Ampex Corporation Nasdaq: AMPX $17.12
Research Note
Industry: Electronics & Engineering
Rating: Strong Buy (Reiterated)
Price Target: $35.00
By: Richard W. West, CFA
Ampex Corporation Announces New Board Member;Strong Buy Rating Reiterated
March 10, 2007. Ampex Corporation (NasdaqGM:AMPX) announced the appointment Dr. Alain C. Briancon as a member of the board of directors. This appointment comes after the February 16th appointment of D. Gordon Strickland as Ampexs new CEO and president, and Ned Goldstein, Esq., joining Ampexs board of directors. We reiterate our Strong Buy and our current price target of $35.00 per share
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Ampex Corporation Nasdaq: AMPX $17.12
Research Note
Industry: Electronics & Engineering
Rating: Strong Buy (Reiterated)
Price Target: $35.00
By: Richard W. West, CFA
Third SEC Form 13D Amendment Filed on Behalf of Ampex Corporation, by ValueVest; Strong Buy Rating Reiterated
February 25, 2007. Ampex Corporation (NasdaqGM:AMPX):ValueVest Management Company II, LLC, ValueVest MasterFund, et al (ValueVest), owners of 341,436 shares, or 8.9% of Ampex's outstanding common stock, filed a third SEC Form 13D Amendment on behalf of Ampex Corporation. In addition to citing recent management changes, the amendment details ValueVest's dissatisfaction with Ampex's financial results and operating performance. We believe the current stock weakness presents investors with a buying opportunity; with ValueVest's stated purpose to increase shareholder value plus Ampex's apparent cooperation, the shares offer investors a relatively low entry point. We reiterate our Strong Buy Rating and our price target of $35.00 per share.
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Amarin Corporation plc Nasdaq: AMRN $2.17
Research Report
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $4.50
By: Stephen L. Handley
Amarin Rating Maintained At Strong Speculative Buy Rating With $4.50 Price Target; Several Catalysts To Spark Increased Investor Interest Over The Coming Year
February 28, 2007. On February 8, Amarin (Nasdaq: AMRN) reported results for 2006 and held an upbeat conference call for investors. For the entire year there was a loss of $26.9 million, or $0.33 per share, which was closely in line with the model in our basic report last July. The loss primarily reflected substantial investment in two Phase III trials with Amarin's key compound, Miraxion, in Huntington's disease (HD), and also development costs associated with Amarin's novel oral formulation of apomorphine for advanced Parkinson's disease. While Miraxion for the treatment of HD correctly remains the primary focal point for investors, Amarin also reports that it is making good progress with this compound in other indications, particularly Parkinson's disease and melancholic depression. In short, we are favorably impressed with Amarin's outlook, for several reasons discussed. There are likely to be several catalysts to spark increased investor interest over the coming year, related to further confirmation of Miraxion's effectiveness and other clinical milestones.
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Biophan Technologies, Inc. OTCBB: BIPH $0.42
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Neutral (Change)
By: Richard W. West, CFA
Biophan Technologies, Inc. Files 8-K;Lowering Rating to Neutral
February 28, 2007. Biophan Technologies, Inc. (OTCBB:BIPH) filed SEC Form 8-K on February 27, 2007, detailing the Forbearance Agreement dated as of February 16, 2007 with the holders (the "Note Holders") of their Senior Subordinated Convertible Notes due October 12, 2009. Lowering rating to Neutral
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Baldwin Technology Company Inc AMEX: BLD $4.87
Research Note
Industry: Industrial & Manufacturing
Rating: Buy (Reiterated)
Price Target: $6.85
By: Wayne M. Lottinville, CFA
Baldwin Names John Jordan To CFO Post; Reiterate Buy
March 9, 2007. Baldwin Technology Company, Inc. (Amex: BLD), has named John Jordan to the recently vacated post of vice president, chief financial officer, and treasurer. Mr. Jordan was previously at Paxar Corporation, a global apparel identification manufacturer, where he served as vice president and treasurer. He also participated in an eleven-member Paxar Global Leadership Team and led that company's initiatives to comply with Sarbanes-Oxley and to restructure Paxar's domestic operations. Jordan began his business career with Arthur Andersen & Co.
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Baldwin Technology Company Inc AMEX: BLD $4.87
Research Note
Industry: Industrial & Manufacturing
Rating: Buy (Reiterated)
Price Target: $6.85
By: Wayne M. Lottinville, CFA
Baldwin's CFO To Leave The Company; Reiterate Buy
February 27, 2007. Baldwin Technology Company, Inc. (Amex: BLD) said that Vijay Tharani, the Company's Vice President, Chief Financial Officer, and Treasurer will be leaving Baldwin on March 2, 2007, to pursue another opportunity.
