Arkados Group OTCBB: AKDS $0.32
Research Note
Industry: Electronics & Engineering
Rating: Speculative Buy (Reiterated)
Price Target: $2.00
By: Robert S. Stoklosa
Arkados Completes ASTER Acquisiton; Gains Important Intellectual Property; Reiterate Speculative Buy
March 26, 2007. Arkados Group, Inc. (Nasdaq: AKDS) completes the ASTER Wireless acquisition. The intellectual property is a good fit, and will broaden the reach of company to other standards and markets. We reiterate our Speculative Buy rating.
Download Research Note
Amarillo Biosciences Inc. OTCBB: AMAR $0.86
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $1.90
By: Wayne M. Lottinville, CFA
Amarillo Biosciences Posts Annual Results; Reiterate Speculative Buy
March 29, 2007. Amarillo Biosciences (OTCBB: AMAR), lost $2.8 million, or $0.12 per share, in 2006 on operating expenses of $2.8 million. For the final quarter of 2006, the Company lost $0.4 million, or $0.02 per share, on operating expenses of $0.4 million. Amarillo Biosciences ended 2006 with $0.2 million in cash equivalents and a working capital deficit of $2.5 million.
Download Research Note
Amarillo Biosciences Inc. OTCBB: AMAR $0.86
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $1.90
By: Wayne M. Lottinville, CFA
Amarillo Biosciences Adds Sites In Two Clinical Studies; Reiterate Speculative Buy
March 22, 2007. Amarillo Biosciences, Inc. (OTCBB: AMAR), recently added clinical trial sites to advance its progress for the treatment of two diseases with low-dose oral interferon-alpha. In Turkey, where the therapy is being investigated in a Phase 2 clinical study for the treatment of Behcet's disease, two new clinical sites were approved by the Turkish Ministry of Health to enroll patients. The Company also added three more clinical sites to the six currently approved in the U.S. to enroll patients in a study of HIV-positive patients suffering from oral warts. The Company's goal is to complete both studies in 2007.
Download Research Note
Amarillo Biosciences Inc. OTCBB: AMAR $0.86
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $1.90
By: Wayne M. Lottinville, CFA
Amarillo Biosciences To Announce Annual Financial Results; Reiterate Speculative Buy
March 17, 2007. Amarillo Biosciences (OTCBB: AMAR) should announce financial results for 2006 by the end of March. In our last update report on the Company on December 1, we projected Amarillo Biosciences would lose $3.1 million, or $0.14 per share, in 2006 on operating expenses of $3.0 million. The Company is also expected to provide updates on the progress of two Phase 2 clinical trials using low-dose interferon-alpha, one for treatment of Behcet's disease and a second for treating oral warts in HIV-positive patients.
Download Research Note
Ampex Corporation Nasdaq: AMPX $19.31
Research Note
Industry: Electronics & Engineering
Rating: Strong Buy (Reiterated)
Price Target: $35.00
By: Richard W. West, CFA
Ampex Reports 4th Quarter and Year-End 2006 Results; Eastman Kodak Summary Judgement Appealed; Strong Buy Rating Reiterated
March 22, 2007. Ampex Corporation's (NasdaqCM:AMPX) fourth-quarter and year-end results were in line with our revenue and revenue margin estimates; however, we believe that Ampex's investment value lies not in its current earnings, but in royalty income that may be created from their portfolio of patents. In our soon to be published Update Research Report, we will revisit our Worst Case/Best Case Estimates for 2007. We reiterate our Strong Buy Rating and our $35.00 price target.
Download Research Note
Ampex Corporation Nasdaq: AMPX $19.31
Research Note
Industry: Electronics & Engineering
Rating: Strong Buy (Reiterated)
Price Target: $35.00
By: Richard W. West, CFA
SEC Form 13D Amendment Filed on Behalf of Ampex Corporation;ValueVest Increases Ownership Position; Strong Buy Rating Reiterated
March 21, 2007. Ampex Corporation (Nasdaq:AMPX); ValueVest Management Company II, LLC, ValueVest MasterFund, et al (ValueVest), filed a fourth SEC Form 13D Amendment on behalf of Ampex Corporation, indicating an increase of ownership position in Ampex. We reiterate our Strong Buy Rating and price target of $35.00 per share.
Download Research Note
Ampex Corporation Nasdaq: AMPX $19.31
Research Note
Industry: Electronics & Engineering
Rating: Strong Buy (Reiterated)
Price Target: $35.00
By: Richard W. West, CFA
Ampex Corporation Announces Release Date for FY2006 Results and Conference Call Info;We Preview the Numbers;Strong Buy Rating Reiterated
March 15, 2007. Ampex Corporation (NasdaqCM: AMPX) announced on March 15, 2007, their year-end FY2006 results will be released after the markets close on Wednesday March 21, 2007. Our estimate for the fourth quarter is a loss of $(0.18) per share on revenue of $8.9 million. For the year, we are estimating total revenue of $38.0 million and a loss per diluted share of $(0.96). We reiterate our Strong Buy Rating and affirm our 12-month price target of $35.00 per share.
Download Research Note
Ampex Corporation Nasdaq: AMPX $19.31
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
Download Research Note
American Software Inc Nasdaq: AMSWA $8.55
Research Note
Industry: Computers, Technology & Internet
Rating: Strong Buy (Reiterated)
Price Target: $9.00
By: David P. Soetebier, CFA
American Software Reports 40% Increase In Operating Earnings
March 15, 2007. American Software Inc.'s (NasdaqGS: AMSWA) operating income, at $2.96 million for its January 2007 quarter, was sharply above the $2.46 million we had been estimating. Key variations versus our estimate included much stronger performance from the New Generation Computing Group (NGC) and the AMSWA Legacy ERP software business, a greater contribution from Logility (88% owned) and higher Other income. NGC along with the ERP business reported software sales of $1.8 million compared with our estimate of $900,000 (Note: gross margins can be 90% in this business). These two businesses have been relatively flat in recent periods so this improvement was a nice change. Net income at Logility (NasdaqGM: LGTY $7.58) exceeded our estimate by about $600,000. Other income at AMSWA, at $1.4 million, was also sharply above our estimate of $508,000. The higher software sales and Other income contributed to earnings per share of $0.10 versus our estimate of $0.07. Year ago earnings were $0.08 per share. Based on the better results we have raised our estimate for the April 2007 fiscal year to $0.29 from $0.26. Our Rating remains Strong Buy with a 12-month price target of $9.00.
Download Research Note
Applied NeuroSolutions Inc OTCBB: APNS $0.30
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $1.00
By: Denise T. Resnik, M.S.
Estimates of Applied NeuroSolutions Targeted Market Grow; Strong Speculative Buy Reiterated
March 20, 2007. The Alzheimer's Association released a new estimate of the number of people in the United States living with Alzheimer's disease in its annual Public Policy Forum in Washington, DC today. This report, entitled "2007 Alzheimer's Disease Facts and Figures" reported that there are currently more than 5 million people in the United States living with Alzheimer's disease, which exceeds its previous nationwide estimate of 4.5 million by 10%. This announcement continues to highlight the toll of Alzheimer's Disease in the United States and the size of the diagnostics and therapeutics market for this disease. We continue to believe that Applied NeuroSolutions (OTCBB:APNS) possesses unique intellectual property in the area of Alzheimer's disease diagnostics and therapeutics, and we reiterate our Strong Speculative Buy rating.
Download Research Note
Biophan Technologies, Inc. OTCBB: BIPH $0.36
Research Report
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Neutral (Reiterated)
By: Richard W. West, CFA
Biophan Technologies Rating Maintained At Neutral; MRI Technologies Should Bring Revenues and Earnings
March 26, 2007. Since our September 26, 2006, report, several events have affected Biophan Technologies, Inc.'s (OTCBB: BIPH) balance sheet and its progress toward commercialization of its technologies by licensees. Biophan commented in its SEC Form 10Q for November 30, 2006, that it believes the Company has adequate working capital resources for the upcoming four to six months of operations. However, the Company's need for capital prompted us to reduce our rating of Biophan on February 21, 2007, to a Speculative Buy with a new price target of $2.00 per share. We then lowered our rating to Neutral on February 28, 2007, in response to Biophan's filing an SEC Form 8-K on February 27, 2007, detailing the Forbearance Agreement dated February 16, 2007, with the holders (the Note Holders) of its Senior Subordinated Convertible Notes, due October 12, 2009. We believe the closing of a Forbearance Agreement is positive for Biophan in this situation and indicates that the Note Holders are willing to discuss new terms for the Notes. We further believe that Biophan's MRI technologies (both for safety and image compatibility) and the MYOTECH MYO-VAD technology are unique to the industries addressed and, given time, will provide Biophan revenue and earnings. However, during this period of limbo for Biophan's finances, we reiterate our Neutral rating and will review the rating upon resolution of this financing.
Download Research Report
Biophan Technologies, Inc. OTCBB: BIPH $0.36
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Neutral (Reiterated)
By: Richard W. West, CFA
Biophan Appoints Bonnie Labosky to its Board of Directors;Neutral Rating Reiterated
March 12, 2007. Biophan Technologies, Inc. (OTCBB:BIPH), a developer of biomedical technology, appointed Bonnie Labosky to its Board of Directors. Ms. Labosky was a former Medtronic Vice President and ran Medtronic's Heart Failure division, which today is a $1.6 billion product category for the medical device company. We believe that Biophans MRI technologies and the MYOTECH MYO-VAD technology will, given time, provide Biophan revenue and earnings. However, during this period of limbo for Biophans finances, we reiterate our Neutral Rating.
Download Research Note
Baldwin Technology Company Inc AMEX: BLD $5.02
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.
Download Research Note
CHINA-BIOTICS, INC. OTCBB: CHBT $9.50
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.
Download Research Report
Ciphergen Biosystems Inc. Nasdaq: CIPH $1.33
Research Report
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Initial)
Price Target: $2.00
By: Stephen L. Handley
Ciphergen Biosystems Initial Rating At Speculative Buy; Proprietary Differentiated Diagnostic Tests Based On Combinations Of Protein Biomarkers
March 28, 2007. Ciphergen Biosystems (Nasdaq: CIPH) has recently narrowed the scope of its business to focus exclusively on developing proprietary diagnostic tests, and we believe that this business offers an attractive opportunity for investors. These differentiated tests are based on combinations of protein biomarkers, and as such are expected to be capable not only of more clearly identifying a particular disease, but also stratifying patients according to the risk of developing the disease and responding to specific therapy. In brief, Ciphergen's goal is to identify proteins that may be useful biomarker-based diagnostic tests with sufficient sensitivity and specificity to aid the physician considering treatment options for patients with complex diseases. The Company has filed about 50 patents for its novel biomarker discovery technology, most of which have been accepted for review, and on January 25th announced the issuance of a European patent covering a method for aiding prostate cancer diagnosis. Management has chosen to focus primarily in the areas on oncology, cardiovascular disease, and women's health in general, and expects to file applications with the FDA during 2H 2007 covering a test for ovarian cancer and peripheral artery disease (PAD). The Quest and Bio-Rad alliances have been transforming events for Ciphergen, and place the Company in a position to more fully capitalize on its decade long investment in protein-based technology as well as on current and prospective programs conducted with leading collaborators.
Download Research Report
Clearant, Inc. OTCBB: CLRI $0.14
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Not Rated (Change)
Price Target: N/A
By: Sally H. Wallick, CFA
Clearant, Inc. to Issue 89 million Shares, Raise $2.2 million.
