3 Big Developments in 1 Week

With the sluggish summer months just about behind us, things are beginning to heat up with our portfolio companies. Electric Moto Corporation (OTCPK: EMOT) has fulfilled its search for a qualified new CEO. Union Dental Holdings Inc. (OTCBB: UDHI) recently notched its second consecutive quarter of profitability, and Legacy Holding (OTCPK: LGYH) has made its fully audited 2007 financial results available to the public and announced a year-over-year revenue increase of 537% over 2006.

In the world of larger stocks, one of my recent favorites, Sequenom (NASDAQ: SQNM) continues to garner attention after running from $5 back in April to nearly $21 recently on news that its non-invasive Down Syndrome test could soon become standard protocol in a $6-$8 billion global market.

New CEO Hits the Ground Running at Electric Moto

EMOT announced last week that early-stage investor Abbie Zands has taken the helm as Chief Executive Officer. The move was designed to allow former CEO, Ely Schless to accept the newly created position of Chief Technology Consultant (CTC) and focus on his strengths in the area of electric vehicle development. Don’t forget; Mr. Schless is the principal designer of the world record holder for the most number of miles completed by an electric car (the GM battery-swap proof of concept car). He has also developed prototype electric vehicles for the likes of Honda and Volkswagen.

With Ely now free to concentrate solely on technology development and Mr. Zands focussed on day-to-day operations, the company should be better positioned for growth going forward than it was previously with tech-minded Schless running the show. As Blade XT demo units begin shipping to both North American and European distributors employing a more business-minded CEO should be positive for the company as it transitions from R&D to production mode. For those of you not overly familiar with the company and its landmark product the Blade XT, here’s what Forbes Magazine writer Patrick Cooke had to say about EMOT's Blade XTZ model in a 9/17/07 article:

". . .an astonishingly quick, battery-powered motorbike called the Blade XTZ that equals or outperforms every gas-powered bike in its weight class (200cc--250cc). Best of all, it does so without making a sound". . . "No high-pitched engine whine, no choking blue smoke, no teeth-grinding vibration. And at 178 pounds, it's 25 to 50 pounds lighter and creates more torque (250 pounds) than most of its competition."

The company also plans to soon add electric scooters to its product mix. A move that I believe could help out the financial situation immensely. In my opinion the next 6 months are "make or break" time for Electric Moto Corp.

Initial Blade XT units are hitting the market and the company is now run by both a highly esteemed technological mind and a long-time investor with optimizing shareholder value first on his list of priorities. Now it’s a matter of how well the offering is received by consumers. I'll be watching closely over the coming weeks for sales related news. If it surfaces, I suggest contemplating taking an ownership position in the stock. If it doesn't, there are plenty of other electric vehicle plays out there for you. One that I have come across recently and will speak about more in the future is Zero Air Pollution (OTCBB: ZAAP).

UDHI Reports Second Quarter Profit

Union Dental Holdings turned its second consecutive quarterly profit on revenues of $652,709 during Q2. The Company plans to grow significantly over the next 12-24 months by transitioning from itself from middle man to full service dental provider. I’ve been watching UDHI rather closely for the past few years and am quite intrigued by their business model and the fact that its CEO has consistently purchased shares on the open market since I first began researching the company

If you’re unfamiliar with the Company, here’s their business plan in a nutshell: UDHI aspires to become the premier dental service provider to America’s 15,000,000 plus labor union workers and their families. Recently surpassing the milestone of 1,9000 dental providers in its network, Union Dental has already made inroads with some of the nation’s larger labor unions including: (1) The Communications Workers of America (CWA) - (700,000 members); (2) The International Brotherhood of Electrical Workers (IBEW) – (750,000 members); (3) The United Association of Plumbers and Pipe Fitters (UA) – (300,000 members); and (4) The Association of Flight Attendants - Communications Workers of America (AFA-CWA) – (55,000 members).

