Dallas, TX 11/13/2007 1:21:20 AM
OTCPicks.com Daily Market Movers Digest Midday Report for November 12th SSEY, TPDI, CFUL, HEPH, QMMC
Our Stocks to Watch today include Southern Star Energy Inc. (OTCBB: SSEY), True Product ID, Inc. (OTCBB: TPDI), Continental Fuels, Inc. (OTCBB: CFUL), Hollis-Eden Pharmaceuticals, Inc. (NASD: HEPH), Quest Minerals & Mining Corp. (OTCBB: QMMC)
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SOUTHERN STAR ENERGY (OTCBB: SSEY)
"Up 5.56% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/SSEY.php
Southern Star Energy has approximately 5500 acres under lease within the prospect area, which is defined by a string of ten vintage wells drilled in the 1950’s. The prospect area was historically developed on 640 acre spacing (wells approximately one mile apart). Most of these old wells were abandoned before 1972 after only producing from one relatively thin (20 feet) zone of the Cotton Valley sand members. None of the zones with identified reserve potential have been produced within a five mile radius of the prospect area. Preliminary plans, with continued successful evaluation drilling, will be to develop the leased acreage with at least one well per 160 acres. Analog fields are being economically developed with at least one well per 80 acres indicating that many more wells can be reasonably contemplated.
SSEY News:
November 12 - Southern Star Begins Second Stage Frac on the Lincoln Atkins 18-1
Southern Star Energy Inc. (OTCBB: SSEY) recently provided an update on the company’s Lincoln Atkins 18-1 well.
Atkins-Lincoln 18-1: Drilled and completed January 16, 2007 to depth of 9950 feet, first production July 11, 2007. First sales September 5, 2007, currently the well is only producing from the bottom 14% (50 feet) of total Cotton Valley pay interval. Early production, over 500 mcfd has been encouraging, this has led the company to optimizing the engineering design for the completion for the remainder (900 feet gross) of the Cotton Valley pay interval. Petrophysical, geologic and engineering information indicates that the quality of the upper Cotton Valley pay is materially better than the lower interval now producing. The Company has commenced completion operations on this well to complete the entire Cotton Valley pay section to commingle all available gas production into sales by end of November 2007.
All of the estimated recoverable oil and gas reserves in different zones are confirmed by mudlog, wireline logs evaluations and in some cases with sidewall cores and Formation Tester pressure measurement. Total of 85 feet estimated gas pay is distributed over a gross (total) interval of 900 feet in the Cotton Valley section. Three shallower zones demonstrating primarily oil potential will continue to be evaluated in subsequent wells. Results of those evaluations will determine the feasibility of additional future developments targeting the oil potential. The zones indicating oil potential are regionally known and have been economically developed within a ten mile radius of this well.
TRUE PRODUCT ID (OTCBB: TPDI)
"Up 15.94% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/TPDI.php
True Product ID, Inc. produces integrators for anti-counterfeiting and security surveillance applications, as well as provides integrated tracking devices. The company's authentication solution is an integrated management system based on synthetic taggant technology, Synthetic DNA (S-DNA), in which specific taggants are formulated to tag target objects for identification and authentication. Its products and services include S-DNA, a marking process that involves the application of a combination of inorganic elements, which enables to invisibly attach a fingerprint to the product that can be applied to industrial parts, apparel, consumer electronics, jewelry, CD-ROMs, sporting goods, and currency; and handheld scanners/analyzers that are used to identify S-DNA codes. The company also offers authentication services, which include credited scans associated with the work order, additional scans required, and management of inspectors by the company. True Product ID delivers its solutions to governments, armed forces, and industry. The company was founded in 2005. It was formerly known as ONTV, Inc. and changed its name to True Product ID, Inc. in 2006. True Product ID is based in Philadelphia, Pennsylvania.