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Baldwin Technology Company Inc AMEX: BLD $4.87
Research Report
Industry: Industrial & Manufacturing
Rating: Buy (Reiterated)
Price Target: $6.85
By: Wayne M. Lottinville, CFA
Baldwin Technology Buy Rating and Increased Price Target In Update
February 26, 2007. In late November Baldwin (AMEX: BLD) acquired privately held Oxy-Dry Corporation, the world's leading brush company for on-press cleaning applications, for $18 million in cash, or 47% of Oxy's reported $38 million in annual sales. Oxy serves the sheetfed, commercial web, packaging, and newspaper markets. Baldwin reported fiscal 2Q07 net sales of $48.2 million, 9.9% above the $43.8 million reported for the second quarter last year. However, the increase was primarily attributed to Oxy-Dry sales and to favorable currency translations. Adjusting for this, Baldwin's base-business sales were $41.9 million, 4.5% less than a year earlier. Management attributed lower base-business sales to two factors we discuss. 2Q07 results when "nonrecurring" expenses are eliminated suggest that Baldwin fared rather well from an operational standpoint and were about what we might have expected from the combined entities based on historical results. A year from now we project that Baldwin will have reported calendar 2007 earnings of $0.49 per diluted share on its way to earnings of $0.56 per diluted share in FY08, the first full fiscal year after restructuring. Applying that 14 multiple to the trailing $0.49 per diluted share in earnings that we project a year from now generates a price target of $6.85, 37% above Baldwin's recent $5.00 share price. This potential appreciation merits a Buy rating on the Company's stock.
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CHINA-BIOTICS, INC. OTCBB: CHBT $11.85
Research Report
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Change)
Price Target: $16.60
By: Stanley Ng
China-Biotics Raised To Strong Speculative Buy In Update Coverage; Driven By The Increasing Awareness Of Preventive Health
March 8, 2007. China Biotics (OTCBB: CHBT) is principally engaged in the research, development, production, marketing and distribution of probiotics products. These products contain live microbial food supplements, which beneficially affect the host by improving its intestinal microbial balance and have been approved for sale in China by The Ministry of Health in China. The Company recently announced its third quarter results for the period ended December 31, 2006, with revenue increased by 31.2% year-over-year to a record level of $8.8 million and quarterly net income up 23.1% year-over-year to a new high of $3.6 million. The nine months results ended December 31, 2006 were a hefty 47.6% year-over-year increase in revenue to $22.2 million and a 32.7% YOY rise in net income to $8.1 million. These figures were ahead of our expectations. In our view, China Biotics offers investors a good opportunity to participate in China's fast growing probiotics industry, which is driven by the increasing awareness of preventive health and the sustaining increase in consumption of dairy products with probiotics additives like yogurts and milk powders. EPS is expected to reach $0.66 in FY2007, increase 25.8% to $0.83 in FY2008 and surge 186.7% to $2.38 in FY2009, as the bulk additives products from the new facility begin to contribute. We believe it is appropriate to apply a more aggressive P/E in our valuation of the stock. Based on a target FY2008 P/E of 20 times, our new target price is $16.60 per share. We are upgrading our rating on the stock to Strong Speculative Buy.
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Deli Solar (USA), Inc., OTCBB: DLSL $2.15
Research Report
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Change)
Price Target: $3.00
By: Paul J. Resnik, CFA
Deli Solar (USA) Speculative Buy Rating In Update Coverage; Products For Households In The People's Republic of China
March 1, 2007. Deli Solar USA Inc. (OTCBB: DLSL) produces solar water heaters and coal-fired boilers, and manufactures and designs space heating products, which are mostly used by the households in the People's Republic of China (PRC). Through its subsidiaries, the Company produces solar water heaters and coal-fired boilers, and manufactures and designs space heating products, which are mostly used in residences in the People's Republic of China (PRC). Deli Solar's solar water heating business (SWH), the Company's major revenue earner (68% of the total revenue), is divided into three segments: Regular Evacuated Tubular SWH, Evacuated Heat Pipe SWH, and Flat Plate SWH. The Company is in the process of strengthening its core business by acquiring a controlling stake (60%) in Shenzhen Xiongri Co., a solar water heater manufacturer based in Shenzhen. Deli Solar operates in the promising renewable energy segment where industry sales of solar water heaters in the Chinese market reached 12 million m2 in 2004, making China the world's biggest market for the product. We expect Deli Solar's sales for FY06 to be USD$22 million, up 44% compared to the sales reported in FY05. We are projecting an EPS of $0.25 in FY07 and an average EPS growth of 60% over 2007-2009. Since the Company is operating in a competitive and a fragmented market, we assume a conservative forward P/E of 12, and our target price of $3.00 per share.
