Sunday, April 09, 2006 7:21:32 PM
sunday special, 4/9/06
http://ceocast.com
Sunday, April 09 2006
VOLUME 233
Companies featured in the current edition of the newsletter: AOOR, ARSC, CDSS, CLRI, CNR, CYTR, EBOF, EMIS, FLWE, FSN, GEPT, HOM, HYTM, ISON, ITRO, NCEY, NTRN, POIG, PTCH, PTSEF, RTK, SCLL, SFP, SLS, SOYO, STIY, SWTS, TPPH, USAT, XDSL, ZIOP
For most of the week it appeared that nothing was getting in the way of the rising stock market despite continued strength in commodity prices and rising bond yields. It took just one day to offset the bullish tone for the week and help bring into focus risks from growing inflationary pressures. The Dow rose 10 points for the week raising its annual gain to 3.8%. The Nasdaq shed less than 1 point for the week, maintaining its year-to-date gain at 6.1%. The S&P rose less than 1 point, keeping its annual gain at 3.8%. The Russell lost 9 points, reducing gains for the year to 12.3%.
The week, which began with optimistic comments from Kansas City Fed President Hoenig suggesting that interest rate hikes were close to being completed, ended with the yield on the 10-year note soaring to its highest level since mid-2002. The ever-important employment data took control of the situation on Friday as the bond market’s reaction to such numbers led to selling across all of the major indices. While the Report was generally in line with expectations, with 211,000 new jobs begin added and a net increase in hourly earnings of 0.2% matching expectations for March, worries that the data was insufficient to allow the Fed to stop its monetary tightening policy sent the markets lower. Helping diminish investors’ enthusiasm were generally disappointing March sales results from retailers and an increase in oil prices rising to over $67.
What should investors expect this week? After a relatively benign pre-announcement season, the holiday shortened week starts the beginning of Earnings Season. Monday after the bell, Alcoa (NYSE: AA) reports results with Genentech (NYSE: DNA) releasing earnings Tuesday after trading hours. That same day Red Hat (NASDAQ: RHAT) hosts an analyst meeting and Minneapolis President Stern speaks on economic policy in Berlin. Wednesday morning Circuit City (NYSE: CC) announces results followed by Advanced Micro Devices (NYSE: AMD) after the closing bell. Thursday before the market opens General Electric (NYSE: GE) reports earnings. The Independent Petroleum Association of America will hold its three-day Oil & Gas Symposium in New York City starting on Monday. Morgan Stanley sponsors a three-day Global Automotive Conference also beginning on Monday in New York City. The three-day BIO 2006 Annual International Convention starts on Monday in Chicago where ZIOPHARM Oncology, Inc. (OTCBB: ZIOP) will be presenting on Tuesday at 10:30 a.m. ET.
On the economic front, the February Trade Balance will be reported at 8:30 a.m. followed by Weekly Crude Inventories at 10:30, with the March Treasury Budget being reported later in the afternoon. Prior to the market open on Thursday, numerous reports including February Business Inventories, March Import/Export Prices, Weekly Jobless Claims and March Retail Sales will be announced, followed by the release of the April Preliminary Michigan Sentiment shortly after the opening bell. Despite the market being closed on Friday, at 9:15 a.m. both the March Capacity Utilization and March Industrial Production numbers are scheduled to be released. The bond market will close early on Thursday.
Hythiam, Inc. (NASDAQ: HYTM), a healthcare services management company that licenses the PROMETA™ physiological protocols designed to treat substance dependence, announced last week that the European Patent Office stated on its website that grant of a patent is intended under Rule 51(4) EPC for Hythiam's European Patent Application, which contains broad claims for the use of a composition of matter for the treatment of alcohol dependence. Hythiam also disclosed that it has received issuance of alcoholism and cocaine dependence patents in Singapore and New Zealand along with allowance for its cocaine dependence treatment patent application in Australia. The company’s Chairman and CEO also appeared on NBC's Today Show and on FOX News' FOX & Friends national news program in conjunction with the launch of Hythiam's advertising campaign featuring an image of the late Chris Farley. Despite the positive media coverage, a tabloid newspaper in New York, far better known for its coverage of Jennifer Lopez’s activities than business news, wrote a negative article on the company. S hares were extremely hard to borrow last week at major brokerage firms, suggesting that there may have been a significant increase in the short position, previously reported as approximately 13% of the float. Analysts at both UBS Financial Services and First Albany, who cover the company’s stock and have Buy Ratings, published research notes indicating that the article was full of inaccuracies. With data on Prometa™ expected to be released later this month from an independent clinical investigator that is expected to be positive (he previously commented favorably on the Protocols on a national television show), we would expect attempts by short sellers to discredit the company to increase. Editors of CEOcast used the weakness in the stock last week to increase our ownership position in the stock to over 950,000 shares. Note that the stock put in intra-day bottoms around $8.10 on both Wednesday and Thursday on heavy volume, before rallying, suggesting key support at that level. Shares fell 45 cents for the week to close at $8.74.
Has the storm season started early? After two-years of devastating hurricanes, tornadoes ripped through western Tennessee last week, damaging an estimated 1,600 homes in two counties alone, and highlighting the recovery and restoration opportunities for Home Solutions of America (AMEX: HOM). We have highlighted the opportunities repeatedly in this space over the past six weeks for the company to benefit from the devastation previously created by the hurricanes and the likely 3-5 year rebuilding program necessary in areas such as New Orleans. Despite the conservative nature of the company’s guidance, the stock still trades for just 16 times the mid-point of HOM’s full-year 2006 guidance, that excludes the impact of any new hurricane-related activity. If the stock is able to clear congestion in the $7.20 to $7.35 range, there should be little resistance above this level. Shares ended the week at $7.15, up 39 cents.
Small appliance maker Salton, Inc. (NYSE: SFP), announced that it has acquired exclusive rights to proprietary technology enabling it to manufacture and market a line of indoor and/or outdoor portable grills which utilize a hydrogen flame in combination with electric heat to provide a new dimension to barbequing. Salton is planning to release two George Foreman brand grills using this revolutionary technology in early 2007. Comments from the company’s management suggest that this could be the blockbuster product that investors have been waiting for since the launch of the Foreman grills. The grills plug into a regular household outlet and utilize water and a novel electrolysis process to make a small but intense clean-burning hydrogen flame inexpensively and safely. The result is a great-tasting barbeque experience without the harmful emissions associated with charcoal or propane, thus making it ideal for use indoors, such as in apartments and condominiums, as well as homes. Shares increased 55 cents to close the week at $3.30 on more than three times average volume.
Volume Alert: Shares of Citadel Security Software Inc. (NASDAQ: CDSS), a leader in enterprise vulnerability management and policy compliance solutions, traded approximately 3 times average daily volume after the company reported that preliminary first quarter revenue totaling $5.4 million was at the top end of its guidance and the highest first quarter revenue in the company’s history. Its order backlog of $1.7 million was 30% higher than last quarter. Such numbers are impressive since the first quarter is usually seasonally slow. Management expects 2006 to be a banner year as its flagship Hercules product continues to meet increasing demand while cost cutting measures are being implemented to improve margins. With the company’s expecting to report Q1 expenses of approximately $5 million t o $5.2 million, down from the same period in 2006 by approximately $1.7 million, the company has an opportunity to reach profitability in 2006. While the stock ended the week at $0.74 up 17 cents, it still trades at a significant discount to its peers based upon revenue.
New 52-week High: Shares of CytRx Corporation (NASDAQ: CYTR), a biopharmaceutical company focused on developing products primarily in the area of small molecules and ribonucleic acid interference (RNAi), remain red-hot, as the stock reached a 52-week high of $2.20 and traded roughly 3 times normal volume as the company reached its milestone of completing the enrollment of patients in the first clinical trial with its lead product candidate arimoclomol for the treatment for ALS or Lou Gehrig's disease. A total of 84 patients signed on (four more than the company’s initial target). Final data from this Phase IIa trial is expected to be released in the third quarter of this year, followed by initiation of a Phase IIb efficacy trial that is expected to include a minimum of 300 ALS patients recruited and take approximately 18 months to complete after enrollment begins. The company believes that successfully demonstrating safety and efficacy in the latter Phase II clinical trial could be sufficient to support product registration with the FDA which could further drive value. It is also noteworthyt hat Arimoclomol, CYTR’s ALS compound, was recent named as one of the 100 Great Investigational Drugs by R&D Directions Magazine. Shares rose 33 cents to close the week at $2.22.
