Archive for the ‘Smallcaps.us’ Category

SmallCAPS.us Featured Company: Hudson Technologies, Inc. (HDSN)

Tuesday, June 3rd, 2008

Hudson Technologies (HDSN:NASDAQ) is a leading provider of refrigerants and reclamation services for commercial refrigeration and air conditioning systems in the United States. The company also provides proprietary on-site decontamination services and energy efficiency assessments. In addition, Hudson Technologies has a strategic alliance to market its service offerings outside the United States with the German industrial gases giant Linde.

In early May, Hudson Technologies announced an outstanding earnings report. The company reported record first quarter revenues of over $11 million, an increase of 40% from the same quarter last year. Net income for the first quarter came in at 9 cents per shares versus only 1 cent per share last year. These figures resulted from the company’s growing reputation as a leader in refrigerant reclamation, which in turn allows Hudson to sell refrigerants to a broader and more diverse customer base.

Hudson Technologies seems poised to enjoy continued strong growth in their business. The air conditioning and refrigeration industry is approaching a critical juncture. The industry is preparing for the phase-out and ultimate ban on the production of HCFC refrigerants beginning in 2010. Currently, over 60% of the $1 billion refrigerant market is comprised of HCFCs. Also many large-scale chillers, which are costly to replace and have long life spans, were designed to run using HCFC gas. Manufacturers will become increasingly limited in how much new HCFC gas they can produce. But the demand for HCFC gas will continue to be there.

The gap between supply and demand for HCFC gas will have to filled by reclaimed HCFC gas. This is where Hudson Technologies intends to step-up and meet that demand. During the phase-out of CFC gases in the 1990s, Hudson Technologies became one of the market leaders due to its superior equipment and infrastructure. This phase-out of HCFCs is on a much larger scale and Hudson Technologies is poised to benefit from it.

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SmallCAPS.us Issues Smallcap Update for the Second Week of April

Monday, April 14th, 2008

The SmallCAPS.us newsletter put the spotlight on two companies in this week’s issue. The first company in focus is Signalife Inc (AMEX:SGN). Signalife is a life sciences company focused on the monitoring, detecting, and prevention of disease through continuous biomedical signal monitoring. At the moment, their main product is one the company calls a “breakthrough” electrocardiogram (ECG) monitoring system named the Fidelity 100. The Fidelity 100 will, for the first time, allow real-time, ambulatory, 12-lead heart-patient monitoring, producing a high-quality ECG never seen before in a clinical setting. After Friday’s stock run-up, SmallCAPS.us is expecting big news from the company.

The second company in focus is WSI Industries Inc (NASDAQ:WSCI). WSI Industries is a leading contract manufacturer that specializes in the machining of complex, high-precision parts for a wide variety of industries. Their clients include companies in avionics, aerospace and defense, energy, bioscience, engines, and more. The company released their earnings report in early April showing that sales were up 45% as compared to a year earlier, while in the same period earnings were up to $.29 vs. $.11. The stock moved up smartly after the release of the earnings report.

WSI Industries has been a long-time favorite of the SmallCAPS.us newsletter. In February 2005, they originally recommended the stock at $2.95. It hit a high this past week of $14.44, a gain of nearly 400%. In light of this, SmallCAPS.us advises clients to take some profits off the table.

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SmallCAPS.us Features “Stock Of The Year” for 2008

Wednesday, January 2nd, 2008

SmallCAPS.us announced that they believe the most promising stock for 2008 is AML Communications (AMLJ.OB). The newsletter blames the recent fall from $1.20 on the tax selling season and asserts that the stock is trading at ridiculous prices with the potential to move 50-100% over this new year.

In the second quarter of 2007, the company posted higher revenues and returned to profitability. The net sales increased from $2.15 million to $3.20 million within one year. The increase in revenues resulted because of the increased bookings for the Company’s core defense business and a $440,000 contribution from its Mica-Tech subsidiary.

AML Communications is focused on designing, manufacturing, and marketing amplifiers and related products that meet the needs of the Defense microwave market. Its subsidiary designs, manufactures, and markets intelligent satellite systems that deliver Supervisory Control and Data Acquisition (SCADA) of the electrical power grid.