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Forgent Networks, Inc. Nasdaq: FORG $1.10
Research Note
Industry: Computers, Technology & Internet
Rating: Strong Speculative Buy (Reiterated)
Price Target: $2.40
By: Richard W. West, CFA
Forgent Networks Reports Second-Quarter and Six-Month Results for FY2007; Reiterate Strong Speculative Buy Rating and Price Target of $2.40
March 1, 2007. Forgent Networks, Inc. (NasdaqGM:FORG) reported its second quarter ended January 31, 2007, as profitable for the second quarter in a row, resulting in profitability for the first half of FY2007. We recognize the uncertainty surrounding the '746 patent litigation and look forward to the scheduled mediation on April 15, 2007, with positive anticipation. We reiterate our rating of Strong Speculative Buy and reaffirm our price target of $2.40 per share.
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Green Plains Renewable Energy NasdaqNM: GPRE $21.50
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated)
Price Target: $60.00
By: Paul J. Resnik, CFA
Green Plains Announces New CEO; Reiterate Strong Speculative Buy Rating
March 2, 2007. Green Plains Renewable Energy, Inc. (Nasdaq:GPRE) late yesterday announced that Barry A. Ellsworth has resigned his positions as President and Chief Executive Officer of the Company, and Mr. Wayne Hoovestol has been appointed as the Company's new CEO. Mr. Hoovestol will continue to act as a director of the Company and as the Company's Chief Operating Officer. Mr. Ellsworth will continue with the Company as a director and as Executive Vice President of Compliance and Development. As Green Plains moves closer to commencing operations, the shift to an individual with greater experience managing an operating company (despite Mr. Ellsworth's demonstrated broad knowledge of the ethanol business) appears to be a reasonable move for the Company. We reiterate our Strong Speculative Buy rating on Green Plains' shares.
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HydroGen Corp OTCBB: HYDG $4.30
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $8.25
By: Sally H. Wallick, CFA
Hydrogen Corp. Begins Trading On Nasdaq
March 6, 2007. Hydrogen Corp. (NASDAQ: HYDG): The shares of HydroGen Corp. will begin trading on the Nasdaq Capital Market March 6. Previously, the shares traded on the Over the Counter Bulletin Board. We consider this shift an important milestone for HydroGen as a public company. In our view, advantages of trading on Nasdaq include greater visibility and credibility with the investment community and more liquidity. We continue to rate the shares Speculative Buy.
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HydroGen Corp OTCBB: HYDG $4.30
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $8.25
By: Sally H. Wallick, CFA
HydroGen Corp.: Implications of TXU Corp. Concessions for Power-Generation Alternatives.
February 26, 2007. Hydrogen Corp. (OTCBB: HYDG): We believe that concessions to environmentalists as part of the proposed acquisition of TXU Corp. by two private equity firms, including the cancellation of plans for eight of 11 new coal-fired plants, could have some interesting long-term implications for alternative power generation technologies. The cancellations suggest that a number of factors, including community opposition, regulatory requirements, environmental activists' demands, and shareholder concerns, are boosting the cost, in time and money, of building traditional coal-fired power plants. As such costs become more onerous, we believe that the appeal of renewable energy alternatives may increase. Such alternatives include hydrogen-based generating technologies such as HydroGen Corp.'s multi-megawatt hydrogen-powered phosphoric acid fuel cell systems for power generation. HydroGen targets industrial markets for power stations of over two megawatts (MW). The Company's initial focus is on the market for clean distributed energy (decentralized, on-site generation and delivery of power at scales typically less than 30 MW), which is expected to be an increasingly important contributor to U.S. electricity generation long term. We reiterate our Speculative Buy rating on HydroGen's shares.
