Companies featured in the current edition of the newsletter: CBMC, GMPM, GNBT, ITUI, PLKH, SWYV, VYTR
Volatile trading that has characterized much of the past couple of months continued during the holiday-shortened week, yet investors had something to give thanks for after the closing bell rang on Friday as all the major indices closed sharply higher for the week. The Dow added 783 points last week, trimming its year-to-date loss to 33.4% while the broader-based S&P 500 gained 151 points to cut its year-to-date loss to 42.1%. Meanwhile, the technology-heavy Nasdaq advanced by 96 points and is now down 39.0% for 2008. The small-cap based Russell 2000 outperformed its counterparts by adding nearly 67 points, or over 16%, and now posts a year-to-date loss of 38.2%.
A turning point for the market seemed to start a week ago, with the market gaining more confidence as President-elect Barack Obama began unveiling his economic team. On Wednesday, Obama appointed former Federal Reserve Chairman Paul Volcker to head a newly created White House advisory post. Adding to the positive tone, the government stepped in to bailout Citigroup, which allowed shares of the ailing bank to rebound 120% over the past week after plunging below $4 amid fear about its future. And continued hopes for a bailout of the U.S. auto industry also helped shares of General Motors to rebound over 70%. Over the past week, the Federal Reserve also announced it would spend $800 billion to buy debt in order to lower borrowing costs for consumers and home buyers.
The move helped to send the yields on 10-year government bonds, which are used to benchmark mortgages, below 3% to their lowest level on record. Meanwhile, oil prices continued their recent slide as the commodity closed at $50.25 per barrel and is now down almost 65% from its record high reached just a few months ago This drop in energy prices has lead many analysts to expect OPEC to order production cuts during its upcoming meeting this weekend.
What should investors look for in the upcoming week? There will be few companies posting results that have the ability to impact the market. Expect to see results from Staples (NASDAQ: SPLS) and Sears (NASDAQ: SHLD) Tuesday before the bell, while Marvell Technology Group (NASDAQ: MRVL) is scheduled to announce results after the close. On Friday, closeout retailer Big Lots (NYSE: BIG) will report earnings before the open.
With the Thanksgiving holiday over, the economic calendar will be busier this week. The activity begins Monday with the announcement of October Construction Spending and ISM Index for November at 10:00 a.m. Investors can expect November Auto and Truck sales figures from Detroit on Tuesday. On Wednesday, ADP Employment Report for November will be released at 8:15 a.m., while Revised Q3 Productivity will be announced at 8:30 a.m. and the ISM Services Index for November at 10:00 a.m. Also on Wednesday, look for Fed’s Beige Book report at 2:00 p.m. On Thursday, Weekly Unemployment figures will be released at 8:30 a.m. while Factory Orders for October are expected at 10:00 a.m. The November Employment Report, with the Average Workweek, Hourly Earnings, Nonfarm Payrolls, and the Unemployment Rate for the month, will be announced at 8:30 a.m. on Friday, while Consumer Credit for October will be released at 3:00 p.m. On Thursday, Fed Chairman Ben Bernanke is also expected to speak on housing at a Fed conference in Washington.
The conference schedule ramps up next week with Credit Suisse hosting its one-day Global Airlines Conference in New York and a four-day Annual Technology Conference in Scottsdale, both beginning on Tuesday. Also on Tuesday, the two-day Piper Jaffray Health Care Conference kicks off in New York. Citi’s Chemicals Conference will take place in New York on Tuesday and Wednesday. On Thursday, J.P. Morgan will host its two-day Small/Mid Cap Conference in New York, while Bank of America Securities will host a one-day Software Services Mini Conference, also in New York.
