CBIS, LLBO, JRN, NVSR, ICOP, AVVH OTCPicks.com Stocks to Watch for Wednesday, July 22nd

CBIS, LLBO, JRN, NVSR, ICOP, AVVH OTCPicks.com Stocks to Watch for Wednesday, July 22^nd

 

Our Stocks to Watch tomorrow include Cannabis Science Inc. (OTCBB: CBIS), Lifeline Biotechnologies Inc. (OTC: LLBO), Journal Communications Inc. (NYSE: JRN), NavStar Technologies Inc. (OTC: NVSR), ICOP Digital Inc. (Nasdaq: ICOP) and avVaa World Health Care Products Inc. (OTC: AVVH).

 

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CANNABIS SCIENCE INCORPORATED (OTCBB: CBIS)

"Up 117.95% on Tuesday"

 

Detailed Quote: http://www.otcpicks.com/quotes/CBIS.php

 

Cannabis Science Inc. is at the forefront of medical marijuana research and development. The company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products. It is dedicated to the creation of cannabis-based medicines, both with and without psychoactive properties, to treat disease and the symptoms of disease, as well as for general health maintenance.

CBIS News:

 

July 21 - CSI President Dr. Robert Melamede Testified Yesterday at Denver Hearing Which Stopped Attempt to Restrict Patients' Access to Medical Marijuana; Cannabis Science Plans for End of Marijuana Prohibition

 

Cannabis Science Inc. (OTCBB: CBIS), an emerging cannabis pharmaceutical company, reports that its CEO, Dr. Robert Melamede, Ph.D., spoke yesterday at a Denver hearing in opposition to an attempt to undermine a voter-approved constitutional amendment allowing the use of marijuana for medical purposes.

 

Colorado's state health board voted 6-3 Monday night to reject a move to limit suppliers of medical marijuana to helping only five patients at a time. Dr. Melamede pointed out that such restrictions would make it much more difficult for patients to get affordable medical marijuana.

 

Dr. Melamede explained, "Although Cannabis Science is committed to developing cannabis-based pharmaceuticals for FDA approval, the company's business strategy is based on the assumption that marijuana prohibition will end, and its products will have to compete with 'over-the-counter' products of the sort already available in medical marijuana dispensaries."

 

According to the Associated Press, there are 9,112 people registered to use medical marijuana in Colorado, up 2,000 just in the last month. Ron Hyman, the state health department registrar who oversees the medical marijuana registry, predicted that 15,000 people will be signed up by the end of the year. This rapid growth demonstrates the huge need for cannabis-based medicines.

 

LIFELINE BIOTECHNOLOGIES INCORPORATED (OTC: LLBO)

"Up 100.00% on Tuesday"

 

Detailed Quote: http://www.otcpicks.com/quotes/LLBO.php

 

Lifeline Biotechnologies, Inc. operates as a medical technology company in the United States. Its technologies focus on prevention, early detection, diagnosis, and quick recovery of various disease conditions. The company is developing a non-imaging technology, known as the First Warning System, which measures tissue activity for the early detection of breast cancer in women.

 

LLBO News:

 

July 8 - Lifeline Biotechnologies' Subsidiary, First Warning Systems, Completes Private Placement

 

Lifeline Biotechnologies, Inc. (OTC: LLBO) announced that its First Warning Systems™ subsidiary completed a Series A private placement of $125,000.

 

Jim Holmes, Lifeline’s CEO, said that “Lifeline’s subsidiary, First Warning Systems, Inc., has completed a private placement of promissory notes in the amount of $125,000. The promissory notes, due in mid-2010, are convertible into common stock of First Warning Systems, Inc. This initial funding has provided us with important resources needed to move forward on our expected FDA filings. While this funding was essential, we are preparing for the next round, a Series B private placement of common stock for up to $1,500,000. This amount should see us through the FDA process and clearance. With clearance by the FDA, we would expect to be ready for the process of market introduction of the First Warning System™.”

 

Holmes said, “First Warning Systems, Inc., has retained a firm specialized in FDA filings to assist in the preparation of its preliminary filing with the FDA. We expect the filing to be completed this month. The FDA’s response to this initial filing could take several months to receive. We expect the FDA’s response to give us guidance for the subsequent filing required in order to obtain marketing clearance for this proprietary process.”