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Logility Inc. Nasdaq: LGTY $7.59
Research Note
Industry: Computers, Technology & Internet
Rating: Strong Speculative Buy (Reiterated)
Price Target: $12.50
By: David P. Soetebier, CFA
Logility, Inc. Reports Operating Earnings Up 22% on Record Revenues
March 8, 2007. Logility Inc. (NasdaqGM: LGTY), a leading supplier of collaborative solutions to optimize the supply chain, beat our earnings per share estimate by $0.05 per share. The positive variable was primarily gross profit margins. Revenues at $11.3 million were $300,000 above our estimate. Gross profits came in at $7.9 million versus our estimate of $7.2 million reflecting a gross profit margin of 69.7% versus our estimate of 66% and gross margins last quarter of 64.5%. Gross profit margins improved in all three-business areas versus three months ago, benefiting from the strong software sales and the higher revenue base in the Services and Maintenance businesses. Because of the stronger quarter versus our estimate we have raised our fiscal 2007 (April) earnings per share estimate to $0.40 (fully diluted). Our Rating remains Strong Speculative Buy with a 12-month target of $12.50
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Maine & Maritimes Corporation AMEX: MAM $18.13
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $20.00
By: Sally H. Wallick, CFA
Maine & Maritimes Corporation: Feasibility of New Transmission Line Studied; 10-K Could Provide Color On Future Direction.
March 10, 2007. Maine & Maritimes Corporation (AMEX: MAM) is taking part in a study of the feasibility of a new power transmission line that would directly connect the Aroostook County power grid and the rest of the state of Maine. We believe that direct connection to the rest of Maine could be very beneficial to Maine Public Service (MPS), Maine & Maritimes' regulated electric transmission and distribution utility, because of the potential for greater utilization of its existing infrastructure (and, therefore, greater revenue potential). Also, this year, Maine is expected to consider whether to allow electricity transmission and distribution companies such as MPS to own power generating assets as well, which we believe could open additional growth and value enhancement opportunities to MPS. We expect Maine & Maritimes to file its 2006 10-K around March 15. Following the resignation of Maine & Maritimes' Chief Executive Officer in August 2006, the Board put the Company's aggressive growth strategy of recent years on hold, while it reviewed strategic options and evaluated the Company's product and service mix, corporate structure, diversification strategy and operational objectives. We believe that the 10-K may provide some information on the results of the Board's review and the future direction of the Company and, therefore, could be an important document for investors evaluating its strategies and prospects. We reiterate our Speculative Buy rating on Maine & Maritimes common stock.
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Medivation, Inc. AMEX: MDV $18.30
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $22.00
By: Wayne M. Lottinville, CFA
Medivation To Jump From The Amex To The Nasdaq; Reiterate Strong Speculative Buy
March 9, 2007. Medivation, Inc. (Amex: MDV), will move from the American Stock Exchange, or Amex, where it currently trades under the symbol MDV, to the Nasdaq Global Market on March 20, where its stock will bear the ticker symbol MDVN.
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Medivation, Inc. AMEX: MDV $18.30
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $22.00
By: Wayne M. Lottinville, CFA
Medivation to Present Clinical Progress at Healthcare Conference; Reiterate Strong Speculative Buy
March 5, 2007. Medivation, Inc. (Amex: MDV), will provide another overview of the Company and its clinical development programs in Alzheimer's and Huntington's diseases, and prostate cancer at an upcoming healthcare conference in Boston. Medivation has reported compelling Phase 2 clinical results for the treatment of Alzheimer's disease, which met all five efficacy endpoints and showed strong statistical significance compared with placebo.
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Medivation, Inc. AMEX: MDV $18.30
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $22.00
By: Wayne M. Lottinville, CFA
Medivation's Operating Costs Rise To Fund Clinical Advances; Reiterate Strong Speculative Buy
February 27, 2007. Medivation, Inc. (Amex: MDV), reported that operating expenses rose to $16,1 million in 2006, nearly double operating costs of $8.4 million in the prior year. Management attributed the increase to the Company's accelerated and expanded preclinical and clinical study expenses and, to a lesser extent, to increased stock-based compensation, a non-cash expense. As a result, Medivation posted a 2006 loss of $15.4 million, or $0.63 per share, compared with a loss of $9.8 million, or $0.70 per share, in 2005.
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Medivation, Inc. AMEX: MDV $18.30
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $22.00
By: Wayne M. Lottinville, CFA
Medivation To Launch Phase 1-2a Prostate Cancer Clinical Trial; Reiterate Strong Speculative Buy
February 26, 2007. Medivation, Inc. (Amex: MDV), has announced preclinical results that suggest that the Company's lead development candidate for hormone-refractory prostate cancer is effective in a model of the disease. Results of the research showed that treatment was associated with a significant dose-dependent reduction in tumor volume in human hormone-refractory prostate tumors grown in SCID mice. Medivation is now planning to initiate a U.S. Phase 1-2a trial in patients with hormone-refractory prostate cancer in the first half of this year.
