06/11/2006
VOLUME 242
Companies featured in the current edition of the newsletter: ADSX, ALRX, ASPN, CDGT, CLRI, ENZ, FLWE, GNBT, GSHF, HOM, HYTM, ISON, ITRO, IVOI, LNXGF, NTST, PEFF, POIG, PTCH, PTSEF, RGEN, SOG.V, SOYO, ZIOP
A brutal sell-off last week tested the resolve of even the most resolute bulls, as each time stocks attempted to rally it was met with another bout of selling. The sell-off that began on Monday after Fed Chairman expressed inflationary concerns, continued throughout the week as all of the major indices posted large declines. The Dow lost 355 points, reducing its annual gain to 1.6%. The Nasdaq sunk back into negative territory for the year by losing 84 points, causing annual losses to increase to 3.2%. The S&P shed 35 points, lowering its annual gain to just 0.3%. The Russell experienced the biggest decline for the week by losing 36 points and reducing its year-to-date gain to 4.2%.
The lack of significant economic or earnings reports last week did little to prevent extreme volatility for the stock market, as comments from the Fed Chief and a number of Fed officials heightened the probability of future rate hikes. Despite concerns that high gas prices are taking a large toll on American households as noted by former Fed Chairman Greenspan, Bernanke stood firm on his belief that a slowing economy may not quell inflation. Oil prices ended relatively flat for the week at $72 a barrel, where the 10-year note followed in similar fashion as its yield remained at 4.98%, little changed from 4.99% the prior week. With this backdrop, the release of PPI and CPI data along with retail sales and industrial production numbers could have an even greater impact.
What should investors look for this week? Three of the largest Wall Street brokerage firms will release their quarterly profits as Lehman Brothers (NYSE: LEH) will announce results on Monday morning, Goldman Sachs (NYSE: GS) on Tuesday before the bell and Bear Stearns (NYSE: BSC) on Thursday prior to the open. Additionally, consumer electronics company Best Buy (NYSE: BBY) will report quarterly results on Tuesday morning and Carnival Corp. (NYSE: CCL) will do the same on Thursday morning. Investors will also get some insight about the real estate market as home-builder KB Home (NYSE: KBH) will announce quarterly results on Thursday after the close.
The conference schedule will be busy. Bear Stearns kicks starts off the week by hosting its annual two-day Technology Conference in New York beginning on Monday. Starting on Tuesday, CIBC will hold a two-day Industrial Products & Capital Goods conference in New York while Deutsche Bank hosts its two-day Media & Telecom Conference in Santa Monica, California. Also beginning on Tuesday, Credit Suisse will host a three-day Consumer and Retail Conference in New York. On Wednesday, Needham & Co. starts its two-day 5th Annual Biotechnology Conference in New York. And finally on Thursday and Friday, Morgan Stanley wraps the week up with its Small Cap Executive Conference in New York.
However, investors will be most focused this week on inflation, as key economic reports are released. On Tuesday, the Producer Price Index for May will be announced, while on Wednesday the widely followed Consumer Price Index will be posted. If for the third consecutive month the May CPI equals 0.3%, it is almost certain that an additional rate hike at the end of June will happen. The market is currently factoring in a 75% chance of Bernanke raising rates for the 17th straight time. Other notable reports released early this week include the May Treasury Budget on Monday afternoon, followed by May Retail Sales and April Business Inventories on Tuesday morning. Weekly crude oil and gasoline inventories will be reported on Wednesday morning and the Fed’s Beige Book later that afternoon. Thursday will bring a number of releases with the June NY Empire State Manufacturing Index, May Industrial Production and Capacity Utilization, April Net Foreign Purchases, the Philadelphia Fed Index for June and the weekly Employment Report all being released in the first half of the day. The week concludes with the First Quarter Current Account and the June Michigan Sentiment report. The markets are also likely to react to comments from numerous Fed officials who will be making speeches throughout the week, including Bernanke, Pianalto, Fisher and Olson on Monday, Minehan and Kroszner on Thursday, Poole and Kohn on Friday. Traders should pay close attention as these speeches have moved the market significantly over the past few weeks.