In conclusion SmallCAPS.us gave the stock a price target of $1.90 per share, a 90% increase above today’s stock price.

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SmallCAPS.us Issues New Recommendation: Spanish Broadcasting System, Inc. (SBSA)

Monday, December 17th, 2007

Spanish Braodcasting System is a Hispanic-controlled media and entertainment company and is known as the largest of its kind in the United States. The company owns and operates 20 radio stations in New York, Los Angeles, Miami, Chicago, San Francisco and Puerto Rico, including the number one Spanish-language radio station in America, WSKQ-FM in New York City.

In addition, the Company also operates Mega TV, which is a television operation in South Florida with national distribution through Directv. Spanish Broadcasting Systems also operates www.LaMusica.com, a bilingual online website focused on delivering content related to Latin music, entertainment, news and culture.

SmallCAPS concluded their research report stating, “The stock seems extremely undervalued, as it is selling for less than 50% of its book value. We think it is a potential buyout candidate. If SBS continues its growth and returns to profitability next year, it could move 50 to 100% over the next year.”

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SmallCAPS.us Issues Smallcap Update for the Second Week of November

Monday, November 19th, 2007

Dynamotive Energy Systems Corporation (DYMTF.OB) is down 15% in one month without any announced news. SmallCAPS.us feels that this is unreasonable. Dynamotive develops and markets biofuel technology and products based on its patented fast pyrolysis technology. The company leads the rest of the industry in converting both biomass residues and energy crops into technologically viable fuels.

Unlike most of the developing alternative energy technologies, Dynamotive’s product isn’t futuristic but actually works now, and more than 200 tons of it is produced each day. The website stated, “We expect Dynamotive to be one of our big winners next year. Buy Recommendation.”

Playlogic Entertainment (PLGC.OB) share prices rose more than 40% in the past few weeks after reporting strong third quarter results. Net revenue increased 147% to $3.7 million year-over-year while net profit increased from a loss of $4.6 million to a profit of $2.1 million.

Rogier W. Smit, executive vice president of Playlogic stated, “We are pleased with our financial and commercial achievements in the third quarter of this year. The net profit of $2.1 million shows that our policy of cost control, on the one hand, and investing in our future growth by acquiring and publishing more high quality products, on the other, is paying off.”

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SmallCAPS.us Featured Company: AML Communications (AMLJ.OB) Reports Q2 Results

Tuesday, November 6th, 2007

AML Communications recently announced results for the second quarter ended September 30, 2007. Net sales for the quarter totaled $3.20 million, which is a 49% increase from the same period last year. The company also reported a profit of $104,000, or 0.01 per share, a significant improvement from last year’s net loss of $32,000.

Revenues for the quarter were higher due to an increased amount of bookings for the core defense business and revenue contribution from the company’s subsidiary, Mica-Tech. The increased bookings were reported during the last three quarters and are expected to positively impact future revenues as many of them are related to long term contracts.

Growth is expected to continue for both the Camarillo and Santa Clara divisions as well as the Mica-Tech subsidiary. SmallCAPS.us gave the stock a “Buy” recommendation and stated, “AMLJ returned to profitability. We believe this trend will continue in the quarters to come.”

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SmallCAPS.us Issues Smallcap Update for the Third Week of October

Monday, October 29th, 2007

Smallcaps.us highlighted its results for previous featured companies and provided their subscribers with a new stock recommendation. The new recommendation, Axesstel (AMEX: AFT), is believed by SmallCAPS.US to have the potential to double in price over the next year or so.

Axesstel is focused on designing and developing fixed wireless web computers, broadband modems, 3G gateways, fixed wireless desktop phones, and access to online computing, high-speed data and voice calling services. The innovative wireless solutions are delivered by the company to leading telecommunications operators and distributors worldwide.

A few weeks ago, Axesstel and PT Smart Telecom signed a two year supply agreement that values at $68 million. The agreement includes joint marketing and volume commitments for Axesstel phones and wireless broadband USB modems. An option to purchase Axesstel’s enhanced feature phones and 3G gateways is also included in the agreement. Shipments of the phones and USB modems are anticipated to begin this month and continue for the next two years.