Volume Alert: Shares of Fusion Telecommunications International, Inc. (AMEX: FSN), a provider of voice over Internet protocol (VoIP) and other Internet services in Asia, the Middle East, Africa, the Caribbean, and Latin America, traded approximately 4 times average daily volume as investors showed enthusiasm after the company discussed plans for the rollout of its new VoIP service during the current quarter. In connection with the announcement, Jonathan Rand joined the company's management team as Chief Marketing Officer. Shares rose 56 cents or 20.7% for the week to close at $3.26.
Drug delivery company Emisphere Technologies, Inc. (NASDAQ: EMIS), named Noelle Whitehead to the newly created position of chief accounting officer and appointed John D. Harkey, Jr. to the Board of Directors. Additionally, the company filed a shelf registration for the possible sale of as many as 6 million shares. The stock could be sold from time to time in one or more offerings, the company said, adding proceeds would be used for general corporate purposes, including further development of its lead clinical programs. Once completed, we believe the offering could remove an overhang in the company’s stock, as investors have expected that the company would need to raise capital to advance several of its promising programs. Shares ended the week at $7.77, down 45 cents.
Can Argo Energy Corp. (AMEX: CNR), an independent oil and gas exploration and production company with its oil and gas operations currently located in the Republic of Georgia and in Kazakhstan, gave an interim update on three of its Georgian operations last week. The update focused on three properties, however the results were inconclusive as all three projects will require additional work. First, the Norio MK 72 exploration well is still in the middle of a testing program but is showing good formation pressure and light 45 degrees API oil being flowed to surface, together with quantities of drilling mud. It could be several weeks before the mud at the well will be cleaned up so that the commerciality of the flow rate can be assessed. The company’s second well, Ninotsminda Field horizontal well N97H, is showing potential to be a good oil producer, however, before it can be put into stabilized production it will be necessary to seal off a water producing fracture which the well has intersected down bore. It could take some time before such operations are undertaken. The final project to be updated was the Manavi M12 appraisal well which is currently being drilled ahead at 5,285 feet. It is still forecast that this well will reach its target reservoir section in early summer, after which testing is planned. Shares fell 1 cent to close the week at $1.10.
Points International (OTCBB: PTSEF), the owner and operator of the world’s leading reward management portal, entered into a strategic partnership with Truition Inc., a leading provider of On Demand eCommerce solutions. This partnership enables users to benefit from using Truition’s versatile eCommerce platform while rewarding them with points earned from Points’ large and growing network of loyalty program partners and recognized expertise in the merchandising of its products. In addition, Points.com will facilitate the sale of several airline frequent flyer currencies to Truition's existing and potential customers via its AirIncentives product. However, the news was likely overshadowed by the uncertainty surrounding InterActiveCorp.’s decision, expected by the close of business on Tuesday, as to whether it will exercise its warrant to acquire a controlling stake in the company. Trading could be especially volatile ahead of the deadline. Shares fell 5 cents to close the week at $0.85.
Tapestry Pharmaceuticals, Inc. (NASDAQ: TPPH), a developer of proprietary therapies for the treatment of cancer, presented data on its lead oncology drug candidate TPI 287 at the Annual Meeting of the American Association for Cancer Research (AACR) in Washington.. One of the main advantages of TPI 287 is that it is orally bioavailable which compares favorably to a commonly-used chemotherapy drug paclitaxel, since the latter has to be injected in the patient’s vein. The data presented supported the drug’s claim of orally bioavailability and also showed that oral dosing showed antitumor activity in the animal model. Last week, Tapestry announced that it has raised $25.5 million from nine institutional investors by issuing 12.75 million shares which should allow the company to aggressively advance TPI 287 into multiple Phase II clinical studies as well as to continue the development of an oral formulation of this drug candidate. Shares rose 12 cents to close the week at $3.68.
Rentech Inc. (AMEX: RTK), a developer of alternative energy sources, announced that the company will offer 12.5 million newly issued shares of common stock and $50 million of senior notes due 2013. Rentech said part of the net proceeds will finance the purchase price of its pending acquisition of Royster-Clark Nitrogen Inc., which owns and operates a natural gas-fed nitrogen fertilizer plant in East Dubuque, Illinois, among other corporate purposes. Shares fell 65 cents to close the week at $3.70.
SLS International (AMEX: SLS), the leading provider of premium quality sound systems for professional, cinema and home entertainment markets, issued an optimistic outlook for 2006 after reporting 97% revenue growth in 2005. Management plans to maintain the momentum in 2006 by focusing on new product introductions and aggressive marketing. Sales could receive a strong boost in the second quarter as Best Buy will begin carrying the company’s Q-Line Gold Home Theater System in all of its stores starting in late May. This will coincide with the product debut on 'The Apprentice' season finale, which is expected to further increase interest in the Q-Line products. Additionally, SLS plans to launch its newly developed ribbon noise canceling headphones in the third quarter of 2006 and another newly-developed product for the consumer speaker markets later in the fall. Despite the news, the stock fell 24 cents to close the week at $0.90, its lowest level since the middle of 2003.
Homeland security company Global ePoint, Inc. (NASDAQ: GEPT), announced results for its fiscal year ended December 31, 2005. Revenue rose 55% to $32.7 million with both the Contract Manufacturing Division and Aviation Division contributing to such success. Net losses rose to $9.9 million from $6.7 million in the prior year as the company increased its investments in its Digital Technology and AirWorks Aviation Divisions. Management was very upbeat about 2006 prospects as business development efforts implemented in 2005 start to positively affect operating results. Future areas of strength include performance from its recently acquired Tops Digital Security which is expected to generate approximately $10 million in revenue over the next 12 months, along with strong opportunities in its AirWorks Division which is expected to generate $20 to $22 million in revenue. Proposed legislation from the FAA requiring flight deck door surveillance systems on all commercial aircraft in the U.S. should act as a catalyst for airlines to place orders for the company’s Cockpit Door Surveillance Systems. The comment period on this proposed legislation closed late last year with a final ruling possibly happening in 2006. In addition, it is expected that other countries will issue flight deck door surveillance system mandates very shortly. The stock increased by 10 cents to close the week at $3.42.
Isonics Corporation (NASDAQ: ISON), a developer of innovative solutions for the homeland security and semiconductor markets, appeared on FOX 5 Las Vegas where explanations and demonstrations of several of the company’s chemical and explosive detection products as well as new facial recognition products were presented. As political tensions escalate and the need for sound strategies are needed to help protect Americans, products offered by Isonics offer a solution. The stock fell by 1 penny to close the week at $1.36.
ZIOPHARM Oncology, Inc. (OTCBB: ZIOP), developer of diverse, in-licensed cancer drugs to address unmet medical needs, presented data on several of its drug candidates during the Annual Meeting of the American Association of Cancer Research in Washington D.C. The first presentation concentrated on data from preclinical studies of ZIO-201 as a treatment against leukemia, which is cancer of bone marrow and blood. These studies demonstrated that ZIO-201 was significantly more effective against leukemia cells that were resistant to a commonly used chemotherapy agent cisplatin while still being equally effective against the cancer cells that were not resistant to cisplatin. ZIO-201 is currently in a phase I/II clinical trial in advanced sarcoma, which is a general class of uncommon cancers of "connective tissues" such as fat, muscle, blood vessels, deep skin tissues, nerves, bones, and cartilage. The company expects to initiate additional phase II studies in the near future with a pivotal registration trial in 2007. Additionally, ZIOPHARM made a second presentation which showcased data suggesting that the company’s organic arsenic drug, ZIO-101, might be active against multiple myeloma cancers, which are cancers of plasma cells normally present in the bone marrow, where the currently available treatment is either ineffective or too toxic. It is also exciting that this same drug candidate was recent named as one of the 100 Great Investigational Drugs by R&D Directions Magazine. ZIO-101 is currently in phase I/II studies in patients with advanced myeloma. The stock gained 40 cents for the week to close at $5.20.