TPDI News:
November 9 - True Product ID States Details Previously Reported in Its Form 10-KSB Relating To Projected $1.3 Billion Revenue Gas Tank Contract Signed With The Chinese Government Counterpart To U.S. Consumer Product Safety Commission
True Product ID, Inc. (OTCBB: TPDI) stated the following details previously reported in its Form 10-KSB filed October 2, 2007 relating to the agreement which its Chinese joint venture company affiliate, True Product ID Technology (Beijing) Limited ("TPID Beijing"), signed on August 27, 2007 with the State General Administration for Quality Supervision, Inspection and Quarantine of the People's Republic of China ("AQSIQ") to develop a national safety/security system for China's liquefied natural gas and other pressurized canisters and other special equipment (Contract No. 0076180):
As reported in its press release on August 27, 2007, the Company, through its Chinese joint venture affiliate, entered into a contract with the National Quality Inspection Department of the State General Administration for Quality Supervision, Inspection and Quarantine of the People's Republic of China ("AQSIQ"), to develop a national safety/security system for China's liquefied natural gas and other pressurized canisters and other special equipment.
According to its website (www.aqsiq.gov.cn), AQSIQ is a ministerial administrative organ directly under the State Council of the People's Republic of China in charge of national quality, metrology, entry-exit commodity inspection, entry-exit health quarantine, entry-exit animal and plant quarantine, import-export food safety, certification and accreditation, standardization, as well as administrative law-enforcement. AQSIQ is considered the Chinese counterpart to the United States Consumer Product Safety Commission. See The U.S. Consumer Product Safety Commission-AQSIQ Joint Statement on Enhancing Consumer Product Safety at www.cpsc.gov/cpscpub/prerel/prhtml07/07305.pdf.
The AQSIQ Contract follows an AQSIQ Circular to every quality and technical supervision bureau in all provinces, autonomous regions and municipalities under the control of the Chinese Central Government. The AQSIQ Circular sets out a 5-year AQSIQ National Security/Safety Plan to protect against the illegal production, circulation, and use of certain "special equipment" (the "Plan"). AQSIQ's mission in the Circular is, among other things, to protect public safety from safety accidents and other risks caused by counterfeit and substandard "special equipment." Among the "special equipment" referenced in the AQSIQ Circular are liquefied gas tanks, oxygen tanks, and other pressurized containers and pipes, elevators, lift machinery; and equipment at large recreational facilities and automobile plants.
In its Circular, AQSIQ has explicitly designated True Product’s technology and Chinese joint venture company affiliate as the exclusive technology and technology provider to help AQSIQ develop, implement and administer its National Security/Safety Plan. Under the AQSIQ Circular, TPID Beijing is to help AQSIQ develop national special equipment security identification standards (the "standards"), a special equipment identification information security management system (the "management system"), and a special equipment security/safety logo (the "logo").
As a result of the Circular, AQSIQ has entered into a Project Cooperation Agreement with the Company's Chinese joint venture company affiliate (Contract No. 0076180). ASQIQ subsequently entered into supplementary provisions to the Project Cooperation Agreement in connection with the initial phase of AQSIQ's National Security/Safety Plans relating to liquefied natural gas containers (the "LNG Contract").
Under the LNG Contract, TPID Beijing is to provide and apply a security logo to all LNG containers in China. According to Chinese government statistics, the total number of LNG containers in China is currently over 130 million and is expected to increase in quantity by 10% every year. Under the LNG Contract, TPID Beijing is to receive a fixed taggant price per LNG container. The specific taggant price per LNG container is not being disclosed due to its proprietary nature.
Under the LNG Contract, TPID Beijing is to provide 50,000 units of one of its highly proprietary scanners and 15,000 units of another of its highly proprietary scanners to approximately 20,000 LNG gas stations, 30,000 special equipment manufacturers, and 40,000 "platforms" in China. Under the LNG Contract, TPID Beijing is to receive a fixed price per scanner, with a different fixed price for each type of scanner. The specific price per scanner is not being disclosed due to its proprietary nature.
