10/29/2006
VOLUME 261
Companies featured in the current edition of the newsletter: ADSX, ARGA, EMIS, FMTI, FSN, GNBT, GSHF, HYTM, IMMG, LEVP, MBND, NTST, PTCH, RGEN, SLS, SFP, TPPH, USAT, VOII
Despite Friday’s downturn, all of the major indexes established multi-year highs, with the Dow establishing another all-time high last week. Buoyed by strong corporate earnings and a reassuring statement on inflation from the Federal Reserve, the S&P 500 led the way with its fifth consecutive weekly gain. The Dow closed the week up 87 points and increased its year to date gain to 12.8%, while the Nasdaq finished the week up 8 points increasing its year to date gain to 6.6%. The Russell 2000 finished up 3 points and increased its year to date percentage to 13.8% and the S&P rose 8 points, rising 10.3% for the year.
With more than two-thirds of the companies in the S&P 500 already reporting results, strong corporate earnings continue to support recent gains for equities. Over 70% of all companies have reported better than Wall Street forecasts and many have beaten expectations by a large margin. Year-over-year EPS gains are now expected to be at least 18%, a number that would have been higher if energy companies were not reporting weaker than expected results. The outlook for the fourth quarter also remains positive with expectations for operating earnings to rise at least 11%.
Recent statements from the Fed suggest that while core inflation rates remain elevated, it should moderate over time due to slower economic growth and lower energy prices. In short, it appears that Bernanke and Company have begun to initiate the “soft landing” that pundits and investors have hoped for…moderating growth and benign inflation. Although Friday’s third quarter GDP report showed tepid growth of just 1.6%, the weakness was almost entirely related to a 17% decline in residential construction. The slower-than-anticipated growth was offset in part due to tame inflation. The GDP deflator (inflation measure) was up at just a 1.8% annual rate, down from 3.3% in previous quarter.
What should investors look for in the upcoming week? With earnings season in full swing many big-name companies continue to announce results. Investors can expect to see announcements from chemical company Ashland (NYSE: ASH), Humana (NYSE: HUM), Sysco (NYSE: SYY), and telecommunications giant Verizon (NYSE: VZ) before the bell Monday. Look for announcements from Metlife (NYSE: MET) and Principal Financial Group (NYSE: PFG) after the market close on Monday. Tuesday’s announcements include pre-market reports from Molson-Coors Brewing (NYSE: TAP), Hilton Hotels (NYSE: HLT), Marathon Oil (NYSE: MRO), U.S. Steel (NYSE: X), and Valero Energy (NYSE: VLO). Lincoln National (NYSE: LNC), McKesson (NYSE: MCK), and United Rentals (NYSE:URI) announce earnings numbers after the market close on Tuesday. Expect to see announcements from Time Warner (NYSE: TWX), Newmont Mining (NYSE: NEM), and Clorox (NYSE: CLX) before the bell Wednesday morning. Allied Waste (NYSE: AW), Conseco (NYSE: CNO), Prudential (NYSE: PRU), and Sunoco (NYSE: SUN) report earnings after the bell on Wednesday. The activity steadily continues Thursday morning with before the bell with announcements from Advance Auto (NYSE: AAP), AmerisourceBergen (NYSE: ABC), Blockbuster (NYSE: BBI), CVS Corp. (NYSE: CVS), MGM Mirage (NYSE: MGM), and Tesoro Petroleum (NYSE: TSO). Thursday after the close announcements include reports from Chiquita Brands (NYSE: CQB), Gateway (NYSE: GTW), Whole Foods Market (Nasdaq: WFMI), and United Stationers (Nasdaq: USTR). The action slows down Friday, but look for announcements from Duke Energy (NYSE: DUK), Medco Health Solutions (NYSE: MHS), and Sierra Pacific (NYSE: SRP).
