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Today's UTR Update, Your Guide to Small-cap and Mid-cap Stocks. |
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NEW YORK, NEW YORK, Jun. 12 -/E-Wire/--
Under The Radar is a daily newsletter that is focused on small-cap and mi-cap stocks. and is marketed to institutional investors, buy-side and sell-side analysts, venture capitalists, hedge funds, investment banking firms, financial advisors, and registered representatives. This electronic newsletter is designed to analyze current market information on small-cap and mid-cap stocks. This newsletter is prepared for sophisticated investors who understand the hidden value in small-cap to mid-cap stocks. We have developed proprietary fundamental and quantitative models that allow us to offer unique, standardized insight into the prospects of small to mid-cap opportunities.
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The underlying premise of this newsletter is to produce information by analysts and institutional managers for the professional investment community. We will draw upon the work and recommendations of some of the premier small-cap and mid-cap specialists from around the country and present the facts with a slant towards fundamental visibility and financial transparency. We will support the numbers with honest, informative and timely commentary by a rapidly expanding network of contributing analysts and institutional money managers.
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This Week's SPOT Company: CNEH.OB (.43)
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China North East Petroleum Holdings, Limited is engaged in the ownership, acquisition and management of mineral properties and the exploration for and development of oil drilling projects and the production of crude oil in Northern China. The Company boasts a production and supply agreement with Jilin Refinery of PetroChina to sell its produced crude oil for use in the Chinese marketplace. The Company currently operates 20 producing wells in Northern China and generates approximately 380 barrels of high quality crude oil per day. By the end of year 2007, the Company plans to drill up to 82 additional wells, including the wells to be drilled by Rising Sun.
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Top Stories
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Speedteq-Ti Enters the Petroleum Industry; Appoints New Chairman/CEO & President
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Speedteq-Ti, Inc. (SDTQ) announced that they have acquired all of the outstanding shares of "Neville Trevor and Associates" in a Share Exchange Agreement. As per the Agreement, the Company
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has acquired 100% of the outstanding shares of "Neville Trevor and Associates" in exchange for 25 million shares of the Company's restricted common stock. In addition to the acquisition, the Board has appointed Neville Trevor as Chairman and CEO, and Terry Yakimovich as President. Both Trevor and Yakimovich researched and developed the oil absorption process. Mr. Trevor is currently setting up operations in Baku, Azerbaijan. To better reflect the Company's new business model, the Board has agreed to change its name to Cengroup Petroleum Corporation. Earlier this year the Company had ended its agreement with Bradley Miller and Speedteq-Ti to seek a more profitable business model for shareholders. Also, to improve liquidity within the Company's stock, the Board has approved two-for-one forward stock split. Both the stock split and symbol change are expected to occur within the next two weeks.
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Liska Biometry Secures $5 Million Financing with Asset Management Firm Liska Biometry, Inc. (LSKA) completed a $5 million financing agreement with a New York-based asset management firm. The financing consists of two separate convertible notes; a $3 million note, convertible into common stock at $0.40, and a $2 million note, convertible into common stock at $0.60. Both notes bear an interest rate of 10% per annum and are due 2009 unless converted into common stock of Liska. Liska also granted warrants exercisable at any time prior to May 31, 2013, to purchase 12.5MM shares of its Common Stock at an exercise price of $0.40 per share. The company will file a registration statement with the SEC to register the common stock issuable upon conversion of the notes as well as the common stock underlying the warrants.
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Steel Partners Submits Proposal to Acquire Stratos; Shares Climb Almost 18%
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Steel Partners II, L.P. announced today that it has sent a letter to the President and Chief Executive Officer of Stratos International, Inc. (STLW) stating its willingness to acquire all of the common stock of Stratos it does not already own for $7.50 per share in cash. Steel Partners currently owns approximately 15% of the outstanding Common Stock of Stratos, which is headquartered in Chicago, Illinois.
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Bullet Points
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PURSUING PROSPECTS: Blue Diamond Ventures, Inc. (BLDV) announced it is confidently moving forward with its goal to build goat processing facilities and an ethanol plant. Last month Blue Diamond submitted to the Belizean government a formal proposal for the purchase of the Libertad Sugar Factory. The Government of Belize, acting through the Ministry of Agriculture, acknowledged their receipt of the proposal and responded they are not in a position to act on the offer from Blue Diamond until a stand-still period of approximately 45 days has expired due to feasibility studies being carried out as a result of a recent Memorandum of Understanding.