SOYO Group, Inc. (OTCBB: SOYO), a leading global provider of computer, consumer electronics and broadband telecommunications products, announced that it has signed a two-year agreement with Opta Corporation for the use of the GoVideo® brand for the distribution of SOYO LCDs, Plasma TVs, Computer Monitors and rear and front screen projectors in the United States and Canada. The initial response to SOYO’s new line of GoVideo branded televisions has been very positive and the company continues to emerge as a major player in the Large Entertainment Screen market. With the signing of this agreement, the company is in a great position to further penetrate this very large entertainment market with SOYO and GoVideo products as it continues its dramatic turnaround. The stock fell 12 cents to close at $0.50 for the week.
Stinger Systems, Inc. (OTCBB: STIY), a leading provider of stun technologies, filed its annual report for the period ended December 31, 2005. Revenues increased by 79% due to the growing visibility of the company in the marketplace. Simultaneously, the company’s spending on R&D also increased as it has focused on improving the design of the company’s lead product, the Stinger projectile stun gun. The company now expects to begin commercial production and shipment of the modified Stinger projectile stun gun in the second quarter of 2006. Shares declined 10 cents to close at $2.40 for the week.
Shares of American Security Resources Corporation (OTCBB: ARSC), a holding company that acquires and develops technologies that will advance the development of alternative energies, traded approximately 3.8 times average daily volume as the company continues to increase its exposure in the fuel cell industry as its subsidiary Hydra Fuel Cell Corp. teamed up with the University of South Carolina's Center for Fuel Cells Industry Advisory Board. This opportunity enables the company to work closely with distinguished companies including Du Pont, BASF, John Deere and Plug Power to help build a brand name for its HydraStax ™ technology while gaining insight to cutting edge technologies being developed in its targeted field. As such industry conglomerates become more aware of the benefits offered by the company’s HydraStax ™ fuel cells that increase the efficiency and useful life of fuel cell membranes, widespread adoption of such products should help grow the company’s revenue. Shares rose 1 cent to close at $0.25 for the week.
Clearant, Inc. (OTCBB: CLRI), the developer of the patent-protected CLEARANT PROCESS® for pathogen inactivation, announced positive findings of a zero failure rate for patients who had undergone knee reconstruction using CLEARANT PROCESS-treated tissue. The study consisted of 82 knee reconstruction patients of which 54 had received implants treated with the CLEARANT PROCESS and 28 had received conventional allograft tissue (the control group). In their nine-month post-operative examinations, patients with the Clearant-treated tissue demonstrated stability and functionality comparable to the control group at their 15-month post-operative exam. In addition, there was no statistically significant post-op difference in effusion between the control and study groups. Such findings are significant and enable surgeons to offer patients a safe and sterile allograft without compromising range of motion and strength of the knee. Despite the news shares fell 6 cents to close the week at $1.31.
Earth Biofuels, Inc. (OTCBB: EBOF), a producer of biodiesel fuel for sale and distribution through the company's network of wholesale and retail outlets, announced the opening of its new biodiesel production facility located in Durant, Oklahoma where production is expected to equal 10 million gallons of biodiesel fuel per year. The market for alternative and renewable fuels in the U.S. is growing as indicated by the company’s additional announcement of the opening of its new biodiesel blending facility located at the Motiva Enterprises terminal in Dallas, by its subsidiary Distribution Drive. This pilot agreement allows for the installation of a 30,000 gallon tank and blending equipment that enables tanker trucks to load biodiesel fully blended with petrodiesel, resulting in reduced costs since terminal blending is a time and mileage saving breakthrough for fuel trucks that would otherwise have to make two stops, one to pick up biodiesel and one to pick up petrodiesel. The stock fell 9 cents for the week to close at $2.54.
Junior energy company Fellows Energy Ltd. (OTCBB: FLWE) commenced daily production from the four pay horizons in the first well in the Creston project. Initial production of oil and gas is being attained while the workover fluids are simultaneously being removed from the well bore. It is anticipated that the well will reach stabilized production levels within 7 to 10 days with previously indicated daily production potential estimated to be 206-216 gross BOE per day. Oil will be sold at the wellhead on a weekly basis into tanker trucks from storage tanks installed at the site. As the company takes advantage of increased demand and prices for oil, evaluation of the next wells to be returned to production in the ongoing program continues concurrently. This well is located in the Altamont-Bluebell Field, which historically has produced over 350 million barrels of oil equivalent and is the first of an up to 45-well reworking program. This is an exciting time for the company as production of natural gas also continues from the recently acquired Carbon County Project. The company employs its expertise in a niche sector where it combines both conventional and innovative proprietary techniques to reduce or reverse well problems caused by formation damage to successfully achieve oil and gas recovery. Such efforts have the potential to increase the production of the subject wells by as much as ten times or more. Consequently, a plan for drilling up to 20 additional wells in the project area is presently being considered. The stock fell 1 cent to close the week at $0.32.
Neutron Enterprises, Inc. (OTCBB: NTRN), a developer of digital media solutions,secured a $3 million of non-convertible senior debt to be used to advance the global marketing of its proprietary point-of-sale technologies. Such financing highlights lenders’ confidence in the company’s business strategy as it continues to add well-known industry leaders to its growing list of customers. Last week, a leading North American newspaper and media company selected Neutron's Elumalite products for a pilot program that helps retail companies differentiate their product message in a highly competitive marketplace. The pilot test program will utilize EL strips for kiosks, newspaper boxes and other locations where their newspapers are sold. Shares fell 3 cents to close the week at $2.22.
Junior energy company Petrol Oil and Gas, Inc. (OTCBB: POIG) announced the results of an independent analysis of its oil and gas reserves for the year ended December 31, 2005. The company ended the year with a Pre-Tax PV10% value for proved reserves of $53.4 million, which means that Petrol, at its current market cap of roughly $45 million, is trading at a discount to the present value of its assets. What makes the company even more attractive is that while most of the current proved reserves are located in a 10,000-acre Petrol Neodesha project, the company is aggressively looking to develop the reserves in its potentially much larger 92,000-acre Coal Creek project and allocated $10 million to this project in December 2005. As a result, management expects Petrol's proven reserves to develop rapidly as Coal Creek’s gas production comes on line and drilling activities continue. Shares fell 15 cents to close the week at $1.71.
Junior oil and gas producer Patch International Inc. (OTCBB: PTCH), provided an update on recent activities and outlook in a letter to shareholders in which Patch’s President, David Stadnyk, outlined why the future should be bright for the company. Management remains optimistic as the company plans to drill several promising projects in Alberta beginning after the spring thaw, expected to be in May. Also mentioned was a Government of Alberta report which estimated that the oil sands of Canada hold recoverable assets of 175 billion barrels, which is second only to Saudi Arabia's 262 billion barrels. Canada is also in an optimal position to supply oil to the U.S. with its favorable political climate, close proximity and because Canada with its oil sands is one of the few non-OPEC countries which can grow its oil production. Such macro economic factors make a strong investment case for Patch International. Also discussed were the recent formation of Patch Oilsands Limited Partnership and the acquisition of an oil sands property in the heart of the McMurray Channel in the Athabasca oil sands. This is an area well known for high quality and high recovery oil and management is confident that its expected work program during the coming year could significantly increase this reserve. Additionally, the company announced plans to aggressively pursue the acquisition of additional larger land positions in the Alberta oil sands which management believes will have a tremendous impact on the future of energy. Shares rose 26 cents to close at $2.28.
Sweet Success Enterprises, Inc. (OTC: SWTS), which has relaunched a product line made popular by Nestle’s to tap into the rapidly growing demand for convenient and nutritious beverages, filed its annual results on form 10-K. The filing of this form brings the company another step closer to obtaining a listing on the Over-The-Counter Bulletin Board. While sales for 2005 were negligible, Sweet Success is aggressively targeting the nutritional beverage market with a number of product launches planned for the next two quarters. The company recently shipped 450 cases of its Power Blend and now anticipates commercial production of its Chocolate Immunity Infusion starting in mid-May with shipments to commence in late-May In order to further serve the different sub-segments of the nutritional beverage market, the company also plans to introduce Ultra Greens, with cellular renewal benefits, Brain Booster, a cognitive enhancement beverage, Optibeat, a heart healthy nutritional beverage, and Longevity, a vitality beverage; all in the next two quarters. Such a marketing blitz could quickly re-establish the “Sweet Success” name as a nationally recognizable brand. Shares declined 12 cents to close the week at $0.73.
