Author Archive
TCCO Reports Results for the First Fiscal Quarter Ended 12/26/09
Feb 5, 2010 – CONCORD, Mass.–(BUSINESS WIRE)–Technical Communications Corporation (OTC BB: TCCO.OB – News) today announced its results for the fiscal quarter ended December 26, 2009. For the first quarter of the Company’s 2010 fiscal year, the Company reported net income of $2,356,000, or $1.62 per share, on revenue of $4,764,000, as compared to net income of $206,000, or $0.14 per share, on revenue of $1,844,000 for the quarter ended December 27, 2008. Included in net income for each of the quarters ended December 26, 2009 and December 27, 2008 is $(19,000), or ($0.01) per share, respectively, in stock-based compensation expense.
Super 7 Update – SPCK and DSNY
1) Superclick Reports Record Revenue and Net Income for the Fiscal Year Ended October 31, 2009 (1/13/09)
2) Destiny Media Q1 Record Revenues Jump 89% (1/14/09)
Pennyheaven Super 7 (2010)
Once again, our main criterion is growth: earnings, sales, and/or revenues must be increasing. The second criterion is profitability. All companies listed are currently profitable. Prices reflect close of business 12/31/09. Best of Luck!
1) Brekford Corp BFDI (.15)
57,815,513 shares outstanding (s/o) as of 11/2/09
$1.06m cash; 86k debt
9-month sales up 16%
9-month net earnings (+ .01) v (- .03)
Market Cap – $8.67m
Brekford Corp. is a leading homeland technology service provider of fully integrated vehicle installation and rugged technology solutions geared towards mission critical operations. For more than a decade, the company has provided services to branches of the U.S. military, various federal entities and numerous security and public safety agencies. Brekford provides these agencies with an end-to-end suite of mobile products and services designed to streamline procurement and operations.
Brekford 360 Degree vehicle solutions provides complete vehicle upfitting, mobile data and video solutions including municipal financing and leasing services for agencies. The 360 Degree vehicle solutions approach provides customers with a one stop upfitting, cutting edge technology and installation service.
For more Company information, please see website: http://www.brekford.com
2) Biostar Pharmaceuticals, Inc. BSPM (4.45)
23,240,899 s/o as of 11/10/09
$2.45m cash; 0 debt
9-month net sales up 52%
9-month net earnings (+ .37) v (+ .18)
Market Cap – $103.43m
Biostar Pharmaceuticals, Inc., through its wholly-owned subsidiary in China, develops, manufactures and markets pharmaceutical and medical nutrient products for a variety of diseases and conditions. The Company’s most popular product is its Xin Ao Xing Oleanolic Acid Capsule, an over-the-counter (“OTC”) medicine for chronic hepatitis B, a disease affecting approximately 10% of the Chinese population. In addition to its hepatitis product, Biostar manufactures two broad-based OTC products, two prescription-based pharmaceuticals and thirteen nutrients. The Company has adopted international standards and is in the process of applying for two patents.
3) Destiny Media Technologies DSNY (.49)
52,059,647 s/o as of 11/26/09
$253k cash, 68k debt
Net income 2009 (+ .01) v (- .05) (2008)
Market Cap – $27.59m
From 10-K (11/30/2009)
Revenue continued to grow during our fourth quarter and was the highest in the Company’s history. Fourth quarter revenue was 77% higher than the same quarter in the prior year and more than 31% above the previous quarter in fiscal 2009. Total revenue for the quarter is $872,569 (third quarter fiscal 2009 – $665,829). Total revenue for the year was $2,560,447 (2008 – $1,578,888), an increase of approximately 62% over the fiscal 2008 year.