Shares of Hythiam, Inc. (NASDAQ: HYTM), a healthcare services management company that licenses the PROMETA™ physiological protocols designed to treat substance dependence, posted their biggest gain on Friday in more than two months, as investors reacted to news earlier in the week that the State of Arizona had become the most recent state looking to consider PROMETA as a treatment option if the commercial pilot being conducted by Community Bridges is successful. Community Bridges is the largest provider of medical addiction treatment in Arizona and treats 15,500 people per year. Already, Idaho and Washington are evaluating the protocol in tests to determine efficacy, which we believe will lead to reimbursement once the studies are completed. Last week, the company said that PROMETA had been licensed to Renaissance Recovery Services, LLC, for use at the world-class Renaissance Malibu treatment facility. Such an association with this premier holistic residential center further strengthens Hythiam’s brand name as it continues to attract the interest of well-known leaders in this industry. Finally, Harold C. Urschel, III, M.D. will present results from a study of the PROMETA treatment protocol for methamphetamine dependence on June 21st at an industry meeting on drug dependence. Initial results from this study showed no adverse events and that more than 80% of study participants experienced a significant clinical benefit. However, as more details become available it could serve as an additional catalyst for the stock. Share of Hythiam remain on the Reg SHO Threshold security list suggesting a high level of short interest which could serve as a catalyst for the stock. The stock is likely to be included in the companies added to the Russell 2000 when the preliminary list is published on Friday. Shares rose 47 cents to close the week at $7.60.
Home Solutions of America, Inc. (AMEX: HOM), a provider of recovery, restoration and rebuilding/remodeling services, should significantly benefit from a bill that was agreed to by both branches of Congress, expected to reach President Bush’s desk for ratification this week, which will provide significant spending for hurricane relief in the Gulf Coast. The bill contains $19.8 billion in new money for hurricane relief along the Gulf Coast, including housing aid and flood control projects for Louisiana, small business disaster loans, rebuilding federal facilities damaged by Hurricane Katrina and replenishing Federal Emergency Management Agency disaster relief coffers. The $19.8 billion included in the bill for hurricane relief includes: $4.2 billion expected to go to meet Louisiana’s housing recovery needs $3.7 billion for federal flood control projects in the New Orleans area and $6 billion for the Federal Emergency Management Agency’s disaster fund, which includes $400 million for temporary housing sturdier than FEMA trailers ((note HOM could benefit here through its relationship with American Renaissance Homes to build affordable housing which directly targets those living in trailers; HOM has estimated it will generate just $5 million in revenue this year from that relationship, suggesting potential upside). The funds also go toward debris removal, reimbursing state and local governments for infrastructure repairs and direct aid to individuals, which is right in the “sweet spot” of the services the company provides. Our discussions with parties in the area suggest that spending has significantly increased in recent weeks, which bodes well for the company’s second quarter results. The company will hold its Annual Meeting on Friday in Dallas. Investors who are unable to attend will be able to listen to the presentation via a webcast the company will hold. Note that as of the publication of this newsletter, the first tropical depression was reported. Although not expected to make land in Florida with the strentgh of a hurricane, it occurred just nine days after the official start of Hurricane Season, which is far earlier than the first event last year, when there were a record 15 hurricanes. Scientists predict the 2006 season could produce up to 16 named storms, six of them major hurricanes. The company will be added to the list of stocks included in the Russell 2000 when the preliminary list is published on Friday after the market’s close. The rankings were determined by market capitalization on May 31st. The stock closed Friday at $7.55, down $2.15 for the week.
Volume Alert: Shares of Netsmart Technologies, Inc. (NASDAQ:NTST), a leading provider of enterprise-wide software for health and human services organizations, traded thirteen times the average volume as the company was awarded a contract totaling more than $2 million by Kalamazoo Community Mental Health and Substance Abuse Services of Michigan. This 5 year agreement includes software, professional services, application service provider (ASP) services and software maintenance. According to Kalamazoo’s management, the decision was based on Netsmart’s breadth of capabilities, industry expertise and financial stability, all of which make Netsmart an ideal partner. Also, Griffin Securities, a New York-based broker dealer, increased its 12-month price target on the stock last week to $23 per share. The stock closed the week at $13.36, up 76 cents.
