Stocks to Watch 11-11-11

PVBK, HPGS, AFPW, BYCX, ARWR, SMTX

Our Stocks to Watch tomorrow include Pacific Valley Bank (OTCBB: PVBK), High Plains Gas Inc. (OTC: HPGS), AlumiFuel Power Corp. (OTCBB: AFPW), Bayou City Exploration Inc. (OTCBB: BYCX), Arrowhead Research Corp. (NASDAQ: ARWR) and SMTC Corp. (Nasdaq: SMTX).

PACIFIC VALLEY BANK (OTCBB: PVBK)
"Up 46.34% on Thursday"

Detailed Quote: http://www.otcpicks.com/quotes/PVBK.php

Pacific Valley Bank is a California State chartered bank that commenced operations in September 2004. Pacific Valley Bank serves three locations; administrative headquarters and branch offices in Salinas, King City and Monterey, California. The Bank offers a broad range of banking products and services, including credit and deposit services to small and medium sized businesses, agriculture related businesses, non-profit organizations, professional service providers and individuals. The Bank serves customers primarily in Monterey County.

PVBK News:

November 7 - Pacific Valley Bank Announces Third Quarter 2011 Results

Pacific Valley Bank (OTCBB: PVBK) announced the third quarter 2011 net income of $257,000 or $0.08 basic income per share as compared to the same quarter last year when we reported a net loss of ($1.17) million or ($0.36) basic loss per share.

Third Quarter 2011 Financial Highlights:

* Return on Average Assets (ROA): 0.60%
* Net Interest Margin (NIM): 4.16%
* Efficiency Ratio: 81.85%

"We have achieved an important milestone in our company's history; this quarter marks our fourth sequential quarterly profit," stated David B. Warner, President and Chief Executive Officer. "In addition, we experienced new loan production during this quarter. Our lending team has been working with new borrowers making investments in their businesses which has resulted in new relationships for Pacific Valley Bank."

Balance Sheet and Loan Quality Review

Total assets were $173.80 million as of September 30, 2011, which is an increase of $1.63 million from the same period last year when assets were $172.17 million. Our gross loans as of September 30, 2011 were $127.17 million, which is an increase of $6.51 million as compared to $120.66 million as of September 30, 2010. Our loan totals are higher this quarter as compared to past quarters due to increased lending in the areas of agriculture and commercial and industrial loans.

The allowance for loan losses as of September 30, 2011 was $3.72 million, which is a decrease from the same quarter last year when it was $4.50 million. The percentage of allowance for loan losses to gross loans outstanding as of September 30, 2011 was 2.92% as compared to 3.73% in the same quarter last year.

The allowance for loan losses is measured using such factors that take into account historical loss migration within the portfolio, qualitative factors for the remaining loans based on various analytics including the trends in non-accruing loans, delinquent loans and net charge-offs as well as current market valuations of our problem loans. Some of the key qualitative factors credit administration monitors include; 1) non-accruing loans, which were $5.62 million as of September 30, 2011 as compared to $5.02 million as of September 30, 2010; 2) there were no loans past due 30 days or greater as of September 30, 2011 and September 30, 2010; 3) net charge-offs, which were $56,000 for the period ending September 30, 2011 as compared to $563,000 for the period ending September 30, 2010; and 4) non-performing assets ratio, which was 3.50% as of September 30, 2011 as compared to 3.22% at September 30, 2010. These qualitative factors continue to support stability of our loan quality metrics with no significant deterioration.

A significant component of our current liquidity position is reflected in our Federal funds sold balance, which totals $30.29 million as of September 30, 2011 as compared to $37.39 million as of September 30, 2010. The Bank's liquidity continues to be well positioned to support future loan growth. Deposits remain stable at $151.79 million as of September 30, 2011 as compared to $151.45 million in the same quarter a year ago.

Shareholders' equity as of September 30, 2011 was $19.08 million as compared to $17.88 million from the quarter ending September 30, 2010. At September 30, 2011 our Tier 1 capital to average assets (leverage) ratio was 10.93% and our total risk-based capital ratio was 14.50% as compared to 10.04% and 14.58% as of September 30, 2010, respectively.

Review of Operations

The interest income for the quarter ending September 30, 2011 was $2.05 million as compared to $2.32 million in the same quarter a year ago. Interest expense during the current quarter was $317,000 as compared to $447,000 in the same quarter a year ago. The net interest margin for the third quarter of this year was 4.16%. This is a decline from the same period a year ago when the net interest margin was 4.54%.

