About Me
Tuesday, December 1, 2009
Top movers, analyst calls; SPAC news rush; $800B ano health savings; billions in stock buybacks; HGSI loses buyout hope
We have many special purpose acquisition companies or SPACs with updates today from SPACUpdate.com... Dead Deals, New Deals and Deal Votes (URX, KWIC, CFQCF, TGY, NSAQ, GSMEF)
The nasty truth is being confirmed about the great healthcare reform, ergo insurance reform. This $800+ billion health insurance reform is not going to save any money for anyone. This comes from the Congressional Budget Office, so it isn't exactly being conducted by an anti-administration body.
Late yesterday we covered the rate of stock buybacks in November by outlining the major buyback announcements and updates. It is almost shocking, there are billions and billions of dollars in new buybacks from major companies and many of these are not the symbolic buybacks where a buyback never takes place.
Human Genome Sciences (HGSI) announced a secondary offering last night. We have several reasons for thinking about this in this light, but over at BioHealthInvestor.com we noted why this basically eliminates hopes and rumors of HGSI being a potential biotech buyout candidate.
Charter Communications (CHTRQ) has exited bankruptcy. Old common holders get zero, Paul Allen gets to stay the largest investor with the largest influence in votes, and the company still looks leveraged to its eyeballs.
CAVR Secures Farm-In With Anadarko in Colorado
December 1, 2009 |
| CAVR Secures Farm-In With Anadarko in Colorado |
TULSA, OK--(Marketwire - 11/30/09) - CAVU Resources, Inc. ("CAVU") (Pinksheets:CAVR - News ), which trades as OTC:CAVR.PK, announced today that the Company has secured a Farm-In and Joint Venture Development Agreement with PVR Exploration, LLC to participate in a farm-in with Anadarko Petroleum Corporation to develop 640 acres in eastern Colorado.
The acreage position is located in the outer edges of the Denver-Julesburg Basin where production is drawn from Mississippian, Pennsylvanian, Permian and Cretaceous reservoirs. Production in this area from current operators has been established through a successful 3D seismic program shot over an extended area.
CAVU plans to test multiple stacked targets in the Marmaton, Morrow, Cherokee, Atoka, and Mississippian formations. Well permit applications are currently in the process of being submitted to the State of Colorado for approval.
Companies involved in the development of this 200,000+ acre area have estimated that the aggregate potential of the targets is in excess of 200,000 barrels of oil recoverable per well with estimates ranging from 100 to 150 million barrels of oil in place with significant potential to increase that estimate based on the extent of the current seismic features seen.
"With what has already been done by a few of the other companies developing this area, we feel comfortable using the figure of 1,000,000 barrels recoverable per section (640 acres)," said William Robinson, President of CAVU Resources, Inc. "Independent technical evaluations and studies of historical production in wells drilled in the 1980s have indicated significant oil in place and identified additional by-passed oil zones. We are actively looking for ways to expand our position in this area where we feel there will be major development in the years to come, so we are excited to get in early," he added.
About CAVU Resources, Inc.
During World War II, Navy fighter pilots would look up at the sky and if it was a 'CAVU' day then it meant ceiling and visibility unlimited. The founders of CAVU Resources chose the name CAVU because they believe that the Company will be the embodiment of its name. CAVU was formed with the goal of becoming a recognized regional player in the independent oil and natural gas industry by growing the company's oil and natural gas reserves. CAVU is a natural resource company engaged in the acquisition, exploration and development of oil and natural gas properties. The Company operates in the upstream segment of the oil and gas industry with planned activities including the drilling, completion and operation of oil and gas wells in Oklahoma, Kansas, Colorado and Texas. The Company also owns two pipelines in its area of operations which will be used for gathering its gas and oil and the gas and oil production of other producers. The Company has acquired leases and is currently ex ploring additional opportunities in oil, gas and helium leases. The company has acquired significant oil and gas equipment including rigs, trucks and completion equipment. CAVU's 100% owned subsidiaries, CAVU Energy Services, LLC provides contract drilling, fracture stimulation and directional drilling services to oil and natural gas exploration and production companies. EnviroTek Fuel Systems, Inc., providing natural gas delivery and marketing thru its own pipelines, CAVU Operating Company, LLC managing the company's properties and targeted leases in Oklahoma, Texas, Colorado and Montana. CAVU plans to expand operations not only in the traditional Oil and Gas business, but also to invest in Geo-Thermal, Wind, Solar and security, taking advantage of the changing environment and in the world's need for new, green and innovative resources.
| CAVU Resources INC (OTCPK: CAVR) Stock Symbol :: CAVR |
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![]() | CAVU Resources INC (OTCPK: CAVR) (CAVR) CAVU Resources (OTCPK:CAVR) is a natural resource company engaged in the acquisition, exploration and development of oil and natural gas properties. The Company operates in the upstream segment of the oil and gas industry with planned activities including the drilling, completion and operation of oil and gas wells in Oklahoma, Montanna, Colorado and Texas. | |||||||||||
CAVU Resources Inc. 2533 N. Carson City Suite 4116 Carson City, NV 89706 Phone: 504-722-7402 Fax: http://www.cavu-resources.com |
· Magnum Hunter Resources Corporation, formerly Petro Resources Corporation, is an independent oil and gas company engaged in the acquisition, drilling and production of oil and natural gas properties and prospects within the United States. The acquisition and exploration pursuits of oil and natural gas properties are located in Texas, Louisiana, North Dakota, New Mexico and Kentucky. AMEX:MHR Recent Price: $.96 · The Meridian Resource Corporation ( Meridian), incorporated in 1990, is an independent oil and natural gas company. The Company explores for, acquires and develops oil and natural gas properties. As of December 31, 2008, it had proved reserves of 80 billion cubic feet (Bcfe). Sixty-three percent of its proved reserves were natural gas and approximately 64% were classified as proved developed. NYSE: TMR Recent Price:$.39 |
| Current Projects |
CAVU Resources, Inc. restructures Acquisition of FILO Quip Resources, LLCThe Company has restructured the original acquisition of Filo Quip Resources, LLC . CAVU assumed the agreement to purchase FILO from a private investment group. The agreement calls for the assumption of specific liabilities and a combination of cash and a 6 month note transaction valued at $700,000 dollars. In the acquisition, CAVU is purchasing a 140 acre lease in Garvin County, Oklahoma that has two producing wells and seven additional wells that can be completed in down-hole reservoirs. The two producing wells were originally drilled in the 1950s to the Bromide formation at about 3,000 feet. The we lls were re-entered during the 1990s when companies in the area began testing deeper reservoirs. The wells were then deepened to the Oil Creek formation at about 3,800 feet. The two wells are currently producing a combined 35 to 40 barrels of oil per day (BOPD). CAVU plans to re-enter the other seven wells on the lease and rework them with the possibility of deepening them to the Arbuckle at about 4,000 feet. | CAVU Resources, Inc. Announces Acquisition of EnviroTek Fuel Systems, Inc. CAVU Resources, Inc. announced that the Company has acquired EnviroTek Fuel Systems, Inc. (EnviroTek) in a stock purchase agreement. EnviroTek owns a 3,140 acre project in Nowata County, Oklahoma, which is about an hour north of Tulsa, OK. Spread across three townships (or 13 miles), the project contains about 12 producing natural gas wells, 6 shut-in wells awaiting rework or completion in another zone, and about 40 to 50 proven and undeveloped (PUD) locations for new wells. As part of the acquisition, CAVU also has purchased about 35 miles of pipeline that connects the wells and acreage position in this project; the total acquisition is valued over $470,000. |
| Company Overview |
CAVU Resources. (OTC.PK: CAVR) During World War II, Navy fighter pilots would look up at the sky and if it was a CAVU day then it meant ceiling and visibility unlimited. The founders of CAVU Resources chose the name CAVU because they believe that the Company will be the embodiment of its name with a clear vision and identified goals. CAVU was formed with the goal of becoming a recognized regional player in the independent oil and natural gas industry by growing the company's oil and natural gas reserves. CAVU is a natural resource company engaged in the acquisition, exploration and development of oil and natural gas properties. The Company operates in the upstream segment of the oil and gas industry with planned activities including the drilling, completion and operation of oil and gas wells in Oklahoma, Kansas, Colorado and Texas. The Company also owns two pipelines in its area of operations, which will be used for gathering its gas and oil and the gas and oil production of other producers. The Company has acquired leases and is currently exploring additional opportunities in oil, gas and helium leases. The company has acquired significant oil and gas equipment including rigs, trucks and completion equipment. CAVUs 100% owned subsidiaries, CAVU Energy Services, LLC provides contract drilling, fracture stimulation and directional drilling services to oil, natural gas exploration and production companies. EnviroTek Fuel Systems, Inc., providing natural gas delivery and marketing thru its own pipelines, CAVU Operating Company, LLC managing the companys properties and targeted leases in Oklahoma, Texas, Colorado and Montana. CAVU plans to expand operations not only in the traditional Oil and Gas business, but also to invest in Geo-Thermal, Wind, Solar and security, taking advantage of the changing environment and in the worlds need for new, green and innovative resources. Products & ServicesOil and Gas Production Projects One of CAVUs competitive advantages is its access to top shelf deal flow for projects in areas where major established companies have spent the millions of dollars to take the risk out of finding and proving up an area. Some of our current projects that demonstrate this are the following:
Drilling Services CAVU recently acquired three drilling rigs and the associated support equipment. The first rig is rated to 5000, (at right) is rated to 5,500 and the second rig is rated to 3,000 and the third rig is an air rig that is rated to 2,000 and it is being moved to Nowata County, OK to begin a drilling program on the Hogshooter project. CAVU has access to seasoned drilling crews both to work its own leases and to lease drilling services on a contract basis. CAVU recently closed a $1.1 million dollar funding with Verilease Finance, LLC for drilling and completion equipment. To receive information about our drilling services, please click here. Alternative Energy Projects The main wind corridor in the United States is a 1,200 mile area that runs from Wyoming through Colorado and Kansas into Oklahoma, New Mexico and Texas. In this corridor, wind farm developers include Cielo Energy, Florida Power and Light, Third Planet, Seawest, National Wind, John Deere Wind and others. These are the companies that are now most actively contracting with Landmen/Land Agents to buy up the rights to develop surface projects and leases within this trend. CAVU has identified four potential Wind Farm locations and is working to negotiate the right to purchase wind energy leases. In December 2007, the Colorado Governors Energy Office (CGE) presented to Governor Bill Ritter a 70 page Report outlining all studies of renewable energy within the state. This report identifies areas defined as generation development area (GDA), and CAVU is working to secure leases within these GDAs where it has been independently verified that there is sufficient wind generation to sustain a wind farm. These areas range in potential generation from 2 Gigawatt (GW) of power to 45 GW. Security Systems Oil field security is growing business segment with renewed security threats to oil and gas fields around the world. With volatile prices, and difficult economic times, the theft of product and equipment has opened a new revenue opportunity for CAVUs client base. CAVU has recently developed a security tower utilizing products currently in use by security professionals in government, critical infrastructure, transportation and other security environments. This has given CAVU access to proven, night vision technology, motion sensor and GPS monitoring security technology. CAVUs systems will provide long-range night vision solution that captures detailed, natural contrast images in zero light at ranges of up to 3,000 meters, even in foul weather and through tinted glass. Delivered via our proprietary camera and hardware system, CAVUs security technology is ideal for perimeter security in oil security, government, transportation, critical infrastructure and other secur ity environments. Energy Trading CAVU has recently set up operations in Dallas, Texas for fuel trading and has secured several suppliers for D-2 and JP 54 fuel supplies. Representatives looking for multi ton purchases of these products have approached CAVU, and so we are currently negotiating multiple transactions. With our recent and targeted acquisitions coupled with the proposed wind and co-generation facilities, CAVU may qualify for energy credits. If we do qualify, these credits can be traded in a secondary market that CAVU plans to utilize as an additional revenue stream. Possible Future Business Units The company is currently exploring additional opportunities in environmental services that include oil field clean up, disaster clean up, hazardous transportation, emergency response, and solar farms. Company Officers William C. Robinson, President |
Guardian Excels in South African Clinical Trial
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Guardian Technologies International Inc.,
703.464.5495
info@guardiantechintl.com
Wescorp Energy Inc. - Trading Symbol: WSCE
1) The stock is nearly 30% off its high....from just a couple of days ago.
2) Despite the recent drop, WSCE's upside volume has been dwarfing its downside volume. This suggests heavy accumulation
3) The MACD is in a strong up trend and is well above the "0" line suggesting a "Strong" Bullish trend
4) The stochastics is in an intermediate-term up trend but is no longer overbought.
Before we tell you about the company, we are going to tell you why WSCE exists.
The reality for oil and gas companies is that for every barrel of oil produced, statistics indicate that there are as many as THREE barrels of wastewater produced. Oil and gas producers either pump a highly acidic salt/water into the ground and retrieve it with the gas/oil produced or it is lying in deep pockets in the ground and comes up when the oil/gas is pumped. By all accounts is extremely contaminated and cannot be returned to streams or wells without significant processing.
The oil industry calls it "produced water" and it is a big problem. WSCE's mission is to use their PATENTED technology to address this issue!
Now that we've examined the "technical" picture of the stock, you understand what the problem is...NOW, what exactly does the company do? Read on...
Wescorp Energy Inc. (WSCE) specializes in providing solutions (equipment and know-how) on a global basis for oil and gas companies that overcome regulatory, environmental and operational challenges. Those challenges are called "produced water" and represent a $50 Billion industry
Wescorp Energy Inc. (WSCE) focuses on improving its clients' operational efficiencies by deploying environmentally-superior intelligent solutions that will optimize their field operations including reducing operating costs, increasing operating efficiencies, increasing production, meeting government regulations and tapping new sources of revenue. For every barrel of oil produced at the wellhead, THREE barrels of oily/salty wastewater are "produced".
Wescorp Energy Inc. (WSCE) holds a patented aeration technology called H2OMAXX that employs microscopic bubbles several orders of magnitude smaller than conventional technology. This allows the Company to provide clients with cleaner produced water while reducing processing operational expenses.
Wescorp Energy Inc. (WSCE) maintains a proprietary Hydrocarbon Extraction Technology (HCXT) that can make use of bio-degradable chemicals that separate and clean drilling cuttings -transforming them from solids that would be waste product to solids that are approved by environmental agencies for commercial use as gravel or fill.
The Preacher thinks this technology is exciting as it greatly reduces the ongoing liability for the maintenance and transportation of contaminated materials that could accompany the conventional disposal of drilling solids.
And just a few weeks ago...
WSCE reported that, further to the joint venture partnership with Cancen Oil Canada Corporation, construction of the first two Wescorp remediation units has commenced.
Wescorp and Cancen engineers and field personal have completed remediation facility assessments and detailed engineering drawings. Both management teams have agreed the remediation units will be deployed to Cancen's existing waste processing facility in New Sarepta Alberta, Canada. The remediation units are scheduled to be installed and operational in the first quarter 2010. Cancen believes so strongly in the technology that they are fronting all costs for the manufacture of these units (approx. $1MM)!
WSCE has a 50% revenue interest from this joint venture and it is estimated that this agreement alone will generate $4.6 million in revenues in 2010 for WSCE and $12.1 million for 2011.
PrimeGen Energy Strikes Oil in New Rodnikovskogo Field with Initial Production Averaging 2,620 Barrels per Day
12/01/2009 |
Yesterday after the markets closed, PrimeGen Energy Corporation (OTC: PGNE) issued a press release announcing the initial production for the Rod 10-21, the first well at the Company's Rodnikovskogo, Russia, property. The well commenced commercial oil production on November 25, 2009, and the Company has received production results for the first 6 days. Total oil produced and sold was 15,720 barrels with an average daily production rate of 2,620 barrels per day. |
Asia Market Report
Asia: BoJ measures lift Japan
Date: Tuesday 01 Dec 2009 10:39
Interest rates were in focus in Asia as the Bank of Japan left its key lending rate unchanged, as expected, but the Australian central bank lifted its benchmark rate for the third month in a row, by a quarter of a point to 3.75%.
The Australian central bank’s decision was made against a background of improving economic conditions in the region, a view backed up by good news from China, where the country’s manufacturing output in November grew at its fastest pace in more than five years.
The Chinese government’s PMI, also released today, was unchanged in November.
Japanese stocks were higher on the day, led by exporters, after the Bank of Japan’s decision to hold an emergency policy meeting raised expectations that the central bank would seek to check the Japanese yen’s rise.
In the end, action by the Bank of Japan (BoJ) turned out to be targeted more at fighting deflation, as it set up a new 10 trillion yen lending facility. The BoJ expects the deflationary period to last for three years.
Car manufacturer Nissan, and mining and construction equipment maker Komatsu, both of which export heavily to the US, were wanted.
The manufacturing news from China prompted demand for Baoshan Iron & Steel.
The Nikkei 225 index jumped 226 points to 9.572.
In Hong Kong, China Eastern Airlines took flight after receiving regulatory approval to take over Shanghai Airlines.
Banking giant HSBC advanced as fears over Dubai receded.
Zijin Mining participated in the general advance after announcing an offer for Australian gold and copper miner Indophil Resources, snapping up Xstrata’s 19.9% stake in Indophil in the process. Zijin paid AU$1.28 per share for Xstrata’s stake..
The Hang Seng index advanced 291 points to 22,113.
PEIX,PPTO,MCLN Volume Alerts
PEIX - Volume Alert
http://www.chartspread.com/stockcharts.php/?ticker=peix
Pacific Ethanol, Inc. produces and sells ethanol and its co-products in the western United States, primarily in California, Nevada, Arizona, Oregon, Colorado, Idaho, and Washington
PPTO - Volume Alert
http://www.chartspread.com/stockcharts.php/?ticker=ppto
Precision Petroleum Corporation is an independent energy company engaged in the acquisition, exploration and development of oil and natural gas properties in North America.
