OTCPicks.com Daily Market Movers Digest Midday Report for Monday, April 9th
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OTCPicks.com Daily Market Movers Digest Midday Report for Monday, April 9th HRDN, LZEN, AVII, ASYI, ECOS, BONU Our Stocks to Watch today include DC Brands International Inc. (OTC: HRDN), Lizhan Environmental Corp. (NASDAQ: LZEN), AVI BioPharma Inc. (NASDAQ:
AVII), AISystems Inc. (OTCBB: ASYI), EcoloCap Solutions Inc. (OTCBB: ECOS) and BioNeutral Group (OTCBB: BONU).Visit http://otcpicknews.com/emailmarketer/link.phpM940&N35&L1&F=T to register for our Daily Market Mover’s Digest Newsletter and Email Stock Watch Alerts.DC BRANDS INTERNATIONAL INCORPORATED (OTC: HRDN) “Up 42.11% in morning trading” Detailed Quote:
http://otcpicknews.com/emailmarketer/link.phpM940&N35&L53&F=T DC Brands International, a publicly traded company under the ticker symbol (HRDN), presently specializes in the manufacturing of its functional beverages and health products. Established in 1998, DC Brands began producing a number of lines of energy drinks in 2005. DC Brands then purchased the assets of H.A.R.D. Nutrition and began its quest to produce a new health line of products. DC Brands has recently announced the release of its new H.A.R.D. Nutrition Functional Water Systems, which it expects will revolutionize the functional beverage category.HRDN News:April 5 – DC Brands International, Inc. Announces Agreement with Dixon Marketing, Inc. for Distribution in Military Resale System and Receives Initial Purchase OrderDC Brands International, Inc. (OTC: HRDN) announces that it has entered into a contract with Dixon Marketing, Inc. (DMI) for distribution into the military resale system, and has received an initial Purchase Order to launch the relationship.DMI is a worldwide, full service military sales and marketing agency, with specialized coverage of commissaries and exchanges. DMI is one of only six worldwide sales and marketing agencies which service all the military resale systems.Richard Pearce, President and CEO, said, “We are really excited to have this opportunity to work with DMI for the distribution of our H.A.R.D.
Nutrition Functional Water Systems throughout the military resale systems..
We have enjoyed success with our sales at the commissaries in Zone 9, and will continue to explore all avenues to increase our exposure in the commissaries and base exchanges that DMI services.”Pearce continued, “I believe that our transitioning to DMI for military distribution gives us the very real potential to grow in the military resale system, and will help us improve our exposure and branding in the military commissaries and exchanges. We will continue to be open to all opportunities that should enable us to grow beyond our current Zone 9 availability.”LIZHAN ENVIRONMENTAL CORPORATION (NASDAQ: LZEN) “Up 11.31% in morning trading” Detailed Quote:
http://otcpicknews.com/emailmarketer/link.phpM940&N35&L78&F=T Lizhan Environmental Corporation is one of China`s leading manufacturers of eco-friendly fabrics whose products are developed with patented technology that regenerates collagen fiber from leftover cuttings, pieces and trimmings of genuine leather. The Company`s products are mainly used in furniture, garments and other consumer applications. LZEN News:April 2 – Lizhan Environmental Corporation Reports Fiscal Year 2011 (Unaudited) ResultsLizhan Environmental Corporation (NASDAQ: LZEN) (“Lizhan” or the “Company”), one of China`s leading manufacturers of eco-friendly fabrics made from patented technologies, announced today its three- and twelve-month unaudited results for the fiscal year ended September 30, 2011.Financial SummaryThe Company produced and sold approximately 12 million meters of fabric in the twelve months ended September 30, 2011, down 2 million meters from 14 million meters in the corresponding period in 2010. Domestic sales fell by approximately 33% and sales to international customers increased by 16%. “We faced several challenges in the past year, which we are actively working to address,” explained Chairman and Chief Executive Officer Jiangfeng Liu. “The most encouraging development has been an improvement in our Colgre Products daily production from 1,000 meters per day in the fourth quarter of 2011 to 3,000 meters per day currently. Demand is building gradually and we are in active discussions with new customers in China and overseas.”Mr. Liu continued, “We do not expect to