The economic news for next week will again likely reflect recent consumer spending activities, but includes a variety of other economic interests. Monday morning’s activity includes announcements for September Personal Spending and Personal Income. In additional Monday news, Richmond Fed President Lacker will speak on monetary policy and Chicago Fed President Michael Moskow speaks at an educational conference. Investors can expect to see the Q3 Employment Cost Index Tuesday before the bell, followed shortly after by mid-morning announcements of the October Chicago PMI, as well as October Consumer Confidence. Wednesday morning, October Truck and Auto Sales will be announced. September Construction Spending, the October ISM Index and weekly Crude Inventories will be announced late Wednesday morning. Also, Fed chairman Bernanke will speak in Baltimore on Wednesday. The weekly unemployment claims, along with the Q3 Productivity Preliminary, will be announced before the market opens Thursday. September Factory Orders will be announced shortly after the open and Dallas Fed pres Fisher will speak to economists in New York. Fed Gov Kohn’s talk about the changing structure of the Fed on Friday in Washington will likely attract attention. The October Non Farm Payrolls, Unemployment Rate, Hourly Earnings, and Average Workweek will be announced before the market opens Friday and the October ISM Services announcement will cap the week for economic news.
The conference schedule begins to slowly pick up next week. Monday, C.E. Unterberg, Towbin will host a Life Sciences Conference at the Palace Hotel in New York, featuring Lev Pharmaceuticals, Inc. (OTCBB: LEVP), which will present on Monday at 8:30 a.m. and Generex Biotechnology Corporation (NASDAQ: GNBT) at 1 p.m. that day. Tapestry Pharmaceuticals, Inc. (NASDAQ: TPPH) is scheduled to present on Tuesday at 4:30 p.m. The three-day Gabelli & Company 30th Annual Auto Aftermarket Symposium in Las Vegas also begins Monday. The two-day Merrill Lynch Global Energy Conference in New York, as well as the Goldman Sachs Global Capital Goods Conference in New York, begins Wednesday. The conference schedule for the week closes on Thursday with the one-day Oppenheimer Digital Media Conference and Stephens Logistics and Transportation Services Conference. Both conferences will be held in New York.
Volume Alert: Shares of healthcare services company Hythiam, Inc. (NASDAQ: HYTM) jumped more than 3% on Friday on more than twice average volume, helping shares rally to their highest level since mid-May. The company recently disclosed in a regulatory filing that it had entered into its first license agreement for direct third party reimbursement of Hythiam’s PROMETA Protocols for alcoholism and stimulant dependence. Note that short interest is approximately 25% of the stock. Shares ended the week at $8.15, up 81 cents.
It is now more than six weeks since the completion of dosing in patients with diabetes using drug delivery company’s Emisphere Technology’s (NASDAQ: EMIS) eligen technology. Based upon timing which is customary for Phase 2 trials of this nature, in which the company said its primary efficacy endpoint is related to the change in HbA1c, the standard for evaluating glucose control in Type II diabetics, the company should be in position to report the results within days. The trial is being conducted in India with approximately 140 patients. Note that short interest represents approximately 28% of the float. Shares ended the week at $8.88, down $1.47 per share.
Volume Alert: Shares of Applied Digital (NASDAQ: ADSX), a leading provider of identification and security technology, soared 33.9% last week on more than 10 times average volume, after its majorit-owned subsidiary Digital Angel Corporation announced that the U.S. Patent and Trademark Office had granted it a patent for its syringe-implantable glucose-sensing RFID microchip. The RFID microchip measures the glucose concentration levels of diabetic patients and will be marketed and distributed by ADSX’s subsidiary VeriChip, as an extension to the company’s products benefiting people. VeriChip Corporation also announced that it added 370 physicians to the VeriMed Physician Network at the American Osteopathic Association Convention held in Las Vegas. Including the 300 physicians that agreed to participate in the network at the annual meeting of the American Academy of Family Physicians earlier this month, the total number of participating physicians now exceeds 1,000. In addition, 53 physicians at the convention were implanted with a VeriMed microchip. 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 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 252. These hospitals and healthcare facilities are located in 31 states. The stock ended the week at $2.33, up $0.59 from last week.
Multiband Corporation (NASDAQ: MBND), a leading provider of video, data, and voice systems and services to multiple dwelling units, announced that the company had entered into a definitive agreement with Consolidated Smart Systems, LLC of Los Angeles to sell certain California-based video subscribers. The companies have initially closed on the first portion of a planned sale of over 7,000 customers. Total consideration on the first sale portion is expected to be valued at approximately $1,000 per subscriber, representing a significant premium to Multiband’s book value for the initial group of subscribers and illustrates how undervalued MBND is. Multiband and Consolidated indicated that they anticipate the remainder of the sale to close early in 2007. As part of their new working relationship, Multiband will continue to provide customer support, billing, collection, voice, and data services to the customers involved while Consolidated will assume field support, marketing, and installation activities. The stock ended at $0.75, up $0.06 from last week.
