Dallas TX 11/4/2009 10:40:09 AM
News / Business

VKNG, ACTH, QGP, PMDP, HESG, ORCD OTCPicks.com Stocks to Watch for Wednesday, November 4th

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Our Stocks to Watch tomorrow include Viking Systems Inc. (OTCBB: VKNG), Advanced Clean Technologies Inc. (OTC: ACTH), The Quantum Group Inc. (Amex: QGP), Plateau Mineral Development Inc. (OTC: PMDP), Health Sciences Group Inc. (OTC: HESG) and The Orchard Corp. (Nasdaq: ORCD).

 

VIKING SYSTEMS INCORPORATED (OTCBB: VKNG)

"Up 369.39% on Tuesday"

 

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

 

Viking Systems, Inc. (OTCBB: VKNG) is a leading worldwide developer, manufacturer and marketer of visualization solutions for complex minimally invasive surgery. The Company partners with medical device companies and healthcare facilities to provide surgeons with proprietary visualization systems enabling minimally invasive surgical procedures, which reduce patient trauma and recovery time.

 

VKNG News:

 

November 3 - Viking Systems, Inc. Reports Third Quarter Results; Provides Business Updates

 

Viking Systems, Inc. (OTCBB: VKNG), a supplier of 2D and 3D visualization systems for the medical market, today announced results for the quarter ended September 30, 2009. The Company reported that it has made significant progress in its objective to reach sustainable positive cash flow from operations and that it is exploring strategic and financing options in order to fund anticipated 2010 operating losses while the Company develops and launches its "Next Generation" 3DHD Visualization System. Additionally, the Company discussed a significant order for its current 3Di system, its technology outlook and several pending changes in its management and governance structure.

 

Sales

 

Sales were $1,995,614 for the three months ended September 30, 2009 and $1,585,826 for the three months ended September 30, 2008, representing an increase of 26%. For the nine months ended September 30, 2009, sales increased 16% to $5,149,504 compared with the same period in the prior year. The increase in sales during the quarter ended September 30, 2009 was due to increased sales of approximately $590,000 of a proprietary visualization system designed for and distributed by one specific customer as they elected to increase inventory levels of such product. Sales to this customer increased by approximately $1,210,000 during the nine months ended September 30, 2009 compared with the same period in the prior year.

 

Net Loss

 

The net loss was $195,877, or $0.00 per share for the quarter ended September 30, 2009 compared with a net loss of $43,599, or $0.00 per share for the same period in 2008. Other income included a $1,000,000 license fee in the quarter ended September 30, 2008. For the nine month periods ended September 30, 2009 and 2008 the Company incurred net losses of $882,669 or $0.02 and $5,055,726 or $0.12 per share, respectively.

 

Operating Loss

 

As a result of increased sales, higher margins and reduced operating expenses the Company has substantially reduced its operating losses. The operating loss was $193,316 for the quarter ended September 30, 2009 compared with $1,044,557 for the same period in 2008. For the nine month periods ended September 30, 2009 and 2008 the Company incurred operating losses of $996,863 and $3,947,760, respectively. The operating loss before non-cash charges was $34,418 for the quarter ended September 30, 2009 compared with $803,047 for the same period in 2008. For the nine month periods ended September 30, 2009 and 2008 the Company incurred operating losses before non-cash charges of $435,654 and $2,595,724, respectively.

 

U.S. Army Orders 3D Systems

 

In October 2009, the Company received the largest order in its history for its proprietary 3Di vision systems. This order, totaling approximately $900,000, was from the U.S. Army for deployment of one of our complete 3Di systems at each of seven regional Army Medical Centers throughout the United States. We anticipate having all seven systems installed and operational before-year end 2009. This is a follow-on order to the single system already in place at Walter Reed Army Medical Center in Washington, DC.

 

Technology Update

 

In October, a major milestone was achieved when Viking Systems' "Next Generation" 3DHD camera system was demonstrated to the surgical community utilizing a prototype Sony 3DHD flat panel display at the American College of Surgeon's 95th annual Clinical Congress in Chicago. Jed Kennedy, Viking's president and chief operating officer, described the reaction of the medical community saying, "We were extremely pleased with the level of interest shown by all surgical specialties. Well over 1,500 attendees waited their turn to see the interactive 3DHD demonstration and appeared delighted with what they experienced. While 2D high definition cameras now represent the vast majority of placements in the approximately $1 billion surgical video systems market, it is now clear that 3DHD is the next advancement in endoscopic surgical vision." Viking and Sony plan a similar demonstration at MEDICA, the world's largest medical device trade show, held every year in November in Dusseldorf, Germany. In parallel, a group of clinical advisors is being organized to provide guidance on the clinical requirements for this "Next Generation" system.