USA Technologies, Inc. (OTCBB: USAT), a developer of cashless vending and energy management products, announced it has accelerated installation of its Business Express product line to a record 15 centers a month in hotels, including some of the most prestigious hotel chains in America. As a result, the company expects to report record results for the fourth quarter ended March 31st, including record sales of the Business Express line of products. Business Express center includes personal computers, printers, copiers and faxes, all linked by USA Technologies' e-Port® technology. Separately, USA Technologies profiled how its cashless transaction technology is used in golf ball dispensing machine, allowing golfers to purchase golf balls with their credit or debit cards. This application allows the range owner to maximize profits by allowing unattended range operation and making the purchase of "impulse" buckets easier. The company is working with seven companies (including Range Servant America) to install its e-Port swipe card wireless technology in dispensing machines at 500 of the biggest golf driving ranges in America. The convenience of cashless is quickly spreading through the golfing industry and already USAT and its distributors are seeing acceleration in business. Shares remained unchanged for the week at $7.00.
Developer and commercializer of next-generation telecommunications and nanotechnology solutions mPhase Technologies (OTCBB: XDSL) has signed an agreement with Bitstream Inc. to license Bitstream's Font Fusion technology and Bitstream fonts for its mPhase TV + System. Under this agreement, mPhase Technologies will use Bitstream's Font Fusion technology to create programming guides in a range of languages. As the mPhase TV+ System is deployed internationally, the font technology and fonts can be easily used to produce programming guides in other languages. Such ability to quickly personalize the user interface for each market is a critical selling point in today's competitive environment for Internet-based television (IPTV) solutions. Separately, company’s CEO commented on the proposed combination of Lucent Technologies and Alcatel, saying that this combination could enhance mPhase’s collaboration with the merged enterprise due to increased investment in its nanotechnology business. Shares remained unchanged for the week to close at $0.32.
On The Wires: Cell biology company Stem Cell Innovations (OTCBB: SCLL), appointed Dr. James H. Kelly, Mark Germain and Dr. Norman Sussman to its Board of Directors with Lawrence M. Gordon resigning as a director of the company. Germain and Sussman will also serve on the company's Audit Committee. Junior oil and gas company Apollo Resources International, Inc. (OTCBB: AOOR), appointed Philip N. Smith, Jr. and George G. Lowrance to serve on the Board of Directors. Home Solutions of America, Inc. (AMEX: HOM), a provider of recovery, restoration and rebuilding/remodeling services, accepted the resignation of Mr. Mark W. White as a director and as a member of the Compensation Committee. Mr. White's resignation was not due to any disagreement with the company’s operations, policies or practices. The Board approved resolutions decreasing the number of the members from six to five members, effective immediately, likely to comply with AMEX requirements that a majority of a company’s Directors be independent. Itronics, Inc. (OTCBB: ITRO), a "Creative Environmental Technology" company and a world technology leader in photochemical recycling, reported that the powerpoint presentation by Dr. John Whitney, Itronics President, shown at its recent annual meeting summarizing the company's achievements including how Itronics has tripled its silver recovery capacity this year and how its silver refinery will be expanded further, has been posted at the company's web site. Shareholders also approved all items on the agenda for the special shareholder meeting which included an increase in the shares authorized for issuance. Oil and gas exploration company New Century Energy Corp. (OTCBB: NCEY), extended the maturity date for its $9.5 million Secured Term Note with Laurus Master Fund, Ltd. to January 2, 2007. Junior oil and gas producer, Patch International Inc. (OTCBB: PTCH) announced the election of John Thornton to serve as a director and interim President, as David Stadnyk has decided to resign his positions as an officer and director of the company. Stadnyk did not resign because of a disagreement with the company on any matter relating to the company's operations, policies or practices.
A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. THE READER SHOULD VERIFY ALL CLAIMS AND DO ITS OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. This publication accepts compensation from companies that it features. This newsletter should not be regarded as an independent publication. Our editors may, from time to time, acquire positions in the companies that they cover. This could represent a conflict of interest. The CEOcast newsletter shall be under no obligation to inform readers about its trading activities. CEOcast's editors reserve the right to buy or sell shares in these companies at any time. The following companies, featured in this newsletter, have compensated CEOcast: Apollo Resources International, six thousand dollars per month and three hundred fifty thousand shares of stock for a six-month agreement, Citadel Security Software, seven thousand five hundred dollars per month and one hundred ten thousand shares of stock for a six-month program; CEOcast received fifty-three thousand shares of stock from previous agreements; an editor of CEOcast has purchase three hundred thousand shares of stock, CytRx, fifteen thousand dollars per month for a six-month program, Fusion Telecom, five thousand dollars per month and fifty thousand shares of stock for a one-year program, Canargo Energy, twelve thousand five hundred dollars per month; CEOcast owns two hundred forty thousand shares of stock from previous agreements, American Security Resources, seven thousand five hundred dollars per month and six hundred thousand shares of stock for a six-month program, Stinger Systems, seven thousand five hundred dollars per month and seventy-five thousand shares of stock for a one-year program, Hythiam, ten thousand dollars per month and twenty-five thousand shares of stock for a one-year program; CEOcast received seventeen thousand shares from a previous agreement; editors of CEOcast have also purchased approximately nine hundred fifty thousand shares of the company's stock, Points International, ten thousand dollars per month; editors and employees of CEOcast have purchased three hundred fifty thousand shares of stock at fifty-five cents per share and invested five hundred thousand dollars in a private placement, Ziopharm, ten thousand dollars per month and twenty-five thousand shares of stock for a six-month program, Patch International, seventy five hundred dollars per month and sixty thousand shares of stock, Fusion Telecom, five thousand dollars per month and fifty thousand shares of stock for a one-year program, Neutron Enterprises, seven thousand five hundred dollars per month and fifty thousand shares of stock for a six-month agreement, Earthbiofuels, six thousand dollars per month and one hundred eighty thousand shares of stock for a six-month program, mPhase technologies, six thousand dollars per month and 300,000 shares of stock, SLS International, fifteen thousand dollars per month and options to purchase two hundred fifty thousand shares of stock at two dollars per share, Rentech, seventeen thousand five hundred dollars per month for a six-month program, Stem Cell Innovations, one hundred thirty-five thousand dollars for a six-month agreement, Global ePoint, seventeen thousand five hundred dollars per month; CEOcast owns thirty thousand shares from a previous agreement, Tapestry Pharmaceuticals, eight thousand seven hundred fifty dollars per month plus an equivalent monthly amount of stock for six month program, Clearant, ten thousand dollars per month and fifty thousand shares of stock for a one-year program, New Century Energy Corp., seven thousand five hundred dollars per month and three hundred thousand shares of stock for a one-year program, Soyo Group, five thousand dollars per month and forty thousand shares of stock per month from Michael Liu, a third-party shareholder, Itronics, six thousand dollars per month and two million warrants with an exercise price of sixteen cents, Petrol Oil & Gas, seven thousand five hundred dollars per month and sixty thousand shares of stock for a one-year program; CEOcast received four hundred eighty thousand dollars and one hundred fifty thousand shares of stock for other services and under previous agreements, Fellows Energy, seven thousand five hundred dollars per month and fifty thousand shares of stock, USA Technologies, ten thousand dollars per month, Salton, Inc., seven thousand five hundred dollars per month and warrants to purchase fifty thousand shares of stock at eleven dollars fifty cents, Sweet Success, five thousand dollars per month and three hundred thousand shares of stock, Isonics Corporation, seventeen thousand five hundred dollars per month, Home Solutions, seven thousand five hundred dollars per month and fifty thousand shares of stock for a one-year program; CEOcast previously received one hundred seventy five thousand shares of the company's stock and has purchased one million one hundred thousand shares of the company's stock; Emisphere Technologies, seventeen thousand five hundred dollars per month.
http://ceocast.com
Sunday, April 09 2006
VOLUME 233
Companies featured in the current edition of the newsletter: AOOR, ARSC, CDSS, CLRI, CNR, CYTR, EBOF, EMIS, FLWE, FSN, GEPT, HOM, HYTM, ISON, ITRO, NCEY, NTRN, POIG, PTCH, PTSEF, RTK, SCLL, SFP, SLS, SOYO, STIY, SWTS, TPPH, USAT, XDSL, ZIOP
For most of the week it appeared that nothing was getting in the way of the rising stock market despite continued strength in commodity prices and rising bond yields. It took just one day to offset the bullish tone for the week and help bring into focus risks from growing inflationary pressures. The Dow rose 10 points for the week raising its annual gain to 3.8%. The Nasdaq shed less than 1 point for the week, maintaining its year-to-date gain at 6.1%. The S&P rose less than 1 point, keeping its annual gain at 3.8%. The Russell lost 9 points, reducing gains for the year to 12.3%.