 

Lifeline Biotechnologies has in the past year filed for a patent on the recent technological advancements of the First Warning System™, which has achieved the robust capability of identifying and classifying tissue abnormalities of the breast with sensitivities (ability to identify) of 95% to 100% and specificities (verify) of 87% to 90%. Currently, it is a well-known fact that mammograms are missing an estimated 20% to 30% of the breast cancers.

 

JOURNAL COMMUNICATIONS INCORPORATED (NYSE: JRN)

"Up 62.39% on Tuesday"

 

Detailed Quote: http://www.otcpicks.com/quotes/JRN.php 

 

Journal Communications, Inc., headquartered in Milwaukee, Wisconsin, was founded in 1882. We are a diversified media company with operations in publishing, radio and television broadcasting, interactive media and printing services. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and more than 50 community newspapers and shoppers in Wisconsin and Florida. We own and operate 35 radio stations and 13 television stations in 12 states and operate an additional television station under a local marketing agreement. Our interactive media assets include about 120 online enterprises that are associated with our daily and community newspapers and television and radio stations. We also provide a wide range of commercial printing services — including printing of publications, professional journals and documentation material — and operate a direct marketing services business.

 

JRN News:

 

July 21 - Journal Communications Reports Second Quarter 2009 Results

 

Journal Communications, Inc. (NYSE: JRN) announced results for its second quarter ended June 28, 2009.

 

“While the advertising environment remains challenged, we recorded positive operating earnings in the second quarter excluding the $19.0 million non-cash impairment charge. We were also able to reduce debt by $22 million in the second quarter to bring our total debt down to $178 million,” said Steven J. Smith, Chairman and Chief Executive Officer of Journal Communications. “We have been able to trim our debt by $37 million in the first two quarters of 2009. We continue to aggressively cut expenses in the face of reduced revenue.

 

“Our long time customers in automotive, real estate and retail advertising continue to feel the effects of the economic recession. For example, in the second quarter, automotive advertising was down 49% in broadcasting and 56% in the daily newspaper. We have yet to see signs of a sustained recovery.

 

“Our businesses continue to focus on cash generation by maximizing our share of the advertising dollars in our local markets while seeking both traditional and non-traditional ways to enhance our advertising customers’ ability to reach their target audiences.”

 

Second Quarter 2009 Results

 

Note that unless otherwise indicated, all comparisons are to the second quarter ended June 29, 2008.

 

For the second quarter, revenue of $109.4 million decreased 21.9% compared to $140.1 million. The operating loss of $10.0 million included a $19.0 million non-cash impairment charge for our broadcast licenses and a $1.7 million gain related to insurance proceeds from our Wichita tower replacement. Excluding these items, operating earnings of $7.3 million compared to $16.6 million, a decrease of 56.0%. The net loss of $4.8 million compares to net earnings of $9.0 million.

 

In the second quarter 2009, basic and diluted net loss per share of class A and B common stock were $0.11 for both. Excluding the impact of the non-cash impairment charge and the gain related to the tower replacement, basic and diluted net earnings per share of class A and B common stock were $0.07 for both. This compared to net earnings per share of $0.16 for both in 2008.

 

Excluding the $19.0 million non-cash impairment charge and the $1.7 million gain related to the tower replacement, the operating margin was 6.7% compared to 11.9%. EBITDA (net earnings (loss) excluding the gain/loss from discontinued operations, net; total other expense, net; provision (benefit) for income taxes; depreciation; amortization; and non-cash impairment charges) of $16.1 million decreased 32.5% compared to $23.9 million.

 

Consolidated and Segment Results

 

Overall, total operating expenses of $119.4 million decreased 3.3% compared to $123.5 million. Excluding the non-cash impairment charge and the gain related to the tower replacement, total operating expenses were $102.1 million, a reduction of 17.3% primarily driven by workforce reduction initiatives in 2008 and early 2009, employee benefit reductions and wage reductions implemented early in 2009 and reduced expenses related to revenue declines. The aggregate cost reduction of these employee benefit reductions and wage reductions for the full year of 2009 is expected to be approximately $8 million.