Applied Digital (NASDAQ: ADSX), a leading provider of identification and security technology, reported that its subsidiary Government Telecommunications, Inc was one of two companies to receive an Indefinite Delivery – Indefinite Quantity contract by the Department of Justice. The aggregate ceiling on spending for the project reaches up to $50 million between both parties which calls for both companies to provide telecommunications equipment and telephone maintenance support services to over 260 United States Attorney’s offices throughout the U.S. and U.S. Territories. The contract length is up to seven years. Shares fell 5 cents to close the week at $2.10.
Generex Biotechnology Corporation (NASDAQ: GNBT), a leader in the area of buccal drug delivery, which currently holds 73 patents worldwide, continues to strengthen its platform technology and was granted a patent by the Mexican Institute of Industrial Property titled Aerosol Formulations for Buccal and Pulmonary Application. The patent relates to an improved delivery system for the administration of large-molecule pharmaceuticals which may be administered by means of an aerosol into the mouth. This patent is one of three that have been granted to the company in Mexico over the past three months for its buccal drug delivery technologies. The stock ended the week at $1.76 down 11 cents.
Enzo Biochem, Inc. (NYSE: ENZ), developer of innovative health care products based on molecular biology and genetic engineering techniques, reported operating results for the fiscal three and nine months ended April 30, 2006. Revenue for three months declined to $9.6 million from $11.0 million as results were affected by price competition and continuing litigation expenses. Losses per share totaled $0.11 compared to per share losses of $0.05 in the year-earlier period. For the nine month period revenue was $29.9 million with losses per share of $0.35 compared to $32.5 million in sales and earnings per share of $0.15, which included the initial gain of a patent suit settlement. Management had positive comments on the progress being made at Enzo Therapeutics and in the growth of its intellectual property base. Recently, the company was issued a new patent in the area of genetic labeling that targets molecular testing a rapidly growing area of medicine that has a wide range of applications in both predictive diagnostics and personalized medicine. With additions of key personnel to its staff the company has created a much stronger organization to implement its business plan. Enrollment of patients in the Phase II clinical trials of both EGS21 and Alequel™ that target Crohn’s Disease continue to move forward where site selection for expanding these trials is actively underway. The Phase I-II clinical trial of the Company’s Stealth Vector HGTV43(TM) genetic construct for HIV-1 is progressing, with patient enrollment anticipated shortly. Shares declined 29 cents for the week to close at $10.08.
Repligen Corporation (NASDAQ: RGEN), a biopharmaceutical company committed to being the leader in the development of novel therapeutics for profound neuropsychiatric disorders and autoimmune disease, reported solid financial results for its fiscal fourth quarter and year ended March 31st. Repligen met its full-year guidance with $12.9 million in revenue, which is a 38% increase from 2005. Meanwhile, net income was $697,000 for the year, which is a significant improvement on the $3 million net loss a year ago. The increase in sales was due to higher customer demand while the company used its new profits to reinvest into its product development pipeline and expansion of its manufacturing capacity, which should drive future growth. Additionally, Repligen announced that it has initiated a clinical trial to evaluate the use of secretin, its agent to improve the detection of structural abnormalities of the pancreatic ducts during MRI imaging of the pancreas. Following extensive discussions with the FDA, this clinical study should provide RGEN with meaningful data on the use of secretin to aid in the detection of structural abnormalities of the pancreas, where the company believes that there may be more than 100,000 potential MRI images of the pancreas in the U.S. each year that could benefit from the use of secretin. Shares fell 14 cents to end the week at $3.06.
Isonics Corporation (NASDAQ: ISON), developer of innovative solutions for the homeland security and semiconductor markets, as a result of strong demand for its 300mm silicon test wafers and wafer reclamation services reported revenue of over $800,000 for the month of May and accounted for over 50% of revenues. This milestone is significant as such products will ultimately improve overall margins for the company as its customer base grows and new products are added to the product-line. The stock declined 7 cents to close at $0.80 for the week.
