For Tuesday, February 3rd
UVSE, CMLT, QTM, CBAI, FCNR, XDSL
Our Stocks to Watch tomorrow include Universal Energy Corp. (OTCBB: UVSE), Camelot Entertainment Group Inc. (OTCBB: CMLT), Quantum Corp. (NYSE: QTM), Cord Blood America Inc. (OTCBB: CBAI), Falcon Ridge Development Inc. (OTCBB: FCNR) and mPhase Technologies Inc. (OTCBB: XDSL).
UNIVERSAL ENERGY CORPORATION (OTCBB: UVSE)
"Up 100.00% on Monday"
Universal Energy Corp., an independent energy company, engages in the acquisition and development of crude oil and natural gas leases in the United States and Canada. As of December 31, 2007, it had working interest in approximately 7,095 acres of land in Louisiana and Texas, as well as in Alberta, Canada. The company, formerly Universal Tanning Ventures, Inc., was founded in 2002 and is based in Lake Mary, Florida.
October 15 -
Universal Energy Corp. Announces 8th Consecutive Month of Increased Production
Universal Energy Corp. (OTCBB: UVSE), an emerging U.S. oil and gas exploration and production company, announced that gas and oil production quantities increased for the eighth consecutive month in August 2008. August 2008 production increased 21 percent over July 2008 and it was a 108 percent increase over the average monthly production of the second quarter 2008.
The wells were ordered to be shut in by the Governor of Louisiana on August 29, 2008 in preparation for Hurricane Gustav. Assessment of damages was slowed as the area was evacuated for the storm and the following week another hurricane hit the Gulf Coast area. The wells were not damaged by the storm but the production equipment was damaged on three wells. Repairs are currently being completed and the affected wells are expected to be back online within two weeks. Insurance claims have been filed and confirmed by insurance adjusters.
"Dealing with hurricanes is just part of doing business in the Gulf Coast area," commented Billy Raley, Chief Executive Officer of Universal Energy Corp. Raley continued, "With production beginning at Amberjack yesterday, Caviar #1 later this week, and Caviar #4 in the next two weeks, we hope to continue increased production throughout the remainder of the year."
CAMELOT ENTERTAINMENT INCORPORATED (OTC: CMLT)
"Up 100.00% on Monday"
Camelot Entertainment Group, Inc. is a US publicly traded company (symbol "CMLT") with three major divisions: Camelot Film Group, Camelot Studio Group and Camelot Production Services Group. Camelot is building a different kind of motion picture studio infrastructure by redefining the development, financing, production, and distribution process. Creating a world where filmmaking dreams come true, Camelot integrates early studio models, education, new technologies and fiscal responsibility to acquire, develop, finance, produce, market and distribute high quality commercial motion pictures, television and digital media.
January 8 - Camelot Planning Aggressive Production Schedule
New Head of Production Expected to be Named as New Tax Incentives Create Unique Opportunity
Camelot Entertainment Group, Inc. (OTCBB: CMLT) ("Camelot") announced that it is planning to launch an aggressive production schedule under its Camelot Films banner to take advantage of several new federal and state tax incentive programs. Camelot expects to name its new head of production this month as the company continues to focus on its acquisition, development, production and distribution activities within Camelot Film Group, one of the company's three divisions.
The decision to step up production came as several states announced new production incentive programs, including Michigan, which is offering a new 40% cash rebate of motion picture production. In addition, federal tax programs have been extended through 2009, including the American Jobs Creation Act (Section 181 of the Internal Revenue Code of 1986) which when combined with state initiatives create a unique opportunity for the company to ramp up production at a time when the industry, including Camelot, has been beleaguered by the current economic crisis.
The company plans on opening a new production office in Los Angeles in addition to moving its corporate headquarters back to Irvine as part of its ongoing streamlining of operations.
QUANTUM CORPORATION (NYSE: QTM)
"Up 17.65% on Monday"
Quantum Corp. is the leading global storage company specializing in backup, recovery and archive. Combining focused expertise, customer-driven innovation, and platform independence, Quantum provides a comprehensive, integrated range of disk, tape, and software solutions supported by a world-class sales and service organization. This includes the DXi-Series, the first disk backup solutions to extend the power of data deduplication and replication across the distributed enterprise. As a long-standing and trusted partner, the company works closely with a broad network of resellers, OEMs and other suppliers to meet customers' evolving data protection needs.