MCLN - Volume Alert
http://www.chartspread.com/stockcharts.php/?ticker=mcln
MedClean Technologies, Inc. engages in the design, sale, installation, and servicing of onsite turnkey systems to treat regulated medical waste.
LONDON Market Open Report
London open: Footsie bounds ahead
Date: Tuesday 01 Dec 2009
London’s top stocks have opened strongly as concern over the situation in Dubai eases a little.
Miners and banks are leading the rally following a strong performance by both groups on on Wall Street overnight.
Royal Bank of Scotland is among the best performers this morning. It has been affected by the Dubai speculation, but now the talk is that it is Lloyds that is most exposed. Lloyds is lower this morning.
ENRC leads the miners higher but heavyweights Rio Tinto, BHP Billiton and Xstrata are all going well as the dollar theme returns to the fore again.
Separately, Xstrata has agreed to sell its 19.9% stake in Australian gold and copper miner Indophil Resources to Zijin Mining Group. Chinese mining company Zijin is using the Xstrata stake as a launch-pad for a bid for Indophil. It paid AU$1.28 per share for Xstrata’s stake.
Telecoms regulator Ofcom has asked for views before deciding whether to reflect the cost of BT's growing pension scheme deficit in charges to rivals that use its network. To date, Ofcom has used BT's reported pension costs, excluding deficit repair payments, when determining regulated prices.
Travel operator TUI saw profits rise in the year to September 30 despite flat revenues and reduced demand in the tough economic climate as it managed to raise ticket prices and keep its planes full.
Pub group and brewer Greene King shrugged off the worst of the downturn over the last six months with sales and underlying profits rising modestly thanks to a strong performance from its Scottish arm Belhaven. Revenue to 18 October rose by 4.3% to £464.5m. Operating profit was 3.3% lower than last year at £103.3m, but underlying profits rose by 2.8% at £62.4m.
Irn Bru maker AG Barr warned that economic conditions continue to be challenging but said it is trading in line with expectations and remains confident of delivering its plans for the full year. Revenue for the quarter ended 31 October increased by 21.4% compared to the same period last year. Like for like sales increased by 10.8%.
Interserve has won a £200m facilities management (FM) contract with HSBC and is commencing service delivery today. In a three-year agreement, which has a potential two-year extension, Interserve will deliver facilities services at over 1,600 retail and 120 office sites across the UK, Channel Islands and the Isle of Man.
Bus and train group Go Ahead Group has completed the acquisition of Plymouth CityBus from Plymouth City Council. The council ratified the takeover, first announced on November 23. The enterprise value of the transaction is £20m and gives Go-Ahead 100% control of Plymouth CityBus.
APC May Break Out to New Highs
Could RBTI breakout more
RBTI is involved in two industries that both poise well for profits.
Renewable energy is a lucrative sector. President Obama calls to invest over $100 billion into renewable energy over the next decade!
RBTI provides sustainable-energy-powered solutions meeting commercial, industrial, municipal and federal requirements for site security, materials control, emergency communications, water purification and similar on-site applications.
Global renewable energy market grew by 20.4% in 2008 to reach a value of $310.5 billion!
RBTI's involvement in the Homeland Security market could boast well for profits considering that U.S. spending on Home Land Security (HLS) is estimated at $50 billion this year (the federal spend comprises $44 billion) and Frost and Sullivan projects a $300 billion worldwide HLS market by 2016!
World military expenditure in 2008 is estimated to have reached $1.464 trillion in current dollar!
As countries around the world spend more on their defense, companies like RBTI could become huge.
The United States accounts for 47 percent of the world's total military spending!
A differentiating aspect of RBTI is their mobility.
Mobility represents a key factor for rapid response to the kind of threats anticipated in the future. This includes natural disasters, terrorist strikes, and special event coverage.
RBTI can deploy solutions today for many different applications that require mobility, extended deployment and a wide range of applications including:
-- Disaster Recovery
-- Physical Security
-- Border, Pipeline, Perimeter
-- Wireless communication nets
-- Forward Operating Bases
-- Event Security
-- Humanitarian Services
-- Water desalination, purification, pumping
RBTI feels that focusing on mobility gives it differentiation to participate as a niche player in a rapidly growing sector of the HLS market.
Just look at water desalination as one example of a critical area that RBTI is focused on.
Many governments want to invest in desalination technology to supply water to their populations!
Rapid response to the events like hurricanes Katrina and Ike and the flooding in the mid-west point out the need for mobile clean water solutions.
RBTI offers several robotic solutions for security applications that range from under-vehicle standoff inspection to ordinance disposal to "hot site" emergency response. These products have wide ranging use for both military and law enforcement and industrial -security/safety organizations.
The robotic solutions cover a broad range of capability and price ranges to meet the customer need
Unmanned Aerial Vehicles (UAVs) represent the most complex and highly configurable security solutions available from RBTI.
Surveillance is the primary application and exceptional cost performance is their major competitive edge. The company has several aerial platforms including the Long Star.
You can check out all of RBTI's products here: http://www.redbranchtech.com/products.html
RBTI is also focusing efforts on the multi-billion dollar wireless sensor market due to the highly effective sustainable power solutions the company offers.
RBTI CEO Jeff Sirianni identifies the sensor market as a significant part of the company's growth strategy mainly due to the market being constrained due to lack of battery life along with the prohibitive costs of changing a battery on a frequent basis.
Based on Red Branch Technologies sustainable power solutions where energy is deployed on an extended basis, Sirianni believes the sensor market could hold great upside for his company.
"To be able to bring wireless energy to the market and overcome a number of considerable hurdles which have held many back from delivering the kind of services we now offer is a huge plus for Red Branch Technologies," Sirianni stated.
"The sensor market is certainly one where we have great confidence in being able to generate revenues, grow profits, build our company and increase shareholder value," said Sirianni. "We are currently looking into ways on how to best implement our solutions in order to maximize their value."
For more information on RBTI, visit: www.RedBranchTech.com Always do your own research and consult with your own financial professional.
Tuesday newspaper round-up: Dubai, Sovereign debt, Tesco
Date: Tuesday 01 Dec 2009
The Government of Dubai has refused to honour the debt obligations of its largest company, prompting fears that international creditors could be wiped out.
Dubai World, the state-owned conglomerate, was effectively abandoned to its fate by the Emirate's Government yesterday despite previous assumptions that Dubai would stand behind the company. That has raised the likelihood that lenders to Dubai World, which has liabilities of $60bn, could lose billions of dollars, the Times reports.
Britain risks becoming the first country in the G10 bloc of major economies to risk capital flight and a full-blown debt crisis over coming months, according to a client note by Morgan Stanley. The US investment bank said there is a danger Britain’s toxic mix of problems will come to a head as soon as next year, triggered by fears that Westminster may prove unable to restore fiscal credibility, the Telegraph reports.
Alistair Darling plans to force lenders to reveal more details about top-earning bankers amid growing public concern that they are returning to their old ways, a year after banks’ multibillion-pound taxpayer bailout. The measure will be seen as an attempt to win public support in the run-up to a general election next year. The Chancellor’s proposals go farther than plans outlined a week ago by Sir David Walker in his report on reforming governance in Britain’s banks, the Times reports.
The government is this week set to give a green light to the biggest shake-up in Britain’s energy industry for over 30 years: the £9bn rollout of 47m new gas and electricity meters in every British household. Details of the rollout of so-called smart meters, which monitor energy consumption in real-time, are expected as early as Wednesday, the Times reports.
Tesco upped the ante in the battle for Christmas shoppers yesterday by sending out an unscheduled Clubcard statement aimed at locking in shoppers during the festive period. The grocery retailer said that the mailshot would give the estimated 15.4m members of its Clubcard scheme an extra £67m of spending power before Christmas, the Times reports.
The German government is rushing through a fresh package of measures to shore up ailing banks and prevent a second wave of the debt crisis suffocating large parts of manufacturing industry. "We are in a very critical situation," said Chancellor Angela Merkel in her weekly radio address. "We are going to discuss with leaders of the financial institutions what can be done to head off a credit crunch," the Telegraph reports.
The European Union's appointment of Michel Barnier as bank regulation supremo has left City firms reeling, despite his attempts to calm fears over London's importance yesterday. The incoming EU Internal Market Commissioner told French radio: "I know the importance of the City. I know the importance of this major financial centre for growth in Britain and for all of Europe's economy," the Independent reports.
US banks and mortgage companies which are failing to help struggling borrowers refinance into more affordable home loans could be fined, under a drive aimed at cutting the foreclosure rate in the world's most important housing market.Amid concern that soaring repossessions could undermine the nascent economic recovery, the Obama administration yesterday promised much tighter regulation of the mortgage industry's efforts to aid borrowers, the Independent reports.
