Archive for January, 2009

Is Raser Technologies (NYSE: RZ) a $7 Stock?

Friday, January 30th, 2009

Capstone energy analyst Adam Adleman thinks so according to his statement in an upcoming BusinessWeek article entitled “Raser, a play in geothermal juice”, scheduled to hit the presses on February 9. The article, which appeared in BusinessWeek’s online edition last night, highlights the fact the geothermal energy remains overlooked as an optimal source of alternative energy despite being extremely competitive on a cost basis and identifies Raser as a “pure play” on the sector.

Raser, A Play in Geothermal Juice:

Inside Wall Street Article/ Video

AMLN Trend Analysis

Thursday, January 29th, 2009

Wondering where AMLN is heading? Check out the following Free Instant Analysis below – I found it extremely useful especially if you are an investor!


 

 

Amylin Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of medicines for diabetes, obesity, and other diseases in the United States. It sells BYETTA (exenatide) injection and SYMLIN (pramlintide acetate) injection for the treatment of patients with Type II diabetes. The company also has research and development programs in the therapeutic areas of diabetes and obesity, including exenatide once weekly; Nasal Exenatide, a nasal spray formulation of exenatide for diabetes; Pramlintide and PYY 3-36 for the treatment of obesity; Leptin for the treatment of obesity and lipodystrophy; Pramlintide-Metreleptin combination product candidate for overweight or obese subjects; and second generation Amylinomimetic for weight loss. It sells its products to healthcare providers, managed healthcare organizations, wholesalers and pharmacies, government purchasers, and other third-party payers. The company has collaboration agreements with Eli Lilly and Company, as well as with Alkermes, Inc. to develop exenatide once weekly for diabetes; a contract research arrangement with Kelaroo, Inc. for the commercialization of Kelaroo’s SeqR technology that is used for peptide hormone identification and optimization; a joint research collaboration agreement with BioSeek, Inc. for discovery and development of novel peptide therapeutics for inflammatory conditions; and a joint research collaboration agreement with Xenome, Ltd. for discovery and development of novel peptide hormones for a range of metabolic and musculoskeletal diseases. It also has collaboration with Pacira Pharmaceuticals, Inc. for the development of sustained release injectable products based on the DepoFoam technology platform. Amylin Pharmaceuticals was founded in 1987 and is based in San Diego, California.

SEPR Trend Analysis

Thursday, January 29th, 2009

Wondering where SEPR is heading? Check out the following Free Instant Analysis below – I found it extremely useful especially if you are an investor!

 

 

Sepracor, Inc. engages in the research, discovery, development, and commercialization of pharmaceutical products for the treatment of respiratory and central nervous system disorders in the United States and Canada. It develops products for the synthesis and separation of pharmaceutical and biopharmaceutical compounds. The company markets XOPENEX (levalbuterol HCl) Inhalation Solution for the treatment of bronchospasm in the lung; XOPENEX HFA (levalbuterol tartrate) Inhalation Aerosol for the treatment of bronchospasm; and LUNESTA (eszopiclone) for the treatment of insomnia. It also offers BROVANA (arformoterol tartrate) Inhalation Solution, a long-term maintenance treatment of bronchoconstriction in patients with chronic obstructive pulmonary disease, including chronic bronchitis and emphysema. Sepracor�s out-licensing agreements include Schering-Plough for CLARINEX (desloratadine); sanofi-aventis for ALLEGRA (fexofenadine HCl); and UCB S.A. for XYZAL/XUSALTM (levocetirizine). The company’s product pipeline comprises SEP-225289, under Phase I studies, for the treatment of major depressive disorder (MDD); SEP-227162, a serotonin and norepinephrine reuptake inhibitor for the treatment of depression and anxiety, is under Phase I clinical study; SEP-225441, a GABAA agonist and potent anxiolytic in preclinical models; SEP-225432 and SEP-225425 for the treatment of MDD; and SEP-0002093. Sepracor offers its products primary to care physicians, allergists, pulmonologists, pediatricians, hospitals, psychiatrists, and sleep specialists through its sales professionals. It has an agreement with Eisai Co., Ltd. for the development and commercialization of its eszopiclone product, LUNESTA in Japan. The company was founded in 1984 and is headquartered in Marlborough, Massachusetts.