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REPORTS FORECAST: Genelabs Technologies, Inc. (GNLB) announced that, after its receipt of $12.5 million in up-front payments under its recently announced agreement with Novartis, Genelabs expects its June 30, 2006 cash and cash equivalents to be approximately $15 million. The mid-year cash level anticipated by the company accounts for costs related to closing the transaction and anticipated second quarter operating expenses. The company estimates that this cash balance together with anticipated funding under its hepatitis C virus collaborations with Novartis and Gilead, and in the absence of earning any milestones, would be sufficient to fund its current operations until approximately the beginning of 2008. Genelabs is presently in the process of appealing an earlier Nasdaq staff determination related to its compliance with Nasdaq Marketplace Rule 4310(c)(2)(B), which requires the company to have either a minimum of $2,500,000 in shareholder's equity or a market capitalization of $35,000,000.
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FURTHER SHIPMENT TO TURKEY: Current Technology Corp. (CRTCF) reports the shipment of two more ElectroTrichoGenesis ("ETG") devices to its exclusive distributor in the Republic of Turkey, Sanomed Medikal Teknoloji Co. ("Sanomed"). "We shipped two devices to Istanbul in late March," states Current Technology's COO Anthony Harrison. "The shipment of two more ETG devices in early June certainly confirms our belief in Sanomed's principal, Mr. Ali Bicken."
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PROVIDES SALES UPDATE: Wescorp Energy, Inc. (WSCE) announced that sales for its Flowstar Technologies Inc. division continue to gain strength. Based on sales recorded to date, second quarter revenue for the division is accelerating and will exceed that of the first quarter by a material margin. Compared to the second quarter of fiscal 2005, same quarter sales will be significantly higher in 2006. The same quarter and sequential revenue growth first indicated at the beginning of the year confirms that the upward trend remains intact and should result in revenue expectations for the remainder of 2006 being met.
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FDA CLEARANCE: BioSphere Medical, Inc. (BSMD) announced that the FDA has cleared the BioSphere Medical Sequitor(TM) Steerable Guidewire ("Sequitor") Premarket Notification (510K) that allows Sequitor to be marketed in the United States. Sequitor is expected to begin shipping in the United States in July 2006. Following the completion of certain documentation requirements to conform to European regulations, BioSphere also expects to complete the CE marking of Sequitor and to launch it in Europe in July 2006. CE marking denotes conformity with European Medical Device Directive (EC Council Directives 93/42/EEC) and allows for marketing in European Union countries.
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FILES MIXED SECURITIES SHELF: Questcor Pharmaceuticals Inc. (QSC) filed to sell up to $25 million in mixed securities from time to time, according to a shelf filing with the SEC. The company said the mixed securities include common stock, debt securities and warrants. Questcor Pharmaceuticals said it currently intends to use net proceeds from the sale of the securities to fund product development and licensing, and acquisitions of businesses, technologies or products that complement its current business. It may also use proceeds for working capital, capital expenditures and other general corporate purposes, Friday's filing said.
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INVESTING $16M: On June 8, 2006, REX Stores Corporation (RSC), through a wholly owned subsidiary, entered into an agreement to invest $16 million in a limited liability company that intends to construct and, subsequently, operate an ethanol producing facility. The equity investment is expected to occur before December 31, 2006, subject to the limited liability company obtaining additional financing and certain other conditions. On June 2, 2006, the Company's contingent agreement to invest $7.5 million in a limited liability company organized to construct and, subsequently, operate an ethanol producing facility was cancelled by mutual agreement. The Company also cancelled the $7.5 million irrevocable letter of credit to secure the Company's obligation to fund the equity investment.
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EXPANDS INTO PERU: Gran Tierra Energy, Inc. (GTRE) announced it has signed a License Contract for the Exploration and Exploitation of Hydrocarbons in Peru, covering Block 122. The contract was signed on June 8, 2006 between Gran Tierra Energy Peru and PeruPetro S.A. and will become effective once ratified by Supreme Decree, which is expected in July, 2006.
