The stocks to Watch

[Stockz4O]

Midday Report for October 1st ZPNW, TARR, DPDW, SGTI, NPWS, PEFF
10/1/2007

Oct 01, 2007 (M2 PRESSWIRE via COMTEX News Network) --
Our Stocks to Watch today include Zippi Networks (OTC: ZPNW), Tarragon Corp. (NASD: TARR), Deep Down Inc. (OTCBB: DPDW), Shengtai Pharmaceuticals (OTCBB: SGTI), Neah Power Systems (OTCBB: NPWS), Power Efficiency Corp. (OTCBB: PEFF)

ZIPPI NETWORKS INC. (OTC: ZPNW)

Detailed Quote: http://www.otcpicks.com/quotes/ZPNW.php

Click Here For a Detailed Profile

Zippi Networks, Inc., arms a new generation of online sellers with the advanced tools and strategies to free themselves from shrinking profits, unnecessary competition, a dwindling number of unique items to merchandise, and inventory overhead. The industry's first one-call 1-877-GO-ZIPPI pickup-and-sell service, advanced technology and a revolutionary business model (patents pending) allow Zippi to simplify the process so much that anyone can sell online and earn the cash they deserve. At the same time, professional tools - such as the industry's first enterprise-level palmtop device for completely integrated anywhere/anytime online selling - along with a supportive network and infrastructure, simplify the "leap" to becoming a successful online sales entrepreneur.

ZPNW News:

October 1 - Zippi(TM) Networks Files U.S. Patent to Protect Unprecedented Online Auction Sales Method & Services

Zippi Networks, Inc. (OTC:ZPNW), the innovative force empowering a new generation of online sellers, today announced that it has filed a patent application with the United States Patent and Trademark Office (USPTO) to protect the company's unique commission-based sales structure, new tools, website services, and simplification of online sales methods.

The patent application covers a comprehensive range of online uses of the Zippi website - http://www.zippi.com - for various digital operations to facilitate sales on eBay and other auction websites, provide compensations for Zippi Affiliates and Zipsters, and the sale and purchase of Zippi's unique tools for maximizing transaction revenue. The USPTO application is titled: "System for Selling Commission-Based Goods and Services Through Online Websites and Online Auctions."

"Zippi's groundbreaking and inventive online sales system offers an invaluable service to the online marketplace by increasing the quantity of high-quality and unique goods available," said Zippi Networks CEO Robert A. Rositano, Jr. "As such, it's imperative we protect the advantages of our unprecedented system and services that are the culmination of decades of experience and more than a year of concentrated development."

TARRAGON CORP (NASD: TARR) "Up 12.21% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/TARR.php

Tarragon Corporation is a leading developer of multifamily housing for rent and for sale. Tarragon's operations are concentrated in the Northeast, Florida, Texas and Tennessee. To learn more about Tarragon Corporation, visit: www.tarragoncorp.com.

TARR News:

October 1 - Tarragon Corporation Announces Reinstatement of $79.6 Million of Fannie Mae Loans

Tarragon Corporation (NASDAQ: TARR) today announced that it has entered into an agreement with the Federal National Mortgage Association, or Fannie Mae, to reinstate a combined $79.6 million in loans it made to Tarragon and/or its affiliates. In addition, Tarragon has restored loans from five other lenders totaling $56.6 million to good standing, and has reached an agreement in principal with another lender to reinstate an additional $73.2 million in loans in connection with the proposed sale of a property anticipated to close by October 15, 2007.

On September 21, 2007, Tarragon announced that it had met the terms and conditions of the agreement with its largest lender, General Electric Capital Corporation (GECC), under which GECC reinstated over $550 million in loans it made to Tarragon and/or its affiliates.

Tarragon's agreements with GECC and Fannie Mae, and its ongoing negotiations with its other significant lenders, are part of an overall plan designed to restore the company's liquidity and improve its financial condition. The plan currently contemplates additional property sales, the proceeds of which would be used to repay or bring current Tarragon's obligations under other loan agreements and to provide Tarragon with additional liquidity.

