STOCKS TO WATCH
CHINA AMERICA HOLDINGS INCORPORATED (OTCBB: CAAH)
"Up 337.50% in morning trading"
China America Holdings, Inc. is a holding company which owns a 56% stake in Shanghai Aohong Chemical Co., Ltd. based in Shanghai, China. Shanghai Aohong Chemical Co., Ltd. is a distributor of assorted liquid coolants which are utilized in a variety of applications, primarily as refrigerants in air conditioning systems for automobiles, residential and commercial air conditioning systems, and a manufacturer of steel non-refillable cylinders.
CAAH News:
June 30 - China America Holdings in Definitive Agreement to Acquire China Ziyang Technology Company, Limited as Wholly Owned Subsidiary
China America Holdings, Inc. (OTCBB: CAAH) announced that it has entered into a definitive share exchange agreement with Best Alliance Worldwide Investments Limited ("Best Alliance") to acquire a 100% equity stake in China Ziyang Technology Company, Limited for a combination of a convertible promissory note and common stock valued at approximately $16 million. Upon completion of the transaction and assuming full conversion of the note, Best Alliance will own approximately 79.6% of the then issued and outstanding shares of China America Holdings.
Ziyang Technology Company, Limited is a Hong Kong Based holding company with a wholly owned subsidiary, Ziyang Ceramics Company, Limited ("Ziyang Ceramics"), based in Zhucheng City, Shandong Province, China. Ziyang Ceramics was established on January 26, 2006, with $7.7 million registered capital and had total assets of approximately $26.5 million as of March 31, 2011. Ziyang Ceramics is engaged in the manufacturing and distribution of porcelain tiles used for interior residential and commercial flooring primarily in Eastern and Central China. Ziyang Ceramics operates its production and distribution facility on approximately 1.8 million square feet of land that includes facilities covering an area of 775,000 square feet. Ziyang Ceramics has 492 employees and operates two production lines which produce three main ceramic product types in more than 50 different size and color combinations. The company sells its products through a distribution network of more than 150 distributors across 10 provinces concentrating on major second and third tier cities.
In 2010, on a pro forma basis, Ziyang Ceramics generated revenue of $31.1 million with net income of approximately $7.3 million and experienced top and bottom line growth in excess of 44% compared to 2009. Management expects to grow its internal operations at a rate of at least 20% annually for the foreseeable future. In addition to expanding its own facilities, management intends to make opportunistic acquisitions to add capacity and expand its product offerings in an effort to become one of the leading manufacturers and suppliers of high quality porcelain tiles in China.
China America Holdings anticipates the filing of a Form 8-K regarding the transaction on July 7, 2011 which will include the audited financial statements of Ziyang Ceramics for the years ended December 31, 2010 and December 31, 2009 as well as the unaudited financial statements for the current three month period ended March 31, 2011.
Mr. Shaoyin Wang, CEO of China America Holdings, commented, "We are extremely pleased to have entered into this agreement to acquire Ziyang Ceramics. We have conducted substantial due diligence with the assistance of our business, legal and accounting advisors and are confident that this acquisition will enable our company to achieve sustainable long term growth for our shareholders. The management team at Ziyang Ceramics has demonstrated its ability to achieve consistent profitable growth over the past two years and we believe they have the right plan in a growing industry to accelerate that growth to become a leading player in this industry in China."
LEADING BRANDS INCORPORATED (NASDAQ: LBIX)
"Up 74.69% in morning trading"
Leading Brands, Inc. (Nasdaq:LBIX - News) is North America's only fully integrated healthy beverage company. Leading Brands creates, designs, bottles, distributes and markets its own proprietary premium beverage brands such as TrueBlue® Blueberry Juice, LiteBlue® Blueberry Juice, PureBlue®, PureRed®, PureBlack® and PureWhite® SuperJuices and BabyBlue® childrens' superfruit blends via its unique Integrated Distribution System (IDS)™ which involves the Company finding the best and most cost-effective route to market. The Company strives to use the best natural ingredients hence its mantra: Better Ingredients — Better Brands.
LBIX News:
June 30 - Leading