For Wednesday, August 15th
VKNG, GPRC, MHYS, ASTI, CBAI, AFPW
Our Stocks to Watch tomorrow include Viking Systems Inc. (OTCBB: VKNG), Guanwei Recycling Corp. (Nasdaq: GPRC), Mass Hysteria Entertainment Company Inc. (OTC: MHYS), Ascent Solar Technologies Inc. (Nasdaq: ASTI), Cord Blood America Inc. (OTCBB: CBAI) and AlumiFuel Power Corp. (OTCBB: AFPW).
VIKING SYSTEMS INCORPORATED (OTCBB: VKNG)
"Up 39.31% on Tuesday"
Detailed Quote: http://www.otcpicks.com/quotes/VKNG.php
Viking Systems, Inc. is a leading worldwide developer, manufacturer and marketer of 3D and 2D visualization solutions for complex minimally invasive surgery. It actively markets and sells the only stand alone, FDA cleared, cost-effective 3D system for use in minimally invasive laparoscopic surgery. Viking provides surgeons with proprietary visualization systems enabling minimally invasive surgical procedures, which reduce patient trauma and recovery time. Viking, through its OEM products business, also designs and manufactures surgical vision systems and components for several leading medical instrument companies worldwide.
VKNG News:
August 14 - CONMED Corporation to Acquire Viking Systems, Inc.
CONMED Corporation (Nasdaq: CNMD) and Viking Systems, Inc. (OTCBB: VKNG) announced that the companies have entered into a definitive agreement providing for CONMED to acquire Viking for $0.27 per share in cash. The purchase price represents a 42% premium over the closing price of Viking's common stock on August 13, 2012. The total expected consideration, including amounts to be paid in respect of in-the-money stock options and warrants, will be approximately $22.5 million.
Under the terms of the transaction, a wholly-owned subsidiary of CONMED will promptly commence a tender offer to purchase all of Viking's outstanding shares of common stock for $0.27 per share in cash. Following successful completion of the tender offer, CONMED will acquire all remaining shares not tendered into the offer through a second-step merger at the same price as in the tender offer.
The proposed transaction has been approved by the boards of directors of both companies. In addition, certain Viking stockholders have entered into a Tender and Voting Agreement under which they have agreed, among other things, to tender into the tender offer all shares of Viking's common stock that they beneficially own. As of August 13, 2012, this Tender and Voting Agreement represents commitments to tender an aggregate of approximately 43% of Viking's issued and outstanding shares.
Consummation of the tender offer is subject to various conditions, including a minimum tender of at least a majority of outstanding Viking shares on a fully diluted basis and other customary conditions. The tender offer is not subject to a financing condition. The tender offer is expected to be launched by approximately August 27, 2012, and CONMED expects the transaction to close in the fourth quarter of 2012.
"The Viking line of 3-D High Definition surgical video products represents a strategic addition to our general surgical imaging franchise," commented Mr. Joseph J. Corasanti, President and CEO of CONMED Corporation. "Viking is at the forefront of three dimensional HD surgical imaging, and we believe that merging this technology with our established worldwide marketing and sales teams will expand the use of superior surgical visualization benefiting both surgeons and their patients."
"This is a significant milestone for Viking," said Jed Kennedy, President and CEO of Viking. "We are excited to join together with CONMED, which shares our vision for 3D-HD surgical imaging and has an established reputation for innovation and excellent customer service. Viking's Board of Directors recommends that all stockholders tender all their shares into CONMED's offer."
Viking's lead product, the Viking 3D-HD Vision System, is an advanced three dimensional vision system which employs a flat screen monitor and passive glasses. It is used by surgeons during complex minimally invasive laparoscopic surgery, with applications in urologic, gynecologic, bariatric, cardiac, neurologic and general surgery. It is believed to be the only stand-alone 3D laparoscopic vision system available today that is both FDA-cleared and CE-marked. Viking's 3D-HD system is uniquely positioned to fill the gap between conventional 2D-HD systems and the 3D-HD visualization systems that are available only as a part of high cost robotic systems. Viking also manufactures 2D digital cameras that are sold to third party companies who sell to end users through OEM programs.
CONMED anticipates that its present 2-D surgical video research and marketing team in Santa Barbara, California will be consolidated into the Viking group in Massachusetts over the next year. It is expected that the transaction will initially be neutral to adjusted earnings, although CONMED will incur transitional costs associated with the consolidation.
Sullivan & Cromwell LLP is serving as CONMED's legal advisor, and Trombly Business Law, PC is serving as Viking's legal advisor. Cantor Fitzgerald & Co. is serving as Viking's financial advisor.