There can be no assurance, however, that the contemplated property sales will be completed on acceptable terms or in a timely manner or that Tarragon will be able to reach agreements with other lenders. If not, it may be necessary for Tarragon to undertake such other actions as may be appropriate in the light of its current liquidity situation.

Tarragon also announced today that its board of directors approved the suspension of the payment of quarterly dividends on Tarragon's 10% cumulative preferred stock to preserve liquidity as negotiations continue with other significant lenders.

DEEP DOWN INC (OTCBB: DPDW) "Up 16.13% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/DPDW.php

Deep Down specializes in the provision of innovative solutions, installation management, engineering services, support services, custom fabrication, and storage management services for the offshore subsea control, umbilical, and pipeline industries. The company fabricates component parts of subsea distribution systems and assemblies that specialize in the development of subsea fields and tie backs. These items include umbilicals, flow lines, distribution systems, pipeline terminations, controls, winches, and launch and retrieval systems, among others. Deep Down provides these services from the initial field conception phase, through manufacturing, site integration testing, installation, topside connections, and the final commissioning of a project. The Company's ElectroWave subsidiary offers products and services in the fields of electronic monitoring and control systems for the energy, military, and commercial business sectors. ElectroWave designs, manufactures, installs, and commissions integrated PLC and SCADA based instrumentation and control systems, including ballast control and monitoring, drilling instrumentation, vessel management systems, marine advisory systems, machinery plant control and monitoring systems, and closed circuit television systems.

DPDW News:

September 27 - Deep Down Delivers Intelligent In-Line Winch System for Offshore Deployment

Deep Down, Inc. (OTCBB: DPDW) recently announced it has delivered and installed the first of two active heave compensated in-line winch systems to Schlumberger, Inc.

Deep Down believes there is sufficient demand in the offshore market to support the development of a new line (Proteus(TM)) of custom-engineered active-heave compensated in-line winch systems to complement the Company's existing product and service capabilities. This equipment can be installed in-line on existing winch systems to add active heave compensation capabilities. Depending on the custom-engineered requirements of its customers, the Company expects to deliver these in-line systems at prices ranging from approximately $500,000 to $1,000,000 each. Due to proprietary and confidentiality considerations, the Company cannot disclose the price of these systems delivered to Schlumberger, Inc., nor the area of deployment.

Deep Down recently completed a project for Schlumberger, Inc. requiring the engineering and design of an intelligent control system to manage the recovery and deployment of equipment, machinery, and other payloads in subsea environments. Active heave compensation systems are installed on seagoing vessels and drilling rigs to reduce the heave, or vertical movement, that subsea payloads experience due to wave activity. They are typically used when precision well logging or drill hole monitoring operations are being performed, or for specific ROV operations. In many cases, it is critical to keep these payloads stable while the surface deployment vessel is moving vertically from large oceanic swells.

The system was designed to maintain vertical displacement of a subsea payload to within six-tenths of an inch even if the surface deployment vessel, or ship, is experiencing a heave of up to 30 feet. The control system monitors these vertical motions and compensates by releasing and retrieving the main winch to keep the payload essentially still.

'The development of our Proteus(TM) line of active heave compensated winch systems is a prime example of the opportunities that are available to us through the collaborative efforts of Deep Down and ElectroWave. We expect this collaboration to continue as we seek to meet the growing demands of our customers for solutions to challenges in ultra deepwater environments,' commented Ron Smith, president of Deep Down.

SHENGTAI PHAMRACEUTICALS (OTCBB: SGTI) "Up 17.41% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/SGTI.php

Shengtai Pharmaceutical, Inc. through its wholly-owned subsidiary Shengtai Holding, Inc. (SHI), a New Jersey corporation, and the holding company for Weifang Shengtai Pharmaceutical Co., Ltd., is a leading manufacturer and supplier of glucose products, which include pharmaceutical grade glucose used for medical purposes, and glucose and cornstarch products for the food and beverage industry and for industrial production in China. For more information about Shengtai Pharmaceutical, Inc. please visit http://www.chinaglucose.com.