April 5, 2007. Clearant (OTCBB: CLRI): On April 3, 2007, Clearant reached agreements to raise $2.2 million by issuing 89 million shares of common stock at a price of $0.025 per share in private placements. Purchasers include the Company's CEO, Jon Garfield. This issuance will more than triple the number of shares outstanding. As discussed in previous comments, we considered it imperative that Clearant raise additional capital since it faced significant financial and operational risk if it wasn't able to do so. Therefore, we view the availability of additional funds as good news for the Company. On the other hand, the latest financial figures we have for Clearant are more than six months old. Also, although the Company has sharply reduced costs, while continuing to market its products and services, we do not know its cash burn rate at present or its immediate cash requirements. Therefore, it is difficult for us to know to what extent this capital infusion alleviates its financial pressures or for how long. As a result, despite our favorable view of the commercial potential for the Company's sterilized implant products, our rating on the shares remains suspended.
Download Research Note
Clearant, Inc. OTCBB: CLRI $0.14
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Not Rated (Change)
Price Target: N/A
By: Sally H. Wallick, CFA
Clearant, Inc.: 10-K filing delayed. Rating suspended.
April 2, 2007. Clearant, Inc. (OTCBB: CLRI): The filing of Clearant's 2006 10-K has been delayed due to the Company's limited staff and financial resources. As discussed in previous comments, we believe that it is imperative that Clearant raise additional capital for working capital purposes and to fund its growth strategies and that it faces significant financial and operational risk if unable to do so. In light of the filing delay, we are suspending our rating on the Company's shares pending release of updated financial information.
Download Research Note
Clearant, Inc. OTCBB: CLRI $0.14
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Not Rated (Change)
Price Target: N/A
By: Sally H. Wallick, CFA
Clearant, Inc.: 10-K Filing Could Be Delayed.
March 16, 2007. Clearant, Inc. (OTCBB: CLRI): Although Clearant's 10-K is due to be filed by the end of March, we believe that the filing could be delayed while the Company continues efforts to raise much needed capital. As discussed in previous comments, we believe that it is imperative that Clearant raise additional capital for working capital purposes and to fund its growth strategies and that it faces significant financial and operational risk if unable to do so. Our rating on these high-risk shares remains Neutral.
Download Research Note
Chilco River Holdings, Incorporated OTCBB: CRVH $0.56
Research Note
Industry: Leisure & Entertainment
Rating: Neutral (Reiterated)
By: Gerald F. LaKarnafeaux, CFA
Chilco River Announced Agreement In Principal To Secure Neccessary Funding For Completion of Bruce Hotel and Casino .
March 17, 2007. Chilco River Holdings (OTC BB: CRVH.OB) annouced it has entered into an agreement in principal which provides for an equity financing of up to $10.0 million.
Download Research Note
DXP Enterprises Inc Nasdaq: DXPE $42.24
Research Report
Industry: Industrial & Manufacturing
Rating: Strong Buy (Reiterated/Update)
Price Target: $51.00
By: Paul J. Resnik, CFA
DXP Enterprises Strong Buy Rating Maintained; Believe Investors Will Come To Increasingly Understand The Potential For Substantial Growth
March 26, 2007. DXP Enterprises Inc's (Nasdaq: DXPE) share price rose sharply after the Company reported 2006 full year results on March 15, 2007. Although the results, discussed later in the report, were in line with our expectations, the report, which was followed by the Company's first ever conference call, provided needed confirmation that DXP's strong growth trends have been unaffected by slowing economic trends. We believe investors will come to increasingly understand the potential for substantial growth as management seeks to fulfill its goal of making DXP a $1 billion sales company with a national footprint. In the meantime, a large short position (622,000 shares as of February 12) and growing institutional ownership (26.6% of shares outstanding) auger well for the stock's performance. We continue to believe that, longer term, DXP has the potential for rapid growth based on both internal gains and accretive acquisitions. Our current $51 price target for the stock, a modest $1 upward adjustment from the previous figure, is based on a 17 multiple of estimated forward 12 months' (through the first quarter of 2008) earnings per share of $3.00 and supports the maintenance of our Strong Buy rating.
Download Research Report
DXP Enterprises Inc Nasdaq: DXPE $42.24
Research Note
Industry: Industrial & Manufacturing
Rating: Strong Buy (Reiterated/Update)
Price Target: $51.00
By: Paul J. Resnik, CFA
DXP Enterprises Reports Strong Fourth Quarter Results in Line With Dutton Associates Estimate; Stock Advances Over 10% in Late Trading; Reiterate $50 Price Target and Strong Buy Recommendation
March 16, 2007. DXP Enterprises' (Nasdaq: DXPE) fourth quarter 2006 sales increased 45.0% to $79.4 million from $54.7 million in the year-earlier period. We consider this figure in line with our aggressive estimate of $80.2 million. Net income rose 68.1% to $3.49 million, with diluted earnings per share of $0.61 compared to net income of $2.08 million and diluted earnings per share of $0.36 for the fourth quarter of 2005. Other income of $413,000, which reflected the forced sale of a building to the State of Texas for road construction purposes, added $0.04 per share to earnings. Eliminating this sum, earnings per share came in at $0.57, matching our estimate. We are fine-tuning our 2007 sales estimate down from $347.7 million to $346.5 million but maintaining our 2007 EPS estimate at $2.73. Looking out to 2008, we are initiating preliminary estimates of sales of $416 million and EPS of $3.60. Given current general market valuation trends, we are reducing our targeted price/earnings multiple for DXP shares from 18 to 17. Based on projected EPS over the 12 months of $2.97, we are maintaining our 12-month price target of $50 and our rating of Strong Buy for these shares.
Download Research Note
DXP Enterprises Inc Nasdaq: DXPE $42.24
Research Note
Industry: Industrial & Manufacturing
Rating: Strong Buy (Reiterated/Update)
Price Target: $51.00
By: Paul J. Resnik, CFA
DXP Enterprises to Host First Conference Call Following Release of 2006 Results; Reiterate Strong Buy Rating
March 11, 2007. DXP Enterprises, Inc. (Nasdaq: DXPE) plans to issue a press release announcing its 2006 financial results at 4:00 P.M. Eastern Time on Thursday, March 15, 2007 and to host a conference call to be web cast live on the Company's website (www.dxpe.com) at 5:00 p.m. Eastern Time that same day. We would note that this is the first time that DXP will host a conference call, and we view this decision as a constructive development. We reiterate our Strong Buy recommendation and our 12-month price target of $50.
Download Research Note
Elron Electronic Industries LTD. Nasdaq: ELRN $13.17
Research Report
Industry: Electronics & Engineering
Rating: Strong Buy (Reiterated)
Price Target: $15.00
By: Barry Raeburn
Elron Electronic Industries Strong Buy Rating Maintained With $16 Price Target; Almost A Free Call Option On Elron's Private Company Group
March 30, 2007. Elron Electronic Industries Ltd. (Nasdaq: ELRN; TASE: ELRN) reported net profit for 2006 of $3 million ($0.10 per share), compared to $47.3 million ($1.61 per share) in 2005. Elron's 2006 revenue was $31 million compared to $82.6 million in 2005. A main reason for the drop in both was a fall in net capital gains to $23.7 million in 2006 from $123 million in 2005. Recall that the Company's primary source of income comes from gains on the sale of group companies. Elron's share in the net losses of its subsidiaries totaled $22.7 million in 2006, compared with $23 million in 2005. Fourth quarter net profit was $17.4 million ($0.60 per share), compared with $500,000 for the corresponding quarter of 2005. The Company reported net capital gains of $21.2 million from the sale of Elron's remaining holding in Partner Communications Ltd. for a total of $39.9 million, and $2.5 million from the completion of a $15 million financing round in 3DV Systems Ltd. At the current market value, we believe investors are getting almost a free call option on Elron's private company group. Group companies continued to make substantial progress throughout 2006, with many companies rolling out new products, entering clinical trials or completing follow-on financial transactions enabling them to continue their growth. A bottoms-up view of Elron's NAV shows that the private companies are contributing very little value, enhancing an already significant discount.
Download Research Report
Elron Electronic Industries LTD. Nasdaq: ELRN $13.17
Research Note
Industry: Electronics & Engineering
Rating: Strong Buy (Reiterated)
Price Target: $15.00
By: Barry Raeburn
Elron Reports Fiscal 2006 Results
March 20, 2007. Elron Electronic Industries Ltd. (NasdaqGS: ELRN; TASE: ELRN) reported fiscal 2006 results. Net profit for 2006 was $3 million ($0.10 per share), compared to $47.3 million ($1.61 per share) in 2005. Elron's 2006 revenue was $31 million from $82.6 million in 2005. A main reason for the drop was due to a fall in net capital gains to $23.7 million in 2006 from $123 million in 2005. Recall that the company's primary source of income comes from gains on the sale of portfolio companies. Elron's share in the net losses of its subsidiaries totaled $22.7 million in 2006, compared with $23 million in 2005.
We believe 2007 and 2008 will be eventful years for many companies in the Elron portfolio, primarily the private companies. Many catalysts exist as private portfolio companies are moving from R&D phases to having product generally available exiting 2006.
Elron shares currently trade at a discount to Net Asset Value. We maintain our Strong Buy rating and 12-month price target of $15.00.
Download Research Note
Elron Electronic Industries LTD. Nasdaq: ELRN $13.17
Research Note
Industry: Electronics & Engineering
Rating: Strong Buy (Reiterated)
Price Target: $15.00
By: Barry Raeburn
Elron Acquires 34% Stake in Second Emerging Clean Water Technology Company
March 17, 2007. Elron Electronic Industries Ltd. (NasdaqGS: ELRN) announced on March 15th that it has completed the acquisition of approximately 34% of the outstanding shares of AqWise, which provides advanced biological wastewater treatment technologies..
Download Research Note
Evolution Petroleum Corporation AMEX: EPM $2.52
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Buy (Reiterated)
Price Target: $4.67
By: Richard R. Wolfe, CFA
Evolution Petroleum: Reports Second-Quarter Results of $0.02 Loss vs. Our Breakeven Estimate
March 11, 2007. Evolution Petroleum Corp. (AMEX: EPM) reported a net loss for its second fiscal quarter ended December 31 of approximately $422,000 or $0.02 per share compared to our estimate of a breakeven quarter. Despite the unfavorable comparisons, we view the quarter as not out of line with expectations for the company, which is still in a transitional period as it seeks to redeploy the $28 million net after-tax cash position on its balance sheet in the aftermath of the transfer of interests in its Delhi Holt Bryant Unit in Louisiana to Denbury Resources (NYSE: DNR) during the fourth quarter of the prior fiscal year.
Download Research Note
Forgent Networks, Inc. Nasdaq: FORG $1.01
Research Note
Industry: Computers, Technology & Internet
Rating: Strong Speculative Buy (Reiterated)
Price Target: $2.40
By: Richard W. West, CFA
Forgent Networks Updates Status of Patent Lawsuit;Strong Speculative Buy Rating Reiterated
March 28, 2007. Forgent Networks, Inc. (NasdaqGM:FORG) confirmed on March 28, 2007, details of the U.S. Patent No. 6,285,746 (the '746 Patent) litigation, including the dates for jury selection and completion of mediation. We believe the high possibility of rewards from the '746 Patent litigation far outweighs the risks and reiterate the Strong Speculative Buy Rating and 12-month price target of $2.40 per share.