ABOUT CONMED
CONMED is a medical technology company with an emphasis on surgical devices and equipment for minimally invasive procedures and patient monitoring. Its products serve the clinical areas of arthroscopy, powered surgical instruments, electrosurgery, cardiac monitoring disposables, endosurgery and endoscopic technologies. They are used by surgeons and physicians in a variety of specialties including orthopedics, general surgery, gynecology, neurosurgery and gastroenterology. Headquartered in Utica, New York, the Company's 3,400 employees distribute its products worldwide from several manufacturing locations.
GUANWEI RECYCLING CORPORATION (NASDAQ: GPRC)
"Up 44.29% on Tuesday"
Detailed Quote: http://www.otcpicks.com/quotes/GPRC.php
Guanwei Recycling Corp. engages in the manufacture and distribution of low density polyethylene (LDPE). It produces LDPE from plastic waste procured in Europe, which it recycles into recyclable LDPE for sales to approximately 200 manufacturers in China. The company also sells scrap materials, including plastic. It primarily serves building and construction industry, where there is an ongoing governmental push to promote the use of plastic in various products, such as water and sewage pipelines. The company sells its products to customers in a range of industries, including shoe manufacturing, architecture and engineering products, industrial equipment and supplies, and chemical and petrochemical manufacturing. Guanwei Recycling Corp. was founded in 2005 and is based in Fuqing City, the People’s Republic of China.
GPRC News:
August 14 - Guanwei Recycling Reports 2012 Second Quarter Results
Revenues Increased 18.6% Compared With Prior Year, But Profits Declined Mainly Due to Higher Raw Material and Labor Costs; Company Believes Raw Material Costs Are Stabilizing and Selling Prices Will Continue to Increase at a Moderate Rate
Investor Conference Call to Be Held Wednesday, August 15th at 8:00am ET
Guanwei Recycling Corp. (Nasdaq: GPRC), China's leading clean tech manufacturer of recycled low density polyethylene (LDPE), reported that revenues in its second quarter ended June 30, 2012 increased 18.6% to $18,694,938, including $1,773,129 from the resale of raw materials, compared with revenues of $15,757,662 in the same quarter last year. The Company also reported an increase of 3.41% in the selling prices of its manufactured recycled LDPE year over year. However, this increase was not sufficient to offset increased raw material, labor and overhead costs in the period. The resulting lower profit margins contributed to an 8.41% year over year decline in net income to $3,163,030, or $0.15 per share, compared with $3,453,360, or $0.17 per share, in the 2011 second quarter.
For the six months ended June 30, 2012, revenue increased 16.61% to $34,866,428 compared with $29,900,274 in the first half of 2011, while net income decreased 15.24% to $5,228,286 or $0.26 per share, compared with $6,168,642 or $0.31 per share a year earlier.
The Company noted that a "bright spot" in the 2012 second quarter was more than 16% sequential increase in manufactured recycled LDPE sales volume -- an additional 1,938 tons sold -- compared with the 2012 first quarter. In part, this reflected "weak" results in this year's first quarter largely due to an earlier than usual Spring Festival in China. On a year over year basis, recycled LDPE sales in the 2012 second quarter were up 6.58% to $16,410,448, reflecting a 3.41% increase in average selling prices to $1,212 per ton and an increase of 3.06% in tons sold to 13,538 tons compared with the corresponding period in 2012. An additional $511,361 in 2012 second quarter sales resulted from sales of non-LDPE materials, an increase of 41.94% compared with the same period in 2011. The reported $1,773,129 from the sale of raw materials in the 2012 second quarter, at a marginal mark-up to cover administrative costs, was a consequence of limited space availability in the Company's storage facility. No substantial additional revenue from sales of this type are anticipated in the near future.
In the first six months of 2012, revenues from sales of recycled LDPE were up 3.85% to $30,455,090, while total sales including non-LDPE materials ($949,128) and the resale of raw materials ($3,462,210) were $34,866,428, a 16.61% increase over the same period last year. Average recycled LDPE selling prices in the 2012 first half increased 4.84% to $1,212 per ton and tonnage sales declined 0.91% to 25,138 tons.
Costs
Increased raw material costs, as well as increased labor and overhead expenses, contributed to the year over year reduction in second quarter gross profit from $5,095,376 in 2011 to $4,891,796 this year, while gross profit margins declined from 32.34% in last year's second quarter to 28.34% in 2012. The Company explained that a shortage of workers in Southern China rapidly increased wages and welfare costs. With respect to raw material costs, which included primarily imported plastic waste, the year over year increase in the second quarter of 2012 to an average of $690 per ton for recycled LDPE and sorted non-LDPE material was a relatively minor 2.83%. This reflected a stabilization in prices, which the Company believes will continue through the remainder of the year as a consequence of negotiating with suppliers. The Company noted further that selling and marketing expenses declined in the 2012 second quarter as lower gas prices decreased transportation costs, while G&A expenses increased moderately.