SGTI News:

September 28 - Shengtai Pharmaceutical, Inc. Reports Record 2007 Annual Results

Shengtai Pharmaceutical, Inc. (OTCBB: SGTI) ('Shengtai Pharmaceutical' or 'the Company'), a leading manufacturer and distributor of high-quality, pharmaceutical grade glucose products in China and glucose and starch products that serve as raw materials for food, beverage and industrial production, today reported record annual financial results ended June 30, 2007.

For the fiscal year 2007, net revenues increased 43.5% to $51.7 million from $36.0 million in fiscal 2006. This increase was largely due to strong sales of glucose and cornstarch products, as well as higher product selling prices. In addition, the Company's new cornstarch plant began production in 2007, maximizing the production of its glucose manufacturing facility and the sale of additional cornstarch to outside customers.

'Our 2007 fiscal year was a record for Shengtai Pharmaceutical. We will continue to identify and pursue innovative products and technology to our increase market share and optimize our cost structure,' said Chief Financial Officer Philips Zhang. 'Our ability to meet increased customer demand and remain profitable will however, still depend on factors such as our production capacity and working capital.'

Gross profit in fiscal year 2007 was $12.2 million, an increase of 43.9% from $8.5 million a year ago. Gross profit margin for the year ended June 30, 2007 was 23.6%, a slight improvement from 2006. Shengtai Pharmaceutical produced some new products with higher profit margins, which was offset by rising sales of lower gross margin cornstarch to customers.

Selling, general and administrative expenses for the year ended June 30, 2007 was $4.7 million, an increase of $0.8 million, or 22% compared with the corresponding period in 2006. The increase in selling, general and administrative expenses was the result of the expansion of the Company's domestic sales network, higher worker insurance requirements and environmental related expenditures.

The Company achieved higher operating leverage for the year. Operating income in fiscal year 2007 increased 62.1% to $7.5 million from $4.6 million in prior year. Operating margin during fiscal 2007 was 14.5% in 2006, up from 12.9% a year ago.

Net income for the year ended June 30, 2007 was $7.1 million, an increase of $2.9, or 69.8% compared with 2006. The increase in net income was due to higher production levels, sales volumes, as well as a net gain of approximately $1.3 million derived from both the gain of surrendering its land use rights for property in downtown Changle to the local government and the loss of fixed assets' early retirement. Diluted weighted average earnings per share were $0.62 for fiscal year of 2007, which compared to $0.42 in fiscal year of 2006.

Financial Condition

As of June 30, 2007, Shengtai Pharmaceutical had cash and restricted cash of $12.0 million and working capital of $(7.2) million. In fiscal 2007, the Company generated $5.1 million in cash flow from operations. At June 30, 2007, the Company had $42.1 million in total debt, and $31.6 million of shareholders' equity.

Business Outlook

Shengtai Pharmaceutical's market share in the PRC for pharmaceutical grade glucose products, especially dextrose monohydrate, has increased. Dextrose monohydrate is widely used for restorative and nutritional purposes, as well as for transfusions and intravenous drips. The company's newly established cornstarch production facility with annual capacity to produce 240,000 tons is close to the existing glucose production plant. This allows the company to produce its own cornstarch, replacing other suppliers, reduces shipping costs, and resulting in lower manufacturing costs. The research and development team has been very active to improve production techniques, and to develop new technologies and higher value-added products such as sodium gluconate and Avermectins, which have higher profit margins.

After acquiring the rights to use 85,880 square meters of new land in Changle Economic and Technology Development Zone in April 2007, Shengtai Pharmaceutical planned to develop the land and build a new glucose production complex with an expected production capacity of 150,000 tons per year. The Company commenced construction in early July 2007 and expects construction to be completed in the first half of calendar year 2008. 'Nevertheless, among our total 253,746 square meters of land, approximately only 60% is being utilized, leaving room for future expansion,' said Mr. Zhang.

'The 2008 fiscal year presents tremendous opportunities for Shengtai Pharmaceutical, as we expect higher living standards, rising purchasing power, public awareness of quality health care products will continue to lead to higher consumption of pharmaceutical dextrose,' said Mr. Zhang. 'We believe that through manufacturing innovative products to meet market demand, we would be able to command higher profit margins and diversify our operating risks.'