The provision for loan losses was $115,000 for the current quarter as compared to $1.60 million for the same quarter last year. The provision for loan losses was deemed appropriate based on our analysis of our portfolio.

Non-interest expenses during the current quarter totaled $1.46 million, which compares favorably to $1.49 million in the same quarter a year ago. The efficiency ratio, which measures the amount of overhead expense per net interest income plus noninterest income, was 81.85% for the third quarter of this year, which is slightly higher as compared to 77.86% for the same quarter last year.

HIGH PLAINS GAS INCORPORATED (OTC: HPGS)
"Up 44.74% on Thursday"

Detailed Quote: http://www.otcpicks.com/quotes/HPGS.php

High Plains Gas, Inc. is a Gillette, Wyoming based energy company actively engaged in the acquisition, development and production of natural gas primarily in the Powder River Basin. The Company’s assets include the former Marathon “North & South Fairway” assets. These assets consist of 1614 Coal Bed Methane Wells with associated flow lines and over 155,000 net acres. This combined with the company’s existing 92 natural gas wells gives the company a strong foundation in the natural gas industry. High Plains Gas intends to continue to pursue expansion opportunities for the profitable production and transmission of natural gas. High Plains Gas believes it has unique expertise and experience in the refurbishment and reactivation of wells that produce natural gas from coal bed methane formations that helps position it strategically in the Powder River Basin. In 2011, the Company formed a subsidiary, High Plains Gas Services, LLC, focused on providing construction and maintenance services to the energy industry, primarily in the Western United States.

HPGS News:

November 4 - High Plains Gas Announces Debt Conversion by Members of Its Board of Directors

High Plains Gas, Inc. (OTC: HPGS) announced Mark Hettinger and Joe Hettinger, both of whom are company founders and directors, have converted debt owed to them by High Plains Gas, Inc. into shares of common stock. The transactions are expected to save the company approximately $500,000 per year in interest payments and reduce its outstanding debt by nearly $6 million.

Brandon Hargett, CEO of High Plains Gas, commented, “As CEO, I understand what great sacrifices the Hettingers have made in bringing our company from a 92-well methane producer to a public entity with over 1,600 wells and a sizeable and rapidly growing construction subsidiary. Their continued commitment to seeing this company succeed, grow, and prosper is demonstrated by this conversion. It is a pleasure to work with a Board of Directors that demonstrates this level of belief in what we are building.”

Mark Hettinger stated, “Our CEO Brandon Hargett has displayed great leadership in our organization during the past few months. Combined with all our employees' efforts and the strong commitment of our Board of Directors, I am excited about the opportunities that exist with High Plains. Presently, our company is comprised of a large coal bed methane asset that has generated approximately $16 million in revenue over the past 12 months. HPG Services, our construction services subsidiary, is currently experiencing rapid growth due to the Bakken and Niobrara shale plays. With my experience building a construction services company with revenues exceeding $200 million annually, I know what is required to be successful in this industry. Combined with the recent acquisition of BGM Buildings and, before long, the expected closing of Miller Fabrication, we will have a consolidated company with a growing footprint in the energy industry,” concluded Hettinger.

ALUMIFUEL POWER CORPORATION (OTCBB: AFPW)
"Up 29.41% on Thursday"

Detailed Quote: http://www.otcpicks.com/quotes/AFPW.php

AlumiFuel Power Corporation operates through its wholly owned subsidiary, AlumiFuel Power, Inc., a Philadelphia-based early production stage alternative energy company that generates hydrogen gas and steam for multiple applications requiring on-site, on-demand fuel sources.

AFPW News:

October 25 - AlumiFuel Power, Inc. CEO Featured on Syndicated Radio Broadcast

Unique Hydrogen Generation Technology and Market Pursuits Highlighted on "Tech Talk"

Early production stage hydrogen generation company AlumiFuel Power, Inc. ("API"), the Philadelphia, Pennsylvania-based wholly owned operating subsidiary of AlumiFuel Power Corporation (OTCBB: AFPW) (the "Company"), announced that API's President & CEO, Mr. David Cade, was recently interviewed on the syndicated radio program "Tech Talk," broadcast in the northeast.