Through the first six months of 2012, the per ton raw material cost of recycled LDPE and sorted non-LDPE material increased 10.81% to $722 per ton, reflecting the sustained strong demand for the LDPE product. This increase, as well as increased labor and overhead costs -- while average product prices only increased 4.84% in the period -- resulted in a reduction in gross profit margin in the first half of 2012 to 26.43%, compared with 31.21% in the same period last year
Continuing Financial Strength
As of June 30, 2012, the Company reported cash and cash equivalents of $13,216,366, compared with $12,432,803 at December 31, 2011. In the same time frame shareholders' equity increased to $39,935,168 from $33,007,268. As of June 30, 2012, the Company had no long term debt, and no short term bank debt.
During the six months ended June 30, 2012 cash used in investing activities was $746,327. The Company reported it was building an additional storage area for raw materials and, in order to plan for future expansion, it made a deposit for additional machinery and equipment which the Company expects will be placed into service in the third quarter of 2012. The Company noted that production capacity as of the end of the second quarter was 80,000 tons per year, as a result of significant improvements to its factory equipment and facilities made in 2011. Additionally, the Company's import quota for imported plastic waste was 115,000 tons, including 35,000 tons contracted from Huan Li.
Management Comment
Mr. Min Chen, Chairman and CEO of the Company, commented, "While the cyclical softening in China's economy has affected most industries, we have been fortunate in maintaining a diversified customer list which, coupled with the continuing strong demand for recycled LDPE, has enabled us to see sequential quarter over quarter growth thus far this year. In the second half of the year, we believe we will benefit from moderate increases in prices for our products as well as stabilizing raw material costs based on negotiations with our suppliers. Longer term, we believe the outlook for our Company remains very bright, given the anticipated increasing demand in an improved economy for our low-cost, high quality products."
Mr. Chen added, "There has been a significant negative overreaction in the U.S. stock market to China-based companies, even to strong, well managed companies such as ours. However, we will keep working hard to grow our Company and rebuild investor confidence in our successes."
MASS HYSTERIA ENTERTAINMENT COMPANY (OTC: MHYS)
"Up 33.33% on Tuesday"
Detailed Quote: www.otcpicks.com/quotes/MHYS.php
Mass Hysteria Entertainment, Inc. is a multi-media entertainment company created to produce films with an interactive component. The Company most recently completed production in Louisiana on CARJACKED starring Maria Bello and Stephen Dorff. Anchor Bay acquired domestic and English speaking territories and CMG is selling the picture internationally. Mass Hysteria also recently acquired the rights to the romantic comedy SLEEPING TOGETHER written by Steve Smith and Phill Traill and to be directed by Traill.
MHYS News:
July 24 - Mass Hysteria Entertainment Company CEO Daniel Grodnik To Be Interviewed On StockTradersTalk Radio
Mr. Grodnik to Discuss Company's Growth and Business Plan.
Mass Hysteria Entertainment Company, Inc. (OTC: MHYS) announced that its Chief Executive Officer, Daniel Grodnik, will be the featured guest in an exclusive interview on StockTradersTalk Radio tomorrow night at 8pm EST. Mr. Grodnik is expected to discuss Mass Hysteria's business and strategy for the future.
"I am pleased to have this opportunity to discuss what our company is doing and our plans for the future," stated Daniel Grodnik, Mass Hysteria's CEO. "We are making strides and I am looking forward to sharing some of our progress with the investment community."
ASCENT SOLAR TECHNOLOGIES INCORPORATED (NASDAQ: ASTI)
"Up 11.18% on Tuesday"
Detailed Quote: http://www.otcpicks.com/quotes/ASTI.php
Ascent Solar Technologies, Inc. is a developer of thin-film photovoltaic modules using flexible substrate materials that can transform the way solar power generation integrates into everyday life. Ascent Solar modules, which were named one of TIME Magazine's 50 best inventions for 2011, can be directly incorporated into standard building materials, commercial transportation, automotive solutions, space applications, consumer electronics for portable power and durable off-grid solutions.