NEAH POWER SYSTEMS (OTCBB: NPWS) "Up 16% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/NPWS.php Neah Power Systems, Inc. is a leading developer of fuel cells for military applications, notebook computers and portable electronic devices. The company's patented, porous silicon-based design will provide long-lasting, efficient and safe power solutions. As an emerging leader in fuel cell technology, Neah Power's products will allow users to extend the operating time of 10 to 100 watt devices multiple times beyond that of conventional batteries. Further company information can be found at our website www.neahpower.com.

NPWS News:

September 28 - Neah Power Demonstrates Fuel Cell Prototype

Neah Power Systems, Inc. (OTCBB:NPWS) demonstrated a working prototype of its fuel cell with a nucleus of Neah Power's patented and proprietary porous silicon electrodes and the necessary components for independent operation. The prototype was run at room temperature and produced positive power output.

"A key milestone for Neah Power, the working prototype substantiates the company's innovative porous silicon technology can be harnessed for practical application to military and consumer applications," said Dan Rosen, executive chairman of Neah Power. "The completion of the working prototype further advances our current strategic partnerships, and enables new ones focused on bringing the product to market. We are working for the day when the power cord, the last remaining tether for communications and computing devices, can be replaced by Neah Power fuel cells."

"This is a remarkable achievement and a turning point for the micro fuel cell industry," said Peter Schwartz, a noted futurist and Neah Power advisor. "I have followed the industry for many years and Neah's demonstration of its working prototype fuel cell has the ability to transform the way the military and consumers think about portable power."

To drive the prototype to commercialization, the company is continuing to pursue military projects, best-of-breed manufacturing and distribution partners, and field tests. The goal is to establish the fuel cell for use in military, industrial and consumer electronic products as well as the recurring revenue base associated with the consumable fuel cell cartridge. The market size for portable power market for fuel cells is forecast to exceed $2.5 billion in 2012 according to the research report: "Micro Power Sources, Opportunities from Fuel Cells and Batteries for Mobile Applications," prepared by NanoMarkets.

POWER EFFIENCY CORP (OTCBB: PEFF) "Up 12.28% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/PEFF.php

Power Efficiency Corporation is a green energy company focused on efficiency technologies for electric motors. Power Efficiency is incorporated in Delaware and is headquartered in Las Vegas, Nevada. The Company has developed a patented and patent-pending technology platform, called eSave Technology, which has been demonstrated in independent testing to improve the efficiency of electric motors by 15-35% in appropriate applications. Electric motors consume over 25% of the electricity in the U.S. and many operate inefficiently. eSave Technology can be licensed to motor, controls and equipment manufacturers. Power Efficiency's first product based on eSave Technology is a Motor Efficiency Controller for applications such as escalators, crushers, granulators, mixers, saws, and MG elevators. Power Efficiency is also developing a new product based on eSave Technology for the tens of millions of small motors found in applications such as residential air conditioning, pool pumps, and clothes dryers. The company is working with manufacturers to incorporate this technology directly into new motors and appliances. For more information go to www.powerefficiency.com.

PEFF News:

September 28 - Power Efficiency Announces Recent Sales and Purchase Orders for Installations at Department Stores and Shopping Malls in Southern California

Power Efficiency Corporation (OTCBB: PEFF.OB), a green energy company focused on efficiency technologies for electric motors, recently announced it recently closed on sales and received additional purchase orders for installations of its Motor Efficiency Controller on escalators at well known department stores and mall operators in southern California.

Electric rates in southern California are relatively high compared with other parts of the country. High electrical rates improve the "payback" from the Company's products because each kilowatt hour saved has a higher value. Utility rebates in southern California further improve the return on investment.

Commenting on these recent sales and orders, Mr. Strasser stated, "Department stores and shopping malls are looking for ways to make their buildings more eco-friendly. The rising cost of electricity is also an important factor for their operations. Our Motor Efficiency Controller with eSave Technology provides them with energy savings while leaving the operation of their escalators unchanged.

"A number of these department stores and shopping mall operators have a national presence. As our Motor Efficiency Controller becomes more widely accepted by customers, service providers and utilities, we continue to actively work on similar initiatives in other locations. Our goal is to repeat the success we've had in southern California in order to secure additional purchase orders and sales."