11/05/2006
VOLUME 262
Companies featured in the current edition of the newsletter: ADSX, CLRI, CPPT, CYTR, EEEI, EMIS, ENZ, FSN, GNBT, GSHF, HSOA, HYTM, IMMG, ISON, LANW, PTCH, SOG, SWTS, VOII
Two of the factors that have supported the robust gains the market has generated over the past three months reversed course last week, as rising energy prices and renewed concerns about inflations caused a wave of profit-taking to set it. The Dow ended the week down 104 points, closing below the 12,000 mark at 11,986 and in the process paring its yearly gain to 11.8%. The S&P 500 finished the week down 13 points and decreased its year to date gain to 9.4 %. The Nasdaq dipped 19 points last week, decreasing its year to date gain to 5.7% and the Russell 2000 fell 13 points decreasing its year to date gain to 11.5%.
With more than 80% of the companies in the S&P 500 having already reported results, third quarter profits have climbed by over 18% thus far. However, with many companies becoming more cautious in their outlooks, fourth quarter gains are expected to be more limited, rising at 10%, which is down from 12.8% at the beginning of October and 14.7% at the start of the second half of the year. Certainly, there have been several high-profile companies that have been cautious about Q4 prospects. Wal-Mart (NYSE: WMT0 reported a skimpy 0.5% October same store sales gain, and over the weekend said that it would begin holiday discounting early, in an ominous sign for retailers. However, the remaining chain store sales released last week were slightly better than expected, even if the results were mixed.
However, if the market’s attention was distracted from inflation and energy by the recent flurry of earnings reports, it returned to those two areas last week. While October employment data showed the unemployment rate fell to a five-year low of 4.4%, hourly earnings rose a solid 0.4% renewing concerns about inflation. The 10-year note rose 5 basis points in yield, as it appears less likely that the Fed will reduce rates near-term. Stoking further concerns about inflation, FedEx announced plants to increase air shipment rates by 5.5% at the beginning of the year. Although oil prices ended the week little changed at $59 a barrel, a $1.26 per barrel increase on Friday due to fears of supply disruptions in Nigeria.
What should investors look for in the upcoming week? Earnings Season has begun to taper down and although many of the major companies have announced earnings, a few major players have yet to report results. Monday, natural gas and energy provider El Paso Corporation (NYSE: EP) and AES Corporation (NYSE: AES) report before the market opens. Look for engineering and construction services provider Fluor Corporation (NYSE: FLR) to announce earnings after the market closes Monday. Before the bell announcements on Tuesday include Anadarko Petroleum (NYSE: APC), Nortel Networks (NYSE: NT) and consumer products company Sara Lee (NYSE: SLE). Western Refining (NYSE: WNR) will announce earnings after the bell on Tuesday. Of course, investors will be focused on the outcome of Tuesday’s mid-term election as well. Announcements pick up the pace again Wednesday before the market opens with reports from Polo Ralph Lauren (NYSE: RL), Federated Department Stores (NYSE: FD) and Cablevision (NYSE: CVC). Investors can expect to see announcements from World Fuel Services (NYSE: INT), News Corp (NYSE: NWS) and Cisco Systems (Nasdaq: CSCO) after the bell Wednesday. Look for reports from Goodyear Tire (NYSE: GT), JC Penny (NYSE: JCP), Viacom (NYSE: VIA), and Reliant Energy (NYSE: RRI) before the open Thursday. Kohl’s (NYSE: KSS) and Walt Disney (NYSE: DIS) will announce earnings and close out the week for earnings reports Thursday after the market closes.