Marv Tseu, CEO of Axesstel, stated, “This supply agreement is a testament to the quality of our products, continued demand for our phones and growing demand for our broadband data devices. Securing a long-term agreement with an innovative new operator like PT Smart Telecom is a significant win for us as we continue to build on our existing customer base in Asia and increase our market penetration in one of the fastest growing wireless markets in the world.”

The company also recently expanded its reach in Eastern Europe with a purchase order from Mobilkom in the Czech Republic for PX310L Fixed Wireless Desktop Phones. The Company was selected as an approved vendor to provide fixed and mobile, voice and broadband devices to the Africa CDMA Forum’s 12 operator members across Africa. Axesstel also provided D800 EV-DO Wireless Broadband Modems as part of QUALCOMM’s Wireless Reach initiative in southern Thailand to enable email and Internet access for education and communication.

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SmallCAPS.us Issues Smallcap Update for the Second Week of October

Monday, October 15th, 2007

Smallcaps.us provided their subscribers with an update regarding their four featured companies: Dynamotive Energy Systems Corporation (OTCBB: DYMTF), Hemispherx Biopharma Inc. (AMEX: HEB), Remedent Inc. (OTCBB: REMI), and Cerus Corp (NASDAQ: CERS).

Last week, Hemispherx Biopharma, Inc. filed its New Drug Application to treat Chronic Fatigue Syndrome. According to data from the Centers for Disease Control, the syndrome might be affecting more than a million people in the United States, not including other nations.

Remedent Inc. increased 41% in approximately three weeks. The remarkable thing to notice is that there was no news announced by the company. Remedent is focused on becoming a world leader in the research, development, manufacturing and marketing of oral care and cosmetic dentistry products.

Dynamotive Energy Systems Corp. announced last week that it has completed a $10.5 million equity financing with an environmentally oriented fund and several other private investors. The President and CEO stated, “The Quercus funding comes at an important time for Dynamotive as this significant cash investment by a sophisticated, alternative-energy-oriented investor provides additional working capital to help speed our progress on major activities currently under way.”

Cerus Corporation’s stock also experienced a large increase the past three weeks as it advanced from $7.23 to $10.18, 40.8%. Cerus is a biopharmaceutical company that develops and commercializes novel, proprietary products in the fields of blood safety and immunotherapy designed to provide safer, more effective medical options to patients in areas of substantial unmet medical needs.

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SmallCAPS.us Issues Smallcap Update for the Third Week of September

Monday, September 24th, 2007

Smallcaps.us provided their subscribers with an update regarding their three featured companies: Dynamotive Energy Systems Corporation (OTCBB: DYMTF), NetSol Technologies (NASDAQ: NTWK), and AML Communications (OTCBB: AMLJ)

Last Monday, AML Communications announced that its subsidiary Micra-Tech, Inc. received two orders from Tri-state Generation and Transmission, Inc. worth $816,000. The ordered products are a number of intelligent satellite communication systems for Supervisory Control And Data Acquisition (SCADA) of the electric power grid.

Dynamotive Energy Systems announced that it hosted a tour of its Guelph, Ontario BioOil plant with over 75 global biofuel experts attending. The plant has undergone testing and inspection processes by regulatory and technical authorities in readiness for continuous operation. Previous tests conducted demonstrated the capacity of the plant to operate at its nominal design capacity of 200 tonnes per day biomass input.

NetSol Technologies reached a new 52-week high of $2.95 after announcing excellent fourth quarter results. Consolidated revenues for the fourth quarter of fiscal year 2007 were $8.6 million, an 84% increase compared to the $4.7 million in revenues reported for the same period in fiscal year 2006. Consolidated gross profit for the fourth quarter was approximately $5.3 million, an increase of 234% as compared to the prior year. Gross margin for the fourth quarter of fiscal year 2007 was 62% compared to 34% in the prior year period.

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SmallCAPS.us Sends Update Report on AML Communications, Inc. (AMLJ.OB)

Friday, September 21st, 2007

The first quarter results of AML Communications reveals the company’s success with its new products as net sales rose to $2.65 million and net profit reached $160,000. The company’s newly acquired subsidiary, Mica-Tech reported revenues of $45,000 and announced that it received a relatively big order which will positively impact the next quarter results.