Thomas Cook will refinance its €1.8bn ($2.7bn, £1.65bn) loan facilities by next summer but has no plans to use a rights issue, Manny Fontenla-Novoa, its chief executive, assured.The tour operator’s facilities expire in May 2011 and Mr Fontenla-Novoa said early discussions with banking partners had been “encouraging,” the FT reports.
Alstom and Schneider Electric of France on Monday night trumped foreign rivals GE of the US and Toshiba of Japan with a €4.1bn bid for the transmission and distribution arm of state-owned nuclear group, Areva. Areva’s supervisory board announced it would enter exclusive negotiations with the two French bidders after a marathon meeting lasting more than three hours. The announcement is likely to spark accusations of protectionism, as the French bid was not the highest and the government had in recent days appeared to delay a decision in order to give Alstom and Schneider time to revise their offer, the FT reports.
David Ross has been reappointed as chairman of Cosalt, the marine safety business, a year after stepping down in the wake of a share disclosure row.Mr Ross was instrumental in the development of Carphone Warehouse. He left several boards a year ago after belatedly disclosing that he had pledged shares in Carphone Warehouse as security against personal loans of at least £75m ($123m), the FT reports.
Today's Headlines
FX round-up: Dollar dips as Dubai concerns ease
Date: Tuesday 01 Dec 2009
Investors deserted the dollar and returned to higher yielding currencies as concerns over the Dubai debt siutation eased.
The dollar index, which measures the value of the US currency against a basket of currencies, fell 0.2% to 74.829, completing a miserable month for the greenback. The dollar index shed more than 2% in November.
The dollar's appeal as a haven currency was ignored as confidence returned following the announcement by the United Arab Emirates' central bank on Sunday that it would help the country’s local and foreign banks.
The central bank has introduced a special facility under which banks can access funds at a cost of 50 basis points (half a percentage point) above the three-month local benchmark interest rate.
The greenback lost ground against the euro though it recovered from its low point of $1.5083.
The European common currency was little changed after the release of European inflation data which showed consumer prices rose unexpectedly by 0.6% in November, after falling 0.1% in October.
The dollar also fell back against the Japanese yen but climbed against sterling in New York trading.
In London trading, sterling slipped to a one month low against the euro, dipping to 91.38 pence.
The UK currency took a knock after UK consumer confidence fell for the first time in nearly a year in November.
Consumer confidence declined to -17 from -13 in October, which contrasts with the continuing recovery in sentiment on the continent.
GBP AUD CAD JPY EUR CHF USD GBP 1.0000 1.7981 1.7316 142.4565 1.0932 1.6476 1.6408 AUD 0.5561 1.0000 0.9630 79.2262 0.6080 0.9163 0.9125 CAD 0.5775 1.0384 1.0000 82.2704 0.6313 0.9515 0.9476 JPY 0.0070 0.0126 0.0122 1.0000 0.0077 0.0116 0.0115 EUR 0.9147 1.6448 1.5839 130.3116 1.0000 1.5071 1.5009 CHF 0.6070 1.0914 1.0510 86.4656 0.6635 1.0000 0.9959 USD 0.6094 1.0958 1.0553 86.8200 0.6662 1.0041 1.0000
LONDON Tips Watcher Alert (UK)
Date: Tuesday 01 Dec 2009
Annual results from Thomas Cook beat consensus expectations and also included an upbeat outlook for the coming year. With a price to earnings ratio of just 10.7 times, a considerable discount to rival TUI Travel, Thomas Cook is still a buy says the Independent.
Power station Drax supplies about 7% of the UK's power needs. Itsshare 

Fund manager Aberdeen is in good shape, especially after buying Credit Suisse's asset management arm earlier in the year, but there is a concern that a genuine market recovery could be some way off. It is not clear that markets have finished tying themselves in knots, however, and so hang fire for now. Hold says the Independent.
Aberdeen now boasts an extensive distribution network and is well placed to capture the rising sums of cash flowing into emerging markets equities, particularly Asia. At 140p, or less than 14 times current-year earnings, they have farther to go. Hold on adds the Times.
Shares in Lamprell fell nearly 12% last week, partly on concerns over the oil services group’s exposure to Dubai. Until its pipeline starts to produce firm orders, the discount of Lamprell’s shares to their sector — eight times forecasts earnings, against its peers’s 11 times when adjusted for cash — is unlikely to close. At 177½p, pass says the Times.
Resilient trading has taken pressure of marketing services groupCreston’s £35m of net borrowings, meaning that it should be able to repay its £20m of loan notes next year without recourse to a rights issue. It also plans to resume dividend payments. At 85p, or five times forecast earnings, hold says the Times.
First Property, the property investment company which has 80% of its money tied up in Poland, has recovered its confidence and is in the process of raising two new funds. The stock can be found in the bargain basement at the stock exchange. Buy says the Independent.
Please note: Digital Look provides a round-up of news, tips and information that is impacting share 
Today's Headlines
Aberdeen Asset Management (ADN) | Price: 141.00p | Change: 0.72% Investment Column:Aberdeen Asset Management Tempus:Aberdeen Asset Management Creston (CRE) | Price: 85.00p | Change: 4.29% Tempus:Creston Drax Group (DRX) | Price: 410.20p | Change: -2.38% Questor:Drax First Property Group (FPO) | Price: 16.00p | Change: 4.69% Investment Column:First Property HSBC Infrastructure Company Ltd. (HICL) | Price: 112.00p | Change: -0.44% Questor :HSBC Infrastructure Thomas Cook Group (TCG) | Price: 212.00p | Change: -1.94% Investment Column: Thomas Cook |
Commodities: Oil & gold rise as dollar wilts
Date: Tuesday 01 Dec 2009
Gold ended the month with a flourish with the price of the yellow stuff rising as the value of the dollar waned.
Gold for December delivery rose $6.90 to $1,181.10 an ounce in New York trading, capping a strong month for the precious metal, which saw its price fall on only three days in the whole of November.
Silver was also wanted, rising 19.3 cents to $18.495 an ounce, while copper rose 5.5 cents to $3.1485 a pound.
The weak dollar was also boosting the appeal of oil, allowing it to claw back some of the losses suffered on Friday, in the wake of the announcement of the Dubai World debt situation.
The January contract rose $1.23 to $77.28 a barrel on the New York Mercantile Exchange, having dipped to $75.13 earlier.
Increasing tensions between Iran and the west prompted speculative buying of oil futures. Iran has refused a request by the International Atomic Energy Agency to cease work on an enrichment plant for rnuclear fuel.
Name Price 1 Day Change 1 Day % Change Units Gold $1,175.75 +$9.25 +0.79% $/troy oz Silver $18.14 +$0.16 +0.89% $/troy oz Cattle 142.21p 0.000p 0.00% p/kg Pigs 139.16p 0.000p 0.00% p/kg Lamb 164.88p 0.000p 0.00% p/kg Brent Crude $77.20 +$0.09 +0.12% $/barrel Krugerrand $1,210.70 -$4.10 -0.34% $/troy oz Palladium $360.50 +$2.50 +0.70% $/troy oz Platinum $1,442.00 +$16.00 +1.12% $/troy oz
Monday, November 30, 2009
Time To Play SNWT Again!!!
Symbol: SNWT
Current Price: $0.21
Snapshot - "We have successfully discussed SNWT twice in the past! The last time we discussed SNWT on 11/1, it moved 73%+ within two trading days. The first time we discussed SNWT on the evening of 9/28 at $1.08 and it reached a high of $1.70 within 10 trading days! This was a total possible gain of 57%+ the first time we discussed SNWT! We know SNWT well and we believe SNWT is ready to move huge again, for the third time that we are discussing it! Our SNWT pick could be another big short-term moneymaker for investors! SNWT announced third quarter results around mid-November and announced that management projects Q4 revenue to exceed $800,000. SNWT is right under its uptrending 50-day moving average, which is now at $0.225. A move above its 50-day moving average of $0.225 could indicated a big breakout scenario for SNWT! Watch SNWT very closely as we believe we could see SNWT make another big short-term move!"
SNWT reported a third quarter 2009 revenue increase of 53.4% from the same period last year. Revenue came in at around $217k for Q309. At the same time, management projected Q4 revenue to exceed $800k!
SNWT is involved in the designing, manufacturing, selling and repairing of off-road buggies, and additionally provides aftermarket performance products and accessories for off-road buggies.
SNWT products are sold through retail store locations and online as well through a growing dealer network.
SNWT owns Buggy World, a wholly owned subsidiary of San West, Inc. Buggy World has multiple locations in north and east San Diego as well as Orange County.
SNWT announced on November 3rd their intention to launch an advertising campaign designed to increase revenue stream and exposure.
The marketing campaign includes a giveaway of a flagship off-terrain vehicle and runner-up prizes. The ad campaign, which includes 20 sixty second 'on-air' and 125 'online streaming' commercials per week, centers on the winning of a Buggy World Exclusive "Truggy!"