Download Research Note
Forgent Networks, Inc. Nasdaq: FORG $1.01
Research Note
Industry: Computers, Technology & Internet
Rating: Strong Speculative Buy (Reiterated)
Price Target: $2.40
By: Richard W. West, CFA
Forgent Networks' Stock Weakness is Puzzling;Presents a Buying Opportunity;Reiterate Strong Speculative Buy Rating
March 20, 2007. After Forgent Networks, Inc. (NasdaqGM:FORG)reported, March 1, 2007, its second profitable quarter in a row, its common stock has sold down from an intra-day high of $1.24 to its present lower level. On a technical basis, this weakness does not bode well for Forgent, but sometimes selling just begets selling.... We reiterate our Strong Speculative Buy Rating and our $2.40 price per share target.
Download Research Note
Fushi International, Inc OTCBB: FSIN $9.70
Research Note
Industry: Industrial & Manufacturing
Rating: Strong Speculative Buy (Reiterated)
Price Target: $11.64
By: Stanley Ng
Fushi International Reports Strong 4Q and Full Year 2006 Results With Positive Guidance on Production, Sales and Net Income for 2007; Raising Estimates and Maintaining Strong Speculative Buy Rating
March 30, 2007. Fushi International, Inc. (FSIN.OB) announced its fourth quarter and full year 2006 financial results on March 29, 2007 With Positive Guidance for 2007.
Download Research Note
Green Plains Renewable Energy NasdaqNM: GPRE $20.20
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated/Update)
Price Target: $58.00
By: Paul J. Resnik, CFA
Green Plains Renewable Energy: USDA Corn Crop Acreage Forecast Above Market Expectations; Reiterate Strong Speculative Buy Rating
March 30, 2007. The shares of Green Plains Renewable Energy (Nasdaq: GPRE) are up 4.3% today as of this writing as the United States Department of Agriculture forecast for the 2007 corn crop acreage, issued this morning at 8:30 A.M. Eastern Time, came in well above the market expectation. Although it is in the nature of commodity prices to fluctuate with only limited predictability, we believe the recent trends for both corn and gasoline prices support our view that Green Plains' two 50-million gallon nameplate capacity facilities, expected to commence operations later this year, should be highly profitable. We continue to rate Green Plains a Strong Speculative Buy.
Download Research Note
Green Plains Renewable Energy NasdaqNM: GPRE $20.20
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated/Update)
Price Target: $58.00
By: Paul J. Resnik, CFA
Green Plains Renewable Energy: USDA Corn Crop Forecast to Be Issued Tomorrow; Expect Close To 89 Million Acres; Reiterate Strong Speculative Buy Rating
March 29, 2007. The shares of Green Plains Renewable Energy (Nasdaq: GPRE) and other ethanol producers are likely to respond to the perceived ramifications of tomorrow's United States Department of Agriculture forecast for the 2007 corn crop. The report will be issued at 8:30 A.M. Eastern Time. We believe, as discussed in our recent Update report on Green Plains, the number may come in close to 89 million acres. We believe a successful corn crop of the magnitude of our estimates (we estimate 153 bushels an acre harvested on net acreage of 81 million will generate 12.4 billion bushels) will result in corn prices declining from the current $3.90 - $4.00 level to $3.25 (the price upon which we have based my ethanol producer revenue estimates) as the year progresses. Depending on the response of noncommercial speculators, the price could eventually fall further. We continue to rate Green Plains a Strong Speculative Buy.
Download Research Note
Green Plains Renewable Energy NasdaqNM: GPRE $20.20
Research Report
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated/Update)
Price Target: $58.00
By: Paul J. Resnik, CFA
Green Plains Renewable Energy Rated Strong Speculative Buy In Update Coverage; Turn Profitable In The Fourth Quarter of 2007
March 14, 2007. Green Plains Renewable Energy (Nasdaq: GPRE; AMEX: GPRE) is currently building two 50-million-gallon dry mill ethanol plants; one in Shenandoah, Iowa and another in Superior, Iowa. The projected annual production capacity of each of the plants under construction is approximately 55 million gallons of ethanol and 176,000 tons of animal feed (we assume the plant will run at about 10% above the nameplate level). The Shenandoah plant is scheduled to be completed by mid-2007 and the Superior plant should be in operation by the beginning of 2008. Despite rapid growth in demand for ethanol, the shares of ethanol producers have been weak based on concerns that the rapid build-up of ethanol production capacity will depress the price of ethanol and create tight supply conditions, and therefore higher prices, for corn. However, ethanol prices have firmed recently, mirroring an uptick in gasoline prices, and the current April Chicago Board of Trade (CBOT) contract price of $2.32/gallon is well above the $2.00 level upon which we have based our earnings projections. Corn on the other hand, now trades at about $4.00/bushel versus levels well below $2.50 a year ago. We believe a sharp increase in acreage devoted to corn will bring prices down to the $3.00 - $3.50 area later this year. We believe Green Plains will turn profitable in the fourth quarter of 2007 and our $58.00 target represents a better than doubling in the stock price.
Download Research Report
Green Plains Renewable Energy NasdaqNM: GPRE $20.20
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated/Update)
Price Target: $58.00
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.
Download Research Note
Harbin Electric, Inc. Nasdaq: HRBN $12.48
Research Report
Industry: Industrial & Manufacturing
Rating: Strong Speculative Buy (Reiterated/Update)
Price Target: $16.02
By: Stanley Ng
Harbin Electric Strong Speculative Buy Rating Reiterated in Update Report
March 22, 2007. Harbin Electric is a dominant player in China's fast growing linear and specialty motors for the automobile market. It is the only domestic company in China with its own patented manufacturing technologies in producing linear motors, which are experiencing a rapid increase in demand due to advantages of speed, simplicity and accuracy, energy efficiency, reliability and being maintenance free over traditional rotary motors. The Company recently reported robust fourth quarter and fiscal 2006 financial results, with both revenue and exceptional core earnings ahead of our projections in our initial reports released in October 2006. Based on an 18 times 2007 P/E, our new 12-month price target is $16.02. With nearly 40% upside potential, we reiterate our Strong Speculative Buy recommendation on the stock.
Download Research Report
Harbin Electric, Inc. Nasdaq: HRBN $12.48
Research Note
Industry: Industrial & Manufacturing
Rating: Strong Speculative Buy (Reiterated/Update)
Price Target: $16.02
By: Stanley Ng
Harbin Electric's Robust Fourth Quarter and Non-cash Items Lifts Fiscal 2006 Financial Results; Earnings Forecasts for 2007 and 2008 and Price Target Under Review
March 13, 2007. Harbin Electric, Inc. Recently Announced Strong 4Q06 and Fiscal 2006 Financial Results
Download Research Note
HydroGen Corporation NasdaqCM: HYDG $4.75
Research Report
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $8.25
By: Sally H. Wallick, CFA
HydroGen Speculative Buy Rating Reiterated in Update Report
March 30, 2007. HydroGen Corporation (Nasdaq: HYDG) develops multi-megawatt hydrogen-powered phosphoric acid fuel cell systems utilizing technology acquired from Westinghouse Corporation. Fuel cells are a proven technology with important advantages relative to fossil-fuel based electricity generators: they are combustion-less, emissions-free, quiet, energy efficient and have few moving parts. Rising energy prices, energy security concerns, and the need for cleaner energy sources are driving interest in alternatives to fossil fuels, and many experts consider hydrogen one of the most compelling long-term options for sustainable energy production. We reiterate our Speculative Buy rating on the stock with a 12-month price target of $8.25.
Download Research Report
HydroGen Corporation NasdaqCM: HYDG $4.75
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $8.25
By: Sally H. Wallick, CFA
HydroGen Corporation Reports 2006 Results; Makes Progress On Business Plan; Speculative Buy Reiterated
March 15, 2007. HydroGen Corp. (NasdaqCM: HYDG) reported fourth quarter 2006 revenue of $610,721 and an operating loss of $7.4 million or $0.67 per share. Since HydroGen is in the early stages of commercializing its fuel cell products, we do not believe that the year's results reflect the Company's long-term potential. During 2006 and thus far in 2007, we believe that the Company made significant progress on its business plan. Most recently, in February, HydroGen announced the mechanical completion of its 400 kilowatt phosphoric acid fuel cell module demonstration and acceptance test facility and initiation of pre-commissioning activities. The test facility will be used for demonstration and acceptance testing of 400 kilowatt fuel cell modules manufactured in HydroGen's Versailles, Pennsylvania plant. We rate HydroGen's shares Speculative Buy. We consider the shares appropriate for aggressive investors willing to accept the above-average risk inherent in an early-stage company that is not yet profitable.
Download Research Note
HydroGen Corporation NasdaqCM: HYDG $4.75
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $8.25
By: Sally H. Wallick, CFA
HydroGen Corp. Makes Progress On Growth Strategies; Fourth Quarter Preview
March 14, 2007. HydroGen Corp. (NasdaqCM: HYDG): We expect HydroGen to report fourth quarter results by the end of March. Since HydroGen is in the early stages of commercializing its fuel cell products, we do not believe that the results will be indicative of its long-term potential. More important, in our opinion, is evidence that the Company is achieving the goals set out in its business plan. During 2006 and thus far in 2007, we believe that the Company made significant progress on this plan. Most recently, in February, HydroGen announced the mechanical completion of its 400 kilowatt phosphoric acid fuel cell module demonstration and acceptance test facility and initiation of pre-commissioning activities. The test facility will be used for demonstration and acceptance testing of 400 kilowatt fuel cell modules manufactured in HydroGen's Versailles, Pennsylvania plant. We rate the Company's shares Speculative Buy. We consider the shares appropriate for aggressive investors willing to accept the above-average risk inherent in an early-stage company that is not yet profitable.
Download Research Note
HydroGen Corporation NasdaqCM: HYDG $4.75
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.
Download Research Note
International Barrier Technology Inc OTCBB: IBTGF $0.41
Research Report
Industry: Industrial & Manufacturing
Rating: Strong Speculative Buy (Change)
Price Target: $0.84
By: Gerald F. LaKarnafeaux, CFA
International Barrier Technology Upgraded to Strong Speculative Buy Rating in Updated Initial Report
April 2, 2007. International Barrier Technology Ltd. (OTCBB: IBTGF) produces and markets Pyrotite®, a proprietary chemical formulation that has superior fire-retardant properties. Pyrotite is applied as a coating to plywood or other substrate panels that are sold to builders of new multi-family housing units and the commercial modular market. The finished product is branded as Blazeguard®. We are upgrading its rating from Speculative Buy to Strong Speculative Buy as our 12-month price target of $0.84 is 110% above the current level.
Download Research Report
InkSure Technologies Inc OTCBB: INKS $2.12
Research Note
Industry: Electronics & Engineering
Rating: Speculative Buy (Reiterated)
Price Target: $3.50
By: Rafael K. Kapelinski
Inksure:4Q 2006 Results, First Reaction
March 27, 2007. Inksure (OTCBB: INKS) has reported better than expected 4Q 2006 results. Revenues came in at USD 0.79 million (+240% over the previous quarter) and EPS was USD (-0.03) versus our estimates of USD 0.58 million and USD (-0.06) respectively. FY 2006 revenues was 23.1% year-on-year. The increase in 4Q 2006 sales reflected, in part, according to the Company, initial shipments of electro-optic readers and other equipment associated with an international tax mark project in the Far East. All in all, it was a good set of result. Inksure has inched closer to profitability with the gross margin climbing to 62% versus 39.5% in the previous quarter, which is the single most important issue surrounding the share price. Cash flow from operations was USD (-0.83 million), roughly in line with the previous quarter. We remain positive on the stock in spite of the rather rich valuation. We like the leverage in the Company's business model and believe that demand for anti-counterfeit solutions should remain on the rise. The Company's failure to win the Turkish project was a disappointment, but we believe that Inksure has been in negotiations with a few European and Asian countries about significant opportunities. Our estimates are under review. We reiterate our Buy rating and price target of USD 3.50.