AML Communications designs and manufactures an array of military-grade microwave amplifiers and subsystems for the defense industry. Its extensive range of microwave low noise amplifiers and power amplifiers can be found in leading defense projects.

According to a government-funded institute, world military spending is expected to increase. The U.S. military spending proposal for 2008 totals at $499, which is the highest amount since the end of World War II. If granted, the increased spending could open up significant revenue opportunities for AML Communications. 

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SmallCaps.us Issues Weekly SmallCap Update on Four Explosive Stocks.

Monday, August 27th, 2007

Smallcaps.us, one of the fastest growing websites on the subject of American small cap stocks, who publishes research reports written by their own staff and a few of the world’s most recognized publishers of small cap investment newsletters, issued a weekly report on four companies.

BSD Medical Corp. (AMEX BSM) announced on Thursday the completion of the Food and Drug Administration’s (FDA) pre-approval audit for the PMA submission of the company’s BSD-2000 hyperthermia system, along with the completion of a routine Quality System (QA)/Good Manufacturing Practices (GMP) inspection.

FDA did not provide any written inspectional deficiencies (Form 483) at the conclusion of the on-site inspection. The completion of the preapproval FDA inspection is a significant milestone in the PMA approval process for a medical device. The FDA’s review of the company’s PMA submission is ongoing.

Law Enforcement Associates Corporation (AMEX: AID) announced on Tuesday it had received an initial order for a recently introduced intelligence gathering device. The order came from the Florida division of a large federal law enforcement agency. Due to the sensitive nature of the product and its application, AID is precluded from disclosing additional information about the order.

The stock reacted on this news by moving up more than 60 percent. “We have received extremely positive reviews of the products we debuted at the July NATIA show in Pittsburgh,” said Paul Feldman, president. “This contract reflects the success we are having at translating that feedback into firm orders.”

Next week, Playlogic Entertainment (OTCBB: PLGC) will appear on Wallst.net, a leading provider of timely business news, executive interviews, multimedia content and research tools. Vice President Rogier Smit will conduct an exclusive interview and discuss the Company’s past, present and future outlook.

In the interview Mr. Smit will also talk about Playlogic’s excellent second quarter results which were announced earlier this week. For the six months ended June 30, 2007, net revenues climbed 48% to $4.6 million from $3.1 million the year before. For the second quarter, ended June 30, 2007, net revenues were $1.1 million versus $0.4 million the comparable year-earlier period, an increase of 175%. Net loss from operations for the six months decreased significantly to $0.464 million from a net loss of $3.9 million for the same period the year before.

RiT Technologies (NASDAQ: RITT), the world-leading provider of intelligent infrastructure solutions and Connectix Cabling Systems, a leading manufacturer of communications products announced the formation of a strategic OEM partnership between the two companies. Under the terms of the agreement, Connectix will use RiT solutions to bring state-of-the-art management capabilities to its structured cabling solutions for British Enterprise customers.

Connectix is a leading British manufacturer of communications products. Founded in 1993, it has grown to become one of the UK’s four largest cabling system suppliers and its biggest supplier of copper unshielded outlets. To leverage its favorable positioning and its strong customer base, Connectix has recently embarked on a strategy to become an innovative provider of advanced end-to-end cabling solutions.

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SmallCAPS.us Issues Smallcap Update for the Second Week of August

Monday, August 13th, 2007

Smallcaps.us provided their subscribers with an update regarding their five featured companies: Alliance Fiber Optic Products Inc. (NASDAQ: AFOP), Perma-Fix Environmental Services, Inc (NASDAQ: PESI), Playlogic Entertainment (OTCBB: PLGC), Remedent Inc. (OTCBB: REMI) and AML Communications (OTCBB: AMLJ)

Alliance Fiber Optic Products’ revenues increased 39% from $6,252,000 to $8,701,000 and recorded a $864,000 net profit for the second quarter of 2007, or $0.02 per share, significantly improved over $0.00 per share of the second quarter of 2006.

Perma-Fix Environmental Services was recommended by Smallcaps.us on February 4th, 2006 at $1.78 and recently hit a new high of $3.40, which is a 91% increase. Perma-Fix provides unique mixed waste and industrial waste management services, with its focus on the nuclear services segment.