The economic news for next week will be tame and will not necessarily reflect a specific focus, but there will be some interesting economic events in the upcoming week. Investors can expect to see the first announcements beginning Tuesday. Look for the September Consumer Credit Report after the market closes. Weekly Crude Inventories will be announced mid-morning Wednesday. Thursday closes the week for economic news with announcements for October Agriculture Export Prices and October Oil Import Prices, as well as the weekly unemployment claims and September Trade Balance reported before the market opens. Later that morning, expect to see the announcement for September Wholesale Inventories. Some key economic events that are likely to pique the interests of investors include Chicago Fed President Michael Moskow speaking about the economy in Chicago on Monday and Indianapolis on Thursday, as well as a speech on the economic outlook by Cleveland Fed President Pianalto in Pittsburgh on Monday.
The conference schedule for next week will be slightly more active than in recent weeks. Monday marks the commencement of the three-day Rodman & Renshaw 8th Annual Healthcare Conference to be held at the Palace Hotel in New York. Generex Biotechnology Corporation (NASDAQ: GNBT) will present on Monday morning. Clearant, Inc. (OTCBB: CLRI) and CytRx Corporation (NASDAQ: CYTR) are scheduled to present Tuesday morning. Drug delivery company Emisphere Technologies, Inc. (NASDAQ: EMIS), will present on Wednesday morning. Monday also marks the beginning of the three-day CIBC World Markets 17th Annual Healthcare Conference at the Waldorf-Astoria in New York City. The two-day Robert W. Baird & Company Industrial Conference in Chicago begins Tuesday. Nesbitt Burns holds an Interactive Entertainment Conference on Tuesday. The two-day UBS Building & Building Products CEO Investor Conference in New York begins Wednesday. Thursday marks the commencement of the two-day Prudential Equity Group Technology Meetings at the Grand Hyatt in New York and also wraps up the conference schedule for the week.
Earnings Preview: Hythiam, Inc. (NASDAQ: HYTM), a healthcare services management company that licenses the PROMETA™ physiological protocols designed to treat substance dependence, will report third quarter results for the period ended September 30, 2006 on Thursday after the market closes. Recently, in an 8K filing the company said that it had entered into its first license agreement for third-party reimbursement of its PROMETA treatment for alcohol and stimulant dependence. Third quarter results are expected to reflect some seasonality in the treatment community, as fewer addicts seek treatment during the summer months. The stock is much more likely to react to comments the company makes about its ability to secure additional third-party payors agreeing to reimburse for treatments. Despite the stock advancing more than 64% since the beginning of August, we continue to believe that the company is in the early stages of a substantial opportunity to change the way addiction is treated. Note that short interest represents approximately 24% of the float. Shares ended the week up $0.23 at $8.38.
Generex Biotechnology Corporation (NASDAQ: GNBT), a leader in the area of buccal drug delivery, said last week that it has sponsored an episode of the Medical Missions for Children talk show “Plain Talk About Health.” The episode, entitled “A Discussion about the Global Impact of an Avian Influenza Pandemic,” is scheduled to first air on the Medical Broadcasting Channel. The episode, which will air an aggregate of 18 times on MBC in the month of November, 2006, is co-hosted by Tommy Thompson, United States Secretary of Health & Human Services, and Mary Alice Williams, an award-winning writer, anchor, correspondent, and television host. Medical Missions for Children (MMC) is dedicated to serving the medical needs of catastrophically ill children in underserved communities around the world. Through the use of its Global Telemedicine & Teaching Network™ (GTTN), a satellite and Internet-based communications platform, MMC facilitates the real-time treatment of remote, critically ill children. The GTTN also broadcasts an extensive program of medical education and supports dialogue exchange among a global network of medical specialists. The stock ended the week at $2.14, up a dime.