Destiny Media (http://www.dsny.com) is the developer of the Play MPE® system (http://www.plaympe.com) which the recording industry uses to securely distribute new pre-release music through the internet to trusted recipients such as radio, media and VIP’s. Real time usage statistics are available at http://www.plaympe.com/v4/company/plaympestats.php
4) Stellar Pharmaceuticals Inc SLXCF (.98)
23,495,040 s/o as of 9/30/09
$1.91m cash; minimal debt
9-month net revenues up 61%
9-month net earnings (+ .01) v. (- .01)
Market Cap – $23.03m
Stellar Pharmaceuticals Inc has developed and is marketing direct in Canada and in countries around the world through out-license agreements two products based on its core polysaccharide technology: NeoVisc, for the treatment of osteoarthritis; and Uracyst, its patented technology for treatment of interstitial cystitis/painful bladder syndrome, an inflammatory disease of the urinary bladder wall. Stellar also has in-licensing agreement for the distribution and sale of NMP22 BladderChek, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer.
5) Superclick, Inc SPCK (.115)
45,312,251 s/o as of 8/31/09
$1.9m cash; 52k debt
9-month net revenue up 16%
9-month net (+ . 02) v. (+ .01)
Record quarterly revenues for the third quarter ending July 31, 2009
Market Cap – $5.21m
Superclick, Inc. through its wholly owned, Montreal-based subsidiary Superclick Networks, Inc., develops, manufactures, markets and supports the Superclick Internet Management System (SIMS(TM)), Monitoring and Management Application (MAMA(TM)) and Media Distribution System (MDS(TM)) in worldwide hospitality, conference center and event, multi-tenant unit (MTU) and university markets. Current clients include MTU residences and Candlewood Suites, Crowne Plaza, Fairmont Hotels and Resorts, Four Seasons Hotels and Resorts, Four Points by Sheraton, InterContinental Hotels Group PLC, Hilton, Holiday Inn, Holiday Inn Express, Hampton Inn, Mandarin Oriental Hotel Group Marriott, Novotel, Radisson, Sheraton, Westin and Wyndham hotels in Canada, the Caribbean and the United States.
Website: http://www.superclick.com/
6) Technical Communications TCCO (4.10)
1.47m s/o
5.42m cash; 0 debt
Market Cap – $6.02m
For the year ended September 26, 2009, the Company reported revenue of $7,752,000 and net income of $943,000, or $0.65 per share, as compared to revenue of $6,852,000 and net income of $1,061,000, or $0.75 per share, for fiscal 2008. For the quarter ended September 26, 2009, the Company reported net income of $235,000, or $0.16 per share, on revenue of $1,765,000, as compared to a net loss of $(87,000), or $(0.06) per share, on revenue of $1,204,000 for the quarter ended September 27, 2008.
TCC designs, manufactures, and supports superior grade secure communications systems that protect highly sensitive information transmitted over a wide range of data, voice and fax networks. TCC’s security solutions protect information privacy on every continent in over 110 countries. Government agencies, militaries, financial institutions, telecommunications carriers and multinational corporations worldwide rely on TCC to protect their communications networks.
Web Site: http://www.tccsecure.com
7) Tikcro Technologies TIKRF (.92)
~ 8.42m s/o
$7.4m cash; 0 debt
Market Cap – $7.75m
Tikcro Technologies Reports 2009 Third Quarter Results
Net income for the third quarter was $590,000 or $0.07 per diluted share. Net income for the nine months ended September 30, 2009 was $4.7 million or $0.56 per diluted share. Results for the third quarter included financial income of $692,000 primarily from to the valuation of Tikcro’s holdings in BioCancell Therapeutics, Inc., a clinical-stage biopharmaceutical company operating in the area of cancer treatment. Tikcro holds 36% of BioCancell, taking into account the conversion of a convertible note and exercise of warrants, and 27% on a fully diluted basis. Shares of BioCancell are traded on the Tel Aviv Stock Exchange.
Tikcro Technologies has holdings in BioCancell Therapeutics, Inc., a clinical-stage biopharmaceutical company operating in the area of cancer treatment. BioCancell is conducting the following clinical trials in Israel and in the U.S. using its leading drug, BC-819: – Phase IIb clinical trial for the treatment of superficial bladder carcinoma cancer – Phase I/IIa clinical trial for the treatment of ovarian cancer – Phase I/IIa clinical trial for the treatment of pancreatic cancer.