experience the production disruptions caused by the lack of steam supply that occurred from January to March of year 2011. We are also working on diversifying our raw materials suppliers, which should help improve our production stability and enhance our profitability.”Three months Ended September 30, 2011 Financial Results (Unaudited)Net SalesNet Sales for the three months ended September 30, 2011 were $8.5 million, a 27% decline from $11.7 million in the same period of fiscal 2010. Sales of recycled leather flocked fabrics decreased 35% to $6.4 million due to lower orders from domestic and international customers. The Company sold $1.2 million of ultra suede leather products, up 35% from the same period last year.Lizhan continued to increase production of its Colgre Products – previously known as Evergreen Products – in the fourth quarter of 2011, with approximately 25,000 meters produced. The Company shipped and sold approximately 15,000 meters of Colgre Products during the fourth quarter of year 2011, resulting in sales of approximately $0.2 million.Gross ProfitGross profit was $1.2 million compared to $2.7 million for the same quarter in 2010. The 56% decline was a result of rising raw materials and labor costs. Gross margins were 14% and 23% in the three months ended September 30, 2011 and 2010, respectively.Operating ExpensesOperating expenses increased from $1.0 million to $1.7 million, representing approximately 20% of revenues. The increase was primarily due to higher salaries and expenses related to the addition of Colgre Products.Net IncomeLizhan generated a $0.3 million loss attributable to common shareholders compared to a $1.8 million net income in the three months ended September 30, 2010 due mainly to lower sales and higher expenses. Net loss was $0.02 per share based on 13.6 million weighted average shares outstanding in the fourth quarter of 2011 compared to $0.17 net income and 11.1 million shares in the same period last year, respectively. Twelve months Ended September 30, 2011 Financial Results (Unaudited)Net SalesNet sales for the twelve months ended September 30, 2011 were $36.3 million, a 22% decline from $46.3 million in fiscal year 2010. Sales in fiscal year 2011 were negatively impacted by a shutdown of production mandated by the local government to review and repair the steam supply systems during the second quarter. Sales of the lower margin ultrasuede leather products decreased by 28% to $6.6 million due to management`s ongoing efforts to reallocate capital to its higher margin businesses such as recycled leather flocked fabric and Colgre Products. Recycled leather flocked fabric sales dropped 20% to $27.2 million.Gross ProfitGross profit for the twelve months ended September 30, 2011 fell 41% to $6.7 million, from $11.3 million for the twelve months ended September 30, 2010. Gross margin was 19%, down from 24% in fiscal 2010.Operating ExpensesGeneral and administrative expenses totaled $4.5 million and selling and marketing expenses were $0.8 million compared to $2.1 million and $0.6 million in the twelve months ended September 30, 2010, respectively. The increase was primarily attributable to expenses incurred in connection with operating as a public company and expenses in connection with the cost of establishing our operating subsidiary, Hongzhan. In addition to the increased employee salaries and related expenses, the Company also incurred higher marketing and promotion costs.Net IncomeNet income attributable to common shareholders declined from $8.2 million to $1.6 million for the twelve months ended September 30, 2011. The fully diluted earnings per share were $0.12 and $0.74 in the first twelve months of 2011 and 2010, respectively.
Balance Sheet and Cash Flow StatementThe Company had $1.2 million in cash and $1.3 million in restricted cash at September 30, 2011 compared to $2.6 million and $1.1 million, respectively, at September 30, 2010. Total loans outstanding were $24.7 million and $13..7 million in 2011 and 2010, respectively. Accounts receivable was $6.3 million at September 30, 2011, representing days sales outstanding of 68 days. Inventories increased from $4.7 million at the end of fiscal 2010 to $13.0 million at September 30, 2011 due to changes in the product mix, increasing complexity of the manufacturing process, and higher quality requirements from the Company`s customers, and advance raw materials purchases to reduce the impact of cost inflation.
