger design addition to MESH™ to allow the incorporation of a number of specialized access control devices," added Mr. Pineau. "With the cooperation of Bioscrypt the market for MESH™ has once again expanded."
In security play VSYS here for a position trade
Fully Diluted: 16,205,000
Estimated Float: 5,868,749
Company insiders and management hold approximately 67% of the outstanding shares.
Burnaby, British Columbia - Tuesday, March 30, 2004 - Viscount Systems Inc. (OTCBB - VSYS) today announced The Company has released its 2003 financial reports. For the year ending December 31, 2003, sales were $4,084,593 compared to $3,363,985 for 2002, an increase of 21%. After tax profit was $235,512 or .02 EPS compared to a loss of $907,371 for 2002 or negative .06 EPS. Cash flow from operating activities was positive $23,837 for 2003 compared to negative $894,328 for 2002.
"With an eight cent increase in earnings per share over the previous year, 2003 was an outstanding success for Viscount," commented Stephen Pineau, President and CEO of Viscount. "Sales continued to improve and much of the growth came from the second half with fourth quarter sales up 44% over 2002. Our goals for 2003 were to begin the MESH™ growth cycle and to continue to invest in R&D while remaining profitable. These targets were clearly met.
DFNS (.44) revenues/EPS set to jump in 2004.
DFNS has had its highest 2-day volume since 2001. New 52wk hi today. But this stock was $2+ in September '02, in an environment that was less supportive than today.
For the past 2 years, DFNS has been seeing declining revenues from their Israeli customers (mainly the govt) because of a freeze of gov't funds allocated to defense/security products. At the same time, their international sales were increasing. But in a conversation w/ IR, they assure me that they're expecting a release of this frozen Israeli $, and they fully expect to be the beneficiary of the renewed spending. Additionally, they expect that the growing Israeli GDP will be beneficial.
The Israeli gov't is DFNS's highest margin customer, so any increase in that market will flow straight to the bottom line because of the strong margins.
When I questioned DFNS's IR about whether the Hamas leader's assasination will have a beneficial effect on product demand, they felt that the benefit will be quantifiable, either directly or indirectly.
This feels like a $1.5-$2 stock. And consider that DFNS, as a .44 stock, has more EPS than TBUS, IPIX, and FVCX.
pntballsam:
That's a tough way to get "educated" about online trading. In my case the confirm error will likely help me, but still, it makes you lose confidence in the system.
steel
AMTD almost hosed me on TBUS short
I entered an order to short 500s, which was accepted.
Then I entered another 500s order higher than the first, and several minutes after the first. This order was rejected (no shares to short).
Next thing I know I'm short 1000s TBUS. I'm well in the money now, but it was a little uncomfortable for awhile there.
No more shares available to short the rest of the day...not even for the "phantom" orders hehe.
DD on video surveillance play CNE
Excerpt from Monday's news:
George W. Benoit, Chairman of CNE Group, added, "We believe the technology of MeshNetworks' equipment and software has wide applications for homeland security, intelligent traffic systems and broadband secure wireless networks. It's a solid step forward for our company. We are pleased to have signed this agreement with Viasys, and we will continue to be aggressive in our pursuit of additional strategic relationships."
DD on Israeli security play Defense Industries International
price: .36
cash + marketable securities: $1.5MM
cash/share: .06
FY2003 revenues: $9MM
FY2003 EPS $263,957==> .01/share
shares o/s: 25MM
float (est.): 5.5MM
Defense Industries International is a manufacturer and global provider of personal military and civilian protective equipment and supplies. Our products are used by military, law enforcement, border patrol enforcement, and other special security forces, corporations, non-governmental organizations and individuals throughout the world.
Our main products include body armor, bomb disposal suits and bullet proof vests and jackets, ballistic wall covering, helmets, bullet proof ceramic and polyethylene panels, V.I.P. car armoring and lightweight vehicles armor kits, personal military equipment, battle pouch units and combat harness units, dry storage units, liquid logistics, tents and vehicle covers.
Some of their customers:
- THE ISRAEL DEFENCE FORCES AND POLICE
- THE WORLDWIDE DEFENCE FORCES, ARMIES AND POLICE
- THE UNITED NATIONS PEACEKEEPING FORCES AND OTHER U.N. ORGANIZATIONS
- ALL MAJOR SECURITY AND PARA-MILITARY ORGANIZATIONS ALL OVER THE WORLD
During 1999, bulletproof vests developed by us were sent to laboratories in the United States for testing, and following the tests, the products were deemed to have met the American NIJ standard. Obtaining this standard has enabled us to initiate our entrance into the North American market with our products and to develop new markets for our products. In July of 2002, we began to provide armoring for VIP luxury cars. This new operation filled a gap that existed in the Israeli market. During 2003, we introduced: new minefield protection shoes and lightweight vehicle armor kits for trucks and vans.