Playlogic Entertainment announced that it has entered a strategic partnership with Spencer Clarke LLC, a full service investment banking and retail brokerage firm. The brokerage firm will provide investment banking and financial advisory services in addition to assisting Playlogic with capital market opportunities.

AML Communications announced that its net sales for the first quarter increased approximately $400,000 compared to the same period last year. Revenues for the quarter revealed that the company is making a return to growth. SmallCaps.us stated, “At these cheap prices AML Communications is a bargain!”

Remedent is believed by Smallcaps.us to be undervalued because of its ability to attract a select group of distributors, has a product which is likely to begin a revolution, is in a strong market sector, and has a skilled management team. The website concluded, “Remedent seems to have a winner on their hands as their product penetrates the market and is able to convince more and more dentists that it is a life changing product.”

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SmallCAPS.us Issues Smallcap Update for the Third Week of July

Monday, July 23rd, 2007

Smallcaps.us provided their subscribers with an update regarding their four featured companies: HemoBioTech Inc. (OTCBB: HMBT), Playlogic Entertainment (OTCBB: PLGC), Remedent Inc. (OTCBB: REMI) and AML Communications (OTCBB: AMLJ)

HemoBioTech announced last week that it has promoted Saraswathy Swaminathan to the position of Manager of Foreign Clinical Affairs. The company is developing what could be the world’s first viable substitute for human blood.

Playlogic Entertainment announced that it has signed a worldwide 3-year license, with a 2-year extension, on all gaming platforms for its popular franchise, “Dragon Hunters with Futurikon.” The upcoming movie based on the game, accompanied by media attention, could significantly impact the number of sales.

AML Communications is expected to release financial results for the first quarter of FY 2008. The company has received a couple large orders throughout the first quarter which are valued at a combined amount of approximately $2.4 million.

Remedent Inc. is believed by SmallCAPS.us to be undervalued because of its ability to attract a select group of distributors, has a product which is likely to begin a revolution, is in a strong market sector, and has a skilled management team.

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SmallCAPS.us Issues Smallcap Update for the Second Week of July

Monday, July 16th, 2007

Smallcaps.us provided their subscribes with an update regarding their two featured companies: FONAR Corporation (NASDAQ: FONR) and Playlogic Entertainment (OTCBB: PLGC)

FONAR Corporation announced that it has sold seven UPRIGHT MRI’s in the past two weeks. The President of the company stated, “A noticeable surge in interest and activity has come our way. It concluded with seven new sales that occurred in the last two weeks.”

The President continued to say that the dramatic spike in sales reflect the FONAR UPRIGHT’s advantage which distinguishes it from the majority of other MRI scanners.

Playlogic Entertainment (PLGC.OB) share prices increased 21% this week after more good news was released by the company. The company has continued to attract additional interest from investors who are driving up share prices.

Playlogic announced that it has renewed its distribution agreement with Atari Italy. The company is very pleased with the renewal and believes that their game selection planned for July-September will satisfy even the most demanding gamers.

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SmallCAPS.us Showcases: AML Communications Inc. (AMLJ.OB); as Company Reports Fourth Quarter and Fiscal Year End Results

Thursday, June 28th, 2007

AML Communications, Inc. (AMLJ.OB) recently reported financial results for its fourth quarter and the fiscal year ended March 31, 2007.
 
Net sales for the fourth quarter were $2.2 million, compared with $1.9 million for the same period a year earlier.

The Company reported a net profit for the quarter of $1.5 million, or $0.15 per share, compared with net earnings of $1.4 million, or $0.14 per share, for the same period a year ago.

Net sales for the twelve months ended March 31, 2007 were $8.9 million, compared with $9.5 million for the same period last year.

The net profit for the twelve months ended March 31, 2007 was $1.6 million, or $0.15 per share, compared with a net profit of $2.2 million, or $0.22 per share, for the same period last year.

AML Communications is a designer, manufacturer and marketer of amplifiers, subsystems, and related products that address the Defense Microwave Markets.

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SmallCAPS.us Introduces AML Communications (AMLJ.OB) as a New Client

Thursday, June 28th, 2007

AML Communications designs and manufactures an array of military-grade microwave amplifiers and subsystems for the defense industry. The company is commited to achieving success by serving the military with outstanding customer care, quality, performance and price leadership.