Shareholder equity was $28.1 million, up from $17.7 million at September 30, 2010, as a result of its IPO in November 2010.Cash from operations was a net outflow of $8.6 million in the twelve months ended September 30, 2011 as a result of increases in inventories and prepayments. The Company spent approximately $9.4 million on capital expenditures, the majority of which were related to the construction of its Colgre Products manufacturing facility, compared to total capital expenditures of $16.6 million in fiscal year 2010.Business UpdatesColgre ProductsColgre Products are manufactured by using a new leather processing technology which utilizes genuine leather and its scraps to generate a new class of fabrics derived from natural fiber. The technology enables dissembling collagen fibers and recomposing or weaving the collagen fiber bundles according to the natural leather structure. These products are expected to be suitable for applications in furniture, shoes, eco-fashion apparel, radiation proof clothing and luggage and bags. We sell and expect to continue to sell these products to furniture manufacturers. Lizhan completed the construction of the Colgre Products manufacturing facility in January 2011 and launched the first production line in June 2011. Due to technical adjustments that needed to be made to the equipment purchased from a U.S. vendor, the costs to launch the initial production line significantly exceeded the original projections. As of September 30, 2011, the Company spent $20.1 million on land, equipment and manufacturing of the first production line and part of the second production line. The cost for increasing the capacity of the first production line to full capacity is expected to be approximately $500,000. Lizhan intends to use cash generated from operations and additional financing to meet this capital requirement.From June to September 2011, the Company produced 25,000 meters and shipped 15,000 meters of Colgre Products, representing a daily production rate of approximately 1,000 meters per day. Currently the daily production rate is approximately 3,000 meters. Lizhan is making modifications to the equipment in order to achieve maximum production capacity of 5,000 meters per day.Lizhan has signed contracts with multiple customers since launching the Colgre Products in June 2011. The Company has initially focused on distributors and wholesalers in the furniture and upholstery fabric industries. Because of its superior quality and environmental benefits, Colgre Products can be used in other consumer applications such as shoes, luggage and apparel. AVI BIOPHARMA INCORPORATED (NASDAQ: AVII) “Up 6.95% in morning trading” Detailed Quote:
http://otcpicknews.com/emailmarketer/link.phpM940&N35&L6&F=T AVI BioPharma is focused on the discovery and development of RNA-based drugs utilizing proprietary derivatives of its antisense chemistry (morpholino-modified phosphorodiamidate oligomers or PMOs) that can be applied to a wide range of diseases and genetic disorders through several distinct mechanisms of action. Unlike other RNA therapeutic approaches, AVI`s antisense technology has been used to directly target both messenger RNA (mRNA) and its precursor (pre-mRNA), allowing for both up-and down-regulation of targeted genes and proteins. AVI`s RNA-based drug programs are being evaluated for the treatment of Duchenne muscular dystrophy as well as for the treatment of cardiovascular restenosis through our partner Global Therapeutics, a Cook Group Company. AVI`s antiviral programs have demonstrated promising outcomes in Ebola Zaire and Marburg Musoke virus infections and may prove applicable to other viral targets such as HCV or Dengue viruses. AVII News:April 2 – AVI BioPharma Announces Eteplirsen Meets Primary Endpoint, Demonstrating a Significant Increase in Dystrophin at 24 Weeks Compared to Placebo in Phase IIb Trial for the Treatment of Duchenne Muscular Dystrophy MarketwireAVI BioPharma, Inc. (NASDAQ: AVII), a developer of RNA-based therapeutics, today announced that treatment with eteplirsen met the primary efficacy endpoint in a randomized, double-blind, placebo-controlled Phase IIb study in boys with Duchenne muscular dystrophy (DMD). Eteplirsen administered once weekly at 30mg/kg over 24 weeks resulted in a statistically significant (p ≤ 0.002) increase in novel dystrophin (22.5% dystrophin-positive fibers as a percentage of normal) compared to no increase in the placebo group.”This study represents a major advance in the field of DMD research as the results indicate that eteplirsen is producing consistent levels of dystrophin, which is the essential protein that these patients need,” said Jerry Mendell, M.D., Director of the Centers for Gene Therapy and Muscular Dystrophy at Nationwide Children`s Hospital and principal investigator of the Phase IIb study. Dr. Mendell added, “We anticipate that these levels of dystrophin could lead to significant clinical benefit if maintained over a longer course of treatment.”In the study, a shorter duration of eteplirsen treatment, 12 weeks, did not show a significant increase in novel dystrophin (0.79% dystrophin-positive fibers as a percentage of normal; p-value NS), despite administration of the drug at a higher dose (50mg/kg once weekly). This finding suggests that a longer duration of dosing is required before meaningful levels of dystrophin are produced. There were no significant improvements in clinical outcomes in the treated groups compared to placebo. Performance on the 6-minute walk test and other outcome measures were generally stable across most of the patients, including the placebo patients, suggesting that a longer period of observation will be required to demonstrate clinical effects of eteplirsen versus a placebo control.Eteplirsen was well tolerated at both dose levels through 24 weeks of treatment. There were no treatment-related adverse events, no serious adverse events, and no treatment discontinuations related to eteplirsen.