The week, which began with optimistic comments from Kansas City Fed President Hoenig suggesting that interest rate hikes were close to being completed, ended with the yield on the 10-year note soaring to its highest level since mid-2002. The ever-important employment data took control of the situation on Friday as the bond market’s reaction to such numbers led to selling across all of the major indices. While the Report was generally in line with expectations, with 211,000 new jobs begin added and a net increase in hourly earnings of 0.2% matching expectations for March, worries that the data was insufficient to allow the Fed to stop its monetary tightening policy sent the markets lower. Helping diminish investors’ enthusiasm were generally disappointing March sales results from retailers and an increase in oil prices rising to over $67.
What should investors expect this week? After a relatively benign pre-announcement season, the holiday shortened week starts the beginning of Earnings Season. Monday after the bell, Alcoa (NYSE: AA) reports results with Genentech (NYSE: DNA) releasing earnings Tuesday after trading hours. That same day Red Hat (NASDAQ: RHAT) hosts an analyst meeting and Minneapolis President Stern speaks on economic policy in Berlin. Wednesday morning Circuit City (NYSE: CC) announces results followed by Advanced Micro Devices (NYSE: AMD) after the closing bell. Thursday before the market opens General Electric (NYSE: GE) reports earnings. The Independent Petroleum Association of America will hold its three-day Oil & Gas Symposium in New York City starting on Monday. Morgan Stanley sponsors a three-day Global Automotive Conference also beginning on Monday in New York City. The three-day BIO 2006 Annual International Convention starts on Monday in Chicago where ZIOPHARM Oncology, Inc. (OTCBB: ZIOP) will be presenting on Tuesday at 10:30 a.m. ET.
On the economic front, the February Trade Balance will be reported at 8:30 a.m. followed by Weekly Crude Inventories at 10:30, with the March Treasury Budget being reported later in the afternoon. Prior to the market open on Thursday, numerous reports including February Business Inventories, March Import/Export Prices, Weekly Jobless Claims and March Retail Sales will be announced, followed by the release of the April Preliminary Michigan Sentiment shortly after the opening bell. Despite the market being closed on Friday, at 9:15 a.m. both the March Capacity Utilization and March Industrial Production numbers are scheduled to be released. The bond market will close early on Thursday.
Hythiam, Inc. (NASDAQ: HYTM), a healthcare services management company that licenses the PROMETA™ physiological protocols designed to treat substance dependence, announced last week that the European Patent Office stated on its website that grant of a patent is intended under Rule 51(4) EPC for Hythiam's European Patent Application, which contains broad claims for the use of a composition of matter for the treatment of alcohol dependence. Hythiam also disclosed that it has received issuance of alcoholism and cocaine dependence patents in Singapore and New Zealand along with allowance for its cocaine dependence treatment patent application in Australia. The company’s Chairman and CEO also appeared on NBC's Today Show and on FOX News' FOX & Friends national news program in conjunction with the launch of Hythiam's advertising campaign featuring an image of the late Chris Farley. Despite the positive media coverage, a tabloid newspaper in New York, far better known for its coverage of Jennifer Lopez’s activities than business news, wrote a negative article on the company. S hares were extremely hard to borrow last week at major brokerage firms, suggesting that there may have been a significant increase in the short position, previously reported as approximately 13% of the float. Analysts at both UBS Financial Services and First Albany, who cover the company’s stock and have Buy Ratings, published research notes indicating that the article was full of inaccuracies. With data on Prometa™ expected to be released later this month from an independent clinical investigator that is expected to be positive (he previously commented favorably on the Protocols on a national television show), we would expect attempts by short sellers to discredit the company to increase. Editors of CEOcast used the weakness in the stock last week to increase our ownership position in the stock to over 950,000 shares. Note that the stock put in intra-day bottoms around $8.10 on both Wednesday and Thursday on heavy volume, before rallying, suggesting key support at that level. Shares fell 45 cents for the week to close at $8.74.
Has the storm season started early? After two-years of devastating hurricanes, tornadoes ripped through western Tennessee last week, damaging an estimated 1,600 homes in two counties alone, and highlighting the recovery and restoration opportunities for Home Solutions of America (AMEX: HOM). We have highlighted the opportunities repeatedly in this space over the past six weeks for the company to benefit from the devastation previously created by the hurricanes and the likely 3-5 year rebuilding program necessary in areas such as New Orleans. Despite the conservative nature of the company’s guidance, the stock still trades for just 16 times the mid-point of HOM’s full-year 2006 guidance, that excludes the impact of any new hurricane-related activity. If the stock is able to clear congestion in the $7.20 to $7.35 range, there should be little resistance above this level. Shares ended the week at $7.15, up 39 cents.
Small appliance maker Salton, Inc. (NYSE: SFP), announced that it has acquired exclusive rights to proprietary technology enabling it to manufacture and market a line of indoor and/or outdoor portable grills which utilize a hydrogen flame in combination with electric heat to provide a new dimension to barbequing. Salton is planning to release two George Foreman brand grills using this revolutionary technology in early 2007. Comments from the company’s management suggest that this could be the blockbuster product that investors have been waiting for since the launch of the Foreman grills. The grills plug into a regular household outlet and utilize water and a novel electrolysis process to make a small but intense clean-burning hydrogen flame inexpensively and safely. The result is a great-tasting barbeque experience without the harmful emissions associated with charcoal or propane, thus making it ideal for use indoors, such as in apartments and condominiums, as well as homes. Shares increased 55 cents to close the week at $3.30 on more than three times average volume.
Volume Alert: Shares of Citadel Security Software Inc. (NASDAQ: CDSS), a leader in enterprise vulnerability management and policy compliance solutions, traded approximately 3 times average daily volume after the company reported that preliminary first quarter revenue totaling $5.4 million was at the top end of its guidance and the highest first quarter revenue in the company’s history. Its order backlog of $1.7 million was 30% higher than last quarter. Such numbers are impressive since the first quarter is usually seasonally slow. Management expects 2006 to be a banner year as its flagship Hercules product continues to meet increasing demand while cost cutting measures are being implemented to improve margins. With the company’s expecting to report Q1 expenses of approximately $5 million t o $5.2 million, down from the same period in 2006 by approximately $1.7 million, the company has an opportunity to reach profitability in 2006. While the stock ended the week at $0.74 up 17 cents, it still trades at a significant discount to its peers based upon revenue.
New 52-week High: Shares of CytRx Corporation (NASDAQ: CYTR), a biopharmaceutical company focused on developing products primarily in the area of small molecules and ribonucleic acid interference (RNAi), remain red-hot, as the stock reached a 52-week high of $2.20 and traded roughly 3 times normal volume as the company reached its milestone of completing the enrollment of patients in the first clinical trial with its lead product candidate arimoclomol for the treatment for ALS or Lou Gehrig's disease. A total of 84 patients signed on (four more than the company’s initial target). Final data from this Phase IIa trial is expected to be released in the third quarter of this year, followed by initiation of a Phase IIb efficacy trial that is expected to include a minimum of 300 ALS patients recruited and take approximately 18 months to complete after enrollment begins. The company believes that successfully demonstrating safety and efficacy in the latter Phase II clinical trial could be sufficient to support product registration with the FDA which could further drive value. It is also noteworthyt hat Arimoclomol, CYTR’s ALS compound, was recent named as one of the 100 Great Investigational Drugs by R&D Directions Magazine. Shares rose 33 cents to close the week at $2.22.