Small appliance maker Salton, Inc. (NYSE: SFP), announced that the Board of Directors and management of the company believe that, in light of the consolidation in the small household appliance market and recent expressions of interest by third parties in possible transactions with the company, it is now appropriate to initiate an external process to explore strategic alternatives to enhance stockholder value. As a result, the Board of Directors has formed a special committee comprised of three independent Board members and has engaged Houlihan Lokey Howard & Zukin Capital Inc. as its financial advisor to assist the Board and the Special Committee in this process, which could include a sale or merger of the company. The announcement comes after several changes at Salton, such as the retirement of its chairman and its president and chief operating officer in the past two months. The stock ended the week up 41 cents at $2.76.
Life sciences company Forbes-Medi-Tech Inc. (NASDAQ: FMTI), announced that it closed its acquisition of TheraPei Pharmaceuticals, Inc. a privately held company formed with technology ‘spun-out’ of Sequenom, Inc. focused on developing novel pharmaceuticals directed at the underlying causes of type II diabetes and related metabolic diseases. Forbes will further develop TheraPei’s technologies along with its existing technologies. The acquisition cost was nominal, but TheraPei could receive additional compensation based upon achieving certain milestones. The TheraPei intellectual property will add diversity to Forbes’ FM-VPx drug development platform and include four new technologies: a series of novel peptides designed for once daily administration aimed at stimulating insulin secretion; compounds from this series are also being developed for potential anti-inflammatory effects; an earlier stage discovery program that may have important applications in both diabetes and obesity through inhibition of ACC2; and another discovery program related to SPT inhibition targeting anti-inflammation. The stock ended down 2 cents for the week at $2.48.
Fusion Telecommunications International, Inc. (AMEX: FSN), a provider of advanced VoIP services, announced that its Efonica Voice over Internet Protocol products and services will soon be available in Jordan with the creation of Fusion Jordan. Fusion entered into an agreement to secure the exclusive use of a license to offer a full suite of Efonica’s VoIP services throughout Jordan. With a population of over five million and nearly 400% growth of Internet users over the last five years, Jordan represents a key market experiencing dramatic growth among Internet communities in the Middle East. Through this new endeavor, Fusion will build on its long-standing local distribution partnerships in the region and drive sales of its premium paid Efonica VoIP services by offering subscribers an opportunity to communicate with their friends and family throughout the world. To further enhance Efonica’s regional and global market reach, Fusion will offer customized premium Efonica VoIP service plans for Jordanian residents and communities around the world. Fusion has been successful in growing its international subscriber community due to Efonica’s innovations, ease-of-use and cost-effective products and services. The worldwide Internet area code™, developed by Fusion, is providing a simple and universal method for Efonica customers to retain existing calling patterns and place calls by simply adding “10” to the beginning of existing landline or mobile telephone numbers. Efonica offers consumers the ability to call each other using their existing landline or mobile telephone numbers. Calls can be made to and from any combination of PCs, Internet phones and regular telephones (with a SIP adapter), connected to either a wireless, broadband or dial-up Internet connection. The service was introduced incorporating Fusion’s patent-pending worldwide Internet area code, which combined with a subscriber’s existing telephone number, further simplifies the process of making a call. Shares ended at $1.52, down 12 cents from last week.
The Certification Commission for Healthcare Information Technology (CCHIT) announced that Netsmart Technologies, Inc. (NASDAQ: NTST), a leading provider of enterprise-wide software for health and human services organizations, is CCHIT Certifiedfor the EHR portion of its Avatar 2006 product, and meets CCHIT ambulatory electronic health record (EHR) criteria for 2006. Ambulatory EHR’s are designed for physician offices and clinics where most Americans get their healthcare. CCHIT,an independent, non-profit organization that sets the benchmark for EHR’s, is a recognized certification authority in the United States for certifying health information technology products. Netsmart’s Avatar solutions provide comprehensive clinical, practice management and decision support capabilities for behavioral healthcare, public health, methadone, substance abuse, social services and MR/DD organizations nationwide. The stock ended the week at $13.07, down $0.25.