DISCLAIMER, PLEASE READ
Please be advised that nothing within this notice shall constitute a solicitation or an offer to buy or sell any security mentioned herein. All statements made are our express opinion only and should be treated as such. Nothing within this notice should be considered personalized investment advice. Pennyheaven.com is neither a registered investment advisor nor affiliated with any broker or dealer. Any investments in stocks recommended in this notice should be made only after consulting with your investment advisor and only after reviewing the financial statements of the company. We reserve the right to trade in and out of these stocks at will, before, during, and/or after publication. We have not been compensated by any individual or company and we do not accept any paid promotion. Please do your own DD and trade only what is right for you.
Three Things to Like About Technical Communications
From SeekingAlpha.com
I am reluctant to write about Technical Communications Corp. (TCCO.OB), a microcap manufacturer of encrypted communications devices. It took me weeks to even accumulate a small position at the prices I wanted to pay. The stock is damn difficult to buy, at least near the bid.
But it’s worth it. There are three reasons why I think that Technical Communications Corp. is a stock worth owning:
1. Low float could make any move explosive. The float is only 1.35 million shares, and the total share count only 1.45 million. Another plus: unlike many microcaps, this one won’t dilute you into oblivion. The share count barely nudged over the past year.
2. Very low enterprise value-to-sales ratio. TCCO has a market cap of 6.23M and posted sales last year of over 7M. But TCCO.OB also has 3.97M, or $2.73/share, in cash and equivalents. Back that out and the EV/S ratio is only 0.33 (all figures courtesy of Yahoo Finance).
3. Technical Communications made $0.19/share last quarter ($0.17 fully diluted). Even without backing out the cash, that annualizes out to a forward P/E under 7. Back out the cash and the forward P/E drops under 4. Now I’m not sure that TCCO can earn as much over the next 3 quarters as it did the last quarter, but it seems to me there is what Seth Klarman might call a Margin of Safety here.
A few caveats. As mentioned, the stock is very thinly traded. Sales are concentrated — 2 customers account for 78% of revenues. One of the big customers is Uncle Sam. Also, the earnings were boosted in part because tax loss carryforwards allowed the company to dramatically cut its tax liability and avoid paying taxes. There are still over $3 million in carryforwards, so I don’t anticipate a big jump in the tax burden this year. However, if TCCO remains profitable, understand that at some point the carryforwards will be utilized and TCCO will have to pay taxes just like you and me.
(TCCO closed today at $4.04)
Artificial Life, Inc. Announces Equity Investment from 3M and Strategic Alliance Agreement
Oct 26 – Artificial Life, Inc., (OTC Bulletin Board: ALIF) and 3M Company (“3M”; NYSE: MMM) today announced the signing of a securities purchase agreement (the “Purchase Agreement”) and a strategic alliance agreement between Artificial Life, Inc. and 3M Company.
Under the Purchase Agreement, Artificial Life, Inc. sold to 3M 6,447,491 shares of its common stock at a price of $1.00 per share, for an aggregate consideration of $6,447,491. The basic and diluted number of shares outstanding immediately after the transaction is 56,984,858 and 64,474,911, respectively. The proceeds will fund an equity contribution by 3M, representing a 10% equity interest in Artificial Life, calculated on a fully diluted basis.
Besides the investment, 3M and Artificial Life have entered into an alliance agreement (the “Alliance Agreement”) outlining the parties intent to collaborate in the coming years in projects related to the research and development of new mobile device products and technology. In addition, the Alliance Agreement provides that 3M and Artificial Life plan to cooperate in connection with the marketing of certain of Artificial Life’s existing and new products. The focus of the cooperation under the Alliance Agreement is expected to be in the following areas:
– General mobile and broadband applications and technologies
– Digital Watermarking
– Virtual Reconstruction of 2D and 3D Objects
– Augmented Reality
– 3D Image processing
– Object recognition
– Mobile Healthcare and Diabetes Solutions
– Mobile Marketing and M-Commerce Platform
“We are excited to become an investor in Artificial Life,” said Stefan Gabriel, president, 3M New Ventures. “We are looking forward to collaborating with Artificial Life on a number of exciting technology applications in these fast growing markets all across the wide range of 3M businesses.”