Volume Alert: Shares of CytRx Corporation (NASDAQ: CYTR), a biopharmaceutical company focused on developing products primarily in the area of small molecules and ribonucleic acid interference (RNAi), soared 21% last week on more than four times average volume, as investors focused on the company’s RNAi platform after peer company Sirna (NASDAQ: RNAI) was acquired by Merck & Co. for $1.1 billion. Merck’s planned purchase of Sirna was seen by many observers as a validation of RNAi and the smaller companies developing a new class of drugs based on it. CytRx previously announced plans to spin off its RNAi platform into a separate publicly traded company. CYTR also said that its lead drug candidate arimoclomol has been granted orphan medicinal product status for the treatment of amyotrophic lateral sclerosis (ALS) by the European Commission. This orphan medicinal product status grants CytRx market exclusivity in the European Union (EU) for 10 years in the event that arimoclomol receives marketing approval, and provides for incentives such as reduced fees for protocol assistance and scientific advice. The European Commission grants orphan medicinal product status to promote the innovation of drugs that are developed to treat, prevent or diagnose diseases or conditions that affect no more than five in 10,000 persons in the EU. Arimoclomol received orphan drug status from the U.S. Food and Drug Administration for the treatment of ALS in May 2005. Orphan drug status in the U.S. holds numerous potential benefits, including opportunities for grant funding toward clinical trial costs, tax advantages, FDA user-fee benefits, seven years of U.S. market exclusivity should the FDA grant marketing approval for the drug and an added mechanism for more frequent communication with the FDA. The stock ended the week at $1.60, up $0.28 from last week’s closing price.
Electro Energy, Inc. (NASDAQ: EEEI), a developer and manufacturer of advanced rechargeable batteries, announced today that the company received a contract for approximately $1 million from Sandia National Laboratories in Albuquerque, NM, which is operated for the U.S. Department of Energy by Sandia Corporation. The 24-month contract is to develop and demonstrate large-scale battery systems for utility type applications, including back-up power and energy storage, peak shaving and power conditioning systems. Electro Energy will develop bipolar NiMH battery modules to provide optimized performance in the areas of capacity, efficiency, rate capability, heat generation/removal, and demonstrate complete systems in on-site customer applications. The new contract continues the company’s long-standing relationship with Sandia and the Department of Energy and confirms once again the Electro Energy’s leadership in developing cutting edge battery technology. Electro Energy Inc., headquartered in Danbury, Connecticut, was founded in 1992 to develop, manufacture and commercialize high-powered, rechargeable bipolar nickel-metal hydride batteries for use in a wide range of applications. Its Colorado Springs operation supplies aerospace-grade high quality nickel cadmium batteries and components for satellites, aircraft and other specialty applications. Shares ended down $0.27 at $1.33, reflecting weakness in the alternative energy sector.
Drug delivery company Emisphere Technologies, Inc. (NASDAQ: EMIS), recently announced results from its 90-day, Phase 2 study of its oral insulin product utilizing its eligen® oral delivery technology. The four-arm study evaluated the safety and effectiveness of low and high fixed doses of oral insulin tablets versus placebo in patients with Type 2 Diabetes Mellitus on existing oral metformin monotherapy. The trial focused on the safety of oral insulin, specifically noting incidents of hypoglycemia, as well as the occurrence of insulin antibodies. The efficacy component of the trial was designed to measure changes in Hemoglobin A1c (HbA1c) over 90 days, the standard for evaluating glucose control in Type II diabetics. An additional objective was to confirm that insulin delivered orally could be administered as a fixed dose product without the need to conduct glucose monitoring or titrate the insulin dose. The study met the company’s objectives for both safety and efficiency. During the study, there were no significant differences in number of hypoglycemic events, serious adverse events, or insulin antibody formation for the orally administered insulin compared to placebo. There were no hypoglycemic events in any of the high responder patients as measured by HbA1c. There were no insulin antibodies in any of the three oral insulin arms. The patients in all three active arms saw no change in weight and no nighttime hypoglycemic events. So why did the stock fall so hard? Perhaps because the eligen technology did not demonstrate statistical significance across the entire study. However, the company said in its conference call that it believed the results were strong enough to partner the product. EMIS will present additional data on the clinical trial at its presentation at the Rodman and Renshaw Conference. The stock ended the week at $5.94, down $2.94.