 

Publishing

 

For the second quarter, publishing revenue decreased 20.1% to $49.4 million compared to $61.8 million, largely due to continued weakness in the classified and retail advertising categories. Operating earnings from publishing of $3.3 million decreased 42.2% compared to $5.7 million. Total newsprint expense in publishing was $4.1 million compared to $6.3 million, a 34.9% decrease.

 

Revenue at the daily newspaper for the second quarter decreased 22.7% to $39.9 million compared to $51.7 million. Classified advertising revenue decreased 52.6% largely due to decreases in the employment, automotive and real estate advertising categories while retail advertising revenue decreased 20.9%. Interactive advertising revenue at the daily newspaper decreased 33.5% to $2.5 million compared to $3.7 million, primarily due to a decline in automotive and employment online classified advertising. Operating earnings from the daily newspaper were $2.4 million compared to $5.4 million. Daily newspaper operating expenses were down 19.0% primarily due to the reduction in employee related costs and newsprint expense and other cost reduction initiatives partially offset by a $0.6 million workforce reduction charge.

 

Community newspapers and shoppers revenue for the second quarter decreased 6.6% to $9.5 million compared to $10.2 million. The decrease was primarily due to declines in automotive and real estate retail and classified advertising revenue and was partially offset by $1.2 million in revenue from recent acquisitions. Operating earnings from community newspapers and shoppers were $0.9 million compared to $0.3 million. Operating expenses were down 12.3% primarily due to cost savings from workforce reduction initiatives, a $0.4 million charge recorded in 2008 for a contract termination liability and a decrease in newsprint expense partially offset by expenses relating to acquisitions during 2008.

 

Broadcasting

 

For the second quarter, broadcasting revenue decreased 18.2% to $43.8 million compared to $53.5 million largely due to decreases in local advertising revenue of 16.3% and national advertising revenue of 34.8%. Total broadcast political and issue advertising revenue was $0.6 million compared to $0.7 million. Retransmission revenue was $1.0 million compared to $0.4 million. Broadcasting operating loss of $12.7 included a $19.0 million non-cash impairment for broadcast licenses and a $1.7 million gain related to insurance proceeds from our Wichita tower replacement. Excluding these items, operating earnings of $4.6 million decreased 52.7% compared to $9.7 million.

 

Revenue from television stations for the second quarter decreased 18.2% to $26.7 million compared to $32.6 million. Television political and issue advertising revenue was $0.4 million compared to $0.6 million. Operating loss from television stations of $13.4 million included a $14.9 million non-cash impairment charge for television broadcast licenses. Excluding the non-cash impairment charge, operating earnings of $1.5 million decreased 68.1% compared to $4.6 million. Television operating expenses (including KWBA-TV that was acquired in July 2008 and KNIN-TV acquired in April 2009 but excluding the non-cash impairment charge) were down 10.0% compared to last year due to the reduction in employee related costs and other cost reduction initiatives.

 

For the second quarter, revenue from radio stations of $17.1 million was down 18.1% compared to $20.9 million. Operating earnings from radio stations of $0.7 million included a $4.1 million non-cash impairment charge for radio broadcast licenses and a $1.7 million gain related to the Wichita tower replacement. Excluding the non-cash impairment charge and the gain related to the tower replacement, operating earnings of $3.1 million decreased 39.1% compared to $5.1 million. The decline in operating earnings were due to declines in revenue partially offset by an 11.3% decrease in radio operating expenses from the reduction in employee related costs and other cost saving initiatives.

 

Printing Services

 

For the second quarter, revenue from printing services decreased 33.0% to $11.2 million compared to $16.8 million due to a general overall decline from all printing segments. The operating loss from printing services of $0.4 million compared to operating earnings of $0.8 million, primarily due to the decline in revenue, partially offset by employee related cost reduction initiatives.

 

Other (Direct Marketing and Corporate)

 

For the second quarter, revenue for “Other” of $5.0 million decreased 37.4% compared to revenue of $8.0 million due to a decrease in revenue at our mailing services business. “Other” operating loss of $0.2 million compared to operating earnings of $0.4 million.