Furthermore, no treatment related changes were detected on any safety laboratory parameters, including several biomarkers for renal function.”We are very encouraged by the results of this first placebo-controlled study investigating exon-skipping technology in DMD,” said Chris Garabedian, President and CEO of AVI BioPharma. “Eteplirsen represents the first drug candidate for DMD to demonstrate the production of novel dystrophin in a robust and consistent manner and these study results support advancing eteplirsen into a pivotal study.”AISYSTEMS INCORPORATED (OTCBB: ASYI) “Up 52.63% in morning trading” Detailed Quote:
http://otcpicknews.com/emailmarketer/link.phpM940&N35&L97&F=T AISystems has developed a unique, proprietary business platform software system for the airline industry called jetEngine™, which is comprised of systems and mathematical algorithms capable of generating significant profitability improvements through strategic business planning capabilities, resource scheduling, revenue management and integrated operations. ASYI News:No recent news for AISystems, Inc. (OTCBB: ASYI). ECOLOCAP SOLUTIONS (OTCBB: ECOS) “Up 27.78% in morning trading” Detailed Quote: www.otcpicks.com/quotes/ECOS.php EcoloCap Solutions Inc. and its associated company K-MBT Inc., are focused on technology companies that utilize advanced nanotechnology to design, develop, manufacture and sell alternative energy products. ECOS News:March 22 – EcoloCap Positive Results in Chile Lead to AgreementA standstill agreement is in place pending a commitment that would cause FEI to absorb up to 100% of the production of M-Fuel production equipment and additiveEcoloCap Solutions Inc. (OTCBB: ECOS) is in a standstill period with Fuel Emulsions International, Inc. (FEI) of Miami, FL until March 31, 2012.
Under the proposed agreement, FEI is committed to purchase, own and operate all or most of EcoloCap`s manufactured processing equipment and additive for the production of M-Fuel and other specialty emulsion fuels.The proposed agreement has been in negotiation for the last three months and follows the successful testing of M-Fuel production by Energy Partners Chile (EPC), which shared its positive results with FEI.EcoloCap`s M-Fuel is the result of years of research and development. It has been an uphill battle for the market to recognize that the breakthrough technology can reduce diesel fuel consumption by up to 30% and particulate emissions up to 98%. In these times of $100/barrel oil, ECOS is fast gaining recognition and attracting the attention of leading users of heavy oils. The proposal ECOS has received is a testimonial to that recognition..The EcoloCap NPU line of equipment uses Nano Technology to produce M-Fuel an emulsification of typically 70% Diesel, Kerosene or other Heavy Fuel Oils, 28% water and 2% of an EcoloCap proprietary additive. Independent tests have indicated a reduction of particulate emissions of some 98% and NOX by 65% while producing almost the same efficiency as the original unprocessed fuel. The result is a reduction of up to 30% in the consumption of diesel fuel and depending upon fuel prices, cost savings can reach 25%..Michael Siegel, CEO of EcoloCap Solutions Inc. states: “First and foremost, I want to thank our shareholders who have stood by us over the past many months. Your faith in ECOS will not go unrewarded. We at EcoloCap did not stand still. We have been searching far and wide for the best partners to capitalize on our game changing technology.”BIONEUTRAL GROUP INCORPORATED (OTCBB: BONU) “Up 21.11% in morning trading” Detailed Quote:
http://otcpicknews.com/emailmarketer/link.phpM940&N35&L4&F=T Headquartered at the New Jersey Institute of Technology/EDC in Newark, New Jersey, BioNeutral Group, Inc., is a chemical technology-based Life Science company that intends to commercialize a combinational chemistry-based technology which can neutralize harmful environmental contaminants, toxins and dangerous micro-organisms including bacteria, viruses, mold, fungi and spores. The formulations, including Ygiene and Ogiene, which are eco-friendly and include natural and common ingredients found in baby products and in every day foods. The Company has combined these widely-used compounds in highly