Fusion Telecommunications International, Inc. (AMEX: FSN), a provider of advanced VoIP services, announced that it has registered more than 750,000 subscribers from more than 100 countries since launching its free Efonica VoIP services this past June. In addition, Fusion now has more than 10,000 paid Efonica subscribers who have purchased paid services. Efonica offers subscribers its patent-pending worldwide Internet area code™, which when dialed allows subscribers to speak with each other for free. Subscribers can simply register their existing landline or mobile telephone number as their Internet telephone number and immediately begin to make calls to and from any combination of PCs, Internet phones, wifi phones, and regular telephones (with a SIP adapter), connected to either a wireless, broadband or dial-up Internet connection. Efonica also offers a full suite of premium features designed to enhance a subscriber’s communications experience. Fusion provides its Efonica branded VoIP, Internet access, and other Internet services to, from, in and between emerging markets in Asia, the Middle East, Africa, Latin America and the Caribbean. Fusion currently provides services to consumers, corporations, international carriers, government entities, and Internet service providers in over 100 countries. Shares ended the week up $0.03 at $1.55.
Enzo Biochem, Inc. (NYSE: ENZ), a developer of innovative health care products based on molecular biology and genetic engineering techniques, filed a shelf registration last week under which it may periodically sell up to $100 million in common stock, according to a regulatory filing late Friday. The company said it plans to use the proceeds for acquisitions among other reasons. Recently, the company significantly increased its management team, perhaps in anticipation of such an event. Shares ended the week up $0.13 at $13.75.
Earnings Preview: Applied Digital (NASDAQ: ADSX), a leading provider of identification and security technology, will report results third quarter results for the period ended September 30, 2006 on Thursday after the market closes. Perhaps more significantly, the company’s majority-owned subsidiary, Digital Angel Corp., which will report results earlier in the day, will update investors on the strategic alternatives it is pursuing. A significant announcement there, such as the sale of the company or potential merger, could be a catalyst for ADSX’s stock. In addition, ADSX is likely to update investors on the IPO of its VeriChip unit, which still could be completed by the end of the year. In other news, VeriChip Corporation, a subsidiary of ADSX, announced the VeriMed Physician Network grew by 73 physicians as a result of exhibiting at the PriMed East Medical Conference held this past October in Boston. The PriMed Conference marks the third large medical conference for primary care physicians in the past month in which VeriMed, the first and only FDA-approval implantable RFID microchip system for patient identification and access to healthcare information has been exhibited. The VeriMed Physician Network has now grown to more than 1,100. Recently, the company announced that 67 healthcare facilities agreed to participate in the VeriMed Patient Identification System Network at the American College of Emergency Physicians (ACEP) Conference in New Orleans. These healthcare facilities agreed to use the VeriMed reader as standard protocol to scan patients that arrive in emergency rooms unconscious, delirious or confused. That brings the total number of hospitals and healthcare facilities that have agreed to adopt the VeriMed System to 258. Shares ended the week up $0.08 at $2.31.
Isonics Corporation (NASDAQ: ISON), a developer of innovative solutions for the homeland security and semiconductor markets, said in an 8-K filing last week that the company has formed a joint venture to accelerate technology development and drive commercialization activities in connection with a previously announced agreement with Lucent Technologies Inc. Under that previously announced agreement, Isonics and Lucent agreed to develop next generation Infrared imaging and night vision surveillance technology based on pioneering research by Lucent’s Bell Labs at its micro electro-mechanical systems and nanotechnology fabrication facility. The joint venture was established through Isonics’ acquisition of an initial 90% ownership interest in SenseIt Corp. in exchange for assigning to SenseIt all of Isonics’ interest under the Lucent Agreement. The assignment has been approved by Lucent. Christopher Toffales, who owns the other 10%, will serve as President and Chief Executive Officer of SenseIt. Toffales is an experienced and well-regarded executive in the industry. The stock ended at $0.62, down $0.06.