We believe it is great timing to play SNWT! According to a Letter to Shareholders on 11/2, the busy season for Buggy World and most retail companies, has started off with a bang and is shaping up to be the best quarter in Buggy World's history.
It was also announced on November 19th that SNWT and Buggy World poised for additional sales and exposure heading into season's largest event at Glamis Dunes.
Buggy World will maintain a booth from November 26th through November 30th for off-road enthusiasts to purchase products, register for the buggy giveaway, obtain service and repair assistance and sign up for news, specials and updates via the company newsletter.
We are excited about SNWT, heading into the end of the year! We could see SNWT turn into a very big play from this level! SNWT also has support slightly below its current price!
SNWT released two big partnership press releases during October.
SNWT partnered with San Diego SportCycles, a leading retailer in Southern California. The partnership gives SNWT's BuggyWorld access to leading products including No Fear, Oakley, Fox, Bridgeston, K&N and others. The partnership is also expected to bring a large amount of foot and web traffic to Buggy World.
SNWT anticipates that this alliance will help Buggy World become a mainstream Superstore for off road enthusiasts!
The second big partnership news out of SNWT during October was theCountyImports.com partnership. CountyImports.com is one of the largest online retailers in the off-road recreation sports market.
As per the press release, CountyImports.com is the second largest online dealer in the United States, grossing an estimated $3.2 million in revenue for 2008!
SNWT has two store locations through San West, one in San Marcos, CA (off-road buggies sales and accessories) and the other in Santee, CA (off-road buggies sales, service, parts and accessories).
San West is on their way to establishing themselves as a significant player with the recreational 'off-road' market especially with the two partnerships established during October!
SNWT released several strategic initiatives. Check out the PR on 9/29 that illustrated clearly where SNWT has been and where they expect to go!
SNWT's strategic initiatives poised for the next 12 months as of 9/29 PR:
Increased focus on Buggy World Internet sector
Pursuit of additional Buggy World dealership locations
Launch of marketing campaign through advertising, social media and increased industry event presence
Increased Buggy World distributorship of large industry brand names and companies
Promotion of Buggy World repair shop and part sales
Added product inventory, such as Redline and Joyner, which appeals to wider range of sports enthusiasts
We believe SNWT is about to become hot again!
SNWT is ready to move again!!!
I Project that Your SRGL Profits will increase
Muscle Flex Inc. Acquires MuscleFlex.com and Launches an Updated Web Site Ahead of the Beagle StepFit National Commercial Release December 7, 2009
Muscle Flex Inc. Acquires MuscleFlex.com and Launches an Updated Web Site Ahead of the Beagle StepFit National Commercial Release December 7, 2009
LOS ANGELES, CA--(Marketwire - 11/30/09) - Muscle Flex Inc. (Pinksheets:MFLI - News) (www.MuscleFlex.com) announced today it has acquired the web domain www.MuscleFlex.com and has gone live with a new updated site ahead of the national release of the Beagle StepFit commercial.
"Acquiring the MuscleFlex.com web domain was an important step in ensuring that all web traffic generated from our advertising is captured with as little bleeding as possible," commented Danny Alex, CEO of Muscle Flex Inc. "I regard our web traffic to be one of our most valuable assets and now with the acquisition of MuscleFlex.com, Muscle Flex Inc. owns the important web properties for capturing customers as well as maximizing search results and web optimization."
Muscle Flex has an aggressive ongoing web development program. The 'marriage' of Muscle Flex television media and its online properties is one that consists of leading edge data capture, efficiency and entertainment value for the customer. Cross pollinating the Muscle Flex customer database and communicating with them effectively, without intrusion, is an important strategy in developing ongoing sales and maintaining an intimate relationship with the customer.
In regards to data capture, The Muscle Flex Inc. Privacy Policy states that it will never sell or divulge any information of any customer at any time to any third party unless that which relates to the fulfillment of a customer's order.
About Muscle Flex Inc. (www.MuscleFlexInc.com)
Muscle Flex Inc. is a leading edge fitness, health and lifestyle company that develops exciting brands and new products to market using direct response TV advertising and commercials as well as cutting edge brand and image marketing through the creation of television media content for network and cable television distribution.
TradingMarkets 7 Stocks You Need to Know for Today
- Frontline (FRO | Quote | Chart | News | PowerRating), the oil tanker company, reports its earnings before the bell with an expected loss of 12 cents/share.
- The Bermuda based, gas transport company Golar LNG (GLNG | Quote | Chart |News | PowerRating) has forecasters awaiting a 2 cents loss prior to the open.
- Propane company, Inergy (NRGY | Quote | Chart | News | PowerRating), reports its fiscal fourth quarter results before trading starts with an expected EPS loss of 49 cents.
- Patriot Transportation (PATR | Quote | Chart | News | PowerRating) has forecast a fiscal fourth quarter EPS of 59 cents revealed prior to the bell.
- Popular clothier, Guess? Inc (GES | Quote | Chart | News | PowerRating), reports its fiscal third quarter 2010 EPS before the opening bell with a consensus estimate of 50 cents/share.
- Bristol Myers Squibb's (BMY | Quote | Chart | News | PowerRating) & Eli Lilly's
Media Digest 11/30/2009 Reuters, WSJ, NYTimes, FT, Bloomberg
Reuters: UAE shares fell on Dubai debt problem news.
Reuters: The Treasury will meet with mortgage companies to try to get them to accelerate loan modifications.
Reuters: Holiday shoppers did not use credit cards as much as in the past.
Reuters: Shoppers are increasing the use of e-commerce.
Reuters: Shoppers spent less per person on Black Friday than a year ago.
Reuters: Beijing Auto may have an interest in Saab.
Reuters: Regulators have made a list of systematic risk firms.
WSJ: A rift may be forming between Dubai and the UAE central bank.
WSJ: Some failed banks cannot be sold at any price.
WSJ: More shoppers went to stores over the Thanksgiving weekend, but they spent less.
WSJ: Higher interest rates are threatening bank stocks.
WSJ: More companies are becoming vertical through acquisitions.
WSJ: Wall St. traders are beginning to spend large sums of money again.
WSJ: The store debut of the Barnes & Noble (NYSE:BKS) Nook has been delayed.
WSJ: US coal miners expect to cut output.
WSJ: AOL plans to mass produce content using huge numbers of articles produced by outsiders.
WSJ: Samsung handset sales are on track to exceed expectations.
WSJ: Shopping via mobile phone is picking up.
WSJ: The Apple (NASDAQ:AAPL) iPhone went on sales in South Korea.
WSJ: R&D spending is staying strong.
WSJ: Lenovo will by a mobile handset company.
WSJ: More economists do not expect a strong recovery raising the question of how that will effect equity prices.
WSJ: Credit ratings agencies are producing more independent reports.
WSJ: Following Twitter is helping some companies predict near term sales.
WSJ: More companies are outsourcing idea creation.
NYT: Google (NASDAQ:GOOG) is working to gain ground on Yahoo! (NASDAQ:YHOO) in Japan.
FT: India GDP growth was 7.9% in the third quarter.
FT: There may be a bid for AIG’s (NYSE:AIG) aircraft leasing business.
FT: GlaxoSmithKline (NYSE:GSK) will cut drug prices for developing countries.
Douglas A. McIntyre
GCHT: Grand-slam Chinese wind-play, get in now

The stock is called GC China Turbine (GCHT), and while it may be low-priced at the moment, all that will likely change very shortly. This company is about to report its first profitable year (thanks to spectacular rise in sales), and is on track to grow its sales by 265% a year for the next three years at least. Very shortly, I expect the share price to begin a climb that could take it as high as 51X its current level.
Let me tell you what makes this stock one in a million...
Right Place. GC China Turbine is located in China, the fastest growing economy in the world. Next year, the IMF expects Chinas GDP growth rate will be 9% 6 times higher than that of the U.S. Under those conditions, you can expect returns on Chinese stocks to outpace their American counterparts by a wide margin.
Right Industry. Chinas economic growth requires its energy supplies to grow by 10% a year. Yet at the same time, China needs to develop cleaner energy sources to curb its terrible pollution. To satisfy these goals, Chinas government is investing $150 billion over the next 10 years to develop wind power. Turbine makers will see their sales skyrocket as all this cash gets spent on new windfarms.
Right Product. GC China Turbine has exclusive rights to manufacture and sell the most advanced wind turbine in China. Its 2-bladed design is lighter and more reliable than anything else on the market. The design was developed in Sweden under a $75 million research grant, and test models have been in operation for over 10 years. Whats more, this turbine can bring the cost of wind power down substantially, so that for the first time it can compete price-wise with coal-fired and hydro-electric plants.
Right Connections. GC China Turbine may be small, but its parent company has a 40% market share of the market for technology geared to the electrical utility industry and an excellent reputation. GC can benefit from its parents engineering expertise, reputation, and contacts within the utility industry, government, and parts suppliers to expand its business rapidly. Right Backers. Two of Chinas most successful venture capital firms have provided the company with the cash infusion it needs to expand its production.