 

Non-Operating Items

 

For the second quarter, other expense, which primarily consists of interest expense, was $0.7 million compared to $1.9 million. Interest expense decreased due to a decline in both the average borrowings during the quarter and the interest rate on our borrowings.

 

The second quarter effective tax benefit rate of 54.9% was impacted by the operating loss created by the non-cash impairment charge and a favorable adjustment to our income tax reserve due to the lapsing of certain open tax years.

 

Debt and Cash Flows

 

At the end of the second quarter, our debt of $178.3 million represented 2.94 times the trailing four quarters of EBITDA. During the first two quarters of 2009, debt was reduced by $36.8 million. Year to date cash from operating activities was $46.8 million compared to $29.5 million, an increase of $17.3 million primarily due to cash provided by changes in working capital and an $8.7 million income tax refund due to the settlement of an income tax assessment. Capital expenditures were $3.8 million compared to $8.5 million. There were no share repurchases in 2009 compared to $40.8 million. Dividends paid to shareholders were $1.5 million compared to $9.5 million.

 

Third Quarter 2009 Outlook

 

For the third quarter of 2009, the Company currently anticipates that its publishing, television and radio revenues will be down compared to the prior year period, reflecting continued challenges across its businesses.

 

Conference Call and Webcast

 

The company will hold an earnings conference call today at 9:00 a.m. Central Time (10:00 a.m. ET, 7:00 a.m. PT). To access the call, dial (888) 679-8037 (domestic) or (617) 213-4849 (international) at least 10 minutes prior to the scheduled start of the call. The access code for the conference call is 18293111. A live webcast of the second quarter conference call will be accessible through the Journal Communications’ website at www.journalcommunications.com/investors, also beginning at 9:00 a.m. CT this morning. An archive of the webcast will be available on this site today through August 4, 2009. Replays of the conference call will be available July 21 through July 23. To hear the replay, dial (888) 286-8010 (domestic) or (617) 801-6888 (international) at least one hour after the completion of the call. The access code for the replay is 51242196.

 

NAVSTAR TECHNOLOGIES INCORPORATED (OTC: NVSR)

"Up 100.00% on Tuesday"

 

Detailed Quote: http://www.otcpicks.com/quotes/NVSR.php

 

NavStar is focused on the creation of GPS products and services that provide wireless tracking of vehicles, equipment, and other valuable and personal assets. The goal is to be a total solutions provider.

 

NVSR News:

 

July 21 - NavStar Technologies, Inc. Narrows Search for Software Company Acquisition

 

NavStar Technologies, Inc. (OTC: NVSR), a multinational firm focused on developing and commercializing asset tracking and monitoring devices for vehicles and high value cargo with specific geographic focus in Latin America, announces that their efforts to acquire an annuity-based services/software company has been narrowed down to two companies.

 

N. Douglas Pritt, Chairman and CEO, confirmed that negotiations are underway with the final two candidates and that a Letter of Intent will be announced in the next two weeks.

 

NavStar also re-affirmed guidance regarding its expected financial performance over the next 5 years. The successful achievement of these financial objectives assumes the company's procurement of up to $2.0 million of funding in the 3rd quarter of this year and the completion of the services/software company. The summary financial income statement follows:

 

Based on the additional service revenue which will accrete to the base financial model, this acquisition should allow NavStar to galvanize additive revenue which will reoccur year to year based on the deployment of the asset tracking devices through customers in Latin America. Several Latin American customers/governments have already indicated under binding Letters of Intent a desire to acquire the company's products.

 

N. Douglas Pritt, Chairman and CEO, said, "In addition to the reoccurring monthly service revenue which we will realized from this acquisition, we will also be in a position to respond quickly to customers' request for quotes (RFQ) and offer customized solutions that competitors will have difficulty matching."