Download Research Note
IntegraMed America Inc NasdaqNM: INMD $15.00
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Buy (Reiterated)
Price Target: $15.00
By: Richard W. West, CFA
IntegraMed America, Inc. Announces Completion Of Baltimore Fertility Center acquistion;Strong Buy Rating Reiterated
April 4, 2007. IntegraMed America, Inc. (NasdaqGM-INMD) announced the signing of a previously announced Partner Service arrangement with the GBMC Fertility Center (the Center) in Baltimore, Maryland, t o provide a full range of business, marketing, and facility services. The GBMC Center is an addition to the eight partners already under agreements with IntegraMed. IntegraMed's stock is now selling at Dutton Associates' 12-month price target, set on March 15, 2006. We reiterate the Strong Buy Rating.
Download Research Note
IntegraMed America Inc NasdaqNM: INMD $15.00
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Buy (Reiterated)
Price Target: $15.00
By: Richard W. West, CFA
IntegraMed America, Inc.'s Fourth Quarter and FY2006 Results Reviewed; Strong Buy Rating Reiterated
March 26, 2007. IntegraMed America, Inc. (NascaqNM: INMD) provides management services to medical providers specializing in reproductive health care. IntegraMed's fourth quarter and year-ended 12/31/2006 comparative results show the effect of an adjustment to reduce the fourth-quarter tax provision and a change in accounting for recording sales of pharmaceutical products as revenue and cost of pharmaceutical products as a cost of service. The stock is now selling at Dutton Associates's 12-month price target set on March 15, 2006. A Research Report update will shortly be published wherein we will review estimates and the price target. We reiterate the Strong Buy Rating.
Download Research Note
Joystar Inc. OTCBB: JYSR $0.93
Research Note
Industry: Leisure & Entertainment
Rating: Strong Speculative Buy (Reiterated)
Price Target: $1.50
By: Richard W. West, CFA
Joystar, Inc. Appoints New Chief Financial Officer;Strong Speculative Buy Reiterated
March 22, 2007. Joystar, Inc. (OTCBB:JYSR), a host-based leisure travel agency network and seller of cruises, announced the appointment of Jerry Galant as its new Chief Financial Officer. Mr. Galant is a financial executive whose over 30 years of experience ranges from start-ups to large multi-national corporations. We reiterate our Strong Speculative Buy Rating and maintain our 12-month price target of $1.20 per share.
Download Research Note
Arcadia Resources, Inc. AMEX: KAD $1.40
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Buy (Change)
Price Target: $3.25
By: David Riedel
Arcadia Resources - Well-positioned to Benefit from Ongoing Changes in U.S. Healthcare - 60% Upside - Upgrade to BUY
March 19, 2007. Arcadia Resources (AMEX: KAD) shares have been weak recently (down from $3.25 in November to about $2.00 today) as a result, we believe, of market frustration with the pace of progress on new initiatives and profitability. We believe, however, that the set of skills and assets that the company has been assembling will provide patient investors with an attractive return as the company is well positioned to benefit from on-going changes in the US healthcare industry.
Download Research Note
Logility Inc. Nasdaq: LGTY $8.19
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
Download Research Note
Lime Energy Co. OTCBB: LMEC $0.95
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated)
Price Target: $2.00
By: Richard W. West, CFA
Lime Energy Co. Announced Results of Recent Rights Offering;Raises Approximately $3.0 Million;Strong Speculative Buy Reiterated
April 2, 2007. Lime Energy Co. (OTCBB: LMEC) nounced that 260 stockholders took advantage of their subscription rights and purchased 2,999,632 shares of the Company's common stock at $1.00 per share. There were 180 investors who took advantage of their oversubscription privilege and purchased 975,061 shares at $1.00 per share. Strong Speculative Buy and $2.00 per share price target reiterated
Download Research Note
Lime Energy Co. OTCBB: LMEC $0.95
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated)
Price Target: $2.00
By: Richard W. West, CFA
Lime Energy Co. Extends Rights Offering; Strong Speculative Buy Reiterated
March 26, 2007. Lime Energy Co. (OTCBB:LMEC), announced Friday, March 23, 2007, a one-week extension of its current rights offering, which has been distributed to stockholders of record as of February 23, 2006. Lime Energy decided that this is in the best interest of all stockholders, and is allowing a one week extension, holding the rights offering open until 5:00 p.m., EST, on Friday, March 30th. We reiterate our Strong Speculative Buy and $2.00 per share price target.
Download Research Note
Lime Energy Co. OTCBB: LMEC $0.95
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated)
Price Target: $2.00
By: Richard W. West, CFA
Lime Energy Co. Reports Preliminary Results of Q4/2006 and FY2006: Restructuring and Full Company Integration Completed in FY2006;Strong Speculative Buy Reiterated
March 13, 2007. On March 12, 2007, Lime Energy Co. (OTCBB:LMEC) announced its fourth-quarter 2006 and full-year 2006, results with numbers showing improvement in revenue and with gross profits in both periods. The stock market has yet to recognize the massive changes Lime Energy has achieved. We believe that as the coming quarters are reported, the stock market will recognize the "new" Lime Energy Co. We reiterate our Strong Speculative Buy and $2.00 price target.
Download Research Note
Lime Energy Co. OTCBB: LMEC $0.95
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated)
Price Target: $2.00
By: Richard W. West, CFA
Lime Energy to Conduct Conference Call to Discuss 4Q/2006 and Full-Year 2006;Rights Offering Instructions Clarified;Strong Speculative Buy Reiterated
March 13, 2007. Lime Energy Co. (OTCBB:LMEC) has scheduled a conference call for this Wednesday, March 14th, at 11 a.m. ET to discuss the results from its fourth-quarter 2006 and full-year 2006, and to provide a general company update.
Lime Energy today released information for clarification regarding its current rights offering, which has been distributed to stockholders of record as of February 23, 2006. We reiterate our Strong Speculative Buy and $2.00 per share price target.
Download Research Note
Lantronix, Inc. Nasdaq: LTRX $1.53
Research Report
Industry: Electronics & Engineering
Rating: Strong Speculative Buy (Reiterated)
Price Target: $2.50
By: David P. Soetebier, CFA
Lantronix Rating of Strong Speculative Buy Maintained; Expect Lantronix's Growth To Accelerate Over The Intermediate Term From The Introduction Of Multiple Products In The Past Two Years
March 16, 2007. Lantronix (Nasdaq: LTRX) offers investors the most leveraged way to participate in the developing machine-to-machine (M2M) connectivity industry with 73% of its revenues from M2M sales. Computers generally have networking ability but machines do not. However, by 2010, an estimated 95% of all devices connected will not be computers, but rather machines or devices representing a $10 billion market opportunity (Source: Forrester). We expect Lantronix's growth to accelerate over the intermediate term from the introduction of multiple products in the past two years, (13 in the past 12-months) including an important wired networking component (XPort Direct) priced under $20 that should broadly expand the market for networking devices. Although the industry is still in the development stage, Lantronix already offers a broad product line and has a highly experienced management team that we believe can capitalize on this market potential. We believe investors have failed to value the company relative to this growth potential. Consequently, we consider the shares undervalued at the recent price of $1.61. Our rating is Strong Speculative Buy with a 12-month target of $2.50.
Download Research Report
Maine & Maritimes Corporation AMEX: MAM $19.41
Research Note
Industry: Oil, Gas & Energy
Rating: Buy (Reiterated)
Price Target: $20.00
By: Sally H. Wallick, CFA
Maine & Maritimes Corporation Names Brent Boyles President and CEO; Buy Reiterated.
March 19, 2007. Maine & Maritimes Corporation (AMEX: MAM) announced the appointment of Brent Boyles as the Company's President and Chief Executive Officer (CEO) effective May 8. He will continue to serve as President and CEO of Maine Public Service Company, Maine & Maritimes' regulated electric distribution and transmission subsidiary. We believe that Mr. Boyles is an excellent choice, given his 23 years of experience in the regulated utility industry across a broad spectrum of functions, including corporate planning, regulatory compliance, rate design and operations. Maine & Maritimes recently announced plans to divest its unregulated operations and refocus on its regulated business. We rate the Company's shares Buy.
Download Research Note
Maine & Maritimes Corporation AMEX: MAM $19.41
Research Note
Industry: Oil, Gas & Energy
Rating: Buy (Reiterated)
Price Target: $20.00
By: Sally H. Wallick, CFA
Maine & Maritimes To Divest Unregulated Operations; Focus On Core Regulated Utility. Rating Upgraded From Speculative Buy to Buy.
March 17, 2007. Maine & Maritimes Corporation (AMEX: MAM) in conjunction with reporting fourth quarter and full year 2006 results, said that it will divest its unregulated operations and return to a focus on its regulated business, Maine Public Service Company (MPS), an electric transmission and distribution utility serving Northern Maine. As a result, its unregulated businesses have been reclassified as discontinued operations. This decision was based on: (1) The poor performance of the unregulated businesses. (2) MPS's history of solid earnings, cash flow and shareholder returns. (3) A more favorable political and regulatory environment for electric utilities, which the board believes is creating new growth opportunities for the regulated business. and (4) Maine & Maritimes' core competencies in regulated utility operations. We concur with the board's decision and view this return to the Company's roots as a positive development with the potential to result in improved financial performance and greater shareholder value long term. Also, we believe that a more focused Company with a less complex structure may have greater appeal to some investors who found its diversified portfolio of businesses confusing and difficult to analyze. Maine & Maritimes expects to complete the divesture of the unregulated businesses within the next year. We have not yet discussed the Company's change in strategic direction with management and, therefore, cannot project its effect on future operating results. For the time being, we are maintaining our $0.50 per share 2007 earnings estimate for the Company, but will review and perhaps revise this estimate once we talk with management. During the 12 months ended December 31, 2006, Maine & Maritimes lost $5.92 million or $3.62 per share (versus a loss of $220,000 or $0.13 per share in 2005). Income from continuing operations was $804,000 or $0.49 per share. Discontinued operations lost $4.11 per share, including the estimated loss on the divestiture of the unregulated businesses. We are changing our rating on the Company's shares from Speculative Buy to Buy.
Download Research Note
Maine & Maritimes Corporation AMEX: MAM $19.41
Research Note
Industry: Oil, Gas & Energy
Rating: 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.
Download Research Note
MortgageBrokers.com Holdings OTCBB: MBKR $0.85
Research Note
Industry: Banks, Financial Services & Insurance
Rating: Strong Speculative Buy (Reiterated)
Price Target: $1.50
By: Richard W. West, CFA
MortgageBrokers.com Details Strong Canadian Mortgage and Housing Market;Business Model in Place to Benefit From U.S. Slowdown;Strong Speculative Buy Rating Reiterated
March 19, 2007. MortgageBrokers.com (OTCBB:MBKR), in a press release, dated March 19, 2007, detailed its view on the strength of the Canadian mortgage and housing market that is being driven by moderate interest rates, high employment, continued strong immigration to Canada, and strong consumer confidence, in contrast with the U. S. mortgage market that is experiencing high default rates. Because of its Canadian base and unique business model, we believe that Mortgage.Brokers.com is a sleeper in the mortgage industry. We reiterate our Strong Speculative Buy Rating and price target of $1.50 per share.