January 29 - Quantum Corporation Reports Fiscal Third Quarter Results
Quantum Corp. (NYSE: QTM), the leading global specialist in backup, recovery and archive, announced that revenue for its fiscal third quarter (FQ3'09), ended Dec. 31, 2008, was $204 million and included $31 million in disk systems and software revenue. The company had a GAAP operating loss of $334 million and a net loss of $340 million, or $1.63 per share. These figures include an estimated non-cash charge of $350 million for goodwill impairment. On a non-GAAP basis, Quantum generated $31 million in operating income which represented 15 percent of revenue, the highest level achieved in eight years. Non-GAAP net income for the quarter was $26 million, also the highest level in eight years and significantly above analysts' expectations. (For a reconciliation of GAAP to non-GAAP figures, please see the accompanying tables under the section on "Use of Non-GAAP Financial Measures.")
Compared to the same quarter in the previous year (FQ3'08), Quantum's total revenue was down 19 percent, due to the weaker economic environment, the company's strategy of continuing to shift its sales mix toward higher margin opportunities and a year-over-year decline in branded tape sales and media royalties. Despite the revenue decline, the company's GAAP gross margin rate was 42 percent, up from 35 percent in FQ3'08 and the highest level Quantum has achieved in eight years.
"Our December quarter results clearly demonstrate the progress we've made in executing on key components of our strategy, even in the face of a very challenging economic environment," said Rick Belluzzo, chairman and CEO of Quantum. "We doubled our disk systems and software revenue year-over-year, with strong sales from our new midrange DXi7500 Express solution and our EMC partnership. This helped drive both the significant improvement in GAAP gross margins, which have increased from 28 percent to 42 percent since we merged with ADIC, and the 15 percent non-GAAP operating income we delivered. While we have more work to do to take full advantage of our opportunities and address the challenges posed by our capital structure, we are continuing to strengthen our market position by providing customers with integrated disk, tape and software solutions for multi-site, multi-tier data protection and management."
Due to a combination of factors, including the impact of the economic environment on its business and the decline in its stock price over the last several months, Quantum began conducting an impairment analysis of its goodwill during FQ3'09, as required by GAAP. Based on the analysis to date, the company has included the estimated $350 million non-cash impairment charge in its GAAP results announced today.(1) The charge does not impact Quantum's cash balances, liquidity, ability to generate cash flow or compliance with debt covenants. With the inclusion of the impairment charge, Quantum's GAAP operating expenses for the quarter totaled $420 million, resulting in the GAAP net loss of $340 million, or $1.63 per share. In FQ3'08, GAAP operating expenses were $78 million, and the GAAP net loss was $2 million, or 1 cent per share.
In addition to the estimated $350 million goodwill impairment charge, the $340 million GAAP net loss for FQ3'09 included $9 million in amortization of intangibles, $4 million in restructuring charges and $2 million in stock-based compensation. The net impact of these four items reduced earnings per share on a diluted basis by approximately $1.75.
Quantum's product revenue, which includes sales of the company's hardware and software products, totaled $144 million in the December quarter. This represented a net decrease of $41 million from FQ3'08, due to an expected decline in overall OEM revenue as well as lower sales of branded non-royalty media, tape automation systems and devices.
Disk systems and software revenue, inclusive of related service revenue, was $31 million in FQ3'09, a 100-percent increase over FQ3'08. One of the highlights in this area was the introduction of Quantum's DXi7500 Express deduplication appliance optimized for small and medium-size enterprise environments. Although it only shipped for less than half the quarter, the DXi7500 Express showed strong sales over this period, reinforcing the growing adoption of Quantum's deduplication and replication technology. Based on shipments through the December quarter, this technology is being used to protect more than 400 petabytes of data. In addition, Quantum's DXi7500 Enterprise model was recently named as a finalist in the backup hardware category for the Storage magazine/SearchStorage.com 2008 Product of the Year awards that will be announced in February.
Revenue for Quantum's other two product categories in FQ3'09 was as follows:
* $85 million in tape automation sales, a decrease of $28 million from the comparable period in the previous year. Approximately two-thirds of the decline related to OEM products, with the other third due mainly to lower branded sales in EMEA.