Volume Alert: Shares of Fusion Telecommunications International, Inc. (AMEX: FSN), a provider of voice over Internet protocol (VoIP) and other Internet services in Asia, the Middle East, Africa, the Caribbean, and Latin America, traded approximately 4 times average daily volume as investors showed enthusiasm after the company discussed plans for the rollout of its new VoIP service during the current quarter. In connection with the announcement, Jonathan Rand joined the company's management team as Chief Marketing Officer. Shares rose 56 cents or 20.7% for the week to close at $3.26.
Drug delivery company Emisphere Technologies, Inc. (NASDAQ: EMIS), named Noelle Whitehead to the newly created position of chief accounting officer and appointed John D. Harkey, Jr. to the Board of Directors. Additionally, the company filed a shelf registration for the possible sale of as many as 6 million shares. The stock could be sold from time to time in one or more offerings, the company said, adding proceeds would be used for general corporate purposes, including further development of its lead clinical programs. Once completed, we believe the offering could remove an overhang in the company’s stock, as investors have expected that the company would need to raise capital to advance several of its promising programs. Shares ended the week at $7.77, down 45 cents.
Can Argo Energy Corp. (AMEX: CNR), an independent oil and gas exploration and production company with its oil and gas operations currently located in the Republic of Georgia and in Kazakhstan, gave an interim update on three of its Georgian operations last week. The update focused on three properties, however the results were inconclusive as all three projects will require additional work. First, the Norio MK 72 exploration well is still in the middle of a testing program but is showing good formation pressure and light 45 degrees API oil being flowed to surface, together with quantities of drilling mud. It could be several weeks before the mud at the well will be cleaned up so that the commerciality of the flow rate can be assessed. The company’s second well, Ninotsminda Field horizontal well N97H, is showing potential to be a good oil producer, however, before it can be put into stabilized production it will be necessary to seal off a water producing fracture which the well has intersected down bore. It could take some time before such operations are undertaken. The final project to be updated was the Manavi M12 appraisal well which is currently being drilled ahead at 5,285 feet. It is still forecast that this well will reach its target reservoir section in early summer, after which testing is planned. Shares fell 1 cent to close the week at $1.10.
Points International (OTCBB: PTSEF), the owner and operator of the world’s leading reward management portal, entered into a strategic partnership with Truition Inc., a leading provider of On Demand eCommerce solutions. This partnership enables users to benefit from using Truition’s versatile eCommerce platform while rewarding them with points earned from Points’ large and growing network of loyalty program partners and recognized expertise in the merchandising of its products. In addition, Points.com will facilitate the sale of several airline frequent flyer currencies to Truition's existing and potential customers via its AirIncentives product. However, the news was likely overshadowed by the uncertainty surrounding InterActiveCorp.’s decision, expected by the close of business on Tuesday, as to whether it will exercise its warrant to acquire a controlling stake in the company. Trading could be especially volatile ahead of the deadline. Shares fell 5 cents to close the week at $0.85.
Tapestry Pharmaceuticals, Inc. (NASDAQ: TPPH), a developer of proprietary therapies for the treatment of cancer, presented data on its lead oncology drug candidate TPI 287 at the Annual Meeting of the American Association for Cancer Research (AACR) in Washington.. One of the main advantages of TPI 287 is that it is orally bioavailable which compares favorably to a commonly-used chemotherapy drug paclitaxel, since the latter has to be injected in the patient’s vein. The data presented supported the drug’s claim of orally bioavailability and also showed that oral dosing showed antitumor activity in the animal model. Last week, Tapestry announced that it has raised $25.5 million from nine institutional investors by issuing 12.75 million shares which should allow the company to aggressively advance TPI 287 into multiple Phase II clinical studies as well as to continue the development of an oral formulation of this drug candidate. Shares rose 12 cents to close the week at $3.68.
Rentech Inc. (AMEX: RTK), a developer of alternative energy sources, announced that the company will offer 12.5 million newly issued shares of common stock and $50 million of senior notes due 2013. Rentech said part of the net proceeds will finance the purchase price of its pending acquisition of Royster-Clark Nitrogen Inc., which owns and operates a natural gas-fed nitrogen fertilizer plant in East Dubuque, Illinois, among other corporate purposes. Shares fell 65 cents to close the week at $3.70.
SLS International (AMEX: SLS), the leading provider of premium quality sound systems for professional, cinema and home entertainment markets, issued an optimistic outlook for 2006 after reporting 97% revenue growth in 2005. Management plans to maintain the momentum in 2006 by focusing on new product introductions and aggressive marketing. Sales could receive a strong boost in the second quarter as Best Buy will begin carrying the company’s Q-Line Gold Home Theater System in all of its stores starting in late May. This will coincide with the product debut on 'The Apprentice' season finale, which is expected to further increase interest in the Q-Line products. Additionally, SLS plans to launch its newly developed ribbon noise canceling headphones in the third quarter of 2006 and another newly-developed product for the consumer speaker markets later in the fall. Despite the news, the stock fell 24 cents to close the week at $0.90, its lowest level since the middle of 2003.
Homeland security company Global ePoint, Inc. (NASDAQ: GEPT), announced results for its fiscal year ended December 31, 2005. Revenue rose 55% to $32.7 million with both the Contract Manufacturing Division and Aviation Division contributing to such success. Net losses rose to $9.9 million from $6.7 million in the prior year as the company increased its investments in its Digital Technology and AirWorks Aviation Divisions. Management was very upbeat about 2006 prospects as business development efforts implemented in 2005 start to positively affect operating results. Future areas of strength include performance from its recently acquired Tops Digital Security which is expected to generate approximately $10 million in revenue over the next 12 months, along with strong opportunities in its AirWorks Division which is expected to generate $20 to $22 million in revenue. Proposed legislation from the FAA requiring flight deck door surveillance systems on all commercial aircraft in the U.S. should act as a catalyst for airlines to place orders for the company’s Cockpit Door Surveillance Systems. The comment period on this proposed legislation closed late last year with a final ruling possibly happening in 2006. In addition, it is expected that other countries will issue flight deck door surveillance system mandates very shortly. The stock increased by 10 cents to close the week at $3.42.
Isonics Corporation (NASDAQ: ISON), a developer of innovative solutions for the homeland security and semiconductor markets, appeared on FOX 5 Las Vegas where explanations and demonstrations of several of the company’s chemical and explosive detection products as well as new facial recognition products were presented. As political tensions escalate and the need for sound strategies are needed to help protect Americans, products offered by Isonics offer a solution. The stock fell by 1 penny to close the week at $1.36.
ZIOPHARM Oncology, Inc. (OTCBB: ZIOP), developer of diverse, in-licensed cancer drugs to address unmet medical needs, presented data on several of its drug candidates during the Annual Meeting of the American Association of Cancer Research in Washington D.C. The first presentation concentrated on data from preclinical studies of ZIO-201 as a treatment against leukemia, which is cancer of bone marrow and blood. These studies demonstrated that ZIO-201 was significantly more effective against leukemia cells that were resistant to a commonly used chemotherapy agent cisplatin while still being equally effective against the cancer cells that were not resistant to cisplatin. ZIO-201 is currently in a phase I/II clinical trial in advanced sarcoma, which is a general class of uncommon cancers of "connective tissues" such as fat, muscle, blood vessels, deep skin tissues, nerves, bones, and cartilage. The company expects to initiate additional phase II studies in the near future with a pivotal registration trial in 2007. Additionally, ZIOPHARM made a second presentation which showcased data suggesting that the company’s organic arsenic drug, ZIO-101, might be active against multiple myeloma cancers, which are cancers of plasma cells normally present in the bone marrow, where the currently available treatment is either ineffective or too toxic. It is also exciting that this same drug candidate was recent named as one of the 100 Great Investigational Drugs by R&D Directions Magazine. ZIO-101 is currently in phase I/II studies in patients with advanced myeloma. The stock gained 40 cents for the week to close at $5.20.