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MediciNova, Inc. NasdaqGM: MNOV $11.70
Research Report
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $20.00
By: Wayne M. Lottinville, CFA
MediciNova Strong Speculative Buy Rating In Update; Significant Potential Improvements Over Current Standards Of Care For A Variety Of Diseases And Conditions
March 7, 2007. MediciNova (Nasdaq: MNOV) is developing eight unique, differentiated small molecules for 10 different therapeutic indications. These therapeutics offer significant potential improvements over current standards of care for a variety of diseases and conditions. MediciNova's development programs include therapeutic drug candidates for treatment of asthma, multiple sclerosis, cancer, and urinary incontinence. Most of these programs are in advanced clinical testing. With the failure of MN-001 to meet its main endpoint target in its Phase 2/3 trial for interstitial cystitis, we temporarily removed it from the tally. The new total fifth-year sales potential is $5.8 billion. This does not include the sales potential of the Company's recent preclinical acquisitions. We project the Company's estimated market potential for each of the remaining seven programs, then discount these projections by a statistical likelihood of clinical and marketing success or failure (from Phase I, for example, we estimate that a drug candidate has, on average, only a 21% chance of achieving FDA approval and subsequent success in the marketplace). We then reduce that by an additional 35% discount rate to account for the general inherent risk of biotechnology development programs. MediciNova's recent market capitalization of $140 million was well below our calculated present value.
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Memry Corporation AMEX: MRY $2.00
Research Report
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Neutral (Reiterated)
By: Sally H. Wallick, CFA
Memry Neutral Rating Maintained In Update; Long-Term Prospects Are Bright
February 27, 2007. Memry Corporation (AMEX: MRY) markets products using the Company's proprietary shape memory alloy (SMA) and polymer-extrusion technologies. Memry's principal SMA is a nickel-titanium alloy called nitinol. Approximately 95% of the Company's sales are to the medical device industry. Memry reported a 1.1% decline in second quarter fiscal 2007 revenue to $12.5 million and a net loss of $280,000, or $0.01 per share (diluted), compared with a net loss of $236,000, or $0.01 per share, in the second quarter of fiscal 2006. Adjusted EBITDA declined 48% to $1.1 million, or 8.6% of revenue, from $2.0 million, or 16.2% of revenue a year earlier. Second quarter results fell short of our break-even estimate mainly because of lower-than-projected revenue and gross margin. In discussing the outlook for the balance of fiscal 2007, Memry's management cautioned that it expects weakness in the Company's nitinol products segment's revenue and margins to continue for the rest of the fiscal year. We reduced our full-year fiscal 2007 diluted earnings estimate for Memry from $0.08 per share to $0.01 per share, versus $0.11 per share in fiscal 2006 excluding one-time separation expense of $0.02 per share. Our fiscal 2008 diluted earnings estimate is $0.05 per share. We believe that Memry's long-term prospects are bright. Nevertheless, in light of the uninspiring near-term earnings outlook, we are maintaining our Neutral rating on the Company's shares.
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Neurobiological Technologies, Inc. NASDAQ: NTII $2.65
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $8.00
By: Denise T. Resnik, M.S.
Neurobiological Technologies Reports Second Quarter Results: Reiterate Strong Speculative Buy
March 2, 2007. Neurobiological Technologies (Nasdaq:NTII) announced on February 8, 2007 financial results for the quarter ended December 31, 2006 in line with their forecasts. The Company continues to invest strongly in its Viprinex(TM) clinical program for acute ischemic stroke which is currently in two Phase III trials. In addition, the Company is involved with ongoing Phase III trials of XERECEPT® for the treatment of swelling associated with brain tumors in collaboration with Celtic Pharma.
We reiterate our Strong Speculative Buy rating.
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Neurobiological Technologies, Inc. NASDAQ: NTII $2.65
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $8.00
By: Denise T. Resnik, M.S.
Neurobiological Technologies Expands Board with Addition of New Director: Reiterate Strong Speculative Buy
February 26, 2007. Neurobiological Technologies Inc. (NasdaqCM: NTII) announced last week the expansion of the number of directors on its Board of Directors to nine and elected William A. Fletcher to the Board. Mr. Fletcher was President and CEO of Teva's North American activities from 1985 until the end of 2004, when he became Chairman - North America. Teva, one of Israel's largest industrial companies, holds the leading position in the global generic drug industry and commands a significant presence in the specialty neurology market. We interpret Mr. Fletcher's joining the Board of Directors as another sign of confidence in the Company's future, and we reiterate our Strong Speculative Buy rating.