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Morning Comment
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On a Friday afternoon, the market was unwilling to add to Thursday's 175 point reversal ahead of this week's PPI, CPI, Retail, Manufacturing, and Consumer Sentiment. If that weren't enough, the Fed Chairman will be speaking no less than 3 times this week. The market was nervous, and understandably so. However, the lows seen in the major market indices hit extreme oversold levels and reached down to critical support points, while posting climactic type readings intra-day. In a full-fledged bear market, we could see those readings persists. It would be rather unusual to see such a significant turn right off of new highs without building a top of some consequence. Should our expectation for a consolidation in June and a mediocre rally in July/August hold true, we could, and should, very well be in the process of making that top.
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There isn't any major economic news scheduled for today. Tomorrow will start the onslaught of data that will either undermine this attempt at a recovery rally, or will help give us some legs to construct a base. Since the expectations have been dragged down with the market action, we would suspect that much of the bad news has been built it. Maybe not the absolute worse case scenario, but certainly some level of negative inflation data is being anticipated. Any good news, especially on the inflation front, should be cause to send the markets higher. Ben Bernanke has the first of his appearances, and he could use this opportunity to try to sooth market concerns. The market is acting a bit better pre-opening.
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"TODAYS CALENDAR & EVENTS 6/12/2006" "By Trade The News Staff"
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Economic
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02:00pm May Monthly Budget Statement (last -$35.4B)
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Events
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Bear Stearns Technology Conference in NYC through 6/13. Piper Jaffray
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Global Internet Summit in Laguna Nigel through 6/14. DB Media/Telecom
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conference in Santa Monica through 6/14. Pacific Growth Equities Life
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Sciences Growth conference in SF through 6/14. Fed's Pianalto speaks on Economy and Monetary Policy in FL at 9:15am.
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Fed's Fisher speaks on U.S. Global Policy in TX at 10:30am. Fed's Olson speaks at Banking Regulatory
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conference in FL at 12:15pm. Fed's Bies speaks on Risk Management in DC at 4:00pm. PETS to replace TNM in S&P SmallCap 600 after close of trading.
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Fed's Bernanke speaks on Bank Supervision in DC at 7:30pm.
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Trading
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Ex-split: B 2-1, EXPO 2-1, FD 2-1, MAR 2-1, TRN 3-2. Trades Ex-dividend: HPQ $0.08.
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Earnings
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Before the Open: LEH STEI. After the Close: None.
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"TODAYS CALENDAR & EVENTS 6/12/2006" "By Trade The News Staff"
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Disclaimer:
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This report has been prepared by Under the Radar Newsletter and UTR Newsletter, Hot Picks as indicated on the cover page hereof. This report has been adopted and approved for distribution in the United States by Under The Radar Newsletter LLC for its and its affiliates' customers. This publication does not constitute an offer or solicitation of any transaction in any securities referred to herein. Any recommendation contained herein may not be suitable for all investors. Although the information contained in the subject report (not including disclosures contained herein) has been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. This publication and any recommendation contained herein speak only as of the date hereof and are subject to change without notice. Under The Radar Newsletter and its affiliated companies and employees shall have no obligation to update or amend any information or opinion contained herein. This publication is being furnished to you for informational purposes only and on the condition that it will not form the sole basis for any investment decision. Each investor must make their own determination of the appropriateness of an investment in any securities referred to herein based on the tax, or other considerations applicable to such investor and its own investment strategy. By virtue of this publication, neither Under The Radar Newsletter nor any of its employees shall be responsible for any investment decision. This report may not be reproduced, distributed, or published without the prior consent of Under The Radar Newsletter©2005. All rights reserved by Under The Radar Newsletter. Under The Radar Newsletter and its logo are registered trademarks of The Under The Radar Newsletter LLC.
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This report may discuss numerous securities, some of which may not be qualified for sale in certain states and may therefore not be offered to investors in such states. This document should not be construed as providing investment services. Investing in non-U.S. securities including ADRs involves significant risks such as fluctuation of exchange rates that may have adverse effects on the value or price of income derived from the security. Securities of some foreign companies may be less liquid and prices more volatile than securities of U.S. companies. Securities of non- U.S. issuers may not be registered with or subject to Securities and Exchange Commission reporting requirements; therefore, information regarding such issuers may be limited.
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