Tech Talk with Craig Peterson is the #1 ranked radio show in the Boston Market, and with more than 5,000,000 downloads, is rated as the top tech show nationwide. Craig interviews top industry insiders and explains the technology secrets everyone needs to know. The interview aired Sunday, October, 16, 2011 on Clear Channel Radio's WQSO/FM and WGIR/AM in the Boston market. It was also heard on three Clear channel stations in the New Hampshire area: WGIR-AM 610, WGIN-AM 930, and WGIP-AM 1540.

Craig Peterson is a top Internet Consultant with over 30 years of Computer experience and 24 years of Internet design, implementation and security experience. He has authored dozens of articles concerning technology and business security, is a published author and a professional speaker. He has consulted for more than 5,000 business clients including Verizon, Vivendi International, Inc. Magazine, and Hitachi Corporation.

BAYOU CITY EXPLORATION INCORPORATED (OTCBB: BYCX)
"Up 81.82% on Thursday"

Detailed Quote: http://www.otcpicks.com/quotes/BYCX.php

Bayou City Exploration, Inc. engages in the oil and gas business primarily in the gulf coast of Texas, east Texas, south Texas, and Louisiana. The company focuses on the management of partnerships that purchase interests in exploratory wells, as well as interests in producing oil and gas properties with undrilled reserves; and the sale of partnership interests to third-party investors in exchange for interests in a partnership. It acts as the managing general partner for the partnerships and maintains a partnership interest or a working interest position outside of the partnership in each program. As of December 31, 2010, the company owned a direct working interest in 4 producing wells, including the Chapman 75-1, the Rooke B-1, the Garcitas 1, and the Rooke 2 in Texas; and had proved oil reserves of 760 barrels of oil and proved natural gas reserves of 6,789 thousand cubic feet of gas. The company was formerly known as Blue Ridge Energy, Inc. and changed its name to Bayou City Exploration, Inc. in September 2005. Bayou City Exploration, Inc. was founded in 1994 and is headquartered in Bowling Green, Kentucky.

BYCX News:

October 11 - Top Experts Gather for 'World's Greatest Investment Event'

The 38th Annual New Orleans Investment Conference to Be Held October 26-29

Hundreds of today's most active individual investors are heading once again to New Orleans, for an annual event that has, now in its 38th year, gathered the world's most celebrated and successful experts to share their advice and top recommendations.

This year's event — being held from October 26-29 at the Hilton New Orleans Riverside — is no exception, as the 2011 New Orleans Investment Conference features a blockbuster agenda with some of the biggest names in economics, geopolitics and investing.

This year's Conference will include a special "Political Debate" and a "Summit on America's Future" — two elite panels featuring Dr. Charles Krauthammer, James Carville, P.J. O'Rourke, Stephen Hayes and Stephen Moore.

With very little chance of addressing America's massive debt load and slumping economy before the 2012 elections, investors today are faced with one of the most dangerous and potentially rewarding environments — if they can position themselves appropriately.

The dozens of world-renowned experts in geopolitics, economics and investments presenting at New Orleans 2011 will give attendees timely strategies and specific tips to profit during the turmoil. The star-studded speaker roster also includes:

Glenn Beck - Host and star of the nationally syndicated radio talk show "The Glenn Beck Show" and now "GBTV," he daily attracts millions of viewers and listeners. Known for his quick wit, candid opinions and engaging personality, his daily controversial discussions are focused on the news of the day — politics, society and current affairs.

Dr. Marc Faber - An icon in the world of investments, Dr. Faber's typically controversial and contrarian views have earned him the label of "Dr. Doom." But even his harshest critics admit that he's been unerringly correct in his market forecasts over the past three decades.

Dennis Gartman - Mr. Gartman is a frequent guest on leading investment television programs and his daily publication, The Gartman Letter, is read by many of the world's leading banks, brokerage firms, hedge funds, mutual funds and commodity trading companies. At the New Orleans Conference, he'll share his most powerful tips and forecasts with attendees.

Peter Schiff - After dead-on accurate predictions on the U.S. stock market, economy, real estate, the mortgage meltdown, credit crunch, subprime debacle, commodities, gold and the dollar, all of the nation's major financial media are flocking to hear Mr. Schiff's latest views.

Dr. Stephen Leeb - The senior editor of The Complete Investor and one of the most successful and highly respected investment newsletter editors in history, Dr. Leeb will provide attendees with his forecasts for the tumultuous days ahead, but also the specific stocks and strategies needed.