Home Solutions of America, Inc. (NASDAQ: HSOA), a provider of recovery, restoration and rebuilding/remodeling services, announced that it has entered into a new $60 million credit facility with a consortium of financial institutions, led by Texas Capital, experienced in providing credit to construction companies. The new facility, which replaces the company’s previous $10 million credit facility, will support the company’s working capital requirements that the company will have due to an increase in work during the fourth quarter and fiscal 2007 and reduces the overall borrowing costs. Home Solutions also announced that it has acquired privately-held Associated Contractors II, LLC (“Associated”) for 1.5 million shares of common stock and performance-based incentives. Although the acquisition is expected to be neutral to earnings during the company’s 2006 fourth fiscal quarter, it is expected to be accretive in fiscal 2007. Associated is one of the leading contractors involved in rebuilding Louisiana and is one of three contractors approved to participate in the rebuilding of NASA’s Stennis Space Center located in Kiln, Mississippi under a three-year $270 million agreement. Associated currently has a backlog of $22 million in existing contracts. Despite the news, the stock’s gains were muted, as investors await the company’s third quarter results scheduled to be released on or about November 13th. Note that the company’s stock trades for its lowest trailing 12-month P/E multiple in more than three years. The stock ended the week up $0.43 at $5.71.
VoiceOne™ Communications, LLC, a subsidiary of VoIP, Inc. (OTCBB: VOII), a leading provider of Voice over Internet Protocol (VoIP) communications solutions for service providers, resellers and consumers, announced that that the company is providing its patented Click-to-Call technology to power what could be the largest Click-to-Call promotional campaign ever developed, for the NFL Network, the first 24-hour, seven-day-a-week television network dedicated solely to the NFL. The overall campaign was created by the NFL Network’s ad agency Media Storm, which incorporates VoiceOne’s Click-to-Call Voice over IP (VoIP) technology, created and patented by VoIP, Inc. The Click-To-Call portion of the promotional campaign makes it easy for viewers to sign up for the NFL Network on DirecTV, DISH Network or Verizon’s FiOS TV service. Customers can simply click on one of the NFL Network banner ads that will be placed on various sites, including DirecTV, DISH, Verizon, Yahoo! and CBS Sportsline, and immediately receive a call from the service provider of their choice. VoiceOne will receive a fee each time a user clicks on the banner ad and uses the company’s technology to place a call. VoiceOne is steadily building its base of commercial customers for its Click-to-Call technology. The company provides a comprehensive portfolio of advanced telecommunications technologies, enhanced services, broadband products, and fulfillment services to the communications industries. The stock ended the week up $0.02 at $0.38.
GS AgriFuels Corporation, about 90% owned by environmental business development company GreenShift Corporation (OTCBB: GSHF), announced the closing of its acquisition of NextGen Fuel, Inc., a producer of modular, continuous-flow multi-feedstock biodiesel process equipment based on NextGen’s patent-pending process intensification technology. GS AgriFuels acquired 100% of the stock of NextGen for about $21.3 million, of which $17 million was paid at the closing with $4.3 million of which is to be paid upon NextGen achieving sales milestones. NextGen’s biodiesel process technology utilizes innovative and proprietary process intensification techniques to accelerate and enhance traditional biodiesel reaction kinetics, thus decreasing process time, reducing energy and raw material needs, and increasing product quality. These benefits translate to reduced up-front capital and ongoing operating costs by as mush as 50% versus traditional technologies. Additionally, NextGen’s systems can be manufactured and shipped to customers in as quickly as 12 weeks from the time of order. NextGen currently offers turn-key biodiesel production plants rated for 5 million gallons per year and 10 million gallons per year, but the modular and continuous-flow aspects of the technology make scaling plants up or down easy and cost-effective. GS AgriFuels was founded to produce and sell clean fuels from agriproducts in innovative ways. GS AgriFuels’ business model is based on the manufacturing and sales of proprietary biodiesel equipment and the use of new technologies to produce biodiesel and ethanol from non-traditional feedstocks such as corn oil and cellulosic biomass through the utilization of several new proprietary technologies, including innovative desiccation, process intensification, gasification, catalytic, and carbon capture technologies, synergistically at small-scales to enable the refining of many forms of biomass into clean fuels at Integrated Multi-Fuel (“IMF”) production facilities. Shares ended the week unchanged at $0.12.