Download Research Note
Medivation, Inc. Nasdaq: MDVN $18.86
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $27.00
By: Wayne M. Lottinville, CFA
Medivation CEO To Present Alzheimer's Clinical Results; Reiterate Strong Speculative Buy
March 29, 2007. Medivation, Inc. (Nasdaq: MDVN), will participate in an upcoming conference on emerging treatments for Alzheimer's disease. The CEO will provide an overview of the Company and its clinical development program for Dimebon™ for Alzheimer's disease. Six-month results from Medivation's Phase 2 efficacy study in Alzheimer's disease demonstrated that patients treated with Dimebon were significantly improved compared to patients taking placebo on all five efficacy endpoints studied. The conference presentation will be available on the Company's website.
Download Research Note
Medivation, Inc. Nasdaq: MDVN $18.86
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $27.00
By: Wayne M. Lottinville, CFA
Medivation Presents Alzheimer's Data To International Conference; Reiterate Strong Speculative Buy
March 19, 2007. Medivation, Inc. (Amex: MDV), recently presented six-month results from last year's Alzheimer's trial to the 8th International Conference on Alzheimer's and Parkinson's Diseases: Progress and New Perspectives. The randomized, double-blinded, placebo-controlled Phase 2 efficacy trial of 183 patients with mild-to-moderate Alzheimer's disease was conducted at multiple sites in Russia. Patients treated with Medivation's therapeutic candidate were significantly improved compared to patients taking placebo on all five efficacy endpoints studied.
Download Research Note
Medivation, Inc. Nasdaq: MDVN $18.86
Research Report
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $27.00
By: Wayne M. Lottinville, CFA
Medivation Strong Speculative Buy Rating In Update Coverage;Three Promising Therapies With Potential To Advance Treatment Results In The Fights Against Alzheimer's disease, Huntington's disease and Prostate Cancer
March 15, 2007. Medivation (AMEX: MDV) recently said that preclinical data suggest that the Company's lead development candidate for hormone-refractory prostate cancer treatment is effective in a mouse model of the disease. Results of the research showed treatment was associated with a significant dose-dependent reduction in tumor volume in human hormone-refractory prostate tumors grown in mice. In October, Medivation announced compelling Phase 2 clinical results for the treatment of Alzheimer's disease. Not only did treated patients show an improvement over placebo, but also they demonstrated a significant improvement over baseline for all five endpoints of the study. In Huntington's disease, the Company initiated a two-part Phase 1-2a clinical trial in October 2006. The second phase of the study is expected to begin in the first half of 2007 with efficacy data reported in the second half of this year. Based on the dramatic and promising results from Medivation's Phase 2 Alzheimer's study, on the recently announced preclinical results in the Company's prostate cancer investigation, and on our perceptions of management's capabilities, we believe that the Company has a better than average opportunity to clear regulatory hurdles and ultimately win FDA approval for one or more of its development programs. We assume that Medivation wins approval of its drug candidate for treatment of Alzheimer's by 2011 and that by 2013 sales reach $1.3 billion. Discounting a price-to-sales multiple of 5x, we calculate a 2008 price target of nearly $27.00 per share. Based on this price target and timeline, we rate Medivation's shares a Strong Speculative Buy.
Download Research Report
Medivation, Inc. Nasdaq: MDVN $18.86
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $27.00
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.
Download Research Note
Medivation, Inc. Nasdaq: MDVN $18.86
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $27.00
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.
Download Research Note
MediciNova, Inc. NasdaqGM: MNOV $10.49
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $20.00
By: Wayne M. Lottinville, CFA
MediciNova Elects New Board Chairman: Reiterate Strong Speculative Buy
April 4, 2007. MediciNova elected Jeff Himawan, Ph.D., to serve as chairman of the board. Dr. Himawan replaces Yuichi Iwaki, M.D., Ph.D., who remains president and CEO. The election occurred at the Company's annual shareholder meeting March 30 and was "really a corporate governance issue," according to a Company spokesperson. Corporations are moving away from allowing the same executive hold the top positions, and with the election of Dr. Himawan, MediciNova is also moving in that direction. Dr. Himawan joined MediciNova's board as a director in January 2006. He is a managing director of Essex Woodlands Health Ventures, which he joined in 2001. Essex Woodland Health Ventures and its affiliates own 1,183,870 shares of MediciNova stock, or 10.2% of the its outstanding shares.
Download Research Note
MediciNova, Inc. NasdaqGM: MNOV $10.49
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $20.00
By: Wayne M. Lottinville, CFA
MediciNova To Discuss Multiple Sclerosis Trial Results; Reiterate Strong Speculative Buy
March 28, 2007. MediciNova, Inc. (Nasdaq: MNOV; Osaka: 4875), will discuss on March 29 recently announced mixed clinical results from the 12-month core period of its Phase 2 multiple sclerosis (MS) clinical trial. The Company reported a significant increase in the proportion of patients taking the drug who remained relapse-free over the first 12 months compared with those taking placebo. Also, MediciNova said those relapses that did occur happened significantly later for patients administered MN-166 rather than placebo. The Company also reported a significant reduction in brain volume loss in patients treated with its drug. However, no reduction in the cumulative number of active lesions on cranial MRI scans over 12 months of treatment was observed in patients treated with MediciNova's drug therapy compared to placebo, and this measure was the protocol-defined primary endpoint of the study. Management suggested the mixed results could be due to the Company's drug using a different mechanism of action than current treatments. The independent Data Safety Monitoring Board recommended that the trial continue beyond the first year of treatment without modification.
Download Research Note
MediciNova, Inc. NasdaqGM: MNOV $10.49
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $20.00
By: Wayne M. Lottinville, CFA
MediciNova To Present At Healthcare Conference; Reiterate Strong Speculative Buy
March 15, 2007. MediciNova, Inc. (NasdaqGM: MNOV; Osaka: 4875), will offer investors an overview of the Company and its clinical progress at a healthcare conference in Miami Beach on March 19. MediciNova is developing eight unique, differentiated small molecules for 10 different therapeutic indications. The Company'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.
Download Research Note
MediciNova, Inc. NasdaqGM: MNOV $10.49
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.
Download Research Report
National Coal Corporation Nasdaq: NCOC $4.68
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $6.35
By: Richard R. Wolfe, CFA
National Coal Fourth Quarter Results
March 23, 2007. National Coal Corp. (NasdaqGM: NCOC) released fourth quarter and full year 2006 results on March 23, 2007 showing continued adverse impact from sluggish coal markets. The company's net loss was $0.48 per share compared to our forecast net loss of $0.21 per share. Discretionary cash outflows were $4.6 million, compared to our forecast of a cash inflow of $0.8 million.
Download Research Note
Neoprobe Corporation OTCBB: NEOP $0.25
Research Report
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Change)
Price Target: $1.30
By: Dennis C. Fischer, CFA
Neoprobe Upgraded to Strong Speculative Buy Rating in Update Report
March 22, 2007. Neoprobe Corporation (OTCBB: NEOP) engages in the development and commercialization of surgical and diagnostic products. We believe Lymphoseek®, a proprietary radiopharmaceutical intended for use in biopsy procedures for the detection of cancer cells in lymphatic tissues in a variety of tumor types, including breast, melanoma, prostate, gastric and colon cancers, provides substantial potential and will be the impetus for the Company's emergence into profitability in 2009. Currently in Phase II clinical trials, Lymphoseek has clear advantages over existing compounds on the market that are being used off label for this indication. We are upgrading Neoprobe's rating from Speculative Buy to Strong Speculative Buy and establishing a 12-month price target of $1.30.
Download Research Report
Neurobiological Technologies, Inc. NASDAQ: NTII $1.96
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $8.00
By: Denise T. Resnik, M.S.
Neurobiological Technologies Raises $6.6 Million in Equity; Strong Speculative Buy Reiterated
April 4, 2007. Neurobiological Technologies, Inc. (Nasdaq: NTII) announced on April 2, 2007 that the Company entered into definitive agreements with institutional investors to sell approximately 3 million shares of common stock. At the same time, the Company issued common stock warrants to be purchased at closing equal to the number of shares at an exercise price of $2.40 per share. The gross proceeds from this registered offering totaled $7 million before fees and expenses; net offering proceeds are expected to be approximately $6.6 million. We reiterate our Strong Speculative Buy rating.
Download Research Note
Neurobiological Technologies, Inc. NASDAQ: NTII $1.96
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.
Download Research Note
Nutrition 21 Inc Nasdaq: NXXI $1.62
Research Report
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Buy (Reiterated/Update)
Price Target: $2.75
By: William R. Prather, RPh, MD
Nutrition 21. Strong Buy Rating Reiterated in Update Report
March 21, 2007. Nutrition 21 Inc. (Nasdaq: NXXI) is a nutritional bioscience company. Our FY2007 revenue forecast of approximately $47 million, represents approximately a four-fold increase over FY2006 revenues, with the projected product sales mix shifting towards finished products being sold through higher margin retailers, and sustained profitability estimated to begin in Q4 of this year. This revenue increase will come from sales of Chromax® (chromium picolate marketed to vitamin and supplement manufacturers) and Diachrome® (for type-2 diabetes) as well as from products obtained in the Iceland Health acquisition (markets and sells a line of products that contain fish oil and omega-3 fatty acids). We are maintaining our Strong Buy rating on the stock and establishing a 12-month price target of $2.75.
Download Research Report
Oragenics Inc AMEX: ONI $1.04
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $3.75
By: Wayne M. Lottinville, CFA
Oragenics Wins Phase 1 Grant for Colorectal Cancer Study; Reiterate Speculative Buy
April 3, 2007. Oragenics, Inc. (Amex: ONI), will have an opportunity to employ its proprietary Change Mediated Antigen Technology (CMAT™) in a clinical research collaboration in the field of colorectal cancer. The funded research will use the CMAT platform technology to discover genes and proteins that are specifically expressed when healthy bowel cells become cancerous. Dr. Jeffrey Hillman, Oragenics' Chief Science Officer, said in a press release that "The data generated will help to increase our general understanding of bowel cancer and, hopefully, will lead to better diagnostic and treatment strategies."
Download Research Note
Oragenics Inc AMEX: ONI $1.04
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $3.75
By: Wayne M. Lottinville, CFA
Oragenics Could Sign Probiotic Mouthwash Agreement In Six Weeks; Reiterate Speculative Buy
March 30, 2007. Oragenics, Inc. (Amex: ONI), has been in "serious discussions" with up to a dozen companies, some international, some regional, that are interested in licensing Oragenics' probiotic mouthwash, and has narrowed the list down to three likely multinational finalists. Oragenics management said recently that it anticipates selecting the right partner in 30 to 45 days
Download Research Note
Oragenics Inc AMEX: ONI $1.04
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $3.75
By: Wayne M. Lottinville, CFA
Oragenics Financial Results Meet Projections; Reiterate Speculative Buy
March 29, 2007. Oragenics, Inc. (Amex: ONI), matched our recent projections and lost $2.9 million, or $0.15 per share, in 2006 on operating expenses of $3.0 million. For the final quarter of 2006, Oragenics lost $0.7 million, or $0.03 per share, on operating expenses of $0.7 million. The decrease in the Company's 4Q net loss was principally caused by reductions in personnel, stock option compensation, and outside consultants, while patent and legal fees increased. Oragenics ended 2006 with $0.7 million in cash equivalents compared with $0.9 million at the end of 2005.