Mr. Fostbinder concluded, "During the year, we made several important additions to our product family, introducing minefield protection shoes and expanding our line of vehicle armoring kits to include lightweight armor designed for trucks and vans. We believe that the respective end markets for these products are substantial and that both products have the ability to contribute significantly to the Company's future revenues. In the first quarter of 2004, we received orders for our new vehicle armor kits from an international customer. The initial response from this customer has been extremely positive and we expect to receive additional orders during the year."
In 2003, there were approximately 900,000 law enforcement personnel and over 20,000 law enforcement agencies in the United States. We also expect that governmental reaction to terrorist attacks will increase the market for our products. The United States has established the Office of Homeland Security that is developing a homeland security infrastructure and is devoting significant resources to this effort. Our proprietary products such as dry storage units, ballistic wall coverings, and liquid pillow storage, address significantly less competition than the traditional body armor product line. A rising prison population has increased the demand for law enforcement security products. Companies must provide competitively priced and highly flexible protective equipment to compete in this arena. In a prison environment an additional feature for protective equipment is the need to be stab resistant. We believe that our newly developed stab-resistant fabrics will ease our entry to this market in 2004, with our stab-resistant solutions and bulletproof clothing.
He continued, "Since the establishment of our South American joint venture and the first shipment of our products in May 2003, we have secured several new customers and received follow-on orders from our initial customer. We believe that the potential for continued growth in this market exists, as demand remains strong and customers have recognized that our products are among the best in the industry."
VII major momentum picking up here.
Called it in the high 4's, 6.15 now.
Better company than IPIX or TBUS. Great balance sheet.
Security/Surveillance play...best balance sheet
VII is in blue-sky territory. Major breakout underway, was a $14 stock during the bubble era.
VII stats
Shares Outstanding: 4.60M
Float: 3.60M
% Held by Insiders: 21.72%
% Held by Institutions: 13.11%
Total Cash (mrq): 9.69M
Total Cash Per Share (mrq): 2.11
Total Debt (mrq)²: 3.00M (this is mortgage debt)
Total Debt/Equity (mrq): 0.101
Current Ratio (mrq): 4.205
Book Value Per Share (mrq): 6.45
The Company's products are employed in video system installations by commercial and industrial users, such as office buildings, manufacturing plants, warehouses, apartment complexes, shopping malls and retail stores; federal, state and local governments for national security purposes, municipal facilities, prisons and military installations; financial institutions, such as banks, clearinghouses, brokerage firms and depositories, for security purposes; transportation departments for highway traffic control, bridge and tunnel monitoring and airport, subway, bus and seaport security and surveillance; gaming casinos, where video surveillance is often mandated by regulatory authorities, and healthcare facilities, such as hospitals, particularly psychiatric wards and intensive care units.
Re: BDSI
I posted ad-nauseum on the "other" board regarding BDSI. I do like the company and their evolving technology. I have been in touch w/ their CEO regarding patents, and I liked what I heard.
steel
Initiated large position in PACT here.
Simply is no better IT services and CRM infrastructure play in China.
PacificNet Inc. (NASDAQ:PACT) is a provider of Information Technology ('IT') consulting, system integration, and IT solutions in Asia. The Company also engages in telecommunication, voice and data network communications and value - added telecommunication products and services. The Company's business strategies is to take a leading role into the most fast growing business sector, namely the IT solution provision and network communication business, in Asian and greater PRC region. Nowadays the business of PacificNet can be classified into three main operating units:
* PacificNet Solutions Ltd. ('PacSo'):- IT solution and system integration. PacSo is a subsidiary of PacificNet that specializes in e-business and pragmatic business solutions, which can help our clients to reduce daily operating cost. The scope of product and services include smart card solutions, web based front end applications and web based connection to backend enterprise planning systems.
* PacificNet Communications Ltd. ('PacComm'):- Value Added Telecom Services. PacComm is a subsidiary of PacificNet that Voice and data network communication: The Company executes its business strategy through engaging in a wide variety of telecommunication solutions including international simple resell, retail IDD services, mobile virtual network operations, valued added mobile communication services, voice over internet protocol and telecommunication related software.