Finally, under the LNG Contract, TPID Beijing is to establish a security management information system for 50,000 enterprises. Under the LNG Contract, TPID Beijing is to receive a fixed price per enterprise. The specific price per enterprise is not being disclosed due to its proprietary nature. According to AQSIQ, among such enterprises and platforms include 5,016 enterprises in charge of manufacturing LNG containers and other pressurized containers, 14,995 enterprises in charge of charging LNG containers, 8,747 enterprises in charge of manufacturing, installing, reequipping and repairing boilers, and approximately 1,823 institutes in the Chinese state quality inspection system which check LNG containers.
Since AQSIQ's Circular, Project Cooperation Agreement and LNG Contract, TPID Beijing and AQSIQ have met and continue to meet on a routine basis to develop, coordinate, and implement AQSIQ's National Safety/Security Plan and in particular as the Plan initially pertains to LNG containers. The initial revenue projections set forth by AQSIQ in the LNG Contract (as corrected to fix a mathematical miscalculation in the original Chinese version of the LNG Contract) to mark the 130 million LNG containers (at a fixed price per container), to provide the 50,000 and 15,000 proprietary scanners (at fixed prices per scanner), and to develop a security management information system for 50,000 enterprises (at a fixed price per enterprise) total 2,720,000,000 Chinese Yuan, which equates to over US$362,000,000.
CONTINENTAL FUELS (OTCBB: CFUL)
"Up 2.90% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/CFUL.php
Continental Fuels, Inc., through its subsidiaries, engages in purchasing, selling, storing, blending, and transporting petroleum products in the United States and internationally. The company owns a petroleum storage and terminal facility in the Port of Brownsville, Texas. The Brownsville terminal facility receives condensate that would be used in the blending of gasoline or sold into the U.S. market. The terminal includes truck and rail on and off loading terminals, and handles barges and tankers up to the Suez-max size. The company is based in San Antonio, Texas. Continental Fuels, Inc. is a subsidiary of Universal Property Development and Acquisition Corporation.
CFUL News:
November 12 - Continental Fuels Reports Third Quarter Revenue Increase of 65,238% and Gross Profit Exceeding $1.52 Million
In its quarterly report filed with the SEC last week, Continental Fuels, Inc. (OTCBB: CFUL) (FWB:CNDI) (GER:CNDI) (BCN:CNDI) demonstrated the successful implementation of its business plan and achieved an operational profit in only the second quarter since its acquisition by Universal Property Development and Acquisition Corporation (OTCBB: UPDA) (FWB: UP1).
Financial Highlights for the three Months Ended September 30, 2007:
Total Revenues Increased to over $11.65 million from $17,868, an increase of 65,238%
Gross Profit Increased to more than $1.52 million from $10,180, an increase of 14,975%
Income from Operations was $713,615 from a previous loss of $760,767
For the three months ended September 30, 2007, total revenue was $11,656,792 with a cost of goods sold of $10,132,303 and Gross Profit of $1,524,489. Comparatively, for the three months ended September 30, 2006, total revenues were only $17,868 and cost of goods sold was $7,688. Gross Profit for the previous period was $10,180.
Continental was able to achieve these revenues and gross profits while increasing operating expenses only 5% to $810,874 from total operating expenses for September 30, 2006 of $770,947. As a result, for the three months September 30, 2007, the Company experienced positive net income of $713,615 compared to the loss reported for the three months ended September 30, 2006 of ($760,767),
The Company also increased its Total Assets to $4,728,870 on September 30, 2007 compared to $62,168 for the same period in 2006.
The quarterly filing demonstrates that these dramatic increases in revenue originated during the second quarter of this year after Continental was acquired by UPDA in a transaction that resulted in a change of management and the initiation of light crude condensate sales from Continental’s storage facilities at the International Port of Brownsville, Texas. Under the direction of CEO Tim Brink, Continental has negotiated sales contracts with guaranteed margins and established consistent and expanding sources of international light crude condensate.
In order to continue this revenue growth, Continental also undertook an ambitious expansion project at its port facilities during the Third Quarter, purchasing additional storage tanks and installing a railroad spur to increase storage capacity and delivery options.
“Our Third quarter results were in line with our expectations based on our current schedule of product deliveries,” stated Continental CEO Tim Brink. “We will continue to pursue opportunities consistent with our business plan and generate further expansion both generically and through further acquisitions.”