P.J. O'Rourke - American political satirist, journalist, writer, and author, his persona is that of a hard-bitten, cigar smoking conservative and named by Vogue Magazine as "one of the five men you'd most want to sit next to at a dinner party."

In addition to these speakers, the 2011 New Orleans Conference will feature dozens more of the most respected advisors in every area of economics and investments, including Brien Lundin, Rick Rule, John Kaiser, Lawrence Roulston, Brent Cook, Gene Arensberg, Thom Calandra, Adrian Day, Mickey Fulp, Mary Anne and Pamela Aden, Ross Beaty, Frank Holmes, Ian McAvity, Bill Murphy, Chris Powell and more.

The New Orleans Investment Conference has been called "the world's greatest investment show" by Money Magazine, which noted the Conference's impressive exhibit hall and roster of top speakers.

For over three decades, the most sophisticated and successful investors in the world have gathered at this event, where they get the latest tips and strategies from the most acclaimed authorities in investments, economics and geopolitics.

Lady Margaret Thatcher...Ayn Rand...Alan Greenspan...Dr. Henry Kissinger...Nobel laureates Milton Friedman and F.A. Hayek...Senator Barry Goldwater...Steve Forbes...Vice President Dick Cheney...General Norman Schwarzkopf...General Colin Powell...President Gerald Ford...Sir John Templeton...Louis Rukeyser and hundreds more have graced the stage of the New Orleans Conference.

At no other event are investors able to receive such valuable, up-to-the-minute investment advice from such a prolific list of experts. In addition to the ever-impressive line-up of speakers, the Conference's Exhibit Hall will be filled with a variety of publicly traded companies, all eager to present their stories.

Top-level Sponsors for New Orleans 2011 include: Natcore Technology (OTC: NTCXF), Global Hunter Securities LLC, U.S. Global Investors, Inc. (NASDAQ: GROW), McLeod Williams Capital Corp., Bayou City Exploration, Inc. (OTCBB:  BYCX), Masterpiece Investments Corp., Petaquilla Minerals Ltd. (OTCBB: PTQMF) and Sabinal Capital Investments, LLC.

ARROWHEAD RESEARCH CORPORATION (NASDAQ: ARWR)
"Up 40.19% on Thursday"

Detailed Quote: http://www.otcpicks.com/quotes/ARWR.php

Arrowhead Research Corporation is a nanomedicine company developing innovative therapies at the interface of biology and nanoengineering to cure disease and improve human health. Arrowhead is a leader in delivering small RNAs for gene silencing, and has programs in anti-obesity therapeutics and regenerative medicine.

ARWR News:

November 10 - Arrowhead Research Subsidiary Ablaris Therapeutics Data Published in Science Translational Medicine Demonstrates Weight Loss in Obese Monkeys

Arrowhead Research Corporation (NASDAQ: ARWR), a nanomedicine company with development programs in oncology, obesity, and regenerative medicine, today announced the publication of data from Ablaris Therapeutics, Inc.’s lead drug candidate, Adipotide™, demonstrating weight loss and reduction in body mass index and abdominal circumference in obese rhesus monkeys. The data, which was published in Science Translational Medicine, demonstrates that monkeys treated with Adipotide lost an average of 11 percent of their body weight after only four weeks of treatment.

In addition, Adipotide-treated animals showed marked improvements in insulin resistance (using about 60 percent less insulin after treatment compared to baseline), suggesting potential for use in treating type-2 diabetes. The publication may be found at http://stm.sciencemag.org.

The findings, presented in a paper titled, “A Peptidomimetic Targeting White Fat Causes Weight Loss and Improved Insulin Resistance in Obese Monkeys,” and co-authored by Wadih Arap, M.D., Ph.D., and Renata Pasqualini, Ph.D., professors at the David H. Koch Center at the University of Texas MD Anderson Cancer Center in Houston (“MD Anderson”), reveal a promising pharmacological way to substantially reduce accumulated fat in non-human primates, and potentially humans. Unlike most anti-obesity drugs, which attempt to control appetite or prevent absorption of dietary fat, Adipotide directly attacks subcutaneous and visceral fat. The drug, a combination of a homing agent that binds to a protein on the surface of fat-supporting blood vessels, and a synthetic peptide that triggers cell death, removes the blood supply from fat cells, allowing them to be reabsorbed and metabolized. The study expands on previous work done in rodent models across two independent laboratories, which demonstrated similarly dramatic effects. The current study is thought to be highly clinically relevant because it was done with primates and the animals were “spontaneously” obese. That is, no human intervention was made to increase their weight; they became obese by over eating the same foods provided to other monkeys in the colony and avoiding physical activity.

