OTCPicks.com Daily Market Movers Digest Midday Report for Thursday, February 14th RHGP, DCMT, AXSO, CYBD

Our Stocks to Watch today include Renhuang Pharmaceuticals, Inc. (OTCBB: RHGP), Document Capture Technologies, Inc. (OTCBB: DCMT), AXS-One (OTC BB: AXSO), Cyber Digital, Inc. (OTCBB: CYBD)

RENHUANG PHARMACEUTICALS (OTCBB: RHGP)

Company Profile:

RHGP News:

February 14 - Renhuang Pharmaceuticals, Inc. Retains CCG Elite

Renhuang Pharmaceuticals, Inc. (OTCBB: RHGP) ("Renhuang" or "the Company"), a leading pharmaceutical company in China, announced that it has retained CCG Elite to design and execute its investor relations campaign.

Through its GMP certified facilities, the Company manufactures over 200 types of western, traditional Chinese medicines (TCM), and branded pharmaceuticals. The Company sells raw materials and finished products using its extensive distribution network and third party distributors throughout China. Renhuang controls an estimated 70% of China's natural source of Acanthopanax (also known as Siberian Ginseng), a widely used drug for multiple indications, and hence dominates the market for Acanthopanax-based medicinal and nutraceutical products. The Company's distribution network includes over 3,000 sales agents in 70 sales centers across 24 districts, covering over 50% of the greater China. Additionally, Renhuang exports its pharmaceuticals to Russia and Southeast Asia.

Using its strong R&D team, Renhuang performs contract research and development services. Lead pharmaceuticals include: Acanthopanax based natural medicine products for treating depression, melancholy and other illnesses, Biopharmaceuticals (Shark Power Health Care and Ginseng Ointment) for multiple indications, and TCM. For nine months ending July 31, 2007, Renhuang's revenue totaled $20.1 million, and net income was $8.5 million, up 175% from the same period in the prior year.

"Renhuang is a fast growing drug manufacturer and distributor in China," said Mr. Li Shaoming, Chairman & CEO of Renhuang Pharmaceuticals, Inc. "We are very excited to work with CCG Elite to maximize our stockholders' value by improving our visibility with the investment community and with the financial media."

Pharmaceutical sales in China are expected to increase by over 13 percent annually, reaching $24 billion by 2010. Higher demand for pharmaceuticals in China is expected over the coming years due to growing affluence, size of the middle class, and the aging population. Additionally, the Company expects higher demand for its products in the foreign markets over the coming years.

Renhuang has a pipeline of pharmaceuticals including Lyophilized Syringin Powder for Injection, a novel anti-depression Chinese medicine, and plans to distribute them pending the approval from the Chinese State Food and Drug Administration (SFDA). Additional products in development include food antiseptic, immune system and diagnostics. Furthermore, the Company plans to build its brands by further expanding its market share in major cities such as Beijing and Shanghai. Other growth strategies include direct sales of pharmaceuticals to top tier hospitals, and increasing its branded product sales in the highly populated rural China. Additionally, the Company plans to grow through strategic partnership and acquisitions.

"Renhuang is a leading pharmaceutical company with solid manufacturing capabilities, branded products, extensive distribution network, strong R&D team, and an experienced management," said Crocker Coulson, President of CCG Elite. "The Company is well-positioned to take advantage of growing demand for pharmaceuticals in China. Through our integrated investor relations initiatives, we will introduce the Company to fund managers and analysts focusing on high growth equities from China."

ABOUT CCG ELITE

DOCUMENT CAPTURE TECHNOLOGIES (OTCBB: DCMT)

"Up 27.12% in morning trading"

Document Capture Technologies, Inc. engages in the development, design, and delivery of imaging technology solutions. The company's proprietary page-imaging devices enable the storage, sharing, and management of information in both businesses and personal use. It also offers optical image capturing devices, modules of optical image capturing devices, and optical image chips and other optoelectronic products. Document Capture Technologies' image scanning products are used in various applications, such as document and information management, identification card scanners, passport security scanners, bank note and check verification, business card readers, barcode scanning, and optical mark readers used in lottery terminals. In addition, it is involved in the research and development of certain technologies related to the field of high definition (HD) display. As of December 31, 2006, the company had 14 patents issued in the United States and 5 patents issued in Taiwan. It also had five patent applications in pending in the United States, of which four were related to its HD display technologies and one was related to its document/image scanning technology. Document Capture Technologies primarily offers its solutions to governmental agencies, corporations, small office-home offices, professional practices, and enterprises. It sells its products through a network of independent distributors and channel partners in North America, Europe, and Asia, as well as through retail and Web-based channels. Document Capture Technologies, Inc. was formerly known as SysView Technology, Inc. and it changed its name to Document Capture Technologies, Inc. in 2007. Prior to that, SysView Technology, Inc. was known as Syscan Imaging Inc. and it changed its name to SysView Technology, Inc. in 2006. Document Capture Technologies, Inc. was founded in 1995 and is headquartered in San Jose, California. Document Capture Technologies, Inc. is a subsidiary of Syscan Imaging Limited.