SYMC Trend Analysis

Thursday, January 29th, 2009

Wondering where SYMC is heading? Check out the following Free Instant Analysis below – I found it extremely useful especially if you are an investor!

 

Symantec Corporation provides software and services that protect, manage, and control information risks related to security, data protection, storage, compliance, and systems management. The company operates in four segments: Consumer Products, Security and Compliance, Storage and Server Management, and Services. The Consumer Products segment focuses on delivering the company’s Internet security, personal computer (PC) tuneup, and backup products to individual users and home offices. The Security and Compliance segment provides solutions for compliance and security management, endpoint security, messaging management, and data protection management software solutions that enable businesses to secure, provide, backup, and remotely access their laptops, PCs, mobile devices, and servers. The Storage and Server Management segment offers storage and server management, data protection, and application performance management solutions across heterogeneous storage and server platforms to enterprises. The Services segment provides information technology risk management services and solutions to manage security, availability, performance, and compliance risks across multi-vendor environments. It also offers managed security services, consulting, education, and threat and early warning systems. The company offers its services to enterprises, governments, small and medium-sized businesses, and consumers worldwide. Symantec Corporation was founded in 1982 and is headquartered in Cupertino, California.

EYSM Pausing for a Pop?

Wednesday, January 28th, 2009

Look for increasing volume and a break above today’s high of 13 cents. A clear break above 0.13 could take EYSM all the way to $0.25.

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Comparing Apples to Blackberries

Tuesday, January 27th, 2009

One of the only products close to the success of the iPhone is the iTouch.  Using the same technology for navigating the phone, Apple has been awarded yet another patent (patent number 7,479,949) to keep its touch screen technology cornered from competition.  Functions like pinch, rotation and swipe are a cornerstone of the Apple technology, not only on the iPhone but on other Apple products such as the Mac Powerbook and Macbook Air.  The patent was applied for in April of 2008 and was officially awarded on January 20th, 2009.

Here’s a little snippet from the patent description… (more…)

What Do GPS and Embryonic Stem Cell Research Have in Common?

Tuesday, January 27th, 2009

Besides the fact that savvy investors can profit significantly from opportunities in each market, most likely nothing. I bet I got your attention, though. In today’s edition, let’s take a look at 2 explosive investment opportunities, one exponentially more controversial than the other. Technological advancement is driving growth in both sectors and compelling me to take a close look.

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Is Your Portfolio Shovel Ready?

Thursday, January 22nd, 2009

Now that all of the inauguration hoopla has subsided, the incoming Obama administration is expected to almost immediately to roll up their sleeves and commence efforts to stimulate our floundering economy by providing funding for “shovel ready” projects. 

In addition to the growing population of unemployed Americans, increased government spending will also create opportunities for investors that place their bets in the right sectors. If the “shovel ready” stimulus package is approved and as significant as many hope that it will be, here are 3 key areas that I’ll be looking for to prosper.

Alternative Energy  

ImageSince President Obama has already trumpeted its desire to kick our foreign oil habit and invest heavily in alt-energy over the next decade, this sector should be a shoe in for stimulus package funding.    

 

Solar Outlook Could Brighten With Substantial “Shovel Ready” Funding

However, it will be that technologies that can be rapidly deployed in an economically efficient manner that will benefit the most. Since solar energy systems can be installed rather quickly, shovel ready stimulus would likely have a very positive impact on this sector of the clean-energy industry. 

While a multitude of factors including lower poly-silicon prices (a key component in solar panels) and a disastrous credit market aligned to cast a cloud of negativity on the market in ‘08, the “Obama Effect” may cast rays of success on the solar sector in 2009. The U.S. Department of Energy Solar Showcase Program is already exhibiting how far solar power technology has progressed over the past decade and additional funding could significantly expand the initiative while driving overall adoption of solar systems.

If future government spending on viable clean-energy projects meets the nation’s lofty hopes, solar wafer manufacturers will cash in. Companies to watch in this sector if/when the package gets approved include Suntech Power Holdings (NYSE: STP), market leader First Solar (NASDAQ: FSLR) and LDK Solar (NYSE: LDK). In the sub-$5 range, Evergreen Solar (NASDAQ:ESLR) is worth a look.