A Dow Jones Newswire story last week highlighted the opportunities for Language Access Network (OTC: LANW), a leader in video interpretation. The report said that Dr. Charles Vialotti recalls a Korean cancer patient who was referred to Holy Name Hospital in Teaneck, N.J., after refusing surgery, chemotherapy and radiation therapy elsewhere. Communication was a problem, but he was able to converse with Holy Name Hospital doctors through an interpreter who appeared on a TV screen, said Vialotti, director of radiation oncology. Doctors learned that the man had not understood the nature of his illness or the consequences of refusing treatment. His treatment was implemented within a week, after the perception had been that he was uncooperative for six or seven months of refusing therapy said the doctor. The man is now doing well, as a result of the hospital using LANW’s interpretation services. LANW introduced its video service as a pilot project at the Ohio State University Medical Center’s emergency room about 18 months ago. The company aims to expand nationwide in the next few years and to become profitable in 2008. Its interpreters are based in Columbus, Ohio. Shares ended the week at $3.80, up 40 cents.
Kitchen Labs, an innovator in appliance technology, said last week that it selected E&M/Impart Media Advertising for the direct response promotion of “The Fresh Box,” its vacuum seal, food storage unit. E&M/Impart Media Advertising is the direct response business unit of IMPART Media Group, Inc. (OTCBB: IMMG), an innovator in the creation of out-of-home digital advertising content and information network management. The company believes that the ultimate goal of Kitchen Labs is to use direct response to generate profitable sales, but as the campaign expands, the awareness created will be instrumental in supporting the sale of “The Fresh Box” at retail. Kitchen Labs is one of 5 new agency client accounts using direct to consumer marketing to expand their businesses. E&M has launched an aggressive new business effort and the results have been very impressive. E&M is wholly focused on contributing significantly to the revenue goals and strategic market positioning of Impart Media. Kitchen Labs manufactures non-metal storage containers with electric vacuum pumps for household and kitchen use, containers for storing food and other perishables and household items, containers for marinating foods, all featuring an electric vacuum pump. The stock ended the week down $0.16 at $0.65.
CompuPrint, Inc. (OTCBB:CPPT), an energy technology company that combines satellite-based technology with traditional exploration services, which does business through Terra Insight Corporation, its wholly owned subsidiary, announced that it has received the second payment of $375,000 from a major oil and gas exploration and production company in connection with its previously announced $2.5 million service contract. This second payment represents a progress payment on the August 2006 contract earned after delivery of the first stage STeP® analysis report for an off-shore African oil and gas drilling prospect. In preparing its analysis, the company utilizes proprietary STeP technology which is based on interpretation of satellite data to effectively identify oil and gas as well as other minerals subsurface, on or off-shore. Shares ended at $0.20, unchanged from last week.
Junior oil and gas producer Patch International Inc. (OTCBB: PTCH) reported that the drilling activity on the company’s natural gas project in northeastern British Columbia is currently proceeding ahead of schedule. The operator has informed Patch that the well is currently drilling in the target formation at 1930 meters and when the total depth of 2020 meters is reached, the operator will then immediately proceed to logging. Patch also announced last week that it has entered into a Farmout and Option Agreement in the Medicine Hat Area of Alberta. The Prospect is Shallow Oil with the Test Well to commence on or before the end of 2006. The company is participating in the drilling and completion as to forty (40%) percent Working Interest and, in the event the well is successful, interest reduces to twenty (20%) percent. Upon completion of the Test Well, Patch has an option to conduct a 3-D Seismic Program or, alternatively, proceed to drill the Option Well. In the event that the company elects to proceed with a 3-D Seismic Program, the election to commence a well on the Option Lands will be extended accordingly. An area of mutual interest has been established and an active acquisition program is currently underway. Should drill results be positive and in view of reduced Spacing Unit Requirements, it is possible up to eight to sixteen wells could be drilled on the project with Patch holding a twenty (20%) percent Working Interest. The stock ended the week down $0.04 at $0.95.