DCMT News:

February 14 - Document Capture Technologies, Inc. Provides Select Financial Guidance for Fiscal 2008

Management Exercises One Million Founders Options

Document Capture Technologies, Inc. (OTCBB: DCMT) provided its financial outlook for selected financial and operating metrics for the full year 2008. The company plans to report its fourth quarter and full fiscal year 2007 operating results on Feb. 27.

"During the last 90 days, we announced the termination of all research and development efforts related to our high definition LCOS display initiatives and changed our name to more accurately reflect our renewed focus on our core document capture business," said Carolyn Ellis, Chief Financial Officer, Document Capture Technologies, Inc. "By taking these actions it was our intent to significantly reduce our non-revenue generating expenses, dedicate all of our resources and focus to our core business, and improve our overall bottom line financial performance. We are now in the position where we have the appropriate level of visibility in our 2008 pipeline and financial model to provide investors with a clearer basis for our optimism as we continue to grow the company."

The Company expects that for full year 2008, revenues from its document capture, or mobile scanning business, will be in the range of $18 million to $19 million and that gross margin will remain steady in the 38%-40% range. Further, the company expects that its 2008 full year reported non-GAAP adjusted EPS (excluding derivative and options expenses) will be in the range of $0.13 to $0.15 per diluted share.

David P. Clark, the company's Chief Investment Officer went on to say, "We have been successful in developing and launching innovative products and solutions that serve a wide range of expanding vertical markets, and as a result have reduced our customer concentration risk in the past year. Our company's robust and expanding product line of market-proven, proprietary document capture solutions for commercial, business and personal use, facilitates the way information is captured, stored, shared and managed in today's digital information age. In fact, we expect the introduction of three additional products to the market in 2008 to continue to drive our growth, as we benefit from the transition from paper documents to 'digital' and 'mobile' formats. We are a re-invigorated company and are clearly focused on the opportunities we see in the expanding document capture marketplace."

Separately, Darwin Hu, William S. Hawkins, and David P. Clark, the company's Chief Executive Officer, Chief Operating Officer, and Chief Investment Officer, respectively, reported the exercise of founder stock options in the aggregate amount of 1.0 million shares, reflecting management's confidence in the strength of the company's business, outlook, and the value that it sees in its shares at current market prices.

AXS-ONE INCORPORATED (OTCBB: AXSO)

"Up 2.50% in morning trading"

AXS-One, Inc. designs, markets, and supports records compliance management solutions. The company's products include AXS-One Compliance Platform, an integrated archiving and electronic records management software solution that enables organizations to capture, index, archive, share, search, supervise, and manage the retention and disposition of electronic records, including email and instant messages, images, office documents, ERP-generated data, and SAP archival data. It also offers consulting, implementation, training, technical support, and maintenance services. AXS-One serves the content archival, records management, compliance management, e-discovery, litigation readiness, and information management markets. The company has a partnership with Sun Microsystems to market, license, implement, and support the AXS-One Compliance Platform product suite worldwide. It markets its products through a direct sales force in the United States, Canada, the United Kingdom, Germany, Poland, South Africa, Australia, Singapore, Hong Kong, and Taiwan. The company was in 1978 and is headquartered in Rutherford, New Jersey.

AXSO News:

February 14 - AXS-One Enters Into an Agreement With Leading Tech Provider, Further Expanding Customer Choice for Hosting and Managed Services

Quest Expands Managed Services Offering to Include Archiving Technology From AXS-One

AXS-One (OTC BB: AXSO), a leading provider of scalable, high-performance Records Compliance Management (RCM) solutions, announced an agreement with Quest Technology Management, a leading technology provider serving Fortune 1000 companies.

Under the terms of the agreement, Quest will resell the AXS-One Compliance Platform(TM), offering it as an integrated component of its hosting and managed services messaging offering. Quest has already closed an agreement with its first customer, and will start to offer the solution to its existing hosting customers in the coming weeks for the new archiving service. Quest will also offer the AXS-One Compliance Platform(TM) to its existing customers.

The Quest agreement represents a major step forward for AXS-One's Hosting Division, which the company launched last month. The new division is dedicated to offering innovative archiving technologies to key providers in the hosting and e-discovery markets. AXS-One also recently announced reseller agreements with two of the world's major hosting providers.

"At a time when hosting is emerging as the key issue for messaging, AXS-One remains the only on-site archiving and electronic records management solutions vendor to directly address this management priority," said Bill Lyons, CEO of AXS-One. "Our team is focused on delivering a rich set of features and functionality, with the lowest infrastructure costs and fast implementation. This in turn allows partners such as Quest to significantly expand the value they offer to their customers while expanding their own revenue opportunities."