Right Timing. GC China Turbine already has won 3 contracts for a total of 150 turbines worth $128 million. Seven of these are already delivered and installed, while the rest will be over the next few months. That means not only this years profit but also next years huge increase are practically guaranteed. Between now and the end of this year, you have one final chance to buy shares for under $5.50. Once the next earnings report comes out, I doubt they will ever be this cheap again.
Let me stress. This may be a small company now, but in three years it could easily have a market cap of over $1 billion. Its the kind of opportunity that doesnt come along every day, and I really think you should take advantage of it. Contact your broker now, and if youre lucky enough to find GC China Turbine (GCHT) selling for under $5.50 a share, buy some quick!
Sunday, November 29, 2009
Quanta Services (PWR): Infrastructure power play
In his Top Stock Insights, he explains, "The current focus in the US of projects that improve energy conservation, utilize renewable resources, and improve air quality make Quanta an excellent long-term growth opportunity."
"Its customers are in the electric power, gas, telecommunications, and cable television industries. These are stimulus spending customers, i.e. big government organizations and utilities companies.
"Quanta's industry is highly regulated and very cyclical. The industry is pulling out of the cyclical trough with a renewed focus on projects that will improve energy conservation, utilize renewable resources, and improve air quality. Federal stimulus spending is also helping by spurring demand.
"Quanta Services will benefit from U.S. efforts to increase energy independence while meeting clean energy goals. It can build the infrastructure and electricity distribution networks to harness energy from diverse sources like wind, solar, and natural gas.
"In fact, many coal fired power plants are considering making the switch to natural gas as a cleaner, more cost-efficient alternative fuel.
"While challenging market conditions won't evaporate overnight, and the future of natural gas is not set in stone, Quanta is in an very strong position to capitalize on increasing demand for clean energy initiatives.
"Quanta has been growing both organically as well as through acquisitions. From 2006 to 2008 revenues increased from $2.1 billion to $3.8 billion.
"Over the same period, the company reduced its total debt from $450 million to $145 million. With nearly $440 million in cash at the end of 2008, it's safe to say that Quanta Services is growing operations at an attractive pace.
"Its latest acquisition, Price Gregory Services, just closed in October 2009. Price Gregory is a leading U.S. energy infrastructure company and specializes in the construction of large diameter transmission pipelines.
"These are the big boys that will really get natural gas flowing around the country. I really like that Quanta is growing its natural gas operation at a time when the long-term outlook for the commodity is improving.
"Right now, there are more than 50 major pipeline projects either approved or under construction in the U.S., and Price Gregory's leadership in the industry will help secure business for Quanta.
"The acquisition will also bring in nearly $1 billion of revenue in 2009 and increase earnings by $0.13 - $0.21 per share. These are the kinds of immediate earnings increases that I love to see out of acquisitions.
"Quanta Services is going to grow earnings at a rate around 50% over the next year, and I expect at 25% in 2011. I'm looking for the company to have 2009 EPS of $0.72 and 2010 EPS of $1.11.
"I don't think the currents share price fully represent the favorable industry momentum, the competitive advantage of the Price Gregory acquisition, and strong financial management of the company. Quanta's shares should trade up to $27."
Sunday tips round-up: Lloyds, Standard Chartered, Petra Diamonds
Fortunately a rights issue gives investors a way to increase their investment and so benefit from the recovery without dipping into their own pockets. Sell some of your rights entitlement and use the proceeds to buy the rest. Or in Cityspeak, swallow your tail, says the Daily Mail.
Greed has been in the driving seat for some time but at the end of last week news from Dubai caused fear to re-emerge as the emotion controlling events. Shares in Standard Chartered fell 6pc on Thursday, wiping about Ł1.8bn off its valuation. Investors are concerned that events in the emirate could set off a chain reaction across Asia. However, the Telegraphs Questor is along-term investor and regards the steep fall last week as a buying opportunity.
The shares are trading on a December 2009 earnings multiple of 14.2 times, falling to 13 next year. They are yielding 2.7pc. Shares in Standard Chartered were recommended as a buy on April 6 at Ł12.40 and they are now up 22.5pc compared with a market up 31pc. Buy.
On Friday Petra Diamonds sold a 168 carat diamond from its Cullinan Mine for $6.28m (Ł3.83m) or $37,380 a carat. The Cullinan Mine, near Pretoria, South Africa, is famous for producing a 3,100 carat diamond in 1905 with the two largest gems from this stone becoming centrepieces in the British crown jewels. The shares were recommended at 68žp on October 20 and the shares are down 9pc compared with a flat market. Because of the quality of its diamond mines, the shares are a buy, says the Telegraph.
Sunday newspaper round-up: Dubai, Yell, Banks
The FT adds that Dubais government is preparing a campaign to persuade the holders of a bond due for repayment next month to agree to a delay even if that sparks claims that the emirate has defaulted on the debts of a government-backed company, bankers said on Sunday.
The Bank of England has been secretly mediating on major financial restructurings to ensure that they are approved by creditors, in a return to a 1990s policy known as the "London approach". Most significantly, the Bank intervened in the struggle that Yell Group, the Yellow Pages publisher, faced when it pushed through amendments to the terms of its Ł4bn debt burden at the turn of November. The Bank's chief cashier, Andrew Bailey, made telephone calls that resulted in what a market source described as "gentle conversations" with creditors who were considering voting against the amendments, says the Independent on Sunday.
Lord Myners, the City minister, has launched an investigation into the giant profits racked up by investment banks, after claiming the scale of the windfalls defies rational analysis. A handful of banks, such as Goldman Sachs and Barclays Capital, are expected to post record profits this year, partly due to the continuing chaos in the financial world, writes the the Sunday Times.
The billionaire currency trader Joe Lewis has blocked the appointment of Archie Norman as chairman of Mitchells & Butlers, the Ł1 billion pub group. Norman, who was this month appointed chairman of ITV, the broadcaster, had been in talks about becoming non-executive chairman of M&B, which owns 2,000 pubs including the Harvester, All Bar One and ONeills chains, reports the Sunday Times.
Saturday, November 28, 2009
China Wind Systems, Inc. Reports Third Quarter Fiscal 2009 Results
WUXI, Jiangsu, China, Nov. 17 /PRNewswire-Asia-FirstCall/ -- China Wind Systems, Inc. (OTC Bulletin Board: CHWY - News), ("China Wind Systems" or the "Company"), a leading supplier of forged products and industrial equipment to the wind power and other industries in China, today announced its financial results for the quarter and nine months ended September 30, 2009.
Third Quarter 2009 Highlights and Recent Events -- Net revenues increased 37.1% year over year to $16.1 million -- Revenue from the sale of forged products for the wind power and other industries increased 112.0% year over year to $11.1 million, or 69.1% of net revenues -- Revenue from the sale of forged products exclusively to the wind power industry increased 175.7% year over year to $6.9 million, or 42.6% of net revenue -- Gross profit increased 31.7% year over year to $3.9 million -- Net income allocable to common shareholders increased 9.4% year over year to $2.0 million, or $0.09 per fully diluted share -- Adjusted net income was $2.5 million, or $0.11 per diluted share, up 34.3% year over year excluding $462,000 non-cash deemed preferred stock dividend related to issuance of 1.1 million series A preferred shares in the third quarter of 2009 -- Completed one-for-three reverse stock split effective September 23, 2009 -- Raised $3.5 million for the private sale of 3.5 million shares of Series A preferred shares in September and October 2009 to fund payment of electro-slag re-melted (ESR) forged products production line
"We are very encouraged to have achieved another quarter of strong earnings growth driven by rapidly expanding forged product segment for wind power and other industries," said Mr. Jianhua Wu, Chairman and CEO of China Wind Systems, Inc. "In October 2009, we commenced construction of our ESR production line which will be housed in an expanded wing of our newly built forged product facility. We anticipate completing construction by the end of the first quarter of 2010. We are confident that the addition of high precision forged products to our product portfolio will increase our competitiveness in the wind power components market."
Third Quarter 2009 Results
Net revenues for the third quarter of 2009 increased 37.1% to $16.1 million, compared to $11.8 million for the same period in 2008. The increase was primarily due to strong sales growth of forged rolled rings. Revenues from the sale of forged rolled rings for the wind power and other industries grew 112.0% to $11.1 million, or 69.1% of net revenue, for the third quarter of 2009, compared to $5.3 million, or 44.6% of net revenue, for the same period of the prior year. Revenue from the sale of forged rolled rings exclusively for the wind power industry rose 175.7% to $6.9 million, and represented 42.6% of net revenues, compared to $2.5 million, or 21.2% of net revenues in the year-ago period. Revenues from the Company's dyeing and finishing equipment segment decreased 16.4% to $5.0 million, or 30.9% of net revenues, compared to $6.0 million, or 50.6% of net revenue, for the third quarter of 2009 due to impact of the global recession on China's textile industry.