ZIOPHARM Oncology, Inc. (OTCBB: ZIOP), developer of diverse, in-licensed cancer drugs to address unmet medical needs, presented preliminary data from a Phase I study of ZIO-201 at the 2006 American Society of Clinical Oncology Annual Meeting. These data support the company’s premise that certain adverse events associated with ifosfamide, an approved cancer drug extensively used in the U.S. and Europe, can be avoided with ZIO-201, the active metabolite of ifosfamide. ZIO-201 can be given at much higher doses than ifosfamide and without extensive intravenous hydration or co-administration of the drug mesna, protective measures required with ifosfamide use. The possibility of achieving comparable or greater efficacy with less toxicity is an exciting opportunity for ZIOP. The stock declined 50 cents to close at $5.35 for the week.
Junior energy company Aspen Exploration Corporation (OTCBB: ASPN), announced the successful flow test on its Zimmerman #22-2 well, located in the Rice Creek Gas Field in California. A depth of 5,600 feet was drilled where approximately 75 feet of potential net gas pay was encountered in several intervals in the Forbes formation that indicates this well is capable of flowing at higher gas rates. Aspen has a 23.33% operated working interest in this well. It was also announced that the company’s Morris #1-13 well in Northern California was drilled to an undisclosed depth and encountered approximately 80 feet of potential net gas pay in the Forbes formation where Aspen will drill this well deeper after the casing is done. The company continues to create shareholder value as this was the ninth successful gas well out of nine attempts by Aspen in this field. The stock rose 16 cents to close at $4.35.
China Digital Media Corporation (OTCBB: CDGT), a rapidly developing digital media company in China, is expected to benefit from Nanhai being selected as a trial city for the “Digital Home Project” where homes located in that region will receive digital technology. Over the past two years, the company’s subsidiary Arcotect (Guangzhou) Ltd. has been providing digital TV services in this area and building brand awareness. This trial will be fully launched in a selected district in Nanhai in 2007, which covers about 70,000 households creating a significant opportunity for the company in a short period of time. Shares fell 2 cents to close the week at $1.18.
Clearant, Inc. (OTCBB: CLRI), the developer of the patent-protected CLEARANT PROCESS® for pathogen inactivation, achieved the first important milestone in its direct distribution strategy. Four representatives were hired to implement the company’s distribution of its CLEARANT-PROCESS to the lucrative, fast-growing spinal market. Such a milestone comes not long after the company outlined its new business plan of directly distributing its allograft implants treated with the CLEARANT-PROCESS, avoiding its dependence on third party distributors for sales growth. The new hires bring significant experience to the company with proven track records and will focus on distributing placing products in the cervical spinal market. As 30-50 surgeons in these markets perform approximately 80% of the procedures, the company’s top-line should be positively impacted as such sales representatives successfully place product. Despite the news the stock fell 26 cents to close at $0.80 for the week.
Power Efficiency Corporation (OTCBB: PEFF), a developer and manufacturer of advanced energy savings technologies for electric motors, continued its recent streak of successful tests of its technology on escalators in the hotel and casino industry. The latest test took place on two escalators at the Stratosphere Casino Hotel and Tower, one of the most recognizable properties on the Las Vegas Strip, and showed a 30% energy saving. With positive results in numerous recent tests, PEFF expects to increase its sales for escalator applications significantly in the coming months. The stock fell 3 cents to close the week at $0.25.
Junior energy company Petrol Oil and Gas, Inc. (OTCBB: POIG) plans to accelerate development activities on its coal bed methane Coal Creek Project after the company received an additional $10 million in financing from Laurus Master Fund. Up to date, POIG has received an aggregate of $25 million from Laurus based on a November 2005 agreement that provides debt financing of up to $50 million. As a result of these new funds, POIG’s field operations team will be able to accelerate the new well drilling and development program in the area, which should significantly increase company’s fiscal 2006 revenues and enhance its reserve and asset position. Since development began last November, Petrol has brought on line 44 production wells, 3 salt water disposal wells as well as gas gathering infrastructure. Shares rose 4 cents to close at $1.50 for the week.