The emerging solar product manufacturer is ramping up capacity in Massachusetts, a hotbed for growth thanks to the Green Communities Act, which enacts the most aggressive clean-energy policy of any U.S. state.

ESLR’s revenues were up 31% for the first 9 months of 2008 and the company reportedly has an order backlog of approximately $1.7 billion. Despite recently lowering revenue estimates for both 2008 and 2009, Thomas Weisel Partners’ forecasts Evergreen’s revenue to more than double from $113.1 to $360.5 this year. 

Analysts believe that the decision to close its pilot facility in Marlborough Mass, in favor of a more efficient new plant in Devens, Mass, could facilitate profitability in 2009 although it resulted in a $30 million hit to the balance sheet in 2008. Evergreen claims to be the “industry leader in efficient silicon consumption” and aspires to reduce its usage from 5 grams per watt currently to 2.5 by 2011 and .5 by 2014. 

The major potential upside here is that if Evergreen can continue to increase manufacturing output while simultaneously slashing costs, the company could eventually be capable of generating electricity at prices competitive with fossil fuels. Demand created by Obama’s stimulus package and renewable energy mandates like the Green Communities Act should only help the cause.

“Solar industry looks for light at tunnel’s end”

 

 

 

Wind Power and Geothermal Also Poised to Benefit  

ImageRecent approval of the Cape Cod wind farm project in Massachusetts is expected to pave the way for more large-scale wind power projects in the U.S. going forward. Growing popularity of wind as a power source and the government’s plans to ramp up spending on renewable energy create a very favorable environment for related companies.    

 

Some of these include General Electric (NYSE: GE), a leading global wind turbine manufacturer, FPL Group (NYSE: FPL), a leader in U.S. wind power generation, and American Superconductor (NASDAQ: AMSC), a provider of electrical systems used in wind turbines to increase electrical grid capacity. 

Interested in a small cap world gamble? Take a look at Composite Technology Group (OTCBB: CPTC). The company’s DeWind, wind turbine segment grew related revenues from $17.6 million in FY2007 to more than $40 million in FY2008. As of 12/15/08, CPTC had $288 million in potential turbine orders under contract, $50,000,000 of which the company feels are firm and deliverable during FY2009. 

Now placing a greater focus on joint ventures such as wind farm projects that rely on outside funding which could be provided by the government, Composite should benefit from the upcoming surge in clean-energy projects brought on by ready to shovel stimulus spending and state renewable portfolio standards. 

Raser Ready to Shovel

In the geothermal space, I like Raser Technologies (NYSE: RZ) for a multitude of reasons. But for the sake of this discussion, RZ’s ability to build out functional geothermal power plants in 12-18 months makes the company very attractive as massive funding is considered for ready to shovel projects. RZ set the world record for building a geothermal power plant recently and has 7 more in the works. Since Raser has proven its ability to turn low temperature geothermal resources into energy in record time, a stimulus program could surely give the company a boost.

“‘Shovel ready’ projects aim to get money working fast”

 

 

Healthcare Technology  

ImageThe new President has also pledged to conduct a massive healthcare overhaul. In addition to providing Americans with quality medical coverage and strengthening overall public health, modernizing the U.S. healthcare system has been identified is a primary objective of future healthcare reform.    

 

Although total health care spending represented 17% of US GDP in 2007or $2.4 trillion (NCHC), the health IT market represents just 2% of the $973 billion U.S. IT sector (Gartner Inc.). In order to improve quality of care throughout the country and bring thousands medical facilities out of the Stone Age, billions of dollars could soon be injected into the health care information technology sector. 

Some leaders in the space that I feel deserve a look include:

Cerner Corp (NASDAQ: CERN) – The leader in hospital installed electronic records provides a suite of software solutions that help maximize efficiencies and control costs in medical facilities. 

Cerner has maintained a solid compound annual growth rate of 14% over the past 3, 5, and 10 years and has amassed a client network of more than 6,000 hospitals, medical practices, pharmacies, etc. With a solid installed base of customers and a proven technology offering; CERN is well positioned to benefit from increased government spending on health care organizations. 

QuadraMed (NASDAQ: QDHC) – The electronic records software provider serves a base of 2,000 health care providers and has developed a best of breed revenue management solution for medical facilities that could become more widely adopted if the government starts shelling out funding in record fashion. 