* PacificNet:- Distribution and resell of telecommunication, networking and computer equipment. In conjunction to the Company's business of providing telecommunication services, PacificNet is also engaged in telecommunication product distributions, which includes resale of PABX telephone systems, basic switches and router equipments and mobile phone accessories targeting for retail customers.
CSPI's business is reaching critical mass. Recent contract wins, new products, and accretive acquisitions are set to launch revenues and earnings in upcoming quarters.
==>Modcomp is a wholly-owned subsidiary of CSPI.
Some of ModComps customers:
With a proven track record for consistent delivery of high-quality, reliable systems and integrated solutions, Modcomp computers have been installed in some of the most prestigious facilities around the world: Lockheed Martin, Shell, Allegheny Power, Boeing, ABC Television Network, JPL, NASA, Ciments LaFarge, ALCOA, Mitsubishi Electric Europe, Rolls Royce Aerospace, Krupp, Sidor, Union Carbide, and Mallinckrodt, just to name a few. These installations are representative of our field-proven experience in delivering powerful products, services and know-how to a wide range of markets with business-critical and time-critical applications, which demand the power, flexibility, and control of a real-time environment.
"The MODCOMP Division launched a significant new product during the first quarter as well," said Lupinetti. ":OpenXport™, our next-generation message broker server software, is a logical follow-up to our highly successful Xport product, which currently is deployed by some of the world’s largest financial services companies, including Barclays and JP Morgan Chase. Initial customer response to OpenXport has been most encouraging, and we expect this additional open-source software initiative to complement and reinforce MODCOMP’s core competency in low-cost, open-source enterprise integration solutions."
==>CSPI also has another wholly-owned subsidiary called "MultiComputer" that focuses on high performance defense needs, including surveillance:
"Our MultiComputer R&D initiatives, which focus on defense-related opportunities for our Linux-based technologies, generated exciting new products in the first quarter as we introduced the StarGate I/O Blade," said Lupinetti. "The initial release of a new generation of CSP MultiComputers, the StarGate I/O Blade expands the Company’s offerings in software-defined radio, radar, sonar and surveillance DSP by providing the high-speed data acquisition capabilities and rapid execution times necessary for the complex signal processing demands of these applications."
==>Summary from latest earnings release (Jan.2004):
"CSP Inc. is off to a solid start in fiscal 2004," concluded Lupinetti. "The MultiComputer Division is benefiting from a significant defense contract win, and launching the StarGate I/O Blade secures our standing as a leader in open-source technologies for complex digital signal processing in defense applications. In addition, we expect our relationship with Lockheed Martin to generate incremental revenue for the Company as we go forward in fiscal 2004. At the same time, MODCOMP’s ability to offer cutting-edge integration solutions, superb customer support, and best-of-breed hardware from leading OEMs positions us to continue winning new business as corporate demand increases for IT solutions. As a result, we are maintaining a cautiously optimistic stance as we look ahead to the remainder of the fiscal year."
HCTL in negotiations to merge with cancer/allergy biotech company.
HCTL has previously announced (11/2003) negotiations with Immvar Immunotherapeutics (ImmVaRx, Inc) to exchange equity in HCTL for ownership of ImmVaRx's broad intellectual property portfolio:
"The Company said that should the discussions materialize it is presently contemplated that ImmvaRx would transfer all or a substantial part of its intellectual property (IP) to the Company in return for shares representing a controlling interest in the Company. "
HCTL is taking broad steps to protect its shareholders in the event that the value of ImmVaRx's IP portfolio turns out to be less than originally thought:
"To protect the Company's current stockholders, an additional valuation of ImmvaRx's IP will be performed six months following a signing of a definitive agreement. Should such a valuation of the IP show a decrease of 50% or more, the Company's current stockholders shall have the option to transfer the IP back to ImmvaRx in return for the shares allocated to ImmvaRX."
What does all of this mean for HCTL? It means that it's a win-win situation. If the merger DOES go through, HCTL immediately should be afforded an "emerging biotech" valuation. If the merger DOESN'T go through, then HCTL continues its biotech diagnostic business as-is, having just recently reported its first operating profit in over a decade.
==>Check out these products in the ImmVaRx pipeline, serving some of the largest cancer and allergy markets:
http://www.immvarx.com/products.html
==>And to show that ImmVaRx is serious about the merger, check out their "careers" link on their website:
http://www.immvarx.com/careers.html
One of the conditions of the merger is that HCTL is appraised at $10MM or greater. Operating results announced on 3/25 should support that criteria.
mf -
can't "private reply", so can u send your same question to the "other" site's email? thanks.
mf --
I'd be interested in any info you have on your system.
thanks,
steel
Tiny Israeli Biotech
Accumulating here, but tough to get shares.