Download Research Note
Oragenics Inc AMEX: ONI $1.04
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $3.75
By: Wayne M. Lottinville, CFA
Oragenics Expected To File 2006 Financial Results; Reiterate Speculative Buy
March 19, 2007. Oragenics, Inc. (Amex: ONI), is expected to announce financial results for 2006 by the end of March. In our last update report on the Company on November 28, we projected Oragenics would lose $2.9 million, or $0.15 per share, in 2006 on operating expenses of $3.0 million. In a February letter to shareholders, management predicted that one or more licensing deals might be signed this year. The Company is negotiating the licensing of its mouthwash for maintaining oral health, and is continuing to develop a method of producing a sufficient quality of its antibiotic candidate for human clinical trials.
Download Research Note
O2Diesel Corp AMEX: OTD $0.69
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $2.25
By: Sally H. Wallick, CFA
O2Diesel Corporation and Fair Energy will jointly develop Columbia and Bolivia for O2Diesel's ethanol/diesel blended fuel. Speculative Buy maintained.
April 2, 2007. O2Diesel Corporation (AMEX: OTD) entered into a supply agreement with Fair Energy S.A. to jointly develop several markets, including Columbia and Bolivia, for O2Diesel's ethanol/diesel blended fuel, O2Diesel(TM). A successful demonstration and emissions test of O2Diesel in buses operated by Bogota's Trans Millennium mass transit system has been completed, and Fair Energy has set a goal of wide-scale commercial adoption of the fuel within a year. Its initial target is Columbia's transit system's 5,000 buses. We believe that Fair Energy will be able to offer O2Diesel at a price below that of regular diesel. In addition, the use of O2Diesel should result in significant emission reductions. We reiterate our Speculative Buy rating on O2Diesel's shares.
Download Research Note
O2Diesel Corp AMEX: OTD $0.69
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $2.25
By: Sally H. Wallick, CFA
O2Diesel Corporation announces third participant in CityHome(TM) School Bus Program. Speculative Buy maintained.
March 30, 2007. O2Diesel Corporation (AMEX: OTD) announced that a third school bus fleet has joined the company's CityHome (TM) School Bus Program. The Lead-Deadwood School District in South Dakota will convert its entire fleet to O2Diesel's clean-burning diesel/ethanol blended fuel, O2Diesel(TM). CityHome is an innovative program aimed at converting transportation vehicles to O2Diesel. The principal components of the program are utilizing O2Diesel in buses and other transit vehicles, while attracting corporate sponsors to contribute to the cost of the program in exchange for advertising on vehicles, at bus stops, and as part of promotional and media campaigns. We rate O2Diesel common Speculative Buy.
Download Research Note
O2Diesel Corp AMEX: OTD $0.69
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $2.25
By: Sally H. Wallick, CFA
O2Diesel Corporation: 2006 Net Loss In Line With Expectations; Speculative Buy Rating Reiterated
March 28, 2007. O2Diesel Corporation's (AMEX: OTD) 2006 revenue totaled $250,934, up 28% from $195,607 in 2005. The year's net loss (before deemed dividends to preferred stockholders) was $7.6 million or $0.12 per share, compared with a $6.9 million loss or $0.20 per share a year earlier. This loss was in line with our estimate. Important developments in the fourth quarter and thus far in 2007 include the announcement of supply agreements for Asia Pacific and South Africa with Singapore-based Energenics Pte Ltd. and for certain South American countries and Switzerland with Fair Energy S.A.; the signing of a definitive agreement to acquire 80% of ProEco Energy Company, Inc.; and the negotiation of a $10 million stock purchase agreement with Fusion Capital. We rate O2Diesel common Speculative Buy.
Download Research Note
O2Diesel Corp AMEX: OTD $0.69
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $2.25
By: Sally H. Wallick, CFA
O2Diesel Corporation Quarter Previewed; Company Enters Into Supply Agreement With Fair Energy.
March 16, 2007. O2Diesel Corporation (AMEX: OTD): We expect O2Diesel to file its 2006 10-K by late March. We anticipate fourth quarter results similar to those reported in recent periods, with modest revenue and a small loss per share. During the fourth quarter and thus far in 2007, O2Diesel has made significant progress on its business plan of commercializing its ethanol-diesel fuel blend including supply agreements with Singapore-based Energenics Pte Ltd. for Asia Pacific and South Africa and Geneva-based Fair Energy S.A for certain South American countries and Switzerland and the signing of a definitive agreement to acquire 80% of ProEco Energy Company, Inc., which is developing a 100-million-gallon ethanol plant. We reiterate our Speculative Buy rating on the Company's common stock.
Download Research Note
O2Diesel Corp AMEX: OTD $0.69
Research Report
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $2.25
By: Sally H. Wallick, CFA
O2Diesel Speculative Buy Rating Reiterated In Update Coverage; Announces Acquisition of ProEcho Energy Who Is Building 100 mm Gallon Ethanol Plant
March 14, 2007. O2Diesel (AMEX: OTD) has developed a proprietary additive technology, O2D05, which facilitates the blending of ethanol, an oxygenate, in diesel fuel, resulting in a proprietary, clean-burning fuel called O2Diesel™. Extensive testing has shown that the use of O2Diesel alone or with other emission-control devices can produce significant and verifiable reductions in diesel engine emissions. Management's business strategy is aimed at commercializing the Company's products in the U.S. and internationally. Its initial target market is centralized fleets of diesel-powered vehicles. During 2006 and thus far in 2007, O2Diesel achieved important milestones toward commercializing its products in the U.S. and internationally. Notable achievements include a partnership agreement with Energenics to market O2Diesel (using the name EnerDiesel) in Asia; the planned acquisition of ProEco Energy Company, Inc., which is developing a 100-million-gallon ethanol plant in South Dakota; and contracts with municipal and corporate customers and the Department of Defense (DoD) in the U.S. We view the proposed ProEco acquisition as a bold move with the potential to provide a number of significant benefits to O2Diesel. Most importantly, it should give O2Diesel access to a reliable supply of ethanol at very competitive costs, enabling it to market O2Diesel to large national customers in the U.S. at a price below that of regular diesel, and, therefore, strengthening its competitive position. In 2005, the Company reported total revenue of $195,607 and an operating loss of $7.5 million, and its revenue and operating loss for the nine months ended September 30, 2006 were $141,201 and $6.4 million, respectively.
Download Research Report
On Track Innovations Ltd. Nasdaq: OTIV $7.17
Research Report
Industry: Computers, Technology & Internet
Rating: Strong Buy (Reiterated)
Price Target: $12.00
By: Rafael K. Kapelinski
On Track Innovations Strong Buy Rating Reiterated in Update Report
April 2, 2007. On Track Innovations Ltd. (Nasdaq: OTIV) engages in the design, development, and sale of contactless microprocessor-based smart card products. Its products line includes micropayments solutions, petroleum systems, and smart Id solutions. Fourth quarter has always been seasonally the strongest quarter, and 4Q 2006 was no exception. Revenues increased to USD $13.20 million, up 69% over the previous quarter and 42% year-on-year. We are maintaining our Strong Buy rating and a 12-month price target of $12.00 for the stock.
Download Research Report
On Track Innovations Ltd. Nasdaq: OTIV $7.17
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.
Download Research Note
Pacific Asia China Energy Inc. CDNX: PCE $0.47
Research Note
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Reiterated)
Price Target: $1.00
By: Richard R. Wolfe, CFA
PACE in C$9 Million Turnkey Degasification Contract
March 10, 2007. Pacific Asia China Energy (TSX: PCE), through its joint venture with Mitchell Drilling Corp. of Australia, has signed a multi-company degasification contract with the Shenhua Ningxia Coal Group, a unit of Shenhua Group Corp, China's largest coal producer. Our estimates for the Company's performance during fiscal 2008 (ending Feb. 28, 2008) are provisionally reaffirmed.
Download Research Note
PacificHealth Laboratories Inc. OTCBB: PHLI $1.84
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $2.00
By: Jonathan H. Ziegler, CFA
PHLI announces a positive amendment to its agreement with Mott's LLP, a division of Cadbury Schweppes Americas Beverage
March 20, 2007. PacificHealth Laboratories, Inc. (OTCBB: PHLI), a nutrition announced today that it has amended its original license agreement with Mott's LLP, a division of Cadbury Schweppes Americas Beverage ("CSAB"). The amended agreement adds 26 countries to PacificHealth's exclusive, royalty-free license to manufacture, distribute and market ACCELERADE and ENDUROX R4 brands in powder and gel, bringing the total to 47 countries representing all of the major markets in the world.
Download Research Note
PacificHealth Laboratories Inc. OTCBB: PHLI $1.84
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $2.00
By: Jonathan H. Ziegler, CFA
PacificHealth Labs Announced Its Fourth Quarer And Year-end Results; Total Quarter Revenues Up 51.2% to $1.11 Million EPS Were ($0.03) Compared To Our $0.00 Estimate
March 13, 2007. PacificHealth Laboratories, Inc. (OTCBB: PHLI) reported fourth quarter and year-end results. While reported revenues for the quarter of $1.1 million exceeded our estimate by 16.5%, and were up 51.2% from the year-ago quarter, expenses were somewhat higher than we had estimated and, consequently, reported EPS of ($0.03) missed our estimate of break-even.
Download Research Note
Pointer Telocation Nasdaq: PNTR $10.63
Research Report
Industry: Business & Support Services
Rating: Strong Buy (Reiterated)
Price Target: $18.00
By: Rafael K. Kapelinski
Pointer Telocation Strong Buy Rating Reiterated in Update Report
March 30, 2007. Pointer Telocation (Nasdaq: PNTR) provides road-side assistance (RSA) and stolen vehicle retrieval (SVR) services to insurance companies and automobile owners in Israel, Argentina, and Mexico. We believe the outlook for RSA and particularly SVR services remains good, especially in the emerging markets. Car sales in Argentina and Mexico remain on the upward trend while market penetration is still low and the markets are still dominated by a large number of smaller players who are having a hard time achieving the critical mass. We reiterate our Strong Buy rating and price target of $18.00 after the Company presented an in-line set of 4Q 2006 results.
Download Research Report
Pointer Telocation Nasdaq: PNTR $10.63
Research Note
Industry: Business & Support Services
Rating: Strong Buy (Reiterated)
Price Target: $18.00
By: Rafael K. Kapelinski
Pointer Telocation (PNTR): Signs Another Acquisition MOU
March 19, 2007.
Pointer Telocation has today announced the signing of a non-binding Memorandum of Understanding to acquire the assets and liabilities of Cellocator Ltd., a private Israeli company active in the field of cellular location-based services and technology.
The closing of the transaction is expected in June 2007 subject to the completion of a due diligence process to the satisfaction of Pointer, and reaching a definitive agreement.
Download Research Note
Pointer Telocation Nasdaq: PNTR $10.63
Research Note
Industry: Business & Support Services
Rating: Strong Buy (Reiterated)
Price Target: $18.00
By: Rafael K. Kapelinski
Pointer Telocation (PNTR): Signs Two MOUs in Argentina, Reiterate Strong Buy
March 12, 2007. Pointer's announcements about the signing of binding MOUs with SVR and RSA companies in Argentina is a positive, in our view. We continue to believe that Pointer is a bet on the managements ability to achieve increasing economies of scale by winning market share in the domestic market and growing the top-line through international expansion, particularly in Latin America. However, while growing market share in the saturated Israeli market will require significant resources, consolidating the highly fragmented Latin market is a low hanging fruit. In fact, we would like to argue that the Companys share price performance should be a direct function of the Companys perceived success on the M&A front in Latin America. Given the managements strong track record in consolidating Shagrir, we believe that the prospects are strong.