Gross profit for the third quarter of 2009 increased 31.7% to $3.9 million, from $3.0 million for the same period in the prior year. Gross margin was 24.1% compared to 25.1% for the same period in 2008. The dyeing and finishing equipment segment's gross margin was 21.7%, down from 26.3% in the comparable period in 2008, resulting from higher raw materials costs and industry pricing pressure. Gross margin for forged rolled rings and electric power equipment was 25.1%, compared with 23.8% in the same period last year. The increase was attributable to cost savings resulting from the Company's ability to manufacture machinery used by the Company to produce its forging products which the Company previously outsourced. As the Company improves its efficiency at the new facility, the Company expects the gross margins to continue to improve.
Operating expenses decreased 2.9% to $469,755, compared to $483,790 in the comparable period last year, primarily the result of lower professional fees.
Operating income increased 38.5% to $3.4 million for the third quarter of 2009, from $2.5 million for the same period in the prior year.
Net income allocable to common shareholders increased 9.4% to $2.0 million, compared to $1.9 million in the third quarter of 2008. Diluted earnings per share increased to $0.09 from $0.08 in the comparable period last year. Adjusted net income excluding $462,000 one time non-cash deemed preferred stock dividend related to issuance of 1.1 million series A preferred shares in the third quarter of 2009 was $2.5 million, up 34.3% from $1.9 million a year ago. Diluted earnings per share were calculated using weighted average shares of 23,506,936 and 22,396,370 for the three months ended September 30, 2009 and 2008, respectively. All share and per share information reflects the one-for-three reverse stock split, which became effective on September 23, 2009.
Nine Month Results
For the first nine months of 2009, revenues increased to $37.6 million, up 19.7% from $31.4 million in the corresponding period of 2008. Gross profit increased 8.9% to $8.6 million, as compared to $7.9 million in the comparable period last year. Gross margin was 22.8%, as compared to 25.1% during the first nine months of 2008. Operating income increased 16.2% to $7.0 million, from $6.0 million during the first nine months of 2009. Net income attributable to common shareholders was $4.5 million, or $0.20 per diluted share, compared to net loss available to common shareholders of $0.9 million, or net loss of $0.07 per diluted share, in the first nine months of 2008. Diluted earnings per share were calculated using weighted average shares of 21,969,692 and 12,878,103 for the three months ended September 30, 2009 and 2008, respectively, as adjusted for a 3-to-1 reverse stock split, effective on September 23, 2009. Adjusted net income allocable to common shareholders was $5.1 million, or $0.23 per diluted share, as compared to $4.3 million, or $0.33 per diluted share.
Financial Condition
As of September 30, 2009, the Company had cash and cash equivalents of $1.2 million, accounts receivable of $6.0 million and working capital of $5.4 million. The Company had $1.4 million in short-term loans payable, $0.7 million in long-term debt, and stockholders' equity of $39.7 million.
During the first nine months of 2009, the Company generated $4.9 million in operating cash flow and spent $6.5 million in capital expenditures, primarily for property and equipment related to the new forged products facility and ESR production line.
Recent Developments
In September and October 2009, the Company received gross proceeds of $3,500,000 from the sale of 3,500,000 shares of series A preferred stock to pay down payment for its ESR project.
On October 13 2009, the Company completed a one-for-three reverse stock split, an important step for the Company to meet the minimum share price requirements for listing on a senior stock exchange in the United States.
Business Outlook
"As we continue to increase the utilization rate at our forging facility, we anticipate gaining momentum for our sales activity," commented Mr. Wu. "Upon completion of our ESR production line, we expect to be in a stronger position to apply for the highly valued international certifications that we believe are necessary for us to win larger contracts to supply wind energy components to major industry players. In addition, we expect to achieve higher gross margins in our ESR forged product line, which is anticipated at approximately 35%-40%. Given anticipated consolidation in the wind energy components industry, we are focused on improving the quality of our products to further distinguish the Company."
Conference Call
The Company will conduct a conference call at 10:00 a.m. Eastern Standard Time (EST) on Tuesday, November 17, 2009 to discuss its third quarter 2009 results. To participate in the live conference call, please dial 888-419-5570 (international callers dial 617-896-9871) approximately ten minutes prior to the start of the call and when prompted enter passcode 794 278 01. A replay will be available for 14 days starting November 17 at 12:00 a.m. EST. To access the replay, dial (888) 286-8010 (international callers dial 617-801-6888) and enter passcode 486 940 06.
Use of Adjusted Financial Measures
China Wind Systems believes that net income adjusted for certain non-cash expenses, a non-GAAP performance measure, is a reasonable means for understanding its business in view of the significant non-cash charges which do not relate to the operation of the business. In connection with the Company's November 2007 private placement, it issued 3% convertible notes to the investors in the principal amount of the $5,525,000. Because of the favorable conversion terms, the debt was issued at a discount of $2,610,938. Upon the conversion of the debt into equity in March 2008, the unamortized debt discount of $2,263,661 was fully amortized and treated as additional interest, and the relative fair value of the warrants granted in March 2008 related to the November 2007 private placement of $2,884,062 was classified as a deemed dividend to the holders of the series A preferred stock. Additionally, in September 2009, we sold 1,100,000 shares of series A preferred shares and recorded a beneficial dividend of $462,000. The amortization of the debt discount and the deemed dividend are non-cash events which do not affect the Company's operations.
About China Wind Systems, Inc.
China Wind Systems supplies forged rolled rings to the wind power and other industries and industrial equipment to the textile and energy industries in China. With its newly finished state-of-the-art production facility, the Company plans to increase its production and shipment of high-precision rolled rings and other essential components primarily to the wind power and other industries. For more information on the Company, visit http://www.chinawindsystems.com . Information on the Company's Web site or any other Web site does not constitute a portion of this release.
Worldwide Energy Clarifies and Reaffirms Fiscal Year 2009 Guidance, Estimates $60 Million in Annual Revenue
SOUTH SAN FRANCISCO, CA and SHANGHAI, CHINA--(Marketwire - 11/18/09) - Worldwide Energy and Manufacturing USA, Inc. (OTC.BB:WEMU - News), today announced that company management clarifies and reaffirms guidance for the 2009 fiscal year ending December 31, 2009.
Jimmy Wang, chief executive officer of Worldwide Energy and Manufacturing USA, Inc., stated: "The Company reaffirms guidance previously provided in our November 5, 2009, third-quarter earnings conference call that we expect annual revenues of at least $60 million and an EBITDA of $2.8 million for fiscal year 2009."
Wang continued: "Our solar division expects to ship orders totaling at least 10 megawatts, representing approximately $20 million in revenues, in the fourth quarter of 2009. Additionally, our contract manufacturing division should create at least $3 million in revenues for the quarter. This would bring our total fiscal year 2009 revenues in excess of $60 million. Fiscal year 2009 earnings would come in at about $1.8 million, which results in net earnings per share of $0.50 on a fully diluted basis.
"We continue to see increasing sales growth from the existing and a number of new customers and improving margins from ramping up production at our solar manufacturing facility in China. We expect a strong fourth quarter and continued growth in our solar division, which comprised 83% of our sales in the third quarter. We are encouraged by our progress and continued strong sales performance."
About Worldwide Energy and Manufacturing USA, Inc.
Worldwide Energy and Manufacturing USA, Inc. ("Worldwide"), headquartered in South San Francisco, California, is a 16-year-old engineering-oriented firm specializing in photovoltaic (PV) panel, mechanical, electronics and fiber optic products manufacturing. The company's worldwide customer base includes the industries of solar energy, wireless telecommunications, aerospace, automobiles and medical equipment. Subsidiaries include: Worldwide Energy and Manufacturing Ningbo (Solar factory) Co., Ltd, Shanghai Intech Electro Mechanical Products Co. Ltd., Shanghai Intech Electronics Manufacturing Co. Ltd., Shanghai Intech Precision Mechanical Products Manufacturing Co. Ltd. And Shanghai Intech Electric and Electronics Co., Ltd., located in Shanghai and Ningbo, China.
For further information on Worldwide Energy and Manufacturing USA, Inc., please visit http://www.wwmusa.com.
RXi Pharmaceuticals Wins 2009 RNAi Technology Innovation of the Year Award from Frost & Sullivan
WORCESTER, Mass.--(BUSINESS WIRE)--RXi Pharmaceuticals Corporation (Nasdaq: RXII - News), a biopharmaceutical company pursuing the development and commercialization of proprietary therapeutics based on RNA interference (RNAi), today reported that the Company has received Frost & Sullivan's 2009 North American RNAi Therapeutic Design & Delivery Technology Innovation of the Year Award for the development of its proprietary RNAi compounds, rxRNA™, and advanced delivery approaches. The rxRNA™ compounds are designed specifically for therapeutic use and contain many of the properties needed to develop RNAi-based drugs.
Commenting on today's news, Noah D. Beerman, President and Chief Executive Officer of RXi Pharmaceuticals, stated, "We are honored to receive this prestigious award. RXi has built a comprehensive RNAi therapeutic platform based on innovative technology that we are using to advance internal therapeutic programs as well as those of our partners and collaborators. RXi's therapeutic platform consists of rxRNA™ compounds optimized for therapeutic applications and advanced delivery technologies for both local and systemic delivery. For these accomplishments, RXi has been recognized with the Frost & Sullivan RNAi Technology Innovation of the Year Award."