AML Communications reported $2.2 million in net sales for the fourth quarter of 2006 which is an increase from $1.9 million in the previous year. The results for FY 2007 aren’t extrodinary, but it is important to recognize the future outlook.

The company has signed big contracts, but the published financials didn’t include the most recently produced revenues from the orders announced. Most of the revenues will be reported during the fourth quarter which could lead to very large numbers.

SmallCAPS believes AML Communications is a solid and growing company, and is bound to become even greater than it is today.

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SmallCAPS.us Highlights: Remedent, Inc. (REMI.OB), as Company Announces $7 Million Private Placement

Thursday, June 28th, 2007

Remedent, Inc. (REMI.OB) recently reported that it has sold 5.6 million shares of its common stock at a per share price of $1.25 in a private placement with institutional investors.

In addition to the shares, the institutional investors will also receive warrants to purchase an additional 4.2 million shares of common stock at an exercise price of $1.55.
 
Net proceeds to Remedent from the sale of the shares of common stock will be approximately $6.2 million. The net proceeds will be used for working capital and general corporate purposes and for setting up the United States marketing and distribution activities for its new revolutionary veneer technology, called GlamSmile(TM).

Remedent, Inc., a publicly listed company trading on the OTCBB, strives to be a world leader in the research and development, manufacturing and marketing of oral care and cosmetic dentistry products.

Remedent products are renowned for their technological superiority and ease-of-use. Based in Deurle, Belgium, Remedent has successfully researched, developed and manufactured all of its own products. These products are now distributed in more than 35 countries worldwide.

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SmallCAPS.us Highlights Playlogic Entertainment, Inc. (PLGC.OB) as the Company Distributes its Products Around the Globe

Thursday, June 28th, 2007

Playlogic Entertainment is an independent publisher of entertainment software for consoles, PCs, handhelds, mobile devices, and other digital media, and distributes its products worldwide through online and offline channels.

Playlogic expects their net revenues to grow $15-35 million from 2006, which would be a 200%-400% increase. Gross profit could also escalate 450-800% this year.

Recently, the company announced a strategic deal signed with Futurikon (France) to license its popular animated series, Dragon Hunters. A full length feature film is planned to be released in 2008 and will undoubtedly increase interest for the games published by Playlogic Entertainment.

SmallCAPS stated, “We believe these numbers speak for themselves. In our recently published Company Report we gave a fair and conservative price target of $1.75 per share.”

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SmallCAPS.us Features: Playlogic Entertainment, Inc. (PLGC.OB); as Company Signs Distribution Agreement with Gameworld

Thursday, June 28th, 2007

Playlogic Entertainment, Inc. (PLGC.OB) recently reported that Game World B.V., also based in the Netherlands, will distribute its titles Xyanide Resurrection (PSP, PS2), Evil Days of Luckless John (PC) and Obscure II (PC, PS2) in Benelux territory.

“Game World’s in-depth knowledge of the Benelux market, dedication to maximize every release, and professionalism, make it the ideal partner for Playlogic at a time when our portfolio boasts very high quality titles, such as Obscure II,” says Playlogic’s International Sales Director, Pierre Thiercelin. “I am confident that this relationship will be very successful for both parties, with long-term aim.”

Stefan Layer, Playlogic’s VP of Sales and Marketing states: “We’re glad we found a successful partner for distribution of our future titles in Benelux. Playlogic and Gameworld plan on close cooperation in marketing and local events in order to optimize local channel management.”

Playlogic Entertainment, Inc. is an independent publisher of entertainment software for PCs, consoles, handhelds, mobile devices, and other digital media. Playlogic distributes its products worldwide through all available channels, online and offline.

Playlogic, who currently has approximately 75 employees, is listed on the OTCBB under the symbol “PLGC” and is headquartered in New York and Amsterdam. Its internal game development studio is based in Breda (The Netherlands)

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The Sad Case of Bad Timing and Insider Selling

Monday, May 14th, 2007

Insider selling can decimate a micro cap stock. It can put the healthiest stock on its back and turn the most loyal investor against the perceived offender.  It can turn love to hate, joy to anger, laughter to tears, and worst of all it can turn buyers into sellers and believers into short-sellers.