SOYO Group, Inc. (OTCBB: SOYO), a leading global provider of computer, consumer electronics and broadband telecommunications products, announced that it has signed a two-year agreement with Opta Corporation for the use of the GoVideo® brand for the distribution of SOYO LCDs, Plasma TVs, Computer Monitors and rear and front screen projectors in the United States and Canada. The initial response to SOYO’s new line of GoVideo branded televisions has been very positive and the company continues to emerge as a major player in the Large Entertainment Screen market. With the signing of this agreement, the company is in a great position to further penetrate this very large entertainment market with SOYO and GoVideo products as it continues its dramatic turnaround. The stock fell 12 cents to close at $0.50 for the week.
Stinger Systems, Inc. (OTCBB: STIY), a leading provider of stun technologies, filed its annual report for the period ended December 31, 2005. Revenues increased by 79% due to the growing visibility of the company in the marketplace. Simultaneously, the company’s spending on R&D also increased as it has focused on improving the design of the company’s lead product, the Stinger projectile stun gun. The company now expects to begin commercial production and shipment of the modified Stinger projectile stun gun in the second quarter of 2006. Shares declined 10 cents to close at $2.40 for the week.
Shares of American Security Resources Corporation (OTCBB: ARSC), a holding company that acquires and develops technologies that will advance the development of alternative energies, traded approximately 3.8 times average daily volume as the company continues to increase its exposure in the fuel cell industry as its subsidiary Hydra Fuel Cell Corp. teamed up with the University of South Carolina's Center for Fuel Cells Industry Advisory Board. This opportunity enables the company to work closely with distinguished companies including Du Pont, BASF, John Deere and Plug Power to help build a brand name for its HydraStax ™ technology while gaining insight to cutting edge technologies being developed in its targeted field. As such industry conglomerates become more aware of the benefits offered by the company’s HydraStax ™ fuel cells that increase the efficiency and useful life of fuel cell membranes, widespread adoption of such products should help grow the company’s revenue. Shares rose 1 cent to close at $0.25 for the week.
Clearant, Inc. (OTCBB: CLRI), the developer of the patent-protected CLEARANT PROCESS® for pathogen inactivation, announced positive findings of a zero failure rate for patients who had undergone knee reconstruction using CLEARANT PROCESS-treated tissue. The study consisted of 82 knee reconstruction patients of which 54 had received implants treated with the CLEARANT PROCESS and 28 had received conventional allograft tissue (the control group). In their nine-month post-operative examinations, patients with the Clearant-treated tissue demonstrated stability and functionality comparable to the control group at their 15-month post-operative exam. In addition, there was no statistically significant post-op difference in effusion between the control and study groups. Such findings are significant and enable surgeons to offer patients a safe and sterile allograft without compromising range of motion and strength of the knee. Despite the news shares fell 6 cents to close the week at $1.31.
Earth Biofuels, Inc. (OTCBB: EBOF), a producer of biodiesel fuel for sale and distribution through the company's network of wholesale and retail outlets, announced the opening of its new biodiesel production facility located in Durant, Oklahoma where production is expected to equal 10 million gallons of biodiesel fuel per year. The market for alternative and renewable fuels in the U.S. is growing as indicated by the company’s additional announcement of the opening of its new biodiesel blending facility located at the Motiva Enterprises terminal in Dallas, by its subsidiary Distribution Drive. This pilot agreement allows for the installation of a 30,000 gallon tank and blending equipment that enables tanker trucks to load biodiesel fully blended with petrodiesel, resulting in reduced costs since terminal blending is a time and mileage saving breakthrough for fuel trucks that would otherwise have to make two stops, one to pick up biodiesel and one to pick up petrodiesel. The stock fell 9 cents for the week to close at $2.54.
Junior energy company Fellows Energy Ltd. (OTCBB: FLWE) commenced daily production from the four pay horizons in the first well in the Creston project. Initial production of oil and gas is being attained while the workover fluids are simultaneously being removed from the well bore. It is anticipated that the well will reach stabilized production levels within 7 to 10 days with previously indicated daily production potential estimated to be 206-216 gross BOE per day. Oil will be sold at the wellhead on a weekly basis into tanker trucks from storage tanks installed at the site. As the company takes advantage of increased demand and prices for oil, evaluation of the next wells to be returned to production in the ongoing program continues concurrently. This well is located in the Altamont-Bluebell Field, which historically has produced over 350 million barrels of oil equivalent and is the first of an up to 45-well reworking program. This is an exciting time for the company as production of natural gas also continues from the recently acquired Carbon County Project. The company employs its expertise in a niche sector where it combines both conventional and innovative proprietary techniques to reduce or reverse well problems caused by formation damage to successfully achieve oil and gas recovery. Such efforts have the potential to increase the production of the subject wells by as much as ten times or more. Consequently, a plan for drilling up to 20 additional wells in the project area is presently being considered. The stock fell 1 cent to close the week at $0.32.
Neutron Enterprises, Inc. (OTCBB: NTRN), a developer of digital media solutions,secured a $3 million of non-convertible senior debt to be used to advance the global marketing of its proprietary point-of-sale technologies. Such financing highlights lenders’ confidence in the company’s business strategy as it continues to add well-known industry leaders to its growing list of customers. Last week, a leading North American newspaper and media company selected Neutron's Elumalite products for a pilot program that helps retail companies differentiate their product message in a highly competitive marketplace. The pilot test program will utilize EL strips for kiosks, newspaper boxes and other locations where their newspapers are sold. Shares fell 3 cents to close the week at $2.22.
Junior energy company Petrol Oil and Gas, Inc. (OTCBB: POIG) announced the results of an independent analysis of its oil and gas reserves for the year ended December 31, 2005. The company ended the year with a Pre-Tax PV10% value for proved reserves of $53.4 million, which means that Petrol, at its current market cap of roughly $45 million, is trading at a discount to the present value of its assets. What makes the company even more attractive is that while most of the current proved reserves are located in a 10,000-acre Petrol Neodesha project, the company is aggressively looking to develop the reserves in its potentially much larger 92,000-acre Coal Creek project and allocated $10 million to this project in December 2005. As a result, management expects Petrol's proven reserves to develop rapidly as Coal Creek’s gas production comes on line and drilling activities continue. Shares fell 15 cents to close the week at $1.71.
Junior oil and gas producer Patch International Inc. (OTCBB: PTCH), provided an update on recent activities and outlook in a letter to shareholders in which Patch’s President, David Stadnyk, outlined why the future should be bright for the company. Management remains optimistic as the company plans to drill several promising projects in Alberta beginning after the spring thaw, expected to be in May. Also mentioned was a Government of Alberta report which estimated that the oil sands of Canada hold recoverable assets of 175 billion barrels, which is second only to Saudi Arabia's 262 billion barrels. Canada is also in an optimal position to supply oil to the U.S. with its favorable political climate, close proximity and because Canada with its oil sands is one of the few non-OPEC countries which can grow its oil production. Such macro economic factors make a strong investment case for Patch International. Also discussed were the recent formation of Patch Oilsands Limited Partnership and the acquisition of an oil sands property in the heart of the McMurray Channel in the Athabasca oil sands. This is an area well known for high quality and high recovery oil and management is confident that its expected work program during the coming year could significantly increase this reserve. Additionally, the company announced plans to aggressively pursue the acquisition of additional larger land positions in the Alberta oil sands which management believes will have a tremendous impact on the future of energy. Shares rose 26 cents to close at $2.28.
Sweet Success Enterprises, Inc. (OTC: SWTS), which has relaunched a product line made popular by Nestle’s to tap into the rapidly growing demand for convenient and nutritious beverages, filed its annual results on form 10-K. The filing of this form brings the company another step closer to obtaining a listing on the Over-The-Counter Bulletin Board. While sales for 2005 were negligible, Sweet Success is aggressively targeting the nutritional beverage market with a number of product launches planned for the next two quarters. The company recently shipped 450 cases of its Power Blend and now anticipates commercial production of its Chocolate Immunity Infusion starting in mid-May with shipments to commence in late-May In order to further serve the different sub-segments of the nutritional beverage market, the company also plans to introduce Ultra Greens, with cellular renewal benefits, Brain Booster, a cognitive enhancement beverage, Optibeat, a heart healthy nutritional beverage, and Longevity, a vitality beverage; all in the next two quarters. Such a marketing blitz could quickly re-establish the “Sweet Success” name as a nationally recognizable brand. Shares declined 12 cents to close the week at $0.73.