Frost & Sullivan's Technology Innovation Award is bestowed upon a company (or individual) that has carried out new research which has resulted in innovation(s) that have or are expected to bring significant contributions to the industry in terms of adoption, change, and competitive posture. This award recognizes the quality and depth of a company's research and development program as well as the vision and risk-taking that enabled it to undertake such an endeavor.
A full copy of the report is available at: www.rxipharma.com
About RXi Pharmaceuticals Corporation
RXi Pharmaceuticals is a discovery-stage biopharmaceutical company pursuing the development and potential commercialization of proprietary therapeutics based on RNA interference (RNAi) for the treatment of human diseases. RXi has a comprehensive therapeutic platform that includes both RNAi compounds and potential delivery methods. RXi uses its own version of RNAi compounds -- rxRNA™ -- designed specifically for therapeutic use and contain many of the properties needed to move RNAi-based drugs into the clinic. RXi Pharmaceuticals believes it is well positioned to compete successfully in the RNAi-based therapeutics market with its accomplished scientific advisors, including Dr. Craig Mello, recipient of the 2006 Nobel Prize for his co-discovery of RNAi; a management team that is experienced in developing RNAi products; and a strong early intellectual property position in RNAi chemistry and delivery. www.rxipharma.com
Top 5 Stocks for 2010
Let’s begin with Consumer Staples.Companhia de Bebidas das Americas (ABV) is translated to "the American Beverage Company," and commonly known simply as AmBev. This company dominates the Brazilian beer market with brands such as Antarctica, Brahma and Skol. Additionally, the company sells Pepsi brands, Lipton iced tea and other beverages that include mineral water and sports drinks. Along with Brazil, AmBev sells its products in some 13 other countries, including the South and Central American countries of Argentina, Peru, Ecuador, Uruguay and Venezuela.
This company is a great buy for two reasons: First of all, beer and soft drinks are consumer staples that have seen strong sales even during tough times. And secondly, AmBev is benefiting from the fact that the Brazilian real has appreciated dramatically against the U.S. dollar since March. The fact that Brazil's currency has surged over 20% compared to the greenback means that this company's sales and profits have been boosted significantly simply due to favorable exchange rates.
The numbers speak for themselves. In its latest quarter, ABV posted 4% sales growth and 35% earnings growth compared to the same quarter a year ago. This represented a 33% earnings surprise and prompted the analyst community to revise their consensus earnings estimate 22% higher over the past three months. This bodes quite well for AmBev's next quarterly earnings announcement, and this stock is a great buy in anticipation of third-quarter earnings season.
Stock #2: Energy Stock: Southwestern Energy
After bottoming out at the end of 2008, oil prices have started to bounce back. That’s because crude oil, like most commodities, is traded in U.S. dollars. That means if the dollar is strong, then oil is cheap, and when the dollar is weak, then oil is expensive. The bailouts, stimulus packages and earmarks of the last few months have created trillion-dollar deficits for the U.S. as far as the eye can see. As the dollar has declined, energy prices have been creeping back week after week.
This adds up to windfall profits for top energy stock, Southwestern Energy (SWN).
SWN is a pioneer in horizontal drilling—meaning instead of erecting many rigs that drill down into a gas field, it simply taps a well once and then drills sideways to access the remainder of the field. This technology keeps costs down while boosting output. Even if gas prices stay very soft, this horizontal drilling tactic will allow Southwestern to increase sales simply by bringing even more natural gas to the market. This is why the company has been able to beat earnings estimates by about 10% in the last year and see its stock price move up quite nicely.
SWN is just the beginning—my current Buy List has a total of four superior energy stocks that are booming right now.
Stock #3: Electric Utilities: Enersis
Enersis (ENI) is the largest utility in Latin America. Based in Chile, the company distributes power to almost 12 million customers (approximately 45 million people) in regions of Chile, Argentina, Brazil, Colombia and Peru. Enersis also owns a 60% of Empresa Nacional de Electricidad (known as Endesa Chile), which is Chile’s largest power generator, with 13,700 megawatts of generating capacity. The company’s other operations include real estate, electrical engineering, energy trading and support services.
This emerging market is seeing booming demand for energy right now—and that is working in ENI's favor.
ENI posted a 50% increase in earnings in the first quarter, proving that even in a recession this stock is booming due to strong energy demand in the region. This jump is only the beginning, since like China, Latin America's economy has been much stronger than developed nations. Consider that while U.S. GDP declined nearly 6% in the second quarter, Brazil's economy grew 2%! Just imagine how much electricity demand will spike once the worldwide recovery takes hold. It’s obvious the experts think this company has a lot more room to grow.
Stock #4: Chemicals: Sociedad Quimica y Minera
Sociedad Quimica y Minera (SQM) is one of my favorite stocks right now and has joined the Buy List because it is perfect for just about any portfolio. A Chile-based producer of specialty fertilizers, iodine and lithium, SQM has tremendous growth potential and is in great shape to profit from the current market conditions. Specialty fertilizers account for more than half of this company’s sales, but that’s not the only source of profits.
SQM is also one of the world’s largest producers of iodine, which is used in medical, agricultural and industrial applications. SQM has customers in more than 100 countries and generates most of its sales outside Chile and is the world leader in lithium—the material that is used in batteries for hybrid cars. Lithium batteries charge much faster than alternative power cells, and that makes this material crucial to any low-emission vehicle.
Fuel efficiency is now one of the most important aspects of any vehicle, and demand for fast-charging lithium batteries will soar in the automotive market over the next 12 months. Chevy's Volt will debut late next year with lithium cells under the hood, and Toyota is racing to bring a lithium-powered electric car to the market soon after
Stock #5: Metals & Mining: GoldCorp
GoldCorp (GG) is one of the largest precious-metal mining companies in the world, operating mainly in Canada and South America. The company produces more than 2.3 million ounces of gold annually and has about 45 million ounces in proved and probable reserves. But don't be fooled by the name—GoldCorp also owns 1.2 billion ounces of proved and probable silver reserves and 1.4 billion pounds of copper reserves. Silver and copper prices have been on a tear lately, and the diverse mining operations of GoldCorp makes it a great investment right now.
That's because inflation has been driving up commodity prices and gold has been surging in 2009 as a result, topping $1,000 an ounce recently. Other precious metals have also soared in value this year. But recent leaps in this precious metal are only the beginning: Gold prices typically rise in September, as the start of holiday season in the world's biggest gold consuming countries tends to drive up demand. In fact, gold has posted monthly gains for the past 16 out of 20 Septembers, which is better than any other month of the year. That means now is the time to strike if we're looking to buy a precious metals stock.
In the second quarter, GoldCorp's production rose 5% to 582,400 ounces compared to the same quarter a year ago. It cost GoldCorp $310 per ounce to mine gold during the second quarter, which is the lowest of all its major competitors, so as gold prices continue to rise, the company's operating margins and cash flow should increase accordingly. Since GoldCorp is the low cost producer, it stands to profit the most from the rise in gold prices over the long term.
LONDON: Broker Recommendation Round up
Broker tips: HMV, water firms, insurers
HMV has been benefiting from the demise of competitors and is likely to continue doing so, says the broker Charles Stanley as it keeps its ‘buy’ rating on the music, film and video game retailer.Charles Stanley is not signed up to the scepticism about HMV’s long term prospects expressed by other observers.
‘Based on our analysis, our conviction is that HMV is positioning itself well to be a
multi-channel brand in music, film and video games,’ it says.
It sees the firm as well placed to grow revenues, profits and market share. It also sees the firm as good value, trading at eight times earnings and with a 6.5% yield and keeps its ‘buy’ stance and 160p target price on the stock.
Evolution Securities has downgraded its recommendation on Pennon and Northumbrian from ‘buy’ to ‘add’ as it thinks the water firms face greater regulatory risks despite the relaxation of Ofwat’s determination on how much they can charge customers over the next five years.
Broker Recommendations
| Date | Company Name | Ticker | Broker Name | Recommend | Price | Old Target Price | New Target Price | Broker Change |
|---|---|---|---|---|---|---|---|---|
| 27-Nov-09 | Brewin Dolphin | BRW | Daniel Stewart | Buy | 160.10p | 207.00p | - | Reiteration |
| 27-Nov-09 | Computacenter | CCC | Panmure Gordon | Buy | 248.10p | 331.00p | - | Reiteration |
| 27-Nov-09 | H & T Group | HAT | Daniel Stewart | Buy | 277.50p | 360.00p | - | Reiteration |
| 27-Nov-09 | Hilton Food | HFG |
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| P/E: 21.5 | Div Yield: 4.3%

| P/E: 9.8 | Div Yield: 1.0%
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| P/E: 15.9 | Div Yield: 2.1%