Category Archives: Stocks

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.

super7-063009

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

From yahoo.com

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.