Volume Alert: shares of AlphaRx Inc. (OTCBB: ALRX), an emerging biopharmaceutical company utilizing proprietary drug delivery technology to develop novel formulations of drugs, traded approximately 3 times average volume after the announcement that its CoQ10ER dietary supplement created to protect against age-related degeneration was licensed from Anti Aging Medical Group Corp. Such a contract highlights the fact that CoQ10ER recognizes industry trends and offers the nutritional benefits of a multivitamin along with the pep and energy of the popular non-caffeinated energy drinks. Shares rose 1 penny to close at $0.10 for the week.
Junior energy company Fellows Energy Ltd. (OTCBB: FLWE), successfully completed the first of many steps aimed at increasing production where it mobilized equipment to perform workovers on the second and third wells in the 5,953-acre Carbon County project in Utah. Workover operations began last Tuesday and will last roughly two weeks through 19 wells, after which the rig will move to begin workover operations on the second and third wells on the Creston project in the Uinta Basin in Utah. Increased production should result from the workovers of the Carbon County wells, to be followed by drilling of up to 20 new wells on the project acreage. Shares fell 4 cents for the week to close at $0.20.
Environmental business development company GreenShift Corporation (OTCBB: GSHF), was awarded the 2006 Product Innovation Award in the field of electronic waste recycling by Frost & Sullivan for its Tornado Generator (TM) advanced electronic waste recycling solution. Such recognition highlights this products capability of drastically reducing the volume of waste materials where the volume of the input waste material stream is reduced to about 90 percent. Electronic waste recycling is increasingly receiving a major thrust as European nations and countries such as Japan, United States and China are adopting a number of initiatives in this market segment with the goal of safeguarding the environment from harmful toxic substances and bringing about the efficient recovery of useful components. It was also reported that the acquisition of Mean Green BioFuels, Inc. from GreenShift to Hugo International Telecom, Inc. was completed. Shares fell 3 cents to close at $0.19 for the week.
Junior mining exploration company Linux Gold Corp. (OTCBB: LNXGF) announced that analysis of soil and rock samples from its Granite Mountain property in Alaska returned encouraging results and confirmed gold-silver mineralization.This analysis supports the planned 2006 drill holes as excellent targets to intercept ore bearing mineralization in a transitional geologic environment that may host multiple deposit types such as the Galore Creek type Copper-Gold-Silver project owned by Nova Gold. Galore Creek is one of the largest and highest grade underdeveloped porphyry related copper deposits in North America. Despite the news, shares were down 6 cents to close the week at $0.34.
Points International (OTCBB: PTSEF), the owner and operator of the world’s leading reward management portal, announced that it has added yet another reward personalization tool to its portal. The new addition is a Suggestion Search tool that lets Points.com members find out what to do with their miles and points, using a simple query: “What can I get with X points in Y program?” Enhancements such as this should continue to attract new members to Points.com, which should in turn help drive future revenues for PTSEF. The stock ended the week at $0.65 down 4 cents.
SOYO Group, Inc. (OTCBB: SOYO), a leading global provider of computer, consumer electronics and broadband telecommunications products, announced that its SOYO 32-inch LCD HD-Ready televisions are now available at both Walmart.com and Samsclub.com. These e-stores serve a demographic of consumers that are both value-conscious and quality-oriented which should lead to great demand for SOYO’s line of affordable, large LCD entertainment televisions. This should be a significant catalyst for future growth. The stock lost 3 cents for the week to close at $0.41.
Itronics, Inc. (OTCBB: ITRO), a “Creative Environmental Technology” company and a world technology leader in photochemical recycling, reported that GOLD’n GRO fertilizer division sales by its subsidiary, Itronics Metallurgical, Inc. for the first two months of the second quarter of 2006 grew an impressive 50.1% to $491,000. Furthermore sales for the first five months of the year grew to $823,000 an increase of 39%. Such top-line growth occurred despite the wet weather in California during that time period. Shares rose 1 penny to close at $0.04 for the week.