specialized ways to create products that dramatically enhance disinfecting and cleaning results; products include BioNeutralizers and ChemoNeutralizers. BioNeutral’s proprietary platform technology has been proven effective in surface, water and airborne applications. BONU News:April 4 – BioNeutral Group Announces Positive Results for the Ygiene 206 Sterilization TestsBioNeutral Group (OTCBB: BONU) announced the positive results of a series of tests performed by Dr. Philip Tierno with respect to the use of Ygiene 206 and the sterilization of surgical instruments. Surgical instruments and surgical material were contaminated with difficult to kill organisms at levels up to 10,000 x. This presented significant sterilizing challenges, including challenges with bacterial spores. Following a 20-minute soak in Ygiene 206, the instruments were sterile.”I contaminated the surgical instruments and other material with very high levels of dangerous organisms (10/10th), letting the contaminants bind to the instruments for two hours. Without removal of any of the microorganisms, the instruments were placed in a tray for a 20 minute soak with direct contact to Ygiene 206. After which time I was able to determine that the instruments were indeed, sterile. Along with its compatibility with surgical stainless steel and other materials and surfaces, these tests show that Ygiene 206 would be an excellent pre-soak for contaminated surgical instruments,” said Dr. Philip Tierno.Dr. Andy Kielbania, ICEO of BioNeutral Group advised that, “A clinical test at Barnabas Health commenced April 3rd. We expect results in 45 days. A confirmed positive result would help position Ygiene 206 in its first significant commercial application.” Nationally, there are over 40 million surgical cases a year resulting in highly contaminated surgical instruments.ABOUT DR. PHILIP TIERNODr. Tierno is a consultant to BioNeutral. He is the Director of Clinical Microbiology and Diagnostic Immunology at NYU Langone Medical Center. He is also an Associate Professor at the New York University School of Medicine, NYU College of Dentistry, and SUNY School of Optometry in New York City.
Dr. Tierno is a member of the NYC Mayor`s MRC (Medical Reserve Corps) and a former member of New York City`s task force on bioterrorism. Dr. Tierno`s work in the field of microbiology has resulted in numerous articles and texts that have been published in medical and scientific journals. He is co-editor and author of several books on microbes and biological protection.OTCPicks.com is located at 3533 Twin Lakes Drive, Prosper, TX 75078, Telephone: (972) 546-3740, Email: Publisher@OTCPicks.com.This email address is being protected from spam bots, you need Javascript enabled to view it..DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. OTCPicks.com makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk. You are receiving this email because you have registered on OTCPicks.com or one of our affiliate companies. The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them. Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any company profiled based solely on information contained in our reports. Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research. Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing. Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward-looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company`s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.
We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company`s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company`s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related public information sources which we believe to be reliable but we cannot guarantee the accuracy of the information. To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information). We encourage you to invest carefully and read investment information available at the websites of the SEC at http://otcpicknews.com/emailmarketer/link.phpM940&N35&L=7&F=T and FINRA at http://otcpicknews.com/emailmarketer/link.phpM940&N35&L=8&F=T. Disclosure: OTCPicks.com and affiliates have not been compensated by any of the companies covered in this release.
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