With more than 20 years worth of experience and a member base now possessing $192,000,000 in annual purchasing power, UDHI is taking a major step in the right direction with its decision to open a full service dental facility in Coral Springs, FL. The new building is slated to open by the beginning of October and will perform all aspects of dentistry. Deeply rooted in the dental community and founded by a well-respected dentist, UDHI has publicly stated its ability to save patients between 20% - 30% on Porcelain-fused-to-metal dental crowns which typically range in price from roughly $600 to $900, as well as other prosthetics. Since union workers typically receive only $1,500 in annual allowable dental expenditures - that type of discount should be a major selling point for the company going forward.

All in all, I’m pleased to see Doc Green’s master growth plan coming to fruition. Now priced under a penny with about 100 million shares out, the stock is surely worth a second look as the company prepares to embark on a new stage of growth.

Legacy Reports Annual Results

Legacy Holding Inc. (OTCPK: LGYH) made its operating results for the 12 months ended 12/31/07 available to the public last week and they were pretty promising in my opinion. The emerging provider of green cleaning solutions for the semiconductor, solar cell, flat panel display and LED markets logged net income of $101,846 on revenues of nearly $1.1 million.

In addition, Legacy unveiled plans to acquire a synergistic manufacturing company and begin introducing its process technology to tier-one customers including Intel, Texas Instruments, and Samsung. With their cleaning equipment already gaining traction in the semiconductor space through repeat installs with Tyco, licensing of Legacy's process technology should provide a nice additional revenue stream going forward.

Zevotek is Still on Our Radar Screen

Although we haven't heard much out of the company in over a month, Zevotek Inc. (OTCBB: ZVTK) is still on our radar screen. The company's landmark Ionic Bulb product generated nearly $350,000 in revenues during its first ever quarter of sales ended 3/31/08 and holds a great deal of potential for the future if properly marketed. The bulb has been stocked by the likes of Walgreen's and Amazon.com over the past 6 - 10 months and has sold quite well given the fact that is has been marketed pretty lightly to date. In effort to increase consumer awareness for the product, Zevotek recently completed filming of a promotional infomercial that should be hitting the airwaves soon, one would think.

More on the product: In addition to being 4X more energy efficient, lasting up to 10X longer, and using 50% to 80% less energy than regular incandescent light bulbs, the Ionic Bulb comes equipped with a patented air purifying microchip ion emitter that is powered by the bulb's own energy. The bulb silently emits negative ions that help clear the air of smoke, dust, pet dander, and odors. In all honesty, I've seen it work in person and it is impressive.

Now all management needs to do is ramp up sales and advertising efforts to get some legs behind its product. The infomercial is complete, which is a big part of the battle. Next comes disseminating the spot. In my opinion, we are in for a very interesting fall and holiday season here if Zevotek begins airing the piece and driving consumers into their local Walgreen's and online to see what all of the buzz is about. Only time will tell, but I'll be watching closely here over the next few weeks.

In Closing:

Unfortunately for all of our stress levels but hopefully fortunately for our trading accounts, the slow summer months appear to be just about behind us. As news from our portfolio companies picks up, so will our coverage on the small-cap world. Until next time, I suggest delving a bit deeper into the business models of the companies mentioned above.

Soaring gas prices drive U.S. scooter sales skyward

Record gasoline prices are driving the ongoing transformation of the U.S. automotive industry. As consumers trade in gas guzzling SUVs for economy cars, many are also taking things a step further and adopting energy efficient motor scooters as their primary mode of transport.

According to the Motorcycle Industry Council, U.S. scooter sales rose 65.7 percent in the first half of 2008.

While a gasoline fueled scooter holding just one gallon can reportedly travel 70-90 miles without a refill, next-generation electric scooters and currently available electric motor bikes such as those offered by Electric Moto Corporation (OTCPK: EMOT) can travel about 100 miles at 55 MPH on just $.75 worth of electricity versus the $10 of gasoline that would be required to power an economy car.