“We are honored that 3M has chosen us for a strategic investment and as a new cooperation partner in the mobile space. The investment and the alliance agreement with 3M provide a strong, global business opportunity for us. The cooperation will allow us to create innovative business and lifestyle applications for one of the leading innovators in the business world and the general public. We are looking forward to working with 3M on many projects in the coming years,” said Eberhard Schoneburg, CEO of Artificial Life, Inc.
The issuance of the shares of Artificial Life’s common stock in connection with the Purchase Agreement has not been registered under the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, these securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy Artificial Life’s common stock.
Super 7 Mid-Year Update
The Pennyheaven Super 7 (2009) had an exceptional first half thanks largly to ZAGG which closed June 30th up a whopping 639% for the year. As an index the Super 7 gained 114% with 4 out of the 7 in the black.
Spare Backup, Inc. Sees Second Quarter 2009 Subscriptions at Record Levels Between $1.3 and $1.6 Million
From PRNewswire.com
Company to Hold Conference Call to Discuss 2009 Business Outlook
PALM DESERT, Calif., June 9 /PRNewswire-FirstCall/ — Spare Backup, Inc. (OTC Bulletin Board: SPBU), an industry-leading provider of automated, online backup applications, and cloud services for home users and small businesses, announced today that it sees total subscriptions for the second quarter of 2009 ranging between $1.3 and $1.6 million. We anticipate record revenue for the second quarter of 2009 ranging between $500,000 and $600,000 and unearned revenue from annual subscriptions between $800,000 and $1.1 million. The unearned revenue will be recognized as revenue over the subscription term as per our revenue recognition policy which is based on generally accepted accounting principles.
The improved top line performance was largely attributable to its continued rollout of data backup offerings with its partners. Revenue is expected to benefit slightly from an improving pound (GBP) currency in the quarter versus the U.S. dollar. During first quarter of 2009 we had total subscriptions of approximately $1.1 million. We recognized revenues for the first quarter of 2009 amounting to approximately $456,000 and unearned revenue from annual subscriptions sold during first quarter amounting to approximately $608,000. The total subscriptions in the 2nd quarter are expected to exceed the total amount of revenue recorded for the full year of 2008. Seasonality has historically caused the second half of the year to be stronger than the first half.
Management anticipates the roll out of its current and new RETAIL partnerships, as well as other OEMs, and new product offerings such as Spare Room, Spare Mobile, and Spare Sync will continue to expand revenue in the coming quarters. Management will be hosting a conference call to discuss its business outlook for 2009. The information for that call is as follows:
* Date: July 7, 2009
* Time: to be separately announced
* Dial-in number for US/Canada: to be separately announced
* Dial-In number for international callers: to be separately announced
* Conference ID: to be separately announced
Mr. Cery Perle, CEO of the Spare Backup, Inc., commented, “We continue to achieve positive momentum and are excited by the growth in our subscriptions as well as the progress we are making on numerous business fronts. We will be discussing current business relationships, new product launches, pending transactions, financings and new business relationships. We look forward to further communicating where we see the future of our company as we strive to reach our goal of positive EBITDA in 2009 and profitability in 2010.”
For additional information, visit http://www.sparebackup.com. For investor relations, please contact our investor relations department at 760-779-4241 Ext. 224 or ir@sparebackup.com.
Click link above for complete article
Superclick Announces Second Quarter Financial Results
MONTREAL–(MARKET WIRE)–Jun 9, 2009 — Superclick, Inc. (SPCK.OB), a technology leader in IP infrastructure management solutions to the hospitality industry today announced record financial results for the second quarter ended April 30, 2009.
Key Financial Highlights:
- Record 58% gross profit, the 10th consecutive quarter of 40%+ gross profit.
- Record quarterly services revenues of $893,047, an increase of 17% year-over-year
- 1% year-over-year increase in revenue for the six-month period.
- 43% year-over-year increase in income for the six-month period.
Click link above for complete story.