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On Track Innovations Ltd. Nasdaq: OTIV $6.69
Research Note
Industry: Computers, Technology & Internet
Rating: Strong Buy (Reiterated)
Price Target: $12.00
By: Rafael K. Kapelinski
On-Track Innovations: Publishes 4Q 2006 Results, First Reaction and Reiterate Strong Buy and USD$12 Price Target
March 5, 2007. We reiterate our Strong Buy rating on On-Track Innovations (Nasdaq; OTIV) following today's publication of 4Q 2006 results. Given the strong set of numbers, we expect to see some strength in the share price in the coming days. Our price target remains USD 12.
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PacificHealth Laboratories Inc. OTCBB: PHLI $1.88
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $2.00
By: Jonathan H. Ziegler, CFA
PachificHealth Labs Announces Expansion of Its Board and Equity Injection.
February 26, 2007. PacificHealth Laboratories, Inc. (OTCBB: PHLI) announced today the expansion of its board of directors from four members to six with the addition of two skilled professionals, plus a $450,000 equity injection.
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Pointer Telocation Nasdaq: PNTR $10.61
Research Note
Industry: Business & Support Services
Rating: Strong Buy (Reiterated)
Price Target: $18.00
By: Rafael K. Kapelinski
Pointer Telocation: 4Q 2006 Results Preview
March 5, 2007. Pointer Telocation Ltd. (NasdaqCM: PNTR) will report 4Q 2006 results tomorrow. We expect revenues of USD $11.0 million and fully-diluted EPS of USD $0.38. We view the current valuation as attractive and reiterate our Strong Buy rating.
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Patriot Scientific Corp. OTCBB: PTSC $0.65
Research Note
Industry: Electronics & Engineering
Rating: Strong Speculative Buy (Reiterated/Update)
Price Target: $1.50
By: Richard W. West, CFA
Patriot Scientific Announces License for Leading Worldwide Flash Storage Card Company;Strong Speculative Buy Rating Reiterated
March 10, 2007. Patriot Scientific Corporation (OTCBB:PTSC) announced that SanDisk (NasdaqGM:SNDK) purchased a license that gives it the right to use technologies protected by the Moore Microprocessor Patent Portfolio (MMP Portfolio). SanDisk is a world leader in flash data storage card products, using its patented, high- density flash memory and controller technology. We cannot stress enough, with the continued announcements of additional licensees, that we strongly believe that investors should seriously review Patriot Scientifics fundamental revenue and earnings potential. We reiterate our Strong Speculative Buy rating and maintain our 12-month price target of $1.50.
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Royal Standard Minerals, Inc. CDNX: RSM $0.45
Research Report
Industry: Metals & Mining
Rating: Strong Speculative Buy (Initial)
Price Target: $3.00
By: Mike Niehuser
Royal Standard Strong Speculative Buy Rating In Initiating Coverage
February 26, 2007. Royal Standard Minerals (OTCBB: RYSMF) has several advanced-stage projects in gold- producing districts in Nevada. Management as been active in Nevada for over 10 years and has put together one of the largest land positions of any junior mining company in the state. Royal Standard's most advanced project, the Goldwedge Project, is near the Kinross-Barrick Round Mountain Mine and is scheduled to move into production in the next several months. The Company also has several projects in Nevada's Carlin Trend that are in various stages of permitting and exploration. We are initiating coverage of Royal Standard with a 12-month price target of $3.00 per share. This value incorporates our estimations of the middle range of estimates for the Company's projects. As companies with projects in various stages of development carry unique risks, and many of our assumptions are speculative, we feel our target is reasonable. We are certainly of the opinion that the market should respond favorably to the Goldwedge project moving into production. We would expect that its progress may overshadow permitting and exploration at the Railroad-Pion Project, but in the next 12 months, the Company and its projects will enjoy a higher level of exposure and valuation. We are initiating coverage with a Strong Speculative Buy recommendation. With successful execution of the Company's opportunities, our target might prove conservative.
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Raser Technologies Inc. NYSE: RZ $4.97
Research Note
Industry: Industrial & Manufacturing
Rating: Not Rated (Reiterated)
Price Target: N/A
By: Gerald A. Rothstein, CFA
Raser Technologies Makes Two Announcements
March 8, 2007. Raser Technologies Inc. (NYSE: RZ) recently announced that two manufacturers had agreed to test and "mass production qualify" its Symetron technology. It also announced that AMP Resources had notified Raser of its intent to pay its $6 million note to Raser and that Raser had agreed to a 21 day interest bearing extension of the note.
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SES Solar Inc. OTCBB: SESI $0.87
Research Note
Industry: Industrial & Manufacturing
Rating: Speculative Buy (Reiterated)
Price Target: $2.10
By: Sally H. Wallick, CFA
SES Solar Inc. Announces Equipment Order; Speculative Buy Rating Reiterated.