As we’ve mentioned before, EMOT is Founded by the principal designer of the world record holder for the most number of miles completed by an electric car (the GM battery-swap proof of concept car) EMOT is a rapidly emerging developer of low environmental impact, lithium-ion battery powered motorcycles and all-terrain vehicles (ATVs).

In a 9/17/07 Forbes article, writer Patrick Cooke had this to say about EMOT's Blade XTZ model:". . . An astonishingly quick, battery-powered motorbike called the Blade XTZ that equals or outperforms every gas-powered bike in its weight class (200cc--250cc). Best of all, it does so without making a sound". . . "No high-pitched engine whine, no choking blue smoke, no teeth-grinding vibration. And at 178 pounds, it's 25 to 50 pounds lighter and creates more torque (250 pounds) than most of its competition."

Electric Moto Corporation: Benefiting From Record Gas Prices

The average price of a gallon of regular gasoline in the U.S. hit a record of $3.623 today while consumers in many regions of the country already shell out more than $4. (according to a survey of stations by AAA and the Oil Price Information Service).

In response to this trend, consumers are increasingly exploring more efficient transportation mediums to get where they need to go. In New Jersey, the transit department recently reported a 5.3% increase in rail riders during the first three months of 2008 and saw overall rail ridership reach a record 23 million in October.

Americans are also increasingly changing in their SUVs for more economic and environmentally friendly personal vehicles. According to an article today released by CBS4 in Denver, Colorado, "A growing number of Denver drivers are parking their cars in favor of fuel efficient scooters in these times of record setting gas prices".

This in turn creates a very favorable operating environment for new and emerging providers of smaller, alternatively-powered vehicles. One such provider is Electric Moto Corporation (OTCPK: EMOT).

National Unleaded Average (source: www.aaa.com)

Regular

Mid

Premium

Diesel

E85

**E85 MPG/BTU adjusted price

Current Avg.	$3.623	$3.847	$3.986	$4.251	$2.991	$3.936
Yesterday Avg.	$3.617	$3.841	$3.979	$4.250	$2.980	$3.922
Month Ago Avg.	$3.286	$3.490	$3.616	$4.022	$2.730	$3.592
Year Ago Avg.	$2.977	$3.160	$3.274	$2.919	NA	NA

*Prices are in US dollars per gallon

**The BTU-adjusted price of E-85 is the nationwide average price of E-85 adjusted to reflect the lower energy content as expressed in British Thermal Units - and hence miles per gallon - available in a gallon of E-85 as compared to the same volume of conventional gasoline. The BTU-adjusted price calculated by OPIS and AAA is not an actual retail average price paid by consumers. It is calculated and displayed as part of AAA's Fuel Gauge Report because according to the Energy Information Administration E-85 delivers approximately 25 percent fewer BTUs by volume than conventional gasoline. Because "flexible fuel" vehicles can operate on conventional fuel and E-85,the BTU-adjusted price of E-85 is essential to understanding the cost implications of each fuel choice for consumers.

12 Month Average For Regular Unleaded

According to a recent news release EMOT "is preparing for the soon to be announced launch of its first retail line of all electric off-road motorcycles and is also gearing up for the launch of its electric-powered ATVs and scooters."

The company also recently announced that it will soon begin shipping demo units of its landmark BladeXT motorcycle to European distributors and expects the product to be extremely well-received in the region by consumers and the media alike. EMOT's key distributor appears to share the sentiment:

Commenting on the demo units, Stuart Rutter of GoBlade Ltd, Electric Moto Corp., Inc.'s authorized distributor in the UK stated : "We're really excited about being able to finally show the bike and expect huge media and buyer interest from a range of markets. We've done several test marketing campaigns over the past two years that have helped to shape the development of the bike so that it appeals to a range of users. We're confident that Electric Moto has achieved its goal of producing an electric dual-purpose bike that is green, silent, fun to ride, fast on the track or street and is also amazingly economical. All of these factors should drive huge sales of these bikes. I believe that the Blade XT line will be a phenomenal success here in the UK and across Europe where noise from off-road bikes has become a major environmental issue."