HOLLIS-EDEN PHARMACEUTICALS (NASD: HEPH)
"Up 7.58% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/HEPH.php
Hollis-Eden Pharmaceuticals, Inc. is a world leader in the development of a proprietary class of adrenal steroid hormones as novel pharmaceuticals for human health. Through its Hormonal Signaling Technology Platform, Hollis-Eden is developing a new series of small molecule compounds that are metabolites or synthetic analogs of endogenous hormones derived by the adrenal glands from the body’s most abundant circulating adrenal steroid. These steroid hormones, designed to restore the biological activity of cellular signaling pathways disrupted by disease and aging, have been demonstrated in humans to possess several properties with potential therapeutic benefit – they regulate innate and adaptive immunity, reduce nonproductive inflammation and stimulate cell proliferation. The Company’s clinical drug development candidates include TRIOLEX, a next-generation compound currently in a clinical trial for the treatment of type 2 diabetes and being prepared for clinical trials in rheumatoid arthritis, and HE3235, a next-generation compound selected for cancer. In addition to these clinical development candidates, Hollis-Eden has an active research program that is generating additional new clinical leads that are being further evaluated in preclinical models of a number of different diseases. For more information on Hollis-Eden, visit the Company’s website at www.holliseden.com.
HEPH News:
November 12 - Hollis-Eden Pharmaceuticals Presents Data on APOPTONE(TM) and Potential Role of Adrenal Steroid Hormones for the Treatment of Cancer
Data Presented at The 8th Annual Meeting of The International Society of Geriatric Oncology
Hollis-Eden Pharmaceuticals, Inc. (NASD: HEPH), the world leader in the development of a new class of small molecule compounds based on endogenous adrenal steroid hormones, announced that it presented data on its oncology program at The 8th Annual Meeting of the International Society of Geriatric Oncology being held in Madrid, Spain, November 8 – 10, 2007. Findings presented at the conference suggest that Hollis-Eden’s drug candidate APOPTONE™ (HE3235) and other compounds from the Company’s hormonal signaling technology platform may play a role in treating or preventing diseases associated with aging, including hormone receptor-sensitive cancers.
In an oral presentation, Dr. Christopher L. Reading, Executive Vice President of Scientific Development at Hollis-Eden, presented previously reported data covering the activity of APOPTONE in preclinical models of prostate and breast cancer. Data presented illustrated the activity of APOPTONE in preclinical models of prostate cancer LNCaP and LuCaP 35V human cell lines as well as a MNU carcinogen-induced breast cancer preclinical model. In those experiments, treatment with APOPTONE significantly inhibited the incidence, growth and progression of tumors in those animal models. The Company believes the mechanism of APOPTONE in the inhibition of prostate cancer growth reported from its preclinical study in LNCaP tumor cells appears to be due to the tumor cells undergoing programmed cell death, or apoptosis. Initial analysis of gene expression from tumors in the LNCaP preclinical experiment indicated APOPTONE appears to be down regulating genes that protect tumor cells from apoptosis such as Bcl-2.
These data have now been repeated and are being supported by additional analysis of other genes associated with the apoptosis pathway. New data presented at the conference suggest that APOPTONE may also be inhibiting the AKT signaling pathway that is known to stimulate the growth of prostate cancer cells and block normal regulation of the cell cycle as well as prevent the induction of apoptosis. Additional analysis is ongoing to study the gene expression from the APOPTONE preclinical studies in LuCaP 35V prostate tumor cells as well as tumors from breast cancer preclinical models.
Dr. Reading also presented data reported from the scientific literature that links chronic inflammation to the incidence and progression of cancer, citing the potential correlation between levels of interleukin-6, or IL-6, as well as NF-kappaB activation and tumor cell proliferation. Antibodies to IL-6 are currently in clinical trials for cancer, as this new approach to treating cancer is starting to be better understood and tested. Dr. Reading presented data on the relationship between the loss of adrenal hormones as part of the aging process and rise in chronic inflammation, which is believed to contribute to the incidence and proliferation of cancer cells. To date, Hollis-Eden compounds have demonstrated in preclinical models the ability to inhibit the activation of the NF-kappaB pathway and to decrease IL-6 in vivo and in vitro in human cell lines.