 

Later this month, Viking Systems plans to deliver a "designed to specification" prototype high definition 3DHD visualization system to a manufacturer of surgical robotic systems as part of a development agreement. The system prototype is a key deliverable in the completion of the development arrangement. While there can be no assurance that at the completion of the development contract a supply agreement will be awarded, Viking believes that the new product has several unique features that will address specific market needs and that the Company is well positioned to support any production needs for the system.

 

Over the next twelve months Viking Systems intends to complete the development of its unique "Next Generation" 3DHD Visualization System for Minimally Invasive Surgery and currently plans to launch the system at the American College of Surgeon's 96th annual Clinical Congress in October 2010 in Washington, DC.

 

Financing Update

 

Viking disclosed in previous public filings that in the fourth quarter of 2008 it engaged an investment banking firm to assist management in exploring strategic options. A number of third parties executed confidentiality agreements with the Company during this process. Over the past nine months the Company has had and, in some instances, continues to have varying levels of discussion with certain of these parties. However, absent expeditious developments related to a potential sale of the Company, Viking plans to seek adequate financing to support operations during the commercialization of its "Next Generation" 3DHD system.

 

Management and Governance

 

When Viking Systems was recapitalized on January 4, 2008, William C. Bopp, currently chairman and chief executive officer, signed a two year employment agreement. At the end of 2009, it is the intention of the Board of Directors to promote and appoint John "Jed" Kennedy, currently president and chief operating officer, to the position of president and chief executive officer. It is anticipated that Mr. Bopp will continue to serve as Chairman of the Board of Directors. Mr. Bopp said, "This transition recognizes the contributions of Mr. Kennedy to the success of Viking Systems to date and the Board's confidence in his leadership ability for the future."

 

Separately, J. Winder Hughes has tendered his resignation from the Board effective November 2, 2009. Mr. Hughes has indicated his interest in assisting the Company in raising funds and believes it will be in the Company's and his best interest if he is an independent investor able freely to participate in such a financing. Mr. Bopp said, "We have valued Winder Hughes' counsel as a Board member and look forward to a continued association with him should a financing be undertaken."

 

ADVANCED CLEAN TECHNOLOGIES INCORPORATED (OTC: ACTH)

"Up 240.00% on Tuesday"

 

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

 

Advanced Clean Technologies, Inc. is committed to a safer environment. We provide cost-effective, environmentally-safe, remediation solutions to today's hazardous waste problems. Our wholly owned subsidiary, American Petroleum Solutions, provides remediation services for projects complicated by environmental, regulatory, and other related issues. Our experience ranges from soil remediation to complex petroleum services related projects. Founded by professionals with environmental construction and remediation engineering backgrounds, we provide our clients the benefit of a marriage of practical and technical experience unique to a remedial construction company.

 

ACTH News:

 

November 3 - Advanced Clean Technologies Completes Acquisition of Environmental Remediation Company

 

Advanced Clean Technologies, Inc. (OTC: ACTH) announced that it has completed the acquisition of American Petroleum Solutions, Inc., (API), which holds an exclusive license for a patented, oil sludge removal technology. Current ACTH clients already include some of the largest oil and gas companies in the US including ConocoPhillips, ExxonMobil, Avon Petroleum, Valero Petroleum, as well as the US Navy Petroleum Reserve. "This strategic addition to our company, strengthens our offering in the oil and gas industry and accelerates our growth plans," said Russell Kidder, CEO.

 

API has more than 15 years of experience providing a wide range of green services including environmental remediation, soil remediation and other services for the oil and gas industry.

 

ABOUT WORLD MARKET MEDIA

 

World Market Media utilizes cutting edge social media platforms to connect the world's securities exchanges and their various investment communities with the goal of creating the world's first Global Online Investment Community. WMM implements innovative media solutions to produce real market results delivering in-house services including IR 2.0, online advertising, marketing, social media solutions, web-traffic, search marketing, web development, branding and audio/video and motion graphics production.