ASTI News:
August 13 - Ascent Solar Launches EnerPlex™ Solar Powered Charger for Samsung Galaxy S III
EnerPlex for Galaxy S III to Follow Successful Debut of EnerPlex for iPhone
Ascent Solar Technologies, Inc. (Nasdaq: ASTI), a developer of state-of-the-art, flexible thin-film photovoltaic modules, announced today it has launched a charger for the Samsung® Galaxy S III® smart phone featuring Ascent’s ultra light CIGS technology. Branded under Ascent’s EnerPlex line of consumer products, the charger incorporates the company’s solar cells into a sleek, protective Galaxy S III case, along with an ultra thin battery. The charger adds minimal weight and size to the Galaxy S III yet provides significantly improved battery life by harnessing sunlight for electric power.
Following the successful launch of the EnerPlex for iPhone® 4S case, Ascent is releasing the EnerPlex for the Galaxy S III as Samsung continues to introduce new products in a competitive market where the number of smart phones in use globally is expected to reach 1 billion in the next 4 years. 144 million smart phones were sold globally in the first quarter of 2012. Ascent is developing the EnerPlex line utilizing its transformational CIGS technology to bring solar enabled power to a variety of new consumer products such as the widely anticipated next generation iPhone.
Ascent Solar’s President and CEO, Victor Lee, said, “The EnerPlex charger is the only protective case for the Samsung Galaxy S III which leverages the lightweight qualities and superior aesthetics of our CIGS solar technology. It will extend the usage time of the Galaxy S III while preserving the high level of design quality that consumers demand. Samsung customers can now incorporate transformational solar technology into their everyday life, improving the performance of their smartphone without compromising style.”
Lee continued, “Ascent’s solar powered case designs target the top two market share leaders, Apple®, Inc. and Samsung, who together, account for over 70% of the smart phone market. With the launch of this second product in the EnerPlex line, Ascent now has a solar charger for two of the most popular smart phones on the market, the Apple iPhone and the Samsung Galaxy S III.”
The EnerPlex case for the Samsung Galaxy S III will debut in South Korea in October with an expected launch in the United States in time for the 2012 holiday shopping season.
CORD BLOOD AMERICA INCORPORATED (OTCBB: CBAI)
"Up 25.00% on Tuesday"
Detailed Quote: http://www.otcpicks.com/quotes/CBAI.php
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.
CBAI News:
August 14 - Cord Blood America Announces Positive EBITDA in 2nd Quarter; Revenues Up 26 Percent in Quarter
Cord Blood America, Inc. (OTCBB: CBAI) ("CBAI" or the "Company") announced that revenues for the second quarter of 2012 increased by 26 percent to $1.80 million compared to $1.43 million in the same period last year. Revenues for the six months ended June 30, 2012 increased 16 percent to $3.36 million compared to $2.89 million in the comparable period in 2011.
"The financial results we issued today are a clear departure from the past," said CBAI President Joseph Vicente. "We outlined previously that our number one priority was to be self sufficient. We can proudly say that during the quarter, CBAI operated off its own cash. We remain committed to eliminating the debt, seeking profitable revenue opportunities and eliminating wasteful expenditures."
Mr. Vicente said:
* By segment, Biocordcell Argentina S.A. turned in an excellent second quarter, increasing revenues by 81 percent. Cord Blood America U.S. revenues increased 10 percent and our European affiliate's revenues decreased but account for only 10% of the total revenues.
* Administrative and selling expenses decreased over the six month period in 2012 by 31 percent, from $4.00 million in 2011 to $2.77 this year and decreased 26 percent in the second quarter over the comparative period of 2011. Even with these decreases, which we will continue to seek, we are making small but impactful investments to improve our operating efficiencies.
* Gross profit for the second quarter increased 32 percent from less than one million dollars in 2011 to $1.29 million in 2012. The overall quality of the Company's laboratory operations plays a key role in this positive achievement.
* The Company announced net income of $0.15 million in the second quarter of 2012 compared to losses in every preceding quarter. This is a $1.16 million improvement compared to the same period in 2011. Our financial performance was assisted by one time positive adjustments related to our new agreement with BioCells and interest forgiven by one of our lenders.
* Even if the one time adjustment for BioCells were eliminated, the Company would still be EBITDA positive approximately $.10 million for the second quarter of 2012 versus a negative EBITDA of $.69 million in the comparable period of 2011. Our ability for the first time to generate positive EBITDA performance is a critical step forward in creating company value.
"These results help establish the viability of our operations and we will be diligent in communicating that message to the investing community to increase shareholder value. We are pleased with the first 90 days of our tenure, but there remains much more to do. Management remains focused, disciplined and accountable to improving on today's results," Mr. Vicente said.
ALUMIFUEL POWER CORPORATION (OTCBB: AFPW)
"Up 100.00% on Tuesday"
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:
No recent news for AlumiFuel Power Corporation (OTCBB: AFPW).
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