 

ICOP DIGITAL INCORPORATED (NASDAQ: ICOP)

"Up 41.18% on Tuesday"

 

Detailed Quote: http://www.otcpicks.com/quotes/ICOP.php

 

ICOP Digital's products capture the true story. ICOP provides in car video solutions and mobile video solutions for use in the law enforcement, fire, EMS, public transit, and pupil transportation markets. With customers in 49 states in the U.S., ICOP solutions provide the highest quality video evidence through the use of state of the art digital imaging technology. The evidence captured is a critical component used by customers for the: conviction of criminals, enforcement of laws, reduction of crime, exoneration of personnel, and saving of litigation/settlement expenses.

 

ICOP News:

 

June 16 - ICOP Announces Exercise of Green Shoe Option by Paulson Investment Company, Inc.

 

ICOP Digital, Inc. (NASDAQ: ICOP), an industry-leading company engaged in advancing digital surveillance solutions, announced Paulson Investment Company, Inc., a wholly owned subsidiary of Paulson Capital Corp, (NASDAQ: PLCC) has opted to exercise the over-allotment option for 97,500 units on the most current ICOP offering, which closed June 5, 2009. Additional net proceeds to the Company are $403,650.

 

The Green Shoe grants Paulson, lead underwriter on the June 5, 2009 offering, a 45-day option to exercise the additional units. "We are very pleased to have been able to work with ICOP in raising these additional funds," said Chet Paulson, Founder and Chairman of Paulson Investment Company, Inc.

 

"The continued vote of confidence from Paulson is greatly appreciated," said Dave Owen, Chairman and Chief Executive Officer of ICOP Digital, Inc. "We believe the extra proceeds will help us continue to accelerate the execution of our business plan."

 

This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

 

ABOUT PAULSON CAPITAL CORPORATION

 

Paulson Capital Corporation is the parent company to Paulson Investment Company, Inc. Headquartered in Portland, Oregon, Paulson Investment Company, Inc. is the Northwest's largest independent brokerage firm and a national leader in public offerings of small and emerging growth companies with capital needs of $5 million to $45 million. Founded by Chester "Chet" Paulson in 1970, it has managed or underwritten 164 securities offerings and has generated more than $1.2 billion for client companies. Paulson Investment Company, Inc. has 37 branch offices throughout the country.

 

AVVAA WORLD HEALTHCARE INCORPORATED (OTC: AVVH)

"Up 25.00% on Tuesday"

 

Detailed Quote: http://www.otcpicks.com/quotes/AVVH.php

 

avVaa World Health Care Products is a global biotechnology company that specializes in effective, all natural, therapeutic skin care products that improve quality of life and well being for consumers. avVaa's patented European skin care formulas are scientifically registered, FDA-Compliant, and were developed to relieve and treat the symptoms of common skin ailments, including: eczema, psoriasis and acne. avVaa is poised to manufacture and market its OTC Neuroskin line of skin care products through mass, food and drug channels in the United States and globally. The Company's secondary line of equine and pet care related products are already being distributed throughout all of Canada.

 

AVVH News:

 

July 16 - avVaa World Health Care Products Inc. Announces Web Site Design for Neuroskin® Psoriasis Relief DRTV Campaign

 

avVaa World Health Care Products Inc. (OTC: AVVH), a global biotechnology company, manufacturer and distributor of nationally branded therapeutic, natural skin and health care products, announced that the Company has hired a web design firm to design avVaa World Health Care's product web site for the Neuroskin® campaign. The new site will include an up-to-date look and feel, customer friendly navigation, and areas where customers and prospective customers can ask questions and interact.

 

Lorie Campbell-Farley, President/COO of avvaa commented by saying, "our sales and marketing division at avVaa World Health Care will aggressively undertake both direct response TV marketing and internet marketing initiatives to drive sales in targeted market areas."

 

Avvaa recognizes that having an online presence is paramount these days, and as such, the Company is taking the steps to build a dynamic website that is easy to navigate, informative and communicates the Company's message the best way possible.

 

The core products for the company's official site, which will be named at a later date include NEUROSKIN® Psoriasis Relief, NEUROSKIN®Acne Treatment, NEUROSKIN® Itch Relief and NEUROSKIN® mild Skin Moisturizer followed by future avVaa Care Skin Treatments and avVaa Care Medi Spa products.

 

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