Numerous factors are contributing to the growth in hosted e-mail archival and compliance services: increased needs for regulatory compliance, discovery requirements and large and growing messaging data stores. IDC predicts that the market for hosted e-mail archiving services alone will reach a CAGR of more than 27 percent through 2010. As a result, enterprises are turning to hosting providers such as Quest to reduce complexity and costs, and want a consolidated offering that includes mailbox services and disaster recovery. Moving forward, these needs are expanding to include retention and disposition, as well as self-service e-discovery capabilities.

"Quest has successfully built its business by providing reliable, cost-effective, innovative services, combined with the highest levels of customer service. We plan to leverage that success to grow our hosting and managed services business through 2008," said Tim Burke, CEO of Quest. "The due diligence our company performed to find a suitable archiving partner confirmed that AXS-One is the only vendor that can today deliver what the market is asking for: complete functionality with low infrastructure costs in a solution that is easy and fast to implement."

The AXS-One Compliance Platform provides customers a seamless and easy to implement solution to address the reactive, expensive and labor-intensive responses to litigation and e-discovery. This is achieved through a single archiving and electronic records management software platform. The platform handles policy-based management of disparate electronic records, including e-mail and instant messages, reports, SAP documents and data, desktop documents, voice, video and images. The solution, available as a client-side product as well as a hosted offering through AXS-One partners, offers a range of capabilities to address growing concerns and requirements for records management as well as delivering exceptional operational savings and superior ROI.

ABOUT QUEST

CYBER DIGITAL INCORPORATED (OTCBB: CYBD)

"Up 34.62% in morning trading"

Cyber Digital, Inc. engages in the design, development, manufacture, and marketing of digital switching, Internet, and networking systems that enable simultaneous communication of voice and data to a large number of users. It offers a range of distributed digital switching systems for digital telecommunications applications and networks, which includes Cyber Distributed Central Office (CDCO) designed to provide digital voice communications to subscribers in densely populated urban areas; and Cyber Tandem Exchange, an intercity exchange for long distance voice and data trunk services, as well as a regional trunk exchange connecting to various local CDCO exchanges. In addition, the company offers Cyber Rural Exchange, a small distributed Class 5 central office exchange, primarily intended for rural, remote, or community telephone applications; and Cyber Switch Exchange, a digital switching system designed for use as a private branch exchange for offices, universities, hospitals, and other large organizations. Its range of broadband Internet protocol (IP) systems include Cyber Business Internet Gateway, a IP frame relay and private line based gateway; Cyber Internet Access Network, a distribution router/soft-switch that permits several business users to simultaneously access the Internet at a fixed committed bandwidth rate; Cyber Firewall series IPSec firewall appliance that offers simple-do-it-yourself installation software for business-to-business e-commerce secure access and virtual private network applications; and Cyber Web Server and Cyber Domain Name Server. Cyber Digital was founded in 1982 and is headquartered in Hauppauge, New York.

CYBD News:

February 14 - Cyber Digital Reports Record Results for the Third Quarter Ended December 31, 2007

Net Revenues of $2.8 Million, and Cash and Marketable Securities of $0.4 Million

Cyber Digital, Inc. (OTCBB: CYBD), a developer of communications systems and a communications service provider, announced its financial results for the third quarter ended December 31, 2007.

Results of Operations for Nine Months Ended:

*Net revenues for the period ended December 31, 2007 was $2,843,384 as compared to $0 for the period ended December 31, 2006. These revenues consist of communications services provided by Cyber Digital's subsidiaries, NRT and TSI, from June 1, 2007, the date of acquisition.

*Gross profit for the period ended December 31, 2007 was $970,882 as compared to $0 for the period ended December 31, 2006.

*Net loss from operations in the period ended December 31, 2007 was $(1,001,383) or $(.03) per share as compared with a loss of $(562,754) or $(.017) per share in period ended December 31, 2006, principally due to selling, general and administrative expenses of NRT and TSI, acquisition related amortization expenses as well as substantial expenses incurred for the due diligence of acquired companies and yet to be acquired companies.

*Cash and cash equivalents were $198,499 and $35,266 for the periods ended December 31, 2007 and 2006, respectively.

*Marketable securities were $189,880 and $0 for the periods ended December 31, 2007 and 2006, respectively.

J.C. Chatpar, chief executive officer, stated, "Due to the recent changes to the Telecommunications Act in our favor, our overall strategy is to grow through acquisitions of switch-less communications service providers. This provides us with large-scale expansion and controlled deployment of our switching systems with minimal cost of customer acquisition. In line with this strategy, we are moving forward with additional expansion through acquisitions in a recession proof telecom industry."

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