Junior oil and gas producer Strategic Oil & Gas, Ltd. (TSX Venture: SOG) provided an update of its Canadian and Wyoming exploration projects. The company has been advised by Gladius Energy Inc. that as a result of the success of its initial multi-well drill program in the Chedderville area of Alberta, an additional well has been spudded on earned lands. Strategic holds a 26.5% interest in the oil well which is expected to take three weeks to drill. In addition, the company’s most recent wells in the Strachan and Pembina areas in Alberta are currently being completed and are expected to be in production prior to year end. In Pinedale, Wyoming the water zone encountered in the first well which was drilled (October 11/06 news) has now been isolated by a packer assembly. The well is currently producing 415 mcf/d of gas, 5 bbls/d of condensate and 40 bbls/d of water from the Mesa Verde and Lance formations and he second well is currently producing at a rate of 350 mcf/d of gas with 5 bbls/d of condensate and 100 bbls/d of water. Although the first two Pinedale wells has not met expectations, the company believes that the Jonah/Pinedale lands represent significant potential and discussions have begun to pursue alternative strategies to further the development of the project. Strategic continues to evaluate further prospects in the Western Canadian Sedimentary Basin and the Western United States. Shares ended the week up $0.13 at $1.18.
Sweet Success Enterprises, Inc. (OTCBB: SWTS), which has relaunched a product line made popular by Nestle’s to tap into the rapidly growing demand for convenient and nutritious beverages, announced that it has shipped its Power Blend all-natural energy drink to GNC, the largest global specialty retailer of nutritional supplements, for sales in stores nationwide. Power Blend, a juice-based energy drink fortified with Maca, Ginseng, and Guarana, is expected to be available at approximately 2,500 GNC stores for the holiday season. GNC, headquartered in Pittsburgh, Pa., is the largest global specialty retailer of nutritional products; including vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products. The stock ended down a penny at $0.74.
A recent survey that confirms consumers on average spend 32% more per vending transaction when using a credit card confirmed the potential for USA Technologies, Inc. (OTCBB: USAT), a developer of cashless vending and energy management products, at the NAMA National Vending Expo in Orlando, Florida. The survey results were unveiled at USA Technologies’ cashless vending education session attended by 50 vending operators, bottlers and the media, making it one of the most popular events at the convention. The seminar included speaker presentations from USA Technologies business partners, including MasterCard and Mid Atlantic Vending. The company announced during the expo that the Bank of America was using its e-Port cashless payment product line in beverage vending machines to become the first bank to target the $40 billion beverage vending market for credit card and other cashless payment transactions. USAT also announced the establishment of the USAT Capital Corp, LLC to help customers purchase and lease its full line of products. The company reported it had already closed a $100,000 sale through the corporation, and recently closed another sale for $500,000. Shares ended the week down $0.45 at $6.00.
On the Wires: CytRx (NASDAQ: CYTR) said that company president and CEO Steven A. Kriegsman received the Lou Gehrig Memorial Award from the Muscular Dystrophy Association. The award was presented in recognition of CytRx’s dedication to finding a cure for amyotrophic lateral sclerosis. Language Access Network (OTC: LANW) announced the addition of James L. Ginter, Ph.D. to the company’s Board of Directors. Dr. Ginter has served as a consultant to several organizations on a wide variety of research and management problems.