SLS International (AMEX: SLS), the leading provider of premium quality sound systems for professional, cinema and home entertainment markets, announced that its LS6593 and LS6593A Line Array speakers were featured at AES 2006. The LS6593 series offers the same high performance characteristics expected from an SLS product in a compact design perfect for a wide range of installation applications. This technology represents a breakthrough in high performance compact line array loudspeaker technology. The LS6593S is a straight line array that offers extremely controlled vertical dispersion. The LS6593A has internally articulated driver elements that allow wider vertical dispersion at one end of the array. Both options are built within the same straight, column type enclosure, perfect for professional applications where the highest quality and intelligibility of sound is required. The company also recently announced that students enrolled in the University of Massachusetts Lowell Sound Recording Technology Program have the ability to listen to music with greater precision and accuracy as a result of the installation of the company’s state-of-the-art speakers housed at the Department of Music’s newly refurbished recording studio. Maximizing its existing 300-square-foot control room, the University rebuilt the facility to convert it into a new and improved multi-track control room that is now outfitted with the superior surround sound of a SLS PS8R-V speaker system. Shares ended the week up 2 cents at $0.21.
VoIP, Inc. (OTCBB: VOII), a leading provider of Voice over Internet Protocol (VoIP) communications solutions for service providers, resellers and consumers, appears to be featured in the new click-to-call campaign recently launched by the National Football League in an attempt to promote its fledgling television network. Although the company has yet to provide details, it appears that VOII will support the campaign in a similar manner to what it recently did for the movie Snakes on a Plane and for America’s Next Top Model show. VOII also announced that its carrier subsidiary, Volo Communications, has completed the initial phase of its nationwide network infrastructure service, with area expansion through the addition of locations in New York, Florida, Massachusetts and Georgia. The expansion will allow the company to service over fifty million households and business subscriber lines in those areas. While the company currently provides services which blanket the U.S. and areas worldwide, many of these services were provided through the use of existing network facilities provided by other carriers. The recently implemented plan to expand its network through construction of its own facilities, replacing and expanding into uncovered areas in the U.S., provides VoIP Inc and its subsidiaries greater market penetration, better quality of service, and a continuing reduction in its overall cost of goods for products and services sold. The second phase, which is already underway, is expected to be completed in February. Phase two will continue to expand the company’s own facilities bases network to areas including Colorado, Texas, New Jersey, Arizona, Washington, North Carolina and California. The company plans, by the completion of the fourth phase of its expansion, expected to be finished by the end of 2007, to continue its expansion in 21 states to provide communications services to more than an available 200 million subscriber and enterprise lines, Wireless Broadband Providers, Internet Service Providers, Carriers and other Next-Generation Service Providers. When completed, VoIP expects to be one of the top five CLEC’s based upon the size of its network. The stock ended the week down 5 cents at $0.41.
Lev Pharmaceuticals, Inc. (OTCBB: LEVP), a developer of therapeutics for inflammatory diseases, announced that it has entered into definitive agreements for the sale of $21 million of the company’s securities to certain institutional and other accredited investors. The placement was completed at $0.65 per share. The company also issued warrants exercisable at $0.84 per share. The stock ended the week at $0.74, down $0.24.
Specialty pharmaceutical company Auriga Laboratories, Inc. (OTCBB: ARGA), said last week that it had entered into a co-marketing agreement, under which Pharmelle LLC, a rapidly growing privately-held pharmaceutical company, will sell Aquoral™, the company’s prescription-only product designed to treat the widespread condition Xerostomia, to urologists, using its 35-person sales force. Under the two-year agreement, Auriga Laboratories will receive the proceeds from the sales, after payment of a commission to Pharmelle. Aquoral™ is an FDA-cleared, patent pending prescription mouth spray device that treats Xerostomia (dry mouth), which affects approximately 30 percent of people over 65, and 25 million people in the United States alone. Xerostomia is associated with difficulties in chewing, swallowing, tasting or speaking and can be caused by certain autoimmune diseases. Recently, Auriga Laboratories entered into an agreement under which River’s Edge Pharmaceuticals, LLC was appointed the exclusive generic drug distributor of the company’s Extendryl® and Levall® prescription product lines. Shares ended down $0.15, at $1.40.