* $30 million in devices and non-royalty media revenue, down $28 million from FQ3'08. This was primarily the result of two factors — an anticipated decline in OEM device revenue and lower branded media sales, as Quantum chose not to pursue lower-margin media revenue opportunities.
* Excluding royalties, the company's branded share of revenue was 65 percent in FQ3'09, up from 62 percent in FQ3'08.
* Quantum generated $19 million in cash from operations for the quarter and, as of Dec. 31, 2008, had $51 million in cash and cash equivalents. The company was also in compliance with all debt covenants as of Dec. 31, 2008, and expects to remain in compliance during the next twelve months.
CORD BLOOD AMERICA INCORPORATED (OTCBB: CBAI)
"Up 18.54% on Monday"
Cord Blood America is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Its mission is to be the most respected stem cell preservation company in the industry. Collected through a safe and non-invasive process, cord blood stem cells offer a powerful and potentially life-saving resource for treating a growing number of ailments, including cancer, leukemia, blood, and immune disorders.
January 27 - With the Embryonic Stem Cell Trial Cleared by the FDA as a Key Indicator, Cord Blood America Announces Expansion Plans for Its Stem Cell Storage Program
More Stem Cell Agenda News Expected From the Obama Administration This Week
Cord Blood America, Inc. (OTCBB: CBAI), the umbilical cord blood stem cell preservation company focused on bringing the life saving potential of stem cells to families nationwide and internationally, said that it intends a rapid expansion of its health insurance partnership program to new geographies in 2009. This announcement from Cord Blood America comes on the heels of last week's announcement that the Food and Drug Administration and the U.S. government will allow the world's first test in people of a therapy derived from human embryonic stem cells. For more information, see the social media news room at www.intelligendo.com.
Founder and CEO Matthew Schissler, in reviewing the domestic stem cell industry, predicts that 2009 will be an excellent, milestone year for stem cell storage companies, including CBAI. "Now is the right time. We have focused our business on three primary locations for several years, developing deep relationships with health insurance providers to become their recommended source for storage of umbilical cord blood stem cells."
Mr. Schissler says Cord Blood America's stem cell storage subsidiary, CorCell, will attempt to enter into contracts with two or three more geographic health insurance providers, which would double the company's current health insurance provider base.
"With a national health insurance plan and stem cell agenda as two of the primary topics from the new administration, we see a marriage of the insurance companies possibly paying for stem cell storage on the horizon, even if it is on a limited basis for high risk families. By developing the insurance sales channel, we feel we are positioning ourselves for long term success in becoming a globally dominant stem cell storage company."
Mr. Schissler went on to say that the growth will have limited cost because all infrastructure needed has been put into place over the course of many years.
CBAI has a history of being able to finance its growth, with the most recent funding of $4 million transacting in July of 2008. "With a very low cash burn, we feel we're well financed for the next few years," Schissler commented. "We'll use this time to get cash flow positive and reduce debt while growing both organically and through accretive acquisitions."
The company also is reporting tremendous success in engaging its clients, prospective clients, shareholders and prospective investors via social media with the help and intuition of NetGenPR (www.netgenpr.com). Cord Blood America is currently on Twitter, Facebook and Intelligendo, and soon to be available on FriendFeed. Cord Blood America's address on Twitter is www.twitter.com/cbai. "The conversation has begun. Groups from all over are discussing the impact of stem cells on every day life. We're glad we can lead and moderate this information, while trying to be a stem cell company of the people."
As previously reported, from 2003 to 2007, CBAI focused on growth. In 2008, the Company changed its tactics attempting to de-lever the company while becoming purely a stem cell storage company, and in the process de-emphasizing its non-core family advertising business.
As such, Cord Blood America has reported through first nine months:
* Gross profits for the first nine months have increased to $1.8 million, a 54 percent margin, compared to a 42 percent margin in 2007.
* SGA is down nearly $900,000, a 23 percent savings.
* Loss from operations is down nearly 20 percent.
* Loss per share is down 60 percent, from 0.05 to 0.02.
"We believe 2009 to be a turning point year for CBAI. We're excited to get going," Mr. Schissler concluded.