 

There is a time and a season for everything … For those forlorn souls who have positioned in Universal Guardian, NASDAQ OTC: UGHO, which I strongly encouraged only one blog ago, I pray thee stay in for the long-term, for the worst is over.   In my opinion, this wrecked ship of a stock has sunk as low as can it go. The CEO has sold approximately 166,000 shares over the last two months, but he is not the real culprit here, if there is a culprit. Michael Skellern founded the company five years ago, invested  hundreds of thousands of dollars of his own money, and in the early years went months at a time without a salary as he built UGHO one bullet at a time.   I asked him why he sold. His answer was not of the complex sort:  “I needed the money,” he said.  He has on the other hand, chalked up ten consecutive quarters of revenue growth, reduced his SG&A, launched several new defense products and appears to be marching towards another record revenue quarter.  Click here, http://www.redchip.com/visibility/investor.asp?symbol=UGHO&daily=20070502&from=ugho_ipage, to listen to my recent interview with him on RedChip Radio.  

 

Nonetheless, the CEO had the unfortunate need to sell during the same period another large shareholder had the need to sell.  This seller, who several years ago raised $10 million for the Company, has sold millions of shares over the last six months and hundreds of thousands of shares over the last two months. The result has created the ugly UGHO descent.   The word I have is that this funder, who held in excess of six million shares, is very close to his final exit.  We have promised to send him a bottle of his favorite whiskey the minute he drops his final UGHO sell ticket.   Though a good man, we have grown weary of his selling.  This funder has been long in the stock for a number of years and his organization is well known for its integrity and long history of success in helping small-cap companies.  But his need for money has left him no room for mercy.  

 

Now investors are left with the possibility of turning his need into their fortune.  If a company is fundamentally healthy, the maxim, “Buy on weakness,” is sound advice.  In this case, wisdom is yelling from the rooftop, “Buy Low and Sell High.”   

 

As I said in my last blog, in the Age of Violence one needs his fair share of Brawns, Brains, and Bullets.  As a global risk mitigation company and a homeland defense company, UGHO will live to fight another day.  And that day has come.   Now is the time for UGHO investors to return to their lost love and for new investors to consider a new love.   Yes, I am paid to pontificate upon the virtues of this stock.  And there is plenty of virtue here hidden beneath the bad-timing and insider selling.

 

Universal Guardian Holdings Inc. (UGHO)
This profile is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the profile should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. RedChip Companies Inc. is an affiliate of the Aurelius Consulting Group, Inc. Universal Guardian Holdings Inc is a client of the Aurelius Consulting Group, Inc. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader’s attention to the fact that the Aurelius Consulting Group is an investor relations firm hired by the Company and receives a monthly fee of $8,000 per month for investor relations services.

 

Violence Must Be Met with Brawn, Brains, and Bullets in The Age of Violence: Universal Guardian Holdings, Inc. (OTC BB: UGHO)

Wednesday, April 11th, 2007

Circa 1191 Richard the Lion Heart, King of England on his march to take back Palestine ordered his army to behead 2,500 Muslims in the walled city of Acre when their leaders did not meet his terms of surrender. He, like many of us, was given to violence when it was necessary to facilitate his will.

The Islamic fanatics have no monopoly on beheadings; though we in the West can claim a sort of one-upmanship in that we seemed to have outgrown the beheading mentality, save for the occasional Jeffrey Dahmer aberration.  Yes, unlike our Muslim brethren in the Middle East, we don’t decapitate our enemies, or our unruly citizens, our murderers, thieves, adulterers, drug dealers, and prostitutes.  We don’t torture them, cut their fingers off, hang them, toast their genitals, liquidate them in vats of acid, or have their families killed.  We do electrocute or inject the murderers among us with deadly chemicals, however.  And there is some evidence that our CIA is not immune to engaging in torturous activities with those who would like to murder Americans en-masse.  But the Western powers no longer institutionalize torture.

The theological debate raging in the Muslim community today is over the interpretation of a certain verse in the Koran, (4:34) regarding marriage and whether husbands have the right to beat their wives if they are rebellious or just send them away until they are ready to obey.  The prevailing translation is that you must take the verse at face value. The critical word is “daraba,” which means to beat, hit, spank, strike, flog.  The issue of whether Islam teaches beating one’s wife is acceptable is not being debated in the extremist Islamic community; the word debate is not in the playbook of the Islamic fascists.  It is being debated in the mainstream Muslim community and that should tell us something.