I'll be watching closely here over the next few weeks for updates on how well the initial product line is received by the public. If/when larger manufacturing runs get under way for the BladeXT or the product begins to garner more global recognition, I'm guessing that the market may become willing to pay a bit more for the stock based on the company's potential and high energy prices alone. It's all just my own take on the situation, but an interesting situation nonetheless.

Combat Surging Gas Prices With EMOT

With the US Energy Department stating on Tuesday that retail gasoline sales are likely to hit the $4 mark this summer, renewable energy has never been such a hot topic. While the need to become more eco-friendly seems to have driven the first wave of investment in the space, the need to get to work may drive the next.

Some battery-powered motor scooters on the market today can travel about 100 miles at 55 MPH on just $.75 worth of electricity versus the $10 of gasoline that would be required to power an economy car. In response to this trend and also the harsh reality that the the dollar of the US consumer is now spread thinner than ever before, investors appear quite eager to buy into the battery-power craze.

So eager, in fact that many are willing to shell out big bucks for companies boasting elite battery-powered vehicles, but also carrying with them exorbitant operating losses while having a dandy of a time making a sale.

Vectrix Corp: Commanding a Premium Despite Sharp Losses

Vectrix Corporation, trades on the London exchange under the symbol "VCF". The company is an emerging manufacturer and distributor of two-wheeled zero emission vehicles ("ZEV").

A private R&D house for 11 years, VCF entered the public arena in 2007 and subsequently kicked off production and sales efforts. The company has also recently launched an impressive promotional campaign that has helped to significantly expand notoriety for its brand.

Shares now trade in the $9 range (British Pounds), or about $20 USD. The only problem is that the company has more than 260,000,000 shares out in the market today and recently reported a loss of nearly $54M (USD) for 2007 on revenues of $819,000. Sure, major institutions (Morgan Stanley and others) hold ownership, but is this really where you want to put your 20-spot given today's economic environment?

Although the company does indeed hold a great deal of future potential, recent performance has been less than stellar. At roughly $20 USD per share, I'd say that the stock carries with it a pretty high level of risk. With all of the hoopla surrounding renewable energy and battery-powered vehicles, there appear to be other, less risky, ventures out there doing more or less the same thing that trade at a massive discount to VCF and may also carry less risk.

EMOT: More Bang For Your Buck!

Electric Moto Corporation (OTCPK: EMOT) is one of them. Founded by the principal designer of the world record holder for the most number of miles completed by an electric car (the GM battery-swap proof of concept car) EMOT is a rapidly emerging developer of low environmental impact, lithium-ion battery powered motorcycles and all-terrain vehicles (ATVs).

The Blade has attracted attention from some very reputable media outlets to date, one of them being Forbes Magazine. In a 9/17/07 article, writer Patrick Cooke had this to say about EMOT's Blade XTZ model:

". . .an astonishingly quick, battery-powered motorbike called the Blade XTZ that equals or outperforms every gas-powered bike in its weight class (200cc--250cc). Best of all, it does so without making a sound". . . "No high-pitched engine whine, no choking blue smoke, no teeth-grinding vibration. And at 178 pounds, it's 25 to 50 pounds lighter and creates more torque (250 pounds) than most of its competition."

Net-Net

Once full production funding is met, the company will begin mass-manufacturing their Blade XT4 battery-powered electric motor bike. Just like the boys at Vectrix, EMOT executives have been hard at work over the past decade plus, developing products that rival or outperform all gas guzzling models in their respective classes.

The big difference here though, may start with the business plan. Electric Moto plans to yield much more than $800K in revenues from its first capital injection, while it's taken Vectrix more than $54M to make about $800K (they also lost about $24M in '06 on Zero sales).