FALCON RIDGE DEVELOPMENT (OTCBB: FCNR)
Falcon Ridge Development, Inc., through its subsidiaries, operates in the real estate industry in the United States. It acquires land and develops it into residential lots for sale to homebuilders. The company, through its subsidiary, Falcon Ridge Investments, LLC, offers private placement investments to investors. It has operations in the City of Rio Rancho and Belen, New Mexico. As of September 30, 2006, the company owned rights to 139 acres of land in Belen, New Mexico. Falcon Ridge Development was founded in 2005 and is headquartered in Albuquerque, New Mexico.
November 4 - Falcon Ridge Signs Letter of Intent to Acquire The Surviving the Industry LLC
Fred Montano, CEO of Falcon Ridge Development Inc. (OTCBB: FCNR), announced that a Letter of Intent agreement has been reached with The Surviving the Industry LLC (www.survivingtheindustry.net). Falcon Ridge is investigating the LLC as an adjunct to its mortgage division. The new division will help clients avoid foreclosure through new and existing workout solutions.
This acquisition will create a new profit center for Falcon Ridge and allow it to immediately enter the mortgage renegotiation business. The Surviving the Industry LLC, is operational, and in the early stages of implementing its business plan. The proposed merger accelerates this implementation while expanding FCNR into a new, high demand market in a significant way to address the needs of distressed property owners in need of renegotiation of existing mortgages.
Jeff Krupka, general manager of the LLC has successfully platted and developed subdivisions and has many years of FDIC financing experience. The joint goal of both companies is to help distressed property owners solve their problems in a tough economic market. Many homeowners' problems have been created by the recent situation in the world financial markets and they are in need of guidance to work through those problems.
Fred Montano stated, "We are excited about entering this market as it has been estimated that ten thousand plus people a month are going into foreclosure and this translates into high demand for the services offered through this acquisition. Jeff's long term experience with workouts and finance, plus his many years working with public companies will add great depth to the management team at Falcon Ridge."
On joining with Falcon, Jeff Krupka said, "Fred is a delight to work with and I am impressed with his energy level — he is like the energizer bunny for the real estate industry."
MPHASE TECHNOLOGIES (OTCBB: XDSL)
mPhase Technologies, Inc., through its wholly owned subsidiary AlwaysReady, Inc., is focused on developing and commercializing a new battery technology based on a well-patented phenomenon known as electrowetting, which provides a unique way to store energy and manage power that will revolutionize the battery industry.
February 2 - mPhase Contracts EaglePicher to Manufacture Reserve Battery for AlwaysReady Emergency Flashlight
mPhase Technologies, Inc. (OTCBB: XDSL) has announced that it has contracted EaglePicher Technologies to manufacture the AlwaysReady Reserve Battery that will be used in the AlwaysReady Emergency Flashlight. EaglePicher was selected for the project because of their experience in custom and standardized power solutions for the extreme environments of aerospace and military applications as well as medical and commercial applications.
The AlwaysReady Reserve Battery is a manually activated lithium cell designed to provide Power On Command(tm). The battery remains dormant until “turned on” by the user. It will be built to the highest standards with a minimum storage life of 20 years. Once activated, the AlwaysReady Reserve Battery is expected to deliver the electrical performance of a standard primary CR123 battery used in many portable electronic applications today.
“EaglePicher is one of the most respected companies in the power solutions industry,” said mPhase CEO Ron Durando. “We chose to work with EaglePicher because we know that we will receive a top quality, reliable product that will clearly satisfy the requirements needed for emergency applications.”
ABOUT EAGLEPICHER TECHNOLOGIES, LLC
EaglePicher Technologies, LLC, an EaglePicher company, is the leading producer of batteries, power systems and energetic devices for the defense, space and commercial industries, and provides the most experience and broadest capability in battery electrochemistry of any battery supplier in the United States. EaglePicher Technologies offers a wide range of battery technology including thermal, nickel hydrogen, lithium carbonmonofluoride, lithium thionyl chloride, lithium manganese dioxide, lithium sulfur dioxide, lithium-ion, reserve lithium oxyhalide, custom battery assemblies and silver zinc batteries. It also provides other energy products and pyrotechnic devices for the defense industry, as well as advanced battery chargers and other power solutions for business, industrial and recreational applications. EaglePicher Technologies is headquartered in Joplin, Mo., and is an AS9100 certified supplier.