 

QUANTUM GROUP INCORPORATED (AMEX: QGP)

"Up 50.00% on Tuesday"

 

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

 

The Quantum Group is an innovation-driven healthcare services organization (HSO) that provides Technology Solutions through PWeR, a 21st Century EMR platform by Quantum Innovations; Provider Systems and services through Renaissance Health Systems, a medical services organization (MSO) with more than 2,000 affiliated providers; and Business Services through Quantum Global Professional Services (QGPS) for healthcare providers and facilities.

 

QGP News:

 

October 26 - The Quantum Group Announces PWeR Deployment with First Renaissance-Affiliated Provider

 

The Quantum Group, Inc. (Amex: QGP) announced that the first physician affiliated with Quantum subsidiary Renaissance Health Systems has “gone live” with PWeR™ (Personal Wellness electronic Record™), the one patient, one record™ electronic medical record platform offered by Quantum Innovations, Inc. This successful deployment marks the inception of the cross-marketing potential that is core to the Quantum model.

 

Renaissance Health Systems has more than 2,000 affiliated providers and multiple contracts with payers that have assigned nearly 5,000 patient lives to Renaissance for the coordination of their healthcare.

 

Dr. Edgar R. Blecker is a primary care physician in Sebastian, Florida and has been affiliated with Renaissance for approximately a year and a half. He has recently expanded his operations into a second facility and added new physicians. Using the web-based PWeR platform, Dr. Blecker and his associates can collaborate and connect in real time.

 

Dr. Blecker noted, “We are thrilled to be live on PWeR. The platform follows a natural workflow and has allowed us to streamline our existing processes and create a more efficient office environment. The training and support have been consistent with the high quality and service we have experienced during our relationship with Renaissance. There is great benefit and simplicity in working with a Company that has many solutions under one umbrella.”

 

Pete Martinez, Quantum Senior Vice President and Chief Technology & Innovations Officer, has led the development of PWeR from inception. “Dr. Blecker is an innovator and is a fantastic example of how PWeR can be scaled to meet the needs of any practice from the solo practitioner, to a multiple-physician group practice, medical facility or a hospital environment. PWeR allows Dr. Blecker to have the flexibility to share critical patient information between his two offices with a click of the mouse and to monitor daily operations. Further, as Dr. Blecker conducts rounds in the hospitals to visit with any of his admitted patients, he can access and update his patient records and order any necessary tests, procedures, or prescriptions as he conducts his examinations.”

 

Martinez continued, “The country is demanding reform of the healthcare delivery system and we believe PWeR is an ideal tool to facilitate that change. PWeR stands apart from existing, and largely software-based, players in the market through our one patient, one record approach fueled by the Internet. Our 19 patent applications are revolutionary in this industry.”

 

ABOUT PWER™

 

PWeR stands for Personal Wellness electronic Record™. This 21st Century electronic medical records (EMR) solution is the one patient, one record™ intelligent healthcare information platform that hosts medical records and permits interactive use. Medical records will follow the patient, giving every healthcare provider that sees a particular patient access to all the information needed to assist in their diagnosis and treatment plan. Providers can access a patient's entire medical record at one glance. Patients can look back over physician instructions or track their wellness progress. In critical situations or in providing treatment to PWeR patients, hospitals can access full medical histories and make educated treatment decisions based on accurate data.

 

PLATEAU MINERAL DEVELOPMENT INCORPORATED (OTC: PMDP)

"Up 27.27% on Tuesday"

 

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

 

Plateau Mineral Development, Inc. specializes in the exploration and development of energy sources. Its partner, Plateau Mineral Development LLC, has been in existence for over five years with successful new wells and rework wells selling both gas and oil.

 

PMDP News:

 

July 15 - Plateau Mineral Development, Inc. Announces Solar Collector

 

Plateau Mineral Development, Inc. (OTC: PMDP), along with its partner, Plateau Mineral Development LLC, announced today that the firm, in conjunction with MEI, is moving to secure several features of its improved solar collector.

 

The unit, produced and installed in the early 1980s, is being upgraded with the inclusion of photo-voltaic capability. The unit acts as a concentrator under clear skies and as a flat plate when sunlight is diffused by dust or clouds.