On The Wires:
Enzo Biochem, Inc. (NYSE: ENZ), developer of innovative health care products based on molecular biology and genetic engineering techniques, appointed Andrew R. Crescenzo to the newly-created position of Senior VP of Finance. Mr. Crescenzo is a CPA and was previously an Executive Director with Grant Thornton. Additionally, Enzo Biochem also appointed Carl W. Balezentis, Ph.D. to the newly-created position of President of its Enzo Life Sciences subsidiary. Dr. Balezentis was previously the CEO of Lark Technologies, prior to its acquisition by Genaissance Pharmaceuticals. Junior oil and gas producer, Patch International Inc. (OTCBB: PTCH), will update its existing and prospective shareholders when members of the company’s management team make an investor presentation to The Harvard Investors Group on June 12 in advance of PTCH’s active summer drilling program. Separately, PTCH also appointed Cam Dawes to the position of Senior Geological Consultant. CEO of Junior energy company Fellows Energy Ltd. (OTCBB: FLWE) announced the appointment of Viraj Patel to its Board of Directors. Patel has significant experience in the finance and banking industries and will assist the company in its ongoing activities in joint venture and private investor financing.
SPECIAL SITUATIONS:
Strategic Oil & Gas Ltd. (TSX VENTURE: SOG) $1.65
With oil prices hovering above $70 a barrel, many oil and gas stocks have enjoyed double or even triple digit percentage returns over the past three years. However, investors are now realizing that in order to enjoy such attractive returns, they need to do more than simply invest in the overall sector and its widely known names. Instead, investors need to look for promising, undiscovered companies. Since the oil & gas behemoths, such as Exxon Mobil and BP, have already seen their stock prices bid up to unprecedented levels, the returns generated by these stocks have been unexcistin. For example, over the past 12 months, an investment in BP has returned only 7.6% while Exxon is up less than 3%. What if you could own an interest in properties acquired by much larger companies, but have the leverage in returns offered by a much smaller company with far fewer shares? One such company providing this is Vancouver-based Strategic Oil & Gas which has build an impressive portfolio of properties in Alberta, Canada and in Wyoming in the U.S. Investors have begun to recognize the opportunity provided by its stock, as shares have already tripled this year.
So what makes the company so intriguing? The interest that it owns in Wyoming is in the Jonah/Pinedale area. Strategic recently acquired a 22.5% working interest in an extremely promising prospect located in the Pinedale Anticline which neighbors the prolific Jonah reserve that is estimated to have an ultimate recovery of 3 trillion cubic feet of gas equivalent and is currently producing more than 700 million cubic feet of gas per day. But while Jonah is obviously a proven giant, Pinedale – which is where the acquired interest is located – may turn out to be an even larger “sleeping” giant as it is already producing in excess of 500 million cubic feet of gas per day and its prospective section is twice as thick as that in Jonah. The company’s partner in the venture is Jed Oil (AMEX: JDO), which currently enjoys a market cap of more than $220 million. Another company operating in the Jonah/Pinedale area, Ultra Petroleum (AMEX: UPL), has seen its market cap increase 12-fold over the past three years to more than $8 billion, largely as a result of its success in the area. By contrast, Strategic Oil & Gas currently has a market cap equivalent to only $22 million.
Investors will not have to wait long to see whether the company is likely to enjoy significant success in this venture, as the first well on this property should be completed this summer. The full development of the Pinedale Anticline section could result in a major jump in revenues as Strategic’s share of daily production could reach 1,600 barrels of oil equivalent or more – that would result in annual revenues of approximately $40 million!