GS Carbon Corporation announced its acquisition of GS Advanced Applications, Inc., from GS Carbon’s majority shareholder and environmental business development company GreenShift Corporation (OTCBB: GSHF). Under the terms of the acquisition agreement, GS Carbon acquired 100% of the stock of GS Advanced from GreenShift in return for the assumption by GS Carbon of about $1million in debt. GS Advanced is party to a license agreement with GS CleanTech Corporation, another GreenShift company, pursuant to which GS Advanced has the right to use GS CleanTech’s technologies with the specific focus of increasing the efficiency and reducing the carbon intensity of energy production and consumption. Under the terms of the license agreement, GS Advanced will pay GS CleanTech a royalty equal to 10% of any profits earned by GS Advanced with GS CleanTech’s technologies. GS Advanced operates a research and development laboratory in New Jersey where it is currently testing new technologies. GS Carbon intends to use the GS Advanced license agreement and testing laboratory to initially focus on commercializing new technologies that increase the efficiency and reduce the emissions profile of coal-derived energy production. GS Carbon is 85% owned by GreenShift Corporation. The stock ended the week unchanged at $0.12.
IMPART Media Group, Inc. (OTCBB: IMMG), an innovator in the creation of out-of-home digital advertising content and information network management, announced that E&M Advertising, the direct response business unit of Impart Media Group, has been selected by SaltAire for the launch of their new direct to consumer and retail support campaign. SaltAire® Sinus Relief is a specially formulated drug free solution developed by leading sinus and allergy specialists to clean and moisturize nasal passages. The promotion is scheduled to begin testing this month. Shares ended the week at $0.81, down a penny.
Neutron Enterprises, Inc. (OTCBB: NTRN), a developer of digital media solutions, announced that it has entered into a strategic relationship with Stock-Trak, Inc., the North American leader in stock portfolio simulations for the educational and corporate markets. Stock-Trak has over 16 years experience in this market. The parties will work together to develop Neutron’s contest-based stock market model, which will include a fantasy stock market competition in which participants will have the opportunity to win cash prizes.The company believes a partnership with Stock-Trak can dramatically accelerate the deployment and execution of the company’s stock market contest model, which will drive significant revenue from the traffic generated. Stock-Trak is the most comprehensive educational simulation available and is the only simulation available that allows users to trade stocks from more than 20 exchanges around the world and options and futures in global markets. In 2005, 80% of the top U.S. business schools used Stock-Trak. Shares ended the week down a penny at $2.34.
USA Technologies, Inc. (OTCBB: USAT), a developer of cashless vending and energy management products, announced the launch of USAT Capital Corp, LLC a financing subsidiary allowing customers to acquire the company’s products through either rental or lease purchase financing. The launch of USAT Capital Corp, LLC is in response to growing customer requests for financing support when purchasing the company’s products. The company is offering both lease purchase and rental programs across all of its product lines. USAT Capital Corp, LLC has a commitment from a large financial institution to purchase up to $20 Million of the LLC’s rental or lease purchase contracts, and the company is looking to secure additional financing sources in the near future. Since its launch, the financing program has already financed sales of its e-Port® cashless vending solution. Separately, the company recently selected OTI to provide its next generation contactless reader solution to be integrated into USA Technologies’ Generation Six (G6) e-Port® cashless transaction solution, developed specifically to accept contactless payments for vending machines. Initial orders are for 10,000 readers with initial deliveries commencing before the end of the year. The integrated solution was demonstrated last week at the National Automatic Merchandising Association Expo in Orlando, Florida. The integrated solution is built to support the growing U.S. contactless payment market. As previously reported by USA Technologies, MasterCard International has teamed with The Philadelphia Coca-Cola Bottling Company and USA Technologies to enable 1,000 Coca-Cola vending machines with the e-port cashless transaction solution. In other company news, Bank of America has chosen USA Technologies’ e-Port cashless vending services for their program to evaluate radio frequency cashless payment devices. USA Technologies announced that the bank was using its e-Port Generation Six (G6) cashless payment technology, developed to accept all forms of payment including credit cards, fobs, contactless cards or other payment devices, in vending machines. The stock ended at $6.45, up $0.25.