Zagg Reports Record-Breaking Results for the First Quarter of 2009
From yahoo.com
ZAGG Inc. (OTCBB:ZAGG), a leading producer of mobile electronics accessories including the popular invisibleSHIELD™ and award-winning ZAGGaudio™ brands, announces successful financial results for the first quarter of Fiscal Year 2009, ended March 31, 2009. ZAGG highlighted a record-breaking quarter with revenues of almost $8.1 million dollars, a nearly 184% increase when compared to first quarter 2008. Earnings per share for ZAGG were $0.05 for the first quarter 2009.
“Even during these challenging economic times, ZAGG continues to see unprecedented demand for its products. Much of our success can be attributed to the ability to execute on our business plan. We look forward to rolling out new products and services over the remainder of the year that will continue our rapid growth track for years to come,” said Robert G. Pedersen II, President and CEO of ZAGG.
“We continue to see great results from our strong partnerships with Best Buy and Carphone Warehouse, and plan to continue announcing new partnerships that will contribute to ZAGG’s success,” said Pedersen. “This will be the best year ever for ZAGG, and if economic conditions continue to improve, we are well-poised for even more accelerated growth.”
The Company will host an investor conference call today, Thursday, May 14, 2009 at 11:00 AM EDT, to answer questions regarding the results from our Form 10-Q for the 3 months ended March 31, 2009. To participate in the call please dial (877) 407-9210. Interested parties may also listen via the Internet at the event website and on the Company website at: www.ZAGG.com. The call will be available for replay for 30 days by dialing (877) 660-6853 and entering account number 286 and call ID number 322566.
Click link above for complete article.
9 Top China Plays
By Glen Bradford, GlenBradford.com
The financial crisis has sent the markets plummeting. For those who believe that companies that make more money than other companies should be priced higher than other companies, boy do I have some bargain bin deals for you. In the past 6 months, I’ve hand sorted through over 5000 companies. The steals are all in China.
1) China Architectural Engineering (NASDAQ: CAEI) specializes in high-end curtain wall systems (including glass, stone and metal curtain walls), roofing systems, steel construction systems, eco-energy saving building conservation systems and related products, for public works and commercial real estate projects.
The company just got added to the Halter USX China Index.
Trading at $37.24M with a book value of $78.2M for a company that does specialty construction projects looks like a steal, especially when they made $22.6M in the first 9 quarters of 2008.
They lowered their guidance for Q4/2008 and they are eating some cost overruns. Recent news includes that they were awarded two new contracts for projects valued at $80 million in Dubai and Singapore.
The company also reported that its project backlog has increased to a new record of $245M.
2) China Yongxin Pharmaceuticals (OTC BB: CYXN) has three segments: the wholesale of pharmaceuticals and other medical-related products, the operation of retail drugstores, and the cultivation, processing of ginseng.
Currently trading at $2.19M when they made $4.0M in the first 3 quarters of 2008 and $2.6M in the first 3 quarters of 2007 is absurd. Not to mention that the book value is $12.5M.
Yongxin also just put up a new, more flashy website. The investor message boards were very concerned when their old website went down. I sat by and let the people who don’t understand website development sell out. Same thing happened with New Dragon Asia (NWD) below.
3) New Dragon Asia (OTC BB: NWD) is engaged in the milling, sale and distribution of flour and related products, including instant noodles and soybean-derived products, to retail and wholesale customers throughout China. I find trading at $9.14M with a book value of $74M mildly entertaining. The company made $14.12M in 2008.
In my opinion, investors are shaky because their operating margins got squeezed by the ridiculous expansion in commodity prices. Good news, the whole bubble collapsed. As I see it, this is an opportunity for the company to make some huge numbers in 2009, not to mention that they’ve been religious about growing revenues over the past 5 years with high predictability.
Their website crashed about a month ago and the stock price hit the chopping block, getting cut by more than half. Look for the catalyst at $0.83 of the Halter USX China Index.
4) Gold Horse International (OTC BB: GHII) is principally engaged in three business sectors in China: construction, residential and commercial real estate development, and management and operation of the Inner Mongolia Jin Ma Hotel.
Top line revenue guidance for 2009 is $90M and the company is priced at $2.63M.
In 2008, they made $4.53M on revenues of $66.91M. The book value is about $25M. Gold Horse is located in Hohhot, China; a city that has been growing at 23.5% for the past 7 years.