As an example, chronic inflammation is known to be involved in the pathogenesis of ulcerative colitis (UC), and to contribute to the progression of colorectal carcinoma in UC patients. The Company is currently considering the use of its novel adrenal steroid hormones in the treatment of UC. The Company believes, if this new class of adrenal steroid hormones can prove to be as effective as corticosteroids and safe enough to be used longer to regulate chronic inflammation, these data presented at the conference suggest the Company’s compounds may have an added benefit in the prevention of colorectal cancer, which is associated with chronic inflammation.
“We continue to make good progress understanding the role of our hormonal signaling technology platform may play in regards to preventing or treating cancer and other diseases associated with aging,” stated Richard B. Hollis, Chairman and Chief Executive Officer of Hollis-Eden. “It is gratifying for our scientists to have the opportunity to showcase our data in an oral presentation at this important international meeting for geriatric oncology. The link between the loss of adrenal hormones as we age and chronic inflammation, which may contribute to the development of cancer in the elderly, is becoming widely understood. It is important for us to continue to educate the scientific and medical community about the potential role our hormonal signaling technology platform may play in cancer and other diseases associated with aging. This is why, in addition to developing APOPTONE for cancer, we are currently in a Phase I/II clinical trial with another adrenal steroid hormone drug candidate TRIOLEX™ for the treatment of metabolic disorders and have been cleared by the FDA to initiate a Phase I/II clinical trial with TRIOLEX in rheumatoid arthritis, both diseases associated with aging. We are still on track to be filing our IND for APOPTONE for the treatment of cancer in the first quarter of 2008. Establishing activity in clinical trials with either APOPTONE or TRIOLEX will go a long way to validate our approach that our new class of adrenal steroid hormones may play a fundamental role in preventing or treating diseases associated with aging.”
QUEST MINERALS & MINING (OTCBB: QMMC)
"Up 14.29% in morning trading"
Detailed Quote: http://www.otcpicks.com/quotes/QMMC.php
Quest Minerals & Mining Corp. engages in the acquisition and operation of energy and mineral related properties in the southeastern part of the United States. It owns leasehold interests in various coal properties in eastern Kentucky. The company was founded in 2003 and is based in Paterson, New Jersey.
QMMC News:
November 12 - Quest Minerals & Mining Provides Operational Update
Quest Minerals & Mining Corp. (OTCBB: QMMC; Frankfurt: QMNA.F), a Kentucky based operator of energy and mineral related properties, provided the following operational update:
Quest, through its operating subsidiary, Gwenco, Inc., has secured a significant price increase from one of its customers for the sale of coal from the Pond Creek Mine at Slater’s Branch. Due to competitive concerns, Quest will not disclose specific information relating to coal pricing.
As a result of more consistent and increasing production, Quest, through Gwenco, has also negotiated lower trucking costs for the shipment of its coal. Again, due to competitive concerns, Quest will not disclose specific information relating to trucking costs.
The first major conveyor belt move to the new mine face was completed at the Pond Creek Mine. As coal production occurs, a new mine face is established deeper in the mine, which requires the conveyor belt to be moved periodically to be closer to the mine face so that the coal can be transported from the mine face to the shipping trucks more efficiently.
Eugene Chiaramonte, Jr., President of Quest, stated, “We are pleased to report that we have improved our pricing while reducing our trucking costs in this initial start-up phase of our mining operations. We are also pleased that, due to a reduction in work stoppages resulting from required equipment maintenance, we are mining more regularly, resulting in deeper penetration into the mine. As we continue to transition into full operations, we anticipate that our operating efficiency will improve.”
Quest also announced that it continues to move forward with its plans to re-open the Lower Cedar Grove seam, located in Slater’s Branch, and the Taylor seam, located in Hurricane Branch. Samples indicate that the Lower Cedar Grove seam will produce metallurgical blend coal, and Quest’s market research indicates that there is high demand for this type and quality of coal.
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