February 26, 2007. SES Solar Inc. (OTCBB: SESI) is moving forward with plans to construct a new manufacturing plant near Geneva, Switzerland. The Company has achieved important milestones related to this project including: (1) finalizing financing and (2) placing orders for new production equipment for the plant. SES's new highly automated facility, which will produce solar modules and solar tiles, will incorporate innovative new assembly technology that should result in higher quality products, improved productivity and lower costs. During much of 2007, we expect management's focus to be on planning and building the new plant and preparing to bring it on stream. We believe that SES is well positioned to benefit from soaring demand for solar energy in Europe and worldwide once it consolidates production in the new plant. We rate SES Solar shares Speculative Buy. For more detailed information on the Company, please see the Dutton Associates report dated October 16, 2006.
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Shumate Industries, Inc. OTCBB: SHMT $1.69
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated)
Price Target: $3.00
By: Richard R. Wolfe, CFA
Shumate Industries: Preliminary Results In-Line after Deferred Revenue Adjustment
March 6, 2007. Shumate Industries, Inc. (OTCBB: SHMT) released preliminary fourth quarter and full-year 2006 results in summary form, indicating 4th-quarter revenues of $2.1 million, in line with our estimates when adjusted for management's decision to defer $400,000 of progress payments related to its prototype downhole isolation valve. The Company expects to release its annual report on Form 10-K on or about March 15, at which time an earnings conference call has been slated by management.
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Apex Silver Mines Ltd AMEX: SIL $12.95
Research Note
Industry: Metals & Mining
Rating: Neutral (Reiterated)
By: Mike Niehuser
Apex Silver Derivatives Trigger Restatement
March 3, 2007. Apex Silver Mines Limited (AMEX: SIL) has requested a 15 day extension to file its 2006 year-end results. The company has recalculated derivatives resulting in restating income statements as far back as September 30, 2005. The company's primary asset, the San Cristobal mine, is 90% complete and on schedule for the first sale of concentrates in the third quarter of 2007.
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Touchstone Applied Science Associates, Inc. OTCBB: TASA $5.95
Research Note
Industry: Publishing & Media
Rating: Buy (Reiterated)
Price Target: $8.00
By: Sally H. Wallick, CFA
Touchstone Applied Science Associates, Inc.: Fiscal Fourth Quarter Earnings Preview.
March 7, 2007. Touchstone Applied Science Associates, Inc. (OTCBB: TASA) plans to report fiscal 2006 fourth quarter and full year earnings on March 12. The fourth quarter will include results for Questar Educational Systems, Inc. (which Touchstone acquired May 31, 2006) for the entire period. Questar provides test delivery, scoring and score analysis capabilities to state testing programs and develops test materials. In our opinion, this acquisition was by far the most important event of 2006. We believe that the combination of the two companies is mutually beneficial since Questar's operational strengths complement Touchstone's development capabilities. Another noteworthy event during 2006 was the appointment of a Chief Financial Officer (CFO), which has freed Andy Simon, the Company's President and Chief Executive Officer (and previously CFO), to devote more of his time to strategic issues. In light of the major acquisition completed in fiscal 2006, which has had a significant effect on the Company's operations and structure, we expect Touchstone to book nonoperating items in the fourth quarter as a result of a year-end asset review and a desire to position operations conservatively going forward. Since we have no way of estimating these items at present, we have maintained our estimates. However, we expect them to reduce the net income and, therefore, caution that we expect actual bottom-line results to vary significantly from our numbers. We reiterate our Buy rating on Touchstone's shares.
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21st Century Holding Co Nasdaq: TCHC $18.07
Research Note
Industry: Banks, Financial Services & Insurance
Rating: Strong Buy (Reiterated)
Price Target: $35.00
By: Richard W. West, CFA
21st Century Reports Fourth Quarter and FY2006 Results; Our Comment - Negative Numbers Belie Positive Results; Strong Buy Rating Reiterated
March 10, 2007. 21st Century Holding Co. (NasdaqGM:TCHC) reported its fourth quarter ended 12/31/06; total revenue decreased 9.5% to $22.5 million from $24.5 million for the fourth quarter ended 12/31/05. Those are the raw numbers, however, management clarified the reasons behind the loss for the FY2006 fourth quarter in a detailed conference call on March 8, 2008. While it is never positive to see such losses as reported in 21st Century's fourth quarter, we believe that investors should understand the reasons why and focus on the positive factors for 21st Century. We reiterate our Strong Buy recommendation and our 12-month price target of $35.00 per share.