USA Technologies, Inc. (OTCBB: USAT), a developer of cashless vending and energy management products, announced it has accelerated installation of its Business Express product line to a record 15 centers a month in hotels, including some of the most prestigious hotel chains in America. As a result, the company expects to report record results for the fourth quarter ended March 31st, including record sales of the Business Express line of products. Business Express center includes personal computers, printers, copiers and faxes, all linked by USA Technologies' e-Port® technology. Separately, USA Technologies profiled how its cashless transaction technology is used in golf ball dispensing machine, allowing golfers to purchase golf balls with their credit or debit cards. This application allows the range owner to maximize profits by allowing unattended range operation and making the purchase of "impulse" buckets easier. The company is working with seven companies (including Range Servant America) to install its e-Port swipe card wireless technology in dispensing machines at 500 of the biggest golf driving ranges in America. The convenience of cashless is quickly spreading through the golfing industry and already USAT and its distributors are seeing acceleration in business. Shares remained unchanged for the week at $7.00.
Developer and commercializer of next-generation telecommunications and nanotechnology solutions mPhase Technologies (OTCBB: XDSL) has signed an agreement with Bitstream Inc. to license Bitstream's Font Fusion technology and Bitstream fonts for its mPhase TV + System. Under this agreement, mPhase Technologies will use Bitstream's Font Fusion technology to create programming guides in a range of languages. As the mPhase TV+ System is deployed internationally, the font technology and fonts can be easily used to produce programming guides in other languages. Such ability to quickly personalize the user interface for each market is a critical selling point in today's competitive environment for Internet-based television (IPTV) solutions. Separately, company’s CEO commented on the proposed combination of Lucent Technologies and Alcatel, saying that this combination could enhance mPhase’s collaboration with the merged enterprise due to increased investment in its nanotechnology business. Shares remained unchanged for the week to close at $0.32.
On The Wires: Cell biology company Stem Cell Innovations (OTCBB: SCLL), appointed Dr. James H. Kelly, Mark Germain and Dr. Norman Sussman to its Board of Directors with Lawrence M. Gordon resigning as a director of the company. Germain and Sussman will also serve on the company's Audit Committee. Junior oil and gas company Apollo Resources International, Inc. (OTCBB: AOOR), appointed Philip N. Smith, Jr. and George G. Lowrance to serve on the Board of Directors. Home Solutions of America, Inc. (AMEX: HOM), a provider of recovery, restoration and rebuilding/remodeling services, accepted the resignation of Mr. Mark W. White as a director and as a member of the Compensation Committee. Mr. White's resignation was not due to any disagreement with the company’s operations, policies or practices. The Board approved resolutions decreasing the number of the members from six to five members, effective immediately, likely to comply with AMEX requirements that a majority of a company’s Directors be independent. Itronics, Inc. (OTCBB: ITRO), a "Creative Environmental Technology" company and a world technology leader in photochemical recycling, reported that the powerpoint presentation by Dr. John Whitney, Itronics President, shown at its recent annual meeting summarizing the company's achievements including how Itronics has tripled its silver recovery capacity this year and how its silver refinery will be expanded further, has been posted at the company's web site. Shareholders also approved all items on the agenda for the special shareholder meeting which included an increase in the shares authorized for issuance. Oil and gas exploration company New Century Energy Corp. (OTCBB: NCEY), extended the maturity date for its $9.5 million Secured Term Note with Laurus Master Fund, Ltd. to January 2, 2007. Junior oil and gas producer, Patch International Inc. (OTCBB: PTCH) announced the election of John Thornton to serve as a director and interim President, as David Stadnyk has decided to resign his positions as an officer and director of the company. Stadnyk did not resign because of a disagreement with the company on any matter relating to the company's operations, policies or practices.
A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. THE READER SHOULD VERIFY ALL CLAIMS AND DO ITS OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. This publication accepts compensation from companies that it features. This newsletter should not be regarded as an independent publication. Our editors may, from time to time, acquire positions in the companies that they cover. This could represent a conflict of interest. The CEOcast newsletter shall be under no obligation to inform readers about its trading activities. CEOcast's editors reserve the right to buy or sell shares in these companies at any time. The following companies, featured in this newsletter, have compensated CEOcast: Apollo Resources International, six thousand dollars per month and three hundred fifty thousand shares of stock for a six-month agreement, Citadel Security Software, seven thousand five hundred dollars per month and one hundred ten thousand shares of stock for a six-month program; CEOcast received fifty-three thousand shares of stock from previous agreements; an editor of CEOcast has purchase three hundred thousand shares of stock, CytRx, fifteen thousand dollars per month for a six-month program, Fusion Telecom, five thousand dollars per month and fifty thousand shares of stock for a one-year program, Canargo Energy, twelve thousand five hundred dollars per month; CEOcast owns two hundred forty thousand shares of stock from previous agreements, American Security Resources, seven thousand five hundred dollars per month and six hundred thousand shares of stock for a six-month program, Stinger Systems, seven thousand five hundred dollars per month and seventy-five thousand shares of stock for a one-year program, Hythiam, ten thousand dollars per month and twenty-five thousand shares of stock for a one-year program; CEOcast received seventeen thousand shares from a previous agreement; editors of CEOcast have also purchased approximately nine hundred fifty thousand shares of the company's stock, Points International, ten thousand dollars per month; editors and employees of CEOcast have purchased three hundred fifty thousand shares of stock at fifty-five cents per share and invested five hundred thousand dollars in a private placement, Ziopharm, ten thousand dollars per month and twenty-five thousand shares of stock for a six-month program, Patch International, seventy five hundred dollars per month and sixty thousand shares of stock, Fusion Telecom, five thousand dollars per month and fifty thousand shares of stock for a one-year program, Neutron Enterprises, seven thousand five hundred dollars per month and fifty thousand shares of stock for a six-month agreement, Earthbiofuels, six thousand dollars per month and one hundred eighty thousand shares of stock for a six-month program, mPhase technologies, six thousand dollars per month and 300,000 shares of stock, SLS International, fifteen thousand dollars per month and options to purchase two hundred fifty thousand shares of stock at two dollars per share, Rentech, seventeen thousand five hundred dollars per month for a six-month program, Stem Cell Innovations, one hundred thirty-five thousand dollars for a six-month agreement, Global ePoint, seventeen thousand five hundred dollars per month; CEOcast owns thirty thousand shares from a previous agreement, Tapestry Pharmaceuticals, eight thousand seven hundred fifty dollars per month plus an equivalent monthly amount of stock for six month program, Clearant, ten thousand dollars per month and fifty thousand shares of stock for a one-year program, New Century Energy Corp., seven thousand five hundred dollars per month and three hundred thousand shares of stock for a one-year program, Soyo Group, five thousand dollars per month and forty thousand shares of stock per month from Michael Liu, a third-party shareholder, Itronics, six thousand dollars per month and two million warrants with an exercise price of sixteen cents, Petrol Oil & Gas, seven thousand five hundred dollars per month and sixty thousand shares of stock for a one-year program; CEOcast received four hundred eighty thousand dollars and one hundred fifty thousand shares of stock for other services and under previous agreements, Fellows Energy, seven thousand five hundred dollars per month and fifty thousand shares of stock, USA Technologies, ten thousand dollars per month, Salton, Inc., seven thousand five hundred dollars per month and warrants to purchase fifty thousand shares of stock at eleven dollars fifty cents, Sweet Success, five thousand dollars per month and three hundred thousand shares of stock, Isonics Corporation, seventeen thousand five hundred dollars per month, Home Solutions, seven thousand five hundred dollars per month and fifty thousand shares of stock for a one-year program; CEOcast previously received one hundred seventy five thousand shares of the company's stock and has purchased one million one hundred thousand shares of the company's stock; Emisphere Technologies, seventeen thousand five hundred dollars per month.
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