Neither the Christian Evangelical Society nor the American Humanist Society is debating whether it is acceptable for husbands to beat their wives.

The Christian community is about 2,000 years ahead of Islam regarding the issue of women’s rights.   It was the apostle Paul who said somewhere around 60 A.D. that “In Christ, all are equal, male and female, Jew and Gentile, rich and poor.”

With over 55 wars raging in the world and with the post-modern crusades well under way in Europe, Africa, Asia, and the Middle East; we might well call this The Age of Violence.

The world, having mastered the skill of violence both on  an individual and corporate level, provides a fertile playing field for companies that deliver products and services aiming to help both citizens and countries defend themselves, their property, and their homeland.

Violence must be met with brawn, brains and bullets.  And that brings me around to Universal Guardian Holdings, Inc. (OTC BB: UGHO), a universal antidote to the universal violence sweeping the planet.  They have brought torture down to a reasonable level with their home-defense products.  They have plenty of brains (see their management team: http://www.redchip.com/visibility/investor.asp?symbol=UGHO&show=management); a lot of brawn; they have 10 consecutive quarters of revenue growth, and plenty of bullets. Their products not only protect our homes, our military bases, and our ports but they protect our commercial and military interests in foreign lands. Click here to see an infomercial featuring some of their products: http://www.redchip.com/visibility/investor.asp?symbol=UGHO&show=mediainfocobra1.

Universal Guardian meets the RedChip criteria:

Effective Management: encourages innovation, ensures high morale among its workforce, and executes business strategy to create maximum shareholder value.

Mass Appeal: guarantees that the investment in a new product or service will be rewarded by a large market opportunity.

Growing Sales: provides visible proof of the market’s acceptance of the Company’s product offerings.

Improving Margins: testifies to management’s ability to translate new sales to bottom-line profits.

This stock is not long for its $0.72 – $0.95 range.

UGHO is a RedChip research and IR client for which we are paid $8000 per month to represent. We do not own stock in this company. We have not been paid in shares.  And as all IR firms are, we are considered temporary insiders, as agents of the Company.

Here is why I like UGHO. First, I am paid to like them.  And you should be glad I’m paid to like them, because it pays to like them.  I would like them even if I were not paid to like them.  Neither I nor RedChip owns shares in the Company.  It is not our standard practice to buy shares in the companies we represent.  Click here to read our research:  http://www.redchip.com/visibility/investor.asp?symbol=UGHO.

With the global threat of terrorism and military conflicts raging across the world, UGHO is at a major inflection point. The Company is poised to capitalize on multiple revenue streams in the multi-billion dollar homeland and international security markets. The opportunity for growth in this market is reflected in UGHO’s operations which have recorded ten (10) consecutive quarters of revenue growth, with the last eight quarters posting record revenues. All the while UGHO significantly improved its gross margins and expects profitability for 2007.

• Universal Guardian has delivered ten (10) consecutive quarters of revenue growth.

• Fiscal year 2005 revenues were up 350 percent year-over-year

• The Company is approaching Profitability. (Expected in 2007)

• Security Industries Market is expected to reach $100 billion per annum by 2007.

• Universal Guardian is uniquely positioned to address the growing global market for security products, systems, and services to mitigate terrorism and security threats.

• Universal Guardian meets the increasing world-wide demand for integrated transportation, maritime and global supply chain asset visibility solutions.

• Universal Guardian has a strong intellectual property portfolio of patented and patent pending products and systems.

• Exceptional Board of Directors and Advisory Board with vast industry experience in Finance, Defense, National Intelligence, and International Business industries.

• Strong intellectual property portfolio patented and several patent pending products and systems.

• Universal Guardian has an expanding government, military, and multi-national customer-base.

• Universal Guardian has diverse and comprehensive security product, systems, and services, offering end-to-end solutions for government and business.

• Universal Guardian’s products, systems, and services target several key multi-billion markets.

Find Honest Stock Recommendations at SmallCaps.us

Wednesday, March 21st, 2007

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