Merge Healthcare (NASDAQ: MRGE) – The provider of medical imaging technology recently partnered with IBM to equip medical professionals with solutions that allow them to access medical images from mobile devices including the iPhone. Representing a breakthrough in the medical field, the system eliminates the need for additional storage capacity and specialized systems to accommodate large downloads. The solution should be high on the wish lists of many medical professionals if/when significant government funding is doled out.

“Health IT sector to get multibillion-dollar boost”

 

 

TelecommunicationsImage  

Between Obama’s shovel ready plan and aspirations to make high-speed web access a reality in every U.S. household, the broadband communications market should receive a welcomed boost by a potential shovel ready plan.    

 

Currently, about $6 billion has been allotted out of the $825 economic stimulus bill to promote ubiquitous broadband. While many leading telecom providers worry that’s not enough, its not a bad start and the speed with which the government has moved thus far is quite promising.

Although the major providers won’t be able to make the necessary upgrades alone, industry leaders including AT&T (NYSE: TVerizon (NYSE: V), Comcast (NASDAW:CMCA), Time Warner (NYSE: TWX), and Qwest Communications (NYSE: Q), will benefit from the plan. These stocks all got battered in 2008 and could bounce back if the stimulus works. 

Cogent Could be a Sleeper

Teleco network provider Cogent Communications (NASAQ: CCOI) now carries 17% of all web traffic and could be awarded some major government contracts in plans to equip the nation with high speed Internet move forward. The company reportedly provides network access for 50% to 98% less than competitors including AT&T andVerizon and has sparked a trend that could cut annual telecom spending by $300 billion. If the government’s looking for network band with, why not go with the lowest bidder? 

“Telecom Knock Out”

As unemployment continues to soar, economic stimulus can’t seem to come fast enough. While it may take some time for funding to get approved and begin pumping life into the three sectors mentioned above, now is a great time to begin evaluating opportunities in each. Hopefully, this piece plays a key role in getting you to do so. 

 

 

The Text of Obama’s Inauguration Speech

Tuesday, January 20th, 2009

Following is the text of President Barack Obama’s inaugural address on Tuesday, as prepared for delivery and released by the Presidential Inaugural Committee.

OBAMA: My fellow citizens:

I stand here today humbled by the task before us, grateful for the trust you have bestowed, mindful of the sacrifices borne by our ancestors. I thank President Bush for his service to our nation, as well as the generosity and cooperation he has shown throughout this transition.

Forty-four Americans have now taken the presidential oath. The words have been spoken during rising tides of prosperity and the still waters of peace. Yet, every so often the oath is taken amidst gathering clouds and raging storms. At these moments, America has carried on not simply because of the skill or vision of those in high office, but because we the people have remained faithful to the ideals of our forebears, and true to our founding documents. (more…)

Defense Solutions Inc. is Capitalizing on Iraq’s Need for Tanks

Monday, January 19th, 2009

After nearly six years of occupation, U.S. combat forces are scheduled to withdraw from the cities of the world’s most dangerous country – Iraq – by June of this year. 

With the deadline rapidly approaching, obviously, the need for security in Iraq is at an all time high.

Unfortunately, however, in order for the U.S. to gain control over the country during its recent military campaign, we had to completely decimate its defense resources. Pulling out of the region now without helping to significantly strengthen Iraqi’s military capabilities would be like leading a paraplegic into a street fight with Mike Tyson (in his prime).

DFSH Closes in on $6B Iraqi Tank DealImageFrom a capitalist point of view, this may in fact be the last major chance for the U.S. to cash in on its invasion of Iraq.

Iraq to Spend $17B on Weaponry in ‘09

The Iraqi government aspires to regain its position as a military power by 2011 when the U.S. removes all of its approximately 142,000 troops from the country and is wasting no time to re-build its military to pre-Gulf War status. After spending billions of dollars last year to purchase F-16 fighters and M1 tanks from the U.S., there are currently about $17 billion worth of contracts for U.S. sponsored military equipment on the table for 2009. 