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21st Century Holding Co Nasdaq: TCHC $18.07
Research Note
Industry: Banks, Financial Services & Insurance
Rating: Strong Buy (Reiterated)
Price Target: $35.00
By: Richard W. West, CFA
21st Century Holding Company Announces Dividend;Maintaining $0.18 Quarterly Rate:Reiterate Strong Buy Rating
March 6, 2007. 21st Century's Holding Co. (NasdaqGm:TCHC) board of directors declared a regular quarterly dividend of $0.18 per common share for the second quarter of 2007. The dividend was increased 50% in December 2006, from $0.12 per share to $0.18 per share for the first quarter of FY2007. We reiterate our Strong Buy Rating and $35.00 price target.
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Top Image Systems Ltd Nasdaq: TISA $3.83
Research Note
Industry: Software
Rating: Buy (Reiterated)
Price Target: $5.00
By: Rafael K. Kapelinski
Top Image Systems: Tracking Our Estimates, Reiterate Buy
March 8, 2007. We believe that the Top Image Systems (Nasdaq: TISA) is tracking our 1Q 2007E revenue and EPS estimates of USD 5.6 million (+2% sequentially and +24% year-on-year). Europe remains incrementally slower than at the same time last year, which has been reflected in the quarterly comments by the Company's competitors such as Dicom, OpenText and ReadSoft. At the same time, the Japanese business is doing well, as well as Latin America. We believe that an imminent acquisition should emerge as an important share price driver in the near term
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Top Image Systems Ltd Nasdaq: TISA $3.83
Research Report
Industry: Software
Rating: Buy (Reiterated)
Price Target: $5.00
By: Rafael K. Kapelinski
Top Image Systems Buy Rating Maintained In Update Coverage; A Solid Set Of 4Q 2006 Results
February 27, 2007. We reiterate our Buy rating and a price target of US $5.00 on Top Image Systems (Nasdaq: TISA) following a solid set of 4Q 2006 results. We continue to view the valuation as being attractive, especially given the Company's accelerating momentum. The 4Q 2006 results demonstrated that the Company is clearly on track to meet our 2007E revenue estimate of US $23.2 million. On previous occasions, however, management has expressed the goal of reaching 2007E revenues in excess of US $30 million. As a result, in our view, an acquisition is in the cards, especially given the recent capital increase of US $14 million. The question is what the Company's strategy is going to be. There are two options, in our view: the Company can either extend the product portfolio horizontally or try to remain a pure-play content capture player with an extended customer base. In our view, the latter is a more attractive alternative, as we believe that the Company already is one of the market leaders in Europe but needs to improve distribution.
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Telkonet Inc AMEX: TKO $2.86
Research Note
Industry: Telecommunications
Rating: Strong Speculative Buy (Reiterated)
Price Target: $5.00
By: Richard W. West, CFA
Telkonet, Inc.'s iWire System Installed in Irish Hotel; Strong Speculative Buy Rating Reiterated
February 26, 2007. Telkonet, Inc.'s (AMEX:TKO) iWire System was installed by Power2 in the Listowel Arms, a heritage hotel in South West Ireland (www.listowelarms.com), enabling high-speed Internet access anywhere in this 19th century building. Telkonet's progress in the hospitality market is but one of the markets they are successfully addressing. We reiterate our rating of Strong Speculative Buy and the recently set 12-month price target of $5.00 per share
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Telanetix, Inc. OTCBB: TNXI $3.90
Research Note
Industry: Electronics & Engineering
Rating: Strong Speculative Buy (Reiterated)
Price Target: $5.00
By: Joe Noel
Telenetix Announces High-end Videoconferencing Products Interoperable With Most Desktop Videoconferencing Systems; Reiterate Strong Speculative Buy
March 6, 2007. Telenetix, Inc. (OTCBB: TNXI), on March 6th, announced its high-end videoconferencing products will support interoperability with most desktop videoconferencing systems. We believe this is an important announcement that should help the company drive its revenues. We reiterate our Strong Speculative Buy rating.
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Wits Basin Precious Minerals Inc. OTCBB: WITM $1.02
Research Note
Industry: Metals & Mining
Rating: Speculative Buy (Reiterated)
Price Target: $1.50
By: Mike Niehuser
Wits Basin May Experience Increased Levels of Volatility
February 28, 2007. Wits Basin Precious Metals Inc. (OTCBB: WITM) may experience increased levels of volatility following accounts in the press of a weakening US economy. A slower economy in the US and abroad may impact precious and base metals prices. In addition, the company is in process of merging with a Chinese company which includes exchanging shares. Recent volatility in Chinese markets may place pressure on the merger. We reiterate our Speculative Buy rating.
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© Copyright 2006 by Dutton Associates
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