Junior oil and gas producer, Patch International Inc. (OTCBB: PTCH), announced that it has successfully spudded (the first stage of drilling is called “spudding”) the natural gas prospect located in northeast British Columbia by way of farm-in and option. Drilling is expected to reach total depth in approximately 13 days from spud date of the Eight Mile prospect. As stated on in a late October news release, the company has entered into a Participation and Option Agreement with an Area of Mutual Interest (“AMI”) covering 35 square miles of land in northeast BC, located south of Fort St. John, called the Eight Mile Prospect (“Eight Mile”). Patch has committed to drill and complete two wells in the initial program with drilling to commence during October 2006. The drilling of each commitment well will result in the earning of the section on which the commitment well is located plus an additional contiguous section. The company will have a continuous option following the drilling of the two commitment wells to earn a further interest in the remaining sections. The Farmor holds a 100% interest in 21 sections (21 square miles) within the AMI and the majority of the farm-out lands are contiguous. Under the terms of the Agreement, Patch will pay 20% of the Farmor’s share of drilling and completion costs. For each earning well, Patch will earn 20% of the Farmor’s working interest in the section, subject to a 12% convertible overriding royalty before payout and a 12% working interest after payout and a 12% working interest in a second contiguous section. Patch’s share of equipping and tie in costs will be based on its after payout working interest. Drilling of the proposed locations will target natural gas in the Triassic Doig formation as the primary zone with secondary targets in the Charlie Lake and Halfway zones. Shares ended up $0.15, at $0.99.
On the Wires: Salton, Inc. (NYSE: SFP), announced that Jason Mudrick was elected to Salton’s Board of Directors. Mr. Mudrick is a Portfolio Manager at Contrarian Capital Management, L.L.C., an investment firm based in Greenwich, CT.
SPECIAL SITUATIONS:
Language Access Network (OTC: LANW) $3.40
With the evolution of this global economy has come the challenge of communicating with the people of the world. While the internet has leveled the playing field in many aspects of the world economy, one thing still challenges us all. The language barrier creates numerous communication challenges which can mean lost opportunities for businesses, unless they can communicate with customers speaking all languages. That’s where Language Access Network comes in… if translation is the problem, then Language Access Network has a solution.
Based in Nevada, the company is a pioneer in video language interpretation services with operations in Columbus, Ohio. Language Access Network is a company that focuses on accurate interpretation for people with limited English proficiency through instant access video interpretation. This service is designed to aid professionals in the medical, pharmacy, legal, and emergency services industries by enhancing the delivery of their resources. This approach also allows for the building of trust, understanding, and a sense of community through interpretation. The ultimate goal of the company is the overall efficiency of their product through quick, accurate and reliable interpretation services.
The company combines technology with an experienced team of interpreters to provide solutions to its customers. One vertical that has been an early adopter of the company’s services is the healthcare industry. In addition to extensive training in medical terminology, these interpreters go through a rigorous and continuing education in courses of medical ethics, general vocabulary, technology usage, privacy laws and most of all, cultural competency.
How does it work? Language Access Network operates a unique and creative system for interpretation through the company’s Martti system. The Martti (My Accessible Real-Time Trusted Interpreter) system includes both a full array of video hardware solutions and interpreters trained in medical/healthcare vocabulary for over 150 languages, including American Sign Language. The equipment is company owned and provided, enabling customers who use Language Access Network access to real-time, on-demand remote video interpretation. The team of interpreters is available and on call 24/7 and even on holidays. Martti enables the provider to accelerate the patient encounter, while offering a more accurate, safer and more satisfying experience for patient and provider alike.
Although little more than two years old, the company has already signed many recognizable retailers to use the system. Next month, it will provide real-time, on-demand video interpretation services seven days a week in four Kroger pharmacy locations in Ohio and Michigan as part of a regional program. Pharmacies are natural targets for the company’s technology, as it is critical that customers with limited ability to speak English are able to describe the products they want to purchase. Studies have shown that after Martti is installed that revenue from the pharmacy increases significantly. Martti will allow Kroger’s pharmacies to connect to live interpreters in over 150 languages, including American Sign Language (ASL), Arabic, Japanese, Russian, Somali and Spanish. The limited number of pharmacies represents a test; if successful, Kroger could roll out the service throughout the giant retailer’s chain of stores. Already, the service is being used by two Walgreen’s stores in central Ohio. The company has also signed deals with AT&T, Olympia Medical Center, Los Angeles, California, and Mercy Hospital, Inc. of Miami, Florida to provide live video interpretation services in the hospital’s Emergency Department and in inpatient facilities.
Although the company trades on the Pink Sheets in relative obscurity, that could change soon, as it has filed its Form 10SB, the first step in it becoming a fully-reporting company which could lead to a listing on the Bulletin Board. With momentum building among leading retailers and hospitals, prospects for Language Access to grow its business significantly appear promising.