Defense Solutions Inc. Anticipates Contract for 2,000 Tanks 

One of the larger potential contracts is for the purchase of 2,000 retrofitted, Soviet-era T-72 tanks, at roughly $3 million a piece. According to a recent Defense News article, Philadelphia-based Defense Solutions Inc. (OTCBB: DFSH) expects to have the contract in hand within the next few weeks, a sentiment shared by an unnamed U.S. Army official involved with weapons sales to Iraq.

The company reportedly sold a number of refurbished Hungarian T-72 tanks to Iraq back in 2005 and with offices in downtown Baghdad’s red zone run by an all-Iraqi staff, claims to be one of the few American companies that works directly with the Iraqi government. Defense Solutions Inc. has been a controversial figure in the media in recent years due to its willingness to pursue business with blacklisted Russian and Libyan arms export agencies. However, the U.S. Armed Forces appear to be firmly behind their cause.

Iraq Plans To Buy 2,000 Tanks

Friends in High PlacesImageBy enlisting the help of Washington insiders with strong international ties including retired General Barry McCaffrey and former congressmen Curt Weldon, Defense Solutions hopes to broker a number of major arms deals between weapons suppliers in the Eastern Bloc and Middle Eastern nations in 2009 and beyond. 

When He Speaks, People Listen

When Gen McCaffrey speaks, people listen. Truly an invaluable asset to Defense Solutions, the retired 4-star general and current NBC military analyst has a direct influence on U.S. defense operations. Moreover, as a recent New York Times Article points out, “He commands $25,000 for speeches, his commentary regularly turns up in the Wall Street Journal, and he has been quoted in thousands of news articles, including dozens in the New York Times”.

The U.S. government has invited him for numerous war consultations and sent him on multiple trips to Iraq and Afghanistan so he can get a firsthand view over what is transpiring. There may be no better executive to help DFSH build linkages with government officials. 

McCaffrey Has Washington’s Ear

Just four days into his consulting contract with Defense Solutions, Gen. McCaffrey reportedly sent a personal note and accompanying 15-page packet to the commanding general in Iraq, David H. Petraeus with a strong recommendation for the company’s proposal to provide Iraq with 5,000 armored vehicles from Eastern Europe. Talk about initiative.

Weldon Also Influential

In addition, the company’s Chief Strategy Officer, Curt Weldon, was an influential member of the House Armed Services Committee and made strong ties with contact in Russia, Libya and North Korea during his time in office. He has reportedly been instrumental in the development of a number of high potential, yet controversial contracts.

Defense Solutions Site

DFSH: An International Arms Trade Phenomenon

ImageAs quoted in the media recently, DFSH “represents a new phenomenon in the international arms trades business.”

The dire need for the U.S. to equip Iraq and Afghanistan with the weaponry necessary to defend themselves without foreign aid is creating new opportunities for organizations such as Defense Solutions, capable of facilitating weapons sales between nations with which the U.S. does not have the rosiest relations and its staunchest allies. 

To date, key focus has been placed on brokering arms deals between Russian and Ukraine weapons suppliers and the Iraqi and Libyan governments. 

Lucrative Loopholes

While the U.S. government has blacklisted Russian arms agency, Rosoboronexport and is forbidden to conduct business directly with them, it can benefit greatly from working with American companies that purchase and refurbish their outdated equipment and then sell it to Iraqi forces as part of a government contract. 

Furthermore, since Russia can not sell weapons directly to Iraq and many European nations are frowned upon for selling arms to Middle Eastern countries, even if no laws prevent them from doing so, a middleman is required to broker deals.

Enter Defense Solutions

DFSH is quickly emerging as this intermediary in the Easter European-Middle Eastern arms brokering business, and judging by the support the company has received by the U.S. government recently, appears to be ready to capitalize on its favorable position in a new and exciting market.

U.S. Arms Dealer Tests Legal Bounds in Middle East Arms Bazaar

Conclusion

The situation here is extremely compelling. If Defense Solutions Inc. can leverage its relationships with influential military and governmental figures and capitalize on our country’s need to quickly arm Iraq to the teeth by winning a $6 billion tank deal, we could be looking at one of the most explosive small-cap growth stories of 2009. 

I can only imagine what impact a contract of that magnitude would have on the stock, currently trading at $1.13 with just over 7 million shares outstanding. 

Thank you for being a loyal Outcast subscriber. We will continue to provide you valuable services.

Sincerely,
–The Team at Outcast