For the First Time Since 1993 Healthcare Technologies Reports Profits From Operations for the Year End Results
Thursday March 25, 2:48 pm ET
PETACH TIKVA, Israel, March 25 /PRNewswire-FirstCall/ -- Healthcare Technologies, Ltd. (Nasdaq: HCTL - News), today reported audited results for the fiscal year and fourth quarter ended December 31st, 2003.
The company's consolidated figures for the year ended December 31, 2003 include Savyon Diagnostics' results on a proportionate consolidation basis vs. a full consolidation basis in 2002 as well as deconsolidation of Procognia's results in 2003 vs. consolidation of the first quarters' results in 2002. To provide a basis for comparison the results detailed below are accompanied by pro-forma figures (added in brackets), which give effect to the transactions as if they had occurred on January 1, 2002. Procognia's statements of operations for these periods have been deconsolidated and Savyon Diagnostics' statements of operations have been included in the Company's financial statements based on a proportionate consolidation method. These changes reflect a corresponding reduction in the company's ownership of Savyon Diagnostics as of April 1, 2002 as well as a reduction of Procognia's operating expenses and the capital gain the company registered in 2002 from its investment in Procognia.
Revenues for the year ended December 31, 2003 were $14.6 million, compared to $16.7 million ($15.1 million) for the year ended December 31, 2002. Gross profit for 2003 was $5.9 million as compared to $6.3 million ($5.5 million) for 2002, representing a 7% increase. For the first time since 1993 the company reports an operating profit for the period of $0.3 million as compared to a loss of $0.7 million (profit of $0.06 million) for 2002. Net profit for fiscal 2003 was $13 thousand or $0.002 per share, as compared to a net profit of $0.47 million, or $0.06 per share for fiscal 2002 (loss of $1.0 million, or loss of $0.13 per share). The net profit for 2003 includes financing costs of $0.12 million that are mainly due to a devaluation of approximately 20% of the US Dollar against the Euro and an equity loss of $0.11 million from an investment in an affiliate.
Revenues for the fourth quarter of 2003 were $3.4 million, as compared to $4.4 million ($3.3 million) for the corresponding quarter last year. The net loss for the quarter was $0.15 million, or loss of $0.02 per share, compared to a net loss of $0.29 million, or loss of $0.04 per share, (loss of $0.1 million or loss of $0.01 per share) for the fourth quarter of 2002.
The performance for the year of 2003 represents both the company's focus in more profitable product lines and the efforts employed at improving operational efficiency. "We've been working hard at Healthcare Technologies' operational efficiency over the past year and are glad to see the results. We will continue our efforts to improve our performance both by maintaining our efforts to increase operational efficiency and by finding new products and markets," said Moshe Reuveni, CEO.
Shareholders' equity on December 31st, 2003 was $4.28 million, compared to $4.25 million on December 31, 2002. Current assets net of current liabilities as of December 31st, 2003, were $2.84 million as compared to $1.87 million on December 31, 2002. Cash and equivalents were $1.49 million vs. $1.15 million as of December 31, 2002.
Healthcare and its affiliated companies Savyon Diagnostics Ltd., Gamidor Diagnostics Ltd. and Danyel Biotech Ltd. specialize in the development, manufacture and marketing of clinical diagnostic test kits, and provide services and tools to diagnostic and biotech research professionals in laboratory and point of care sites worldwide.
===Danyel Biotech: Fields of Activity===
* Molecular biology research reagents and instruments
* Generic diagnostic systems
* Chromatography and protein purification systems
* Analytical systems and laboratory accessories
* Radioactive and non-radioactive labeling reagents
* Drug discovery
* Cell biology
===Savyon Diagnostics===
Savyon Diagnostics Ltd. specializes in the research, development, manufacturing and marketing of diagnostic kits for infectious and genetic diseases.
Savyon sources intellectual property both from in-house research and from inward licensing via an extensive network of commercial and academic relationships. Export sales to research establishments, medical laboratories and clinicians are supported by an extensive worldwide network of distributors and account for over 80% of Savyon’s revenues.
===Gamidor Diagnostics===
The mission of Gamidor Diagnostics is to provide systems, chemicals, reagents and services to clinical and research laboratories in Israel. Following its establishment in the mid 1980s by the Gamida for Life Group and Yacob Ofer, the Company experienced rapid growth to become what it is today: a leading force in its field, serving hospitals, clinical laboratories and academic research institutes in Israel.