 

A representative of Plateau Mineral Development states, "Additionally, a research and development plan and budget have been prepared to research means of enhancing the photo-voltaic output. Understandably, aspects of this research and development are being held in strictest confidence. We will update our shareholders on portions of the research that are deemed appropriate for dissemination as soon as the details are available to us."

 

HEALTH SCIENCES GROUP INCORPORATED (OTC: HESG)

"Up 50.00% on Tuesday"

 

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

 

Health Sciences Group, Inc. is a provider of health and wellness services to consumers, physicians and other healthcare professionals through its Web site and health-focused publications. The Health Sciences network consists of its public website and iGoHealthy Magazine. The Company operates in two segments: Online Services and Publishing and Other Services.

 

HESG News:

 

November 3 - Health Sciences Group, Inc. Locks in Consulting Agreement With Medical Marijuana, Inc.

 

Health Sciences Group, Inc. (OTC: HESG) announced that its CEO Thomas Gaffney has finalized a consulting agreement with Medical Marijuana, Inc. (OTC: MJNA) on a comprehensive agreement to advise on compliance issues with any state, local and city medical marijuana issues concerning the operations of dispensaries in California.

 

ABOUT MEDICAL MARIJUANA, INC.

 

Medical Marijuana, Inc. (OTC: MJNA) is the first public company to recognize the vast and unequaled opportunities that exist in the rapidly expanding medical marijuana industry. The scientific recognition of marijuana as a powerful medicine, and as an effective, non-narcotic pain reliever, has brought legalized marijuana use to the forefront of mainstream discussion thus opening the door for safe and lucrative investment opportunities. Medical Marijuana, Inc. has developed a suite of turnkey business and management solutions for the fledgling medical marijuana collective industry in California. The growing number of other states that have legalized the use of medical marijuana have yet to establish a system for the legalized commercial production and sale of the medicine. These regions are also strong potential targets for Medical Marijuana, Inc.'s products and services down the road. It is likely that other states will follow California's basic lead as the Golden State more specifically defines the regulations and protocol that are shaping the supply-side of the legal medical marijuana sector.

 

THE ORCHARD ENTERPRISES INCORPORATED (NASDAQ: ORCD)

"Up 13.80% on Tuesday"

 

Detailed Quote: www.otcpicks.com/quotes/ORCD.php 

 

Headquartered in New York and London with operations in 25 markets around the world, The Orchard is a full service media company specializing in the distribution of music and video entertainment. Founded in 1997, the company is a global leader in digital marketing and distribution, driving sales across more than 730 digital storefronts and mobile carriers in 69 countries. Fostering creativity and independence, The Orchard enables labels, artists and rights holders to grow and monetize audiences globally.

 

ORCD News:

 

November 3 - eMusic Owner Looking To Buy Up All Of The Orchard

 

eMusic owner JDS Capital's private equity arm Dimensional Associates is negotiating with digital music and video distributor The Orchard to buy up all of the outstanding common stock it does not already own.

 

Dimensional previously owned The Orchard (Nasdaq: ORCD) prior to its 2007 merger with Digital Music Group Inc (DMGI), which saw the ownership structure change but the name remain.

 

Dimensional still owns a majority of the firm, which lost its CEO and president Greg Scholl in September.

 

Now The Orchard confirms in an SEC filing that Dimensional offered $1.68-a-share on October 15; after discussions with the board, it's now offering $1.84 — an offer The Orchard is "reviewing and evaluating."

 

But The Orchard says in a follow-up filing that interim CEO Daniel Stein (Dimensional's CEO) has resigned for an unspecified reason, replaced in the interim by EVP/GM Brad Navin.

 

Scholl's departure had come during a cost-cutting drive that axed 20 percent of Orchard staff (16 staff, five consultants and temporary workers). The Orchard is competing with digital distributors like IODA.

 

Orchard stock – already trading way below the 2006, pre-merger high of $26.88 – began falling again in August, to a price of about $1.33 when Dimensional first bid last month. News of the offer bumped the price back up again on Monday.

 

Bringing eMusic and The Orchard under the same owner would unite two companies at different parts of the online music value chain — one that shifts digital music across networks for labels and one that plays that music to consumers on a subscription basis.

 

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