The company’s management team has proven itself successful in the past and has used its success to forge important relationships. For instance, in Canada, the company has a very close working relationship with privately-held Gladius Oil which has the requisite geological staff to generate a number of key exploration projects that Strategic has elected to participate in. Such a relationship allows the company to participate in the exploration of promising properties without having the overhead expenses usually needed to identify such projects. This seems like a very prudent way of building a business. Recently, the company raised approximately $6.4 million Canadian and has drilled the first 5 wells with Gladius. The initial goal from this first program is to develop daily production of 250 to 400 BOE in Canada. Judging by recent successes at the first 3 wells, the upper end of this target could be reached or exceeded – that would be equivalent to approximately $10 million in annual revenues using current oil prices. While Strategic’s working interest is approximately 26% in these wells, this is only the first program with Gladius and this relationship should be expanded in the future.
Shares have more than doubled since the company acquired its stake in the Pinedale property. With funding in place and a larger, experienced partner handling the exploration work, the company appears to have all of the elements necessary to participate in one of the most promising energy plays in the country. While nobody is forecasting the success that Ulta Petroleum enjoyed, with a small share count SOG could generate outsized earnings per share if the play proves to be even a fraction as successful as it has been for Ultra Petroleum.
iVoice, Inc. (OTCBB: IVOI) $0.08
By owning shares of iVoice, Inc., investors are able to participate in a number of exciting industries as the company’s business model is centered around acquiring promising companies and combining them into one single organization. Shareholders are rewarded with common stock distributions of such purchases as iVoice, Inc. transitions itself to focus on the development and licensing of proprietary technologies.
Last week, the company announced that it had plans to enter the alternative energy sector. While the company provided few details on its targets, if it successfully adds a promising technology platform to its group of companies it could serve as a catalyst for the stock. The alternative energy sector has been one of the groups that have performed the best this year, with Special Situations such as Rentech and GreenShift up significantly in price. If the company is able to acquire such a company in the upcoming weeks, it could serve as a catalyst for the stock.
Ultimately, if successful in the alternative energy sector, investors could have a direct stake in that sector. Last month, iVoice, Inc. announced its fifth common stock distribution to stockholders in three years. Previous stock distributions consisted of companies with specialties in various areas including speech recognition; unified messaging; interactive voice response line of computerized telephony software, with the most recent stock distribution announcement (pending SEC effectiveness), focusing on the UV, Visible and IR laser technology for scientific, medical and government applications, no record date has been set yet for this distribution.
To further expand its diversification, iVoice also has a subsidiary, Thomas Pharmaceuticals, which develops and markets over-the-counter healthcare products with a focus on high-end, branded consumables. Recently Thomas Pharmaceuticals reported its first shipment of its lead product, Acid + All(TM), to Walgreens drugstores, which has over 5,200 drugstores nationwide. Such great news from this one subsidiary was in addition to the recent announcement made by Trey Resources, a spin-off company of iVoice, where it was reported that Trey closed on the largest software sale in its history worth roughly $350,000, announced an additional acquisition of $1.8 million in revenue and had a record sales month last month. Further great news was made from Deep Field Technologies, Inc., a spin-off company of iVoice, that the company had entered into a non-binding letter of intent to merge with Beijing Sino-US Jinche Yingang Auto Technological Services Ltd. (“AutoMart”), the premier automobile after service company in Beijing, China.
As management continues to execute its strategy, it has strong support from Glynn Tech Inc. to serve as its licensing agent for speaking product packaging technology. This partner has an impressive track record of success and has been involved in licensing of a variety of technologies for more than thirty years for well-known products including SuperSoaker Watergun and RotoWrench. With the help of Glynn Tech, iVoice recently authorized an agreement with Lamson Holdings LLC for the sale of selected patents from iVoice that will further bolster the iVoice’s cash reserves.
Nineteen patent applications and two international patents have been filed by iVoice and four have currently been awarded. A number of such applications pertain to wirelessly loaded product containers, including prescription medicine containers and OTC medicine containers that contain wirelessly downloaded instructions and warnings for subsequent audio playback. As the Baby-Boom generation ages, such value-added offerings should attract a great deal of interest. The quality of intellectual property is a vital part of iVoice’s execution strategy as it significantly enhances shareholder value. With over $10 million sitting in cash, investors have much to look forward to as management continues to acquire promising companies in diverse industries.