Gold Horse has contracted to build a wind power manufacturing plant. This company is located in the middle of china, not on the outskirts where the exports have fallen and hurt the economy.
There are two issues that I see. The first is that their cash is low and they are burning through cash to maintain operations. The second is that there are some big shareholders that look to be slowly selling the stock down.
5) Orsus Xelent Technologies (AMEX: ORS) is engaged in the business of designing, manufacturing and distributing cellular phones for retail and wholesale distribution.
What we have here is a company trading at $7.44M that has a book value of $42.4M. In the last 9 months they made $6.34M.
According to their annuals, they are trying to advance along with technology into the 3G markets and are targeting China’s rural population. They grew 16% in 2008 even with the economic crisis slowing them down in the end of the year.
6) Lotus Pharmaceuticals (OTC BB: LTUS) manufactures branded drugs and distributes them along with products produced by third-party manufacturers throughout China. Lotus also just came out with a new website in the last week.
Trading at $8.06M with a book value of $38.3M and making $6.3M in the first 9-months of 2008 makes Lotus extremely attractive. There is downside for the risk-averse. Lotus East has historically funded its capital expenditures from their working capital and has advised us that they believe this capital is sufficient for their current needs.
Lotus East has contractual commitments for approximately $65.5 million related to a Technology Transfer Agreement and the construction of the new manufacturing facility. If Lotus East is not successful in obtaining all of the funding necessary to complete the construction of the new facility, it would lose the approximately $17,219,000 spent to date, including the $17,000,000 for the deposit on the land use rights which is non-refundable.
That said, it’s still trading below book value and has several huge projects in the works setting the stage for huge growth potential.
7) China Sun Group High Tech (OTC BB: CSGH) mainly engages in the production and sales of cobaltosic oxide and lithium cobalt oxide, both anode materials used in lithium ion rechargeable batteries in the People’s Republic of China.
Trading at $12.29M with a book value of $27.45M with a 2008 annual net income of $6.74M, I immediately started digging deeper into the growth potential of this company. Not to mention that every quarter in 2008 trounced the comparable quarter in 2007.
I don’t really mind reading headlines like: Quarterly Revenue Up 42% to $7.6 Million; Net Income Increases 145% to $1.8 Million. You can’t find headlines like those with your average run of the mill blue chip.
8. Asia Cork (OTC BB: AKRK) is a rapidly growing leader in the development, manufacturing and marketing of cork-based building materials.
Asia Cork is currently valued at $4.64M, even though it has a book value of $17.1M and pulled down $2.54M of profit in the first 3 Quarters of 2008.
In my conversations with flooring experts, Cork seems to be trending back into fashion as a “green” alternative.
Another set of great headlines: Asia Cork Q3 ’08 Revenue Up 117% to $8.96M; Net Income Up 220% to $1.40M.
The issue here is the daily volumes are low and Asia Cork isn’t off it’s 52-week high as much as I’d like it to be.
9) China Kangtai Cactus Bio-Tech (OTC BB:CKGT) is principally engaged in the production, research and development (R&D), sales and marketing of products derived from cacti.
Again, I see a big deal here since the company is trading at $3.93M with a book value of $22.69M and a yearly net income of $2.1M including a -1.09M adjustment in Q1 2008.
The downside is that there are rumors that the market maker, NITE, has a lot of excess shares.
For the three months ended September 30, 2008, revenues increased by $2,229,213 or 56.4% to $6,184,685 from $3,955,472 in the corresponding period of the prior year. The increase in revenues was attributable to the fact that the company is continuing to expand its productions and distribution, and its products are better accepted by the Chinese market customers.
Bottom Line: In an environment like this, where game theory is prevailing, there’s no question in my mind that a lot of these companies are likely to become more attractive in the short term. The long term tradeoffs and value price tradeoffs warrant further investigation. Price is what you pay and value is what you get.
Disclaimer: I own NWD, GHII, CAEI, ORS, and LTUS in my accounts and the accounts I manage. I am working around Ameritrade to acquire exposure to CYXN and AKRK. I also plan on purchasing the other companies mentioned in this article.