Drug delivery company Generex Biotechnology Corporation (NASDAQ: GNBT) announced the successful completion of six press conferences in major Indian commercial centers relating to the commercial launch of Generex Oral-lyn, its proprietary oral insulin spray product, in the country. Each press conference was well attended and the launch received extensive coverage in local media. The level of interest at these events bodes well for initial marketing efforts by GNBT’s local licensee Shreya Life Sciences Pvt. Ltd. and investors should soon start seeing the financial pay-off from this relationship in India. The stock ended last week at $0.38, up 4 cents.
i2Telecom International, Inc. (OTCBB: ITUI), a developer of award-winning patented and innovative high-quality Voice-over-Internet Protocol products and services, took a major step towards securing a large distribution network for its innovative MyGlobalTalk application as the company entered into a distribution agreement with Speck Products. Speck, which is one of the most popular designers of mobile phone cases for iPhone and Blackberry worldwide, will market and distribute MyGlobalTalk through its extensive network of retail partners, including Apple retail outlets and most major electronics stores, with MyGlobalTalk being advertised on the packaging, with details and instructions for use included inside with the product contents. ITUI plans to leverage the vast distribution channels developed by Speck to reach a broader universe of consumers. Separately, the company has also been granted a U.S. patent last week involving its claims for “Dynamically Adapting the Transmission Rate of Packets in Real-Time VoIP Communications to the Available Bandwidth†(DMTR) technology. Management strongly believes that this is the most valuable patent i2Telecom has been awarded to date, exceeding in value the patent for its VoiceStick technology that the company previously sold for $6.5 million. The stock gained $0.005 last week, closing at $0.055.
ProLink Holdings Corp. (OTCBB: PLKH), the world’s leading provider of Global Positioning Satellite golf course management systems and digital out-of-home on-course advertising, formed a significant association last week that will help foster its continued growth across Europe as it was named “Official GPS System of The PGAs of Europe.” This is a major milestone for the company as The PGAs of Europe will now promote the ProLink system to its 35 member country PGAs consisting of approximately 15,000 PGA Professionals and individual courses seeking ProLink GPS management systems. Additionally, ProLink has also been named the “Official Digital Advertising Network of The PGAs of Europe,” signifying its status as a leading provider of out-of-home digital advertising via its GPS screens. These developments suggest that the company is now very well positioned for accelerated course penetration and revenue generation on the continent. Separately, ProLink has also expanded its roster of domestic partners as Skylinks at Long Beach, CA has become the latest upscale golf course to feature the company’s GPS system and plans to participate in its exclusive national advertising opportunity. Shares ended the week at $0.076, up 1.1 cents.
Seaway Valley Capital Corporation (OTCBB: SWYV), a diversified holding company, took the first step in its recent plan of restructuring the company’s share structure in an effort to limit additional share dilution and increase shareholder value. To this end, Seaway Valley and the holder of a $400,000 convertible debenture have agreed to exchange this debenture for an 8% non-convertible note that will be paid out in cash flow from operations over the next four years. After this debt restructuring, management has targeted other convertible securities that it will be attempting to restructure in the relatively near term. With over $35 million in assets and $8 million in shareholder equity, convertible security restructuring and elimination will be the key to unlocking the company’s true value. Shares closed unchanged at less than $0.01.
Gamma Pharmaceuticals Inc. (OTCBB: GMPM), a marketing and product formulation company focused on innovative product lines of nutritional supplements, personal care products and OTC pharmaceutical products in Greater China and the United States, filed its quarterly report for its fiscal Q2 ended September 30, 2008. During the latest six months, sales increased to $31,535. Shares ended the week at $0.35, down 5 cents.
On the Wires: Vyteris, Inc. (OTCBB: VYTR) entered into employment agreements with Mr. Haro Hartounian, who will now serve as the company’s CEO, and Mr. Joseph Himy, its CFO. Calypte Biomedical Corporation (OTCBB: CBMC) announced that Mr. Maxim A. Soulimov resigned from his position as a member of the company’s Board of Directors. Performing Brands, Inc. (OTCBB: PFOB) received a notice from the OTC Bulletin Board that the company must file its Form 10-Q by December 18, 2008 in order to remain eligible continued quotation on the OTCBB.