Furthermore, EMOT has nearly 1/4 of the shares outstanding (65M) and trades at a massive discount to VCF (about $.10 per share). Shares traded up nearly 50% on Tuesday on decent volume and appear to be making a move back up towards their 52-Week high of $.55. If the stock trades at anywhere near the valuation of competitor Vectrix over the near to mid-term, we could be looking at a significantly undervalued opportunity here folks. Possibly by as much as $10 or $20!

With IDTechEx pegging the global electric vehicle market to grow from $16.1B in '05 to $227B by 2015 and astronomical gasoline prices making travel, necessity or otherwise, cost preventative, products such as those offered by EMOT have perhaps never been so timely. As shares of the company's direct competitors demand a premium in the market today on less than strong financials, now may be a great time to roll up you sleeves and conduct some due diligence on EMOT before the sales dollars begin trickling in.

Going Green Could Help Economy Out of the Red

Even in today's rough and tumble economic environment in which nickels are being used to cover manholes in record fashion, many experts believe that shelling out dough to facilitate a "greener" and "less fossil fuel-dependent economy" is positive financially for our country because many efforts actually pay for themselves over time.

A group of economists at Yale University agree and have created a very interesting interactive site that takes into account, according to them, 27 related, specific economic models that have been created in recent years. The model basically drives home the point that investing in efforts that help reduce carbon emissions, is positive for the U.S. economy, no matter how bad or good things are over the next few years.

Check it out: http://www.climate.yale.edu/seeforyourself/

Are Solar Panels LGYH's Legacy?

With a distinct and proven value proposition to the semiconductor space, Legacy Holdings (OTCPK: LGYH) appears to be very well-positioned to cash in on the upcoming solar boom in its home state.

Representing the massive opportunity that the company is now exposed to, the article linked to below notes Southern California Edison Co.'s $875 million plan to build the nation's largest solar energy installation. If you didn't know, a key component of most solar cells is the photovoltaic panel or more commonly referred to as the solar panel. They are composed of semiconductor materials and now drive a great deal of demand for semiconductor wafers worldwide.

Given the proven value proposition that Legacy's patented, Green Chemistry technology presents to the industry, growing solar panel demand is great news for the company. For the record, the technology is proven to provide immense benefits in four key ways:

1. Improving wafer processing time by 200%;
2. enhancing oxide removal control by 92%;
3. decreasing costs by 22% by reducing the amount of consumable materials used in wafer cleaning; and
4. reducing particles left on the wafer after cleaning by 76%.

Plug In Or Pump?

With consumers "driving" changes in the auto industry more so than just about any other, Electric Moto Corporation (OTCPK:EMOT) appears to be playing in a very hot market as battery-power demand heats up.

According to an article that I came across today, hosts of the upcoming Vancouver International Auto Show have been floored by the increase in consumer demand for and interest in battery-powered vehicles. With gasoline now being increasingly phased out of the equation, EMOT's Blade XT4 motorbike and other products should be facing a favorable sales environment going forward.

The End of Salmonella, Listeria and E.coli?

Proton Laboratories (OTCBB: PLBI) may just hold the key to a green solution for the world's water contamination problem. We will bring you introductory profile coverage on PLBI very soon, but for now I'll tell you this: they are an Alameda California-based bio tech firm that specializes in altering the properties of water via electrolysis with electrolyte separation and developing new practical applications for electrolyzed water.

PLBI has been studying water and its restructured properties after its exposure to the process of electrolytic ion separation. According to PLBI, water that goes through an electrolytic ion separation process gains properties that bring functionality to itself and can be used in a number of applications including: eliminating various strains of bacteria, virus, fungi, spores or communicable disease including: salmonella, listeria and E.coli; and as an optional growth medium for organic agriculture and as an option to fungicides.

Given the recent large-scale salmonella breakout and other water-quality problems in the press, I think that PLBI has a very timely offering and a massive potential target market.

With record oil prices a harsh reality in today's world and the economic benefits of going green becoming widely accepted, these three portfolio companies are well-positioned to capitalize on growing demand for eco-friendly products possessing a bullet proof ROI case.