Given the indicated purchase price of USD 9 million for one of the target companies, it is clear that the Company will have to raise additional cash before the end of 2007E. We reiterate our Strong Buy rating and price target of USD 18.
Download Research Note
Pointer Telocation Nasdaq: PNTR $10.63
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.
Download Research Note
Petro Resources Corporation AMEX: PRC $3.09
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Initial)
Price Target: $5.75
By: Richard R. Wolfe, CFA
Petro Resources: Successfully Closes Williston Basin Acquisition; Should Increase Proved Reserves More than 100%
March 11, 2007. Petro Resources Corp. (AMEX: PRC) Management's recent announcement of the closing of its approximate $65 million acquisition of 50% of the interest (approximate 43% working interest, net to Petro Resources) of a private North Dakota operator in 15 fields located in the Williston Basin is an undoubted milestone for the Company. By our estimate, the transaction should increase the Company's production by 70% and proved reserves by 170%.
Download Research Note
Patriot Scientific Corp. OTCBB: PTSC $0.59
Research Note
Industry: Electronics & Engineering
Rating: Strong Speculative Buy (Reiterated/Update)
Price Target: $1.50
By: Richard W. West, CFA
Corrected - Patriot Scientific Files Proxy and Details Information in Chairman's Letter to Stockholders;
Lowering Rating to Neutral
April 3, 2007. Patriot Scientific Corporation (OTCBB:PTSC) filed its SEC form 14 Schedule notifying its stockholders of the annual meeting that is to be held on April 27, 2007, After reconsidering all the facts, we are now lowering our rating to Neutral and will closely monitor this situation.
Download Research Note
Patriot Scientific Corp. OTCBB: PTSC $0.59
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.
Download Research Note
Pro Travel Network, Inc. OTCBB: PTVL $1.40
Research Report
Industry: Leisure & Entertainment
Rating: Speculative Buy (Initial)
Price Target: $2.00
By: Richard W. West, CFA
Pro Travel Network Speculative Buy Rating In Initiating Coverage; Direct-To-Consumer Service Business That Leverages The Home-Based Business Concepts With The Travel Industry
March 12, 2007. Pro Travel (OTCBB: PTVL) is conducting a relatively young direct-to-consumer service business that leverages the home-based business concepts with the travel industry. Pro Travel believes they offer one of the most unique and comprehensive independent travel agent training packages in the travel industry. As of February 8, 2007, Pro Travel has approximately 8,000 independent travel agents. Pro Travel's core business consists of leveraging its technology and services to provide travel stores on the Internet to the home based independent travel agents. Pro Travel currently receives revenue from four sources discussed in the report. The travel industry continues to grow. In 2004 in the United States, approximately $1.3 trillion was spent on travel and tourism. Worldwide, the figure was approximately $7.0 trillion. In recent years the scene has changed with the advent of individuals utilizing the Internet to book travel. Direct travel bookings on the Internet saw approximately 79 million travel bookings made in 2005, up from 64 million in 2004. Company revenues are projected to reach $3.3 million for FY 07 ended June 30th, and increase to $4.1 million in FY 08. EPS are projected to reach $.02 in the current fiscal year, increasing to $,03 in FY08. At our price target of $2.00, Pro Travel would be selling at a $48.0 million market capitalization.
Download Research Report
Provectus Pharmaceuticals Inc OTCBB: PVCT $1.34
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $3.90
By: Wayne M. Lottinville, CFA
Provectus Annual Results In Line With Expectations; Reiterate Strong Speculative Buy
March 28, 2007. Provectus Pharmaceuticals, Inc. (OTCBB: PVCT), lost $8.9 million, or $0.23 per share, in 2006 on operating expenses of $7.2 million. For the final quarter of 2006, Provectus lost $2.1 million, or $0.05 per share, on operating expenses of $2.0 million. Provectus ended 2006 with $7.2 million in cash equivalents and short-term investments compared with $6.7 million at the end of 2005. Working capital reached $6.5 million by the end of 2006, compared with $4.3 million at the end of the prior year. After the close of the year, Provectus converted all outstanding debentures, leaving the Company with no debt on its balance sheet.
Download Research Note
Provectus Pharmaceuticals Inc OTCBB: PVCT $1.34
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $3.90
By: Wayne M. Lottinville, CFA
Provectus Expected To Soon Release 2006 Financial Results; Reiterate Strong Speculative Buy
March 19, 2007. Provectus Pharmaceuticals, Inc. (OTCBB: PVCT), is expected to release financial results for 2006 by the end of March. In our last update report on the Company on November 29, we projected Provectus would lose $9.1 million, or $0.24 per share, in 2006 on operating expenses of $7.3 million. Based on early reports, we expect the full Phase 1 clinical trial results for treating metastatic melanoma and breast cancer with Provecta will prove largely positive and provide supporting data for Provectus to launch Phase 2/3 of these development programs in 2007. A Phase 1 liver cancer trial and a Phase 2 psoriasis trial are also expected to begin in 2007.
Download Research Note
Provectus Pharmaceuticals Inc OTCBB: PVCT $1.34
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Strong Speculative Buy (Reiterated)
Price Target: $3.90
By: Wayne M. Lottinville, CFA
Provectus To Boost Investor Relations Capabilities, Increase Awareness; Reiterate Strong Speculative Buy
March 13, 2007. Provectus Pharmaceuticals, Inc., will ramp up its investor relations and corporate communications capabilities with the hiring of The Investor Relations Group. The IR firm plans to introduce Provectus to prequalified fund managers and industry analysts with the goal of increasing investor and industry awareness of the Company. The Investor Relations Group also intends to shape Provectus' message to the public and the media.
Download Research Note
Questar Assessment, Inc. OTCBB: QUSA $5.00
Research Note
Industry: Publishing & Media
Rating: Buy (Reiterated)
Price Target: $8.00
By: Sally H. Wallick, CFA
Questar Assessment, Inc.: Symbol Changes to QUSA; Buy Rating Maintained.
March 22, 2007. Questar Assessment, Inc. (OTCBB: QUSA): Effective March 16, 2007, Touchstone Applied Science Associates, Inc. changed its corporate name to Questar Assessment, Inc. As of March 22, 2007, the Company's trading symbol on the NASDAQ Over-the-Counter Bulletin Board changed to QUSA. Touchstone (now Questar) acquired Questar Educational Systems in May 2006. As a result of this acquisition, the combined Company now offers one of the most comprehensive portfolios of assessment services in the industry. The rationale for the name change was to unify all of Questar's operating units under a single, highly recognizable brand, enhancing the Company's ability to market as an integrated provider of assessment services and streamlining its marketing and sales efforts. We rate the shares Buy.
Download Research Note
Questar Assessment, Inc. OTCBB: QUSA $5.00
Research Note
Industry: Publishing & Media
Rating: Buy (Reiterated)
Price Target: $8.00
By: Sally H. Wallick, CFA
Questar Assessment, Inc.: 1QFY07 Revenue Up 212%; EBITDA Improves To $0.09 Per Share From $0.03 Per Share Loss; Buy Rating Maintained.
March 19, 2007. Questar Assessment, Inc. (OTCBB: TASA) (formerly Touchstone Applied Science Associates, Inc.) reported a more than a tripling of first quarter fiscal 2007 revenue year over year to $9.6 million, as a result of a $5.9 million revenue contribution from Questar Educational Systems, which the Company acquired in May 2006, and 20% revenue growth at its pre-acquisition businesses. The quarter's operating loss was $456,000 or $0.09 per share versus a loss of $170,000 or $0.06 per share in the first quarter of fiscal 2006. Incremental amortization expense associated with the intangible assets acquired from Questar reduced earnings by $0.08 per share. Earnings before interest, taxes, depreciation and amortization, or EBITDA, totaled $442,000 or $0.09 per share in the first quarter. On a pro forma basis, the Company's first quarter revenue increased 16% year over year, and EBITDA was up 70%. We are maintaining our fiscal 2007 estimate of a $0.06 per share diluted loss for the Company. This loss largely is a result of incremental amortization, and the Company's EBITDA outlook remains positive. Therefore, we are maintaining our Buy rating on the Company's shares, which are trading at about 7 times projected fiscal 2007 EBITDA, well below the average of 15.5 times trailing-twelve-month EBITDA for 19 other publicly traded companies in the education industry.
Download Research Note
Questar Assessment, Inc. OTCBB: QUSA $5.00
Research Report
Industry: Publishing & Media
Rating: Buy (Reiterated)
Price Target: $8.00
By: Sally H. Wallick, CFA
Touchstone Applied Sciences Rating Maintained At Buy; The Questar Acquisition Was The Defining Event of Fiscal 2006; Trading At Only 5.4x Projected Fiscal 2007 EBITDA Vs 15.5 Industry Average
March 16, 2007. Touchstone (OTCBB: TASA) reported a more than doubling of fiscal 2006 revenue year over year to $23.7 million, as a result of a $9.9 million revenue contribution from Questar Educational Systems, which the Company acquired in May 2006, and 18% revenue growth at its pre-Questar businesses. In fiscal 2006, Touchstone booked a number of charges and other items that reduced operating income $1.78 million. The Company reported a fiscal 2006 operating loss of $888,000, versus an operating profit of $627,000 in fiscal 2005, and a net loss of $1.125 million, or $0.23 EPS, diluted, versus a net profit of $433,000, or $0.14 EPS in fiscal 2005. EBITDA totaled $1.3 million or $0.27 per share, flat with EBITDA of approximately $1.3 million in fiscal 2005. On a pro forma basis, the Company's fiscal 2006 revenue would have been $45.1 million, up 20% year over year, and EBITDA would have been $6.5 million versus $6.3 million. Two recent accounting changes will affect Touchstone's fiscal 2007 results and are discussed in the report. Taking into account these changes, we reduced our fiscal 2007 estimate for Touchstone from a $0.43 per share profit to a $0.06 per share loss. Our EBITDA estimate for fiscal 2007 is $5.2 million or $1.05 per share. TASA shares are trading at only 5.4x projected fiscal 2007 EBITDA, well below the average of 15.6x trailing 12-month EBITDA for 19 other publicly traded companies in the education industry.
Download Research Report
Questar Assessment, Inc. OTCBB: QUSA $5.00
Research Note
Industry: Publishing & Media
Rating: Buy (Reiterated)
Price Target: $8.00
By: Sally H. Wallick, CFA
Touchstone Applied Science Associates: One-time items contribute to FY06 loss; FY07 estimate lowered; shares trade at only 5.7x FY07 projected EBITDA; Buy rating maintained.