“Safely and effectively treating the obesity epidemic is one of the great unmet needs in medicine today,” said Dr. Christopher Anzalone, President and Chief Executive Officer of Arrowhead. “This study is a radical step forward for both Ablaris’ technology and the treatment of obesity. It is uncommon for an obesity treatment to be successfully translated from rodent studies to non-human primates. Ablaris’ approach is distinguished from others in the field by its unique mode of action. By acting directly on the vasculature that supports fat tissue rather than on the brain, we believe that we can avoid many of the safety issues that have blocked other anti-obesity drug candidates. We are extremely encouraged by the results achieved to date with Adipotide and believe that Ablaris’ unique technology offers a significant advantage to combating obesity as we prepare to enter the clinic in the near-term.”

SMTC CORPORATION (NASDAQ: SMTX)
"Up 18.41% on Thursday"

Detailed Quote: http://www.otcpicks.com/quotes/SMTX.php

SMTC Corporation, founded in 1985, is a mid-size provider of end-to-end electronics manufacturing services (EMS) including PCBA production, systems integration and comprehensive testing services, enclosure fabrication, as well as product design, sustaining engineering and supply chain management services. SMTC facilities span a broad footprint in the United States, Canada, and Mexico, and a partnering relationship in China, with more than 1,500 full-time employees. SMTC services extend over the entire electronic product life cycle from the development and introduction of new products through to the growth, maturity and end-of-life phases. SMTC offers fully integrated contract manufacturing services with a distinctive approach to global original equipment manufacturers (OEMs) and emerging technology companies primarily within industrial, computing and communication market segments.

SMTX News:

October 9 - SMTC Reports Third Quarter Results

• Announces third quarter results in line with guidance
• Confirms guidance for approximately $69 million revenue, $4 million EBITDA, and $0.16 earnings per share ("EPS") for Q4
• Updates 2012 guidance from $13 million EBITDA on $240 million revenue to guidance range of $13-15 million EBITDA, $240-260 million revenue, and $0.47 - $0.59 EPS
• Closes new banking facility with PNC in late Q3
• Completes acquisition of ZF Array in late Q3

SMTC Corporation (NASDAQ: SMTX) ("SMTC"), a recognized global electronics manufacturing services provider, announces today 2011 third quarter unaudited results.

Revenue for the quarter was $44.1 million, in line with guidance. Revenues declined as demand reductions and end of life programs from certain customers in Q3 resulted in what is expected to be SMTC's lowest revenue and profit quarter of 2011. During the quarter, the new management team continued its restructuring plan, and has eliminated 11 corporate positions simultaneous with an increase in direct labor headcount by 550 employees (to 1,750) in order to meet increased demand in Q4 and beyond. One-time charges of $1.1 million in the third quarter included severance costs, the write-off of financing costs related to the previous credit facility, and foreign exchange forward losses. Costs related to the third quarter increase in direct labor headcount were expensed in the quarter and excluded from one-time charges. For the fourth quarter, the Company expects one-time charges, including those related to the closing of ZF Array, to be less than the amount incurred in Q3. The Company anticipates few if any non M&A-related one-time charges in 2012.

"EBITDA of $0.9 million for this quarter is disappointing but is in line with previously provided guidance," stated Alex Walker, Co-Chief Executive Officer. "In our first 101 days as Co-CEOs, we have focused on rightsizing costs and driving new business. This, in combination with the recent acquisition of ZF Array, as well as our new credit facilities with PNC Bank, has set the stage for significantly improved results in Q4 and going forward, per our guidance. The growth which we are currently experiencing, along with our recent acquisition of ZF Array, requires additional working capital and explains higher ending inventory and line of credit balances at quarter end. However, barring additional order spikes in Q4, we expect working capital metrics to improve by year end and to generate cash."

Co-Chief Executive Officer Claude Germain added, "We've continued with our plan to restructure the business to make it more customer oriented. Our new customer and program wins are exciting and will allow us to leverage our fixed cost infrastructure, increase site utilization, and improve gross margins. Additional customer wins are expected to ramp in Q4 and 2012, and barring any major macroeconomic downturn, we are looking forward to improved performance going forward."