March 12, 2007. Touchstone Applied Science Associates, Inc.s (OTCBB: TASA) fiscal 2006 revenue more than doubled year over year to $23.7 million, as a result of a $9.9 million revenue contribution from Questar Educational Systems, which it acquired in May 2006, and 18% revenue growth at its pre-Questar businesses. Touchstone booked charges and other items in fiscal 2006 that reduced operating income $1.78 million. As a result, the Company reported a fiscal 2006 operating loss of $888,000, compared with an operating profit of $627,000 in fiscal 2005, and a net loss of $1.125 million, or $0.23 per share, diluted, versus a net profit of $433,000, or $0.14 per share in fiscal 2005. Earnings before interest, taxes, depreciation and amortization, or EBITDA, totaled $1.3 million ($0.27 per share), flat with EBITDA of $1.3 million in fiscal 2005. On a pro forma basis, the Companys fiscal 2006 revenue would have been $45.1 million, up 20% year over year, and EBITDA would have been $6.5 million ($1.29 per share) versus $6.3 million ($1.26 per share). We are lowering our fiscal 2007 estimate to a loss of $0.06 per share from a profit of $0.43 per share, mainly to reflect the effect of accounting changes and a lower gross margin on projected results. Our EBITDA estimate for the year is $1.05 per share. We consider the Questar acquisition (the largest acquisition in Touchstones history) the defining event of fiscal 2006. We believe that Questars operational strengths complement Touchstones development capabilities, allowing the combined Company to provide the entire spectrum of assessment services for large state level contracts for the first time. It appears that the integration of Questar has gone smoothly, and the combined Company is pursuing new revenue opportunities by bidding on larger numbers of contracts than previously and on contracts with larger dollar values. This strategy already appears to be paying off, as indicated by recently announced contract wins totaling up to $9.5 million. We reiterate our Buy rating on the Companys shares, which are trading at only 5.7 times projected fiscal 2007 EBITDA.
Download Research Note
Questar Assessment, Inc. OTCBB: QUSA $5.00
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.
Download Research Note
Raser Technologies Inc. NYSE: RZ $6.25
Research Note
Industry: Industrial & Manufacturing
Rating: Not Rated (Reiterated)
Price Target: N/A
By: Gerald A. Rothstein, CFA
Raser Technology Receives AMP Note Payment
March 20, 2007. Raser Technologies Inc. (NYSE: RZ) announced today that AMP Resources had paid Raser the $6 million note, on which payment had been delayed, in full.
Download Research Note
Raser Technologies Inc. NYSE: RZ $6.25
Research Note
Industry: Industrial & Manufacturing
Rating: Not Rated (Reiterated)
Price Target: N/A
By: Gerald A. Rothstein, CFA
Raser: Delays 10-K Until End of March
March 19, 2007. Raser Technologies (NYSE: RZ) announced on Friday that its 2006 10-K and earnings release will be delayed until the end of March. We believe that this is not a material event.
Download Research Note
Raser Technologies Inc. NYSE: RZ $6.25
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.
Download Research Note
Shumate Industries, Inc. OTCBB: SHMT $1.60
Research Note
Industry: Oil, Gas & Energy
Rating: Strong Speculative Buy (Reiterated)
Price Target: $3.00
By: Richard R. Wolfe, CFA
Shumate Shares Plunge, Then Recover after Warrant Exchange Offer
March 17, 2007. Shumate Industries (OTCBB: SHMT) shares have regained most of their value after plunging on Wednesday (3/14). On Thursday (3/15), the Company disclosed that it has made an exchange offer to holders of certain warrants for its common shares.
Download Research Note
Shumate Industries, Inc. OTCBB: SHMT $1.60
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.
Download Research Note
Apex Silver Mines Ltd AMEX: SIL $14.13
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.
Download Research Note
Sky Petroleum Incorporated OTCBB: SKPI $0.54
Research Report
Industry: Oil, Gas & Energy
Rating: Speculative Buy (Change)
Price Target: $1.25
By: Richard R. Wolfe, CFA
Sky Petroleum Rated Speculative Buy in an Updated Initial Report
March 30, 2007. Sky Petroleum Inc. (OTCBB: SKPI), an independent exploration and production company established in 2004 to pursue international opportunities, has, uniquely among U.S.-listed independent E&P companies, succeeded in obtaining access to an attractive combination of drilling opportunities in the Middle East. The Company is participating in a potential six-well development-drilling program in the Arabian Gulf, which should yield positive cash flow and profitability before the end of 2007. Subsequently, Sky has access to an exploratory opportunity, also in Gulf waters (offshore United Arab Emirates) that potentially may share the characteristics of a nearby major oilfield of key Gulf producer Abu Dhabi. We remain positive on Sky's prospects and believe that our expectations of the Mubarek drilling program remain reasonable. We have reset our target price down to $1.25 per share (prior target: $2.35 per share) to reflect conclusions drawn from our cash-flow projections. Our rating of Speculative Buy is down from our prior rating of Strong Speculative Buy and reflects the cash-flow impact of delays in Mubarek drilling operations.
Download Research Report
Sunwin International Neutraceuticals, Inc. OTCBB: SUWN $0.58
Research Note
Industry: Healthcare, Biotechnology & Pharmaceutical
Rating: Speculative Buy (Reiterated)
Price Target: $1.10
By: Stanley Ng
Sunwin International Neutraceuticals Raises $4.1 million to Finance Business Expansion; Reiterate Speculative Buy Rating
April 2, 2007. Sunwin International Neutraceuticals, Inc. (OTCBB: SUWN) Announced on March 26 a Private Equity Placement of $4.1 Million to Finance Business Expansion Plans
Download Research Note
21st Century Holding Co Nasdaq: TCHC $17.93
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.
Download Research Note
21st Century Holding Co Nasdaq: TCHC $17.93
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.
Download Research Note
Top Image Systems Ltd Nasdaq: TISA $3.82
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
Download Research Note
Telanetix, Inc. OTCBB: TNXI $6.30
Research Note
Industry: Electronics & Engineering
Rating: Strong Speculative Buy (Reiterated)
Price Target: $5.00
By: Joe Noel
Telanetix Makes Important Acquisition - Raising Our Estimates and Price Target to $7.00
April 4, 2007. On April 4 Telanetix (OTCBB: TNXI) announced it had acquired two leading audio and visual systems integrators: Union Labor Force One (ULF) and Audio Visual Systems Integration (AVS). Both of these firms are involved in the custom engineering of audio/visual room systems and are involved in integration of services for Telanetix's current hardware and service offerings. These two firms have been very active resellers of Telanetix products for the past few years.
Download Research Note
Telanetix, Inc. OTCBB: TNXI $6.30
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.
Download Research Note
Wave Systems Corp. Nasdaq: WAVX $2.90
Research Note
Industry: Computers, Technology & Internet
Rating: Strong Speculative Buy (Reiterated)
Price Target: $4.50
By: Robert Goldman
WAVE TDM Shipping With Seagate Notebook PC Hard Drive
March 13, 2007. Wave Systems Corp. (NASDAQGM: WAVX) announced today that its Embassy Security Center's Trusted Drive Manager (TDM) is featured in Seagate's (NYSE: STX) Momentus 5400 FDE.2 notebook PC hard drive that is shipping to ASI Computer Technologies. This represents the first meaningful shipment of Seagate's Momentus 5400 FDE drives incorporating Wave's Embassy Trust Drive Manager and may be the first step toward broader Seagate/Wave notebook PC hard drive and TDM deployment.
Download Research Note
XAAR Plc LSE: XAR $4.54
Research Note
Industry: Computers, Technology & Internet
Rating: Buy (Reiterated)
Price Target: $6.15
By: Rafael K. Kapelinski
Xaar: Reiterate Buy Rating; Market Update
March 26, 2007. We reiterate Buy rating on Xaar (LSE: XAR). As we have stated, we believe that the inkjet printing continues to move towards the mainstream, and we view Xaar as one of the primary benefactors of the ongoing shift. Although the Company's 2H 2006 results were not very impressive, we believe that 2007 should be a much better year.
Most importantly, the Company should see first revenues from Gen 2 and Gen 3 printing platforms. Although we are still early in the process, the market for electronics printing continues to gather pace. Also, a variety of companies are developing printing systems that are capable of printing on a variety of novel substrates. Most recently, EFI has made a strategic investment of $3.5 million in Kornit, which develops and sells high-end industrial digital inkjet printers and inks for the textile industry, primarily for the finished garment and apparel printing markets. With more than 100 customers, mostly in North America, Kornit offers digital inkjet printers that specialize in printing high-quality images on t-shirts and other finished garments, with print speeds up to 200 t-shirts per hour.
In our view, the announcement is important, as this is the first time a major imaging company has taken a direct interest in a smaller player developing a digital inkjet system for a more exotic specialty substrate. Similar announcements are bound to expand Xaar's market in the future.
Download Research Note
XAAR Plc LSE: XAR $4.54
Research Note
Industry: Computers, Technology & Internet
Rating: Buy (Reiterated)
Price Target: $6.15
By: Rafael K. Kapelinski
Xaar (LSE: XAR.L): 2006 Results Summary, Estimates Under Review
March 19, 2007.
Xaar's 2006 results were slightly below our estimates. Revenues came in at £ 19.9, down 10.7% over 1H 2006, when the Company experienced trading problems in China. Total annual 2006 revenue figure was £ 42.21 million, down 1.3% over 2005. Printhead sales decreased 10.8% over 1H 2006, which in our view is a negative, although the Company indicated that it had been able to resolve the issues in China. EPS 2006 was £0.076, significantly, below our expectations. However, in 2H 2006 the Company recorded an on-off charge of £0.3 transaction costs related to the recent Danaher approach. We reiterate our buy rating, although the final set of 2006 results did little to boost our confidence. However, we view inkjet digital printing as a very attractive long-term trend, and we believe that Xaar is uniquely positioned to benefit from it. The Company's return to the profitability levels from 2005 is the single most important question surrounding the share price today. After the debacle in China in 1H 2006, the COmpany seems well on track to show markedly better results in 1H 2007E. Our estimates are under review. We will publish a comprehensive update on the Company shortly.
Download Research Note
XAAR Plc LSE: XAR $4.54
Research Note
Industry: Computers, Technology & Internet
Rating: Buy (Reiterated)
Price Target: $6.15
By: Rafael K. Kapelinski
Xaar: To Report 2H 2006 on March 15. Results Preview
March 13, 2007. Xaar (LSE: XAR) will report a full set of 2H 2006 results on March 15. We forecast 2H 2006 revenues of £22.8 million (+2.2% over 1H 2006) and EPS of £0.053. All in all, we anticipate the tone of the call to be positive as the Company has gotten the Chinese situation under control.
Most recently, Kodak's unveiling of its digital inkjet strategy only demonstrated the impetus of the ongoing digital inkjet paradigm shift. We maintain our stance that the Company represents a very attractive takeover target: it holds an impressive patent portfolio and industry recognition. In our recent update, we have looked at some of the more recent OEM developments and analyze their potential implications for Xaar. Since then our stance has not changed: we reiterate our Buy rating.
Download Research Note
Information, opinions or recommendations contained in this research report or research note are submitted solely for advisory and information purposes. The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Such information and the opinions expressed are subject to change without notice. This research report or note is not intended as an offering or a solicitation of an offer to buy or sell the securities mentioned or discussed. Neither the Firm, its principals, nor the assigned analysts own or trade shares of any company covered. The Firm does not accept any equity compensation. Anyone may enroll a company for research coverage, which currently costs US $39,500 prepaid for one-year. Reports are performed on behalf of the public, and are not a service to any company. The analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests and insure independence. Please read full disclosure and other reports and notes on the Company at www.DuttonAssociates.com.
The views expressed in this research report or note accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by Dutton Associates is in any way related to the specific recommendations or views contained in this research report or note.
Dutton Associates. John M. Dutton, President, 4989 Golden Foothill Parkway, Suite 4, El Dorado Hills, CA 95762 Phone (916) 941-8119, Fax (916) 941-8093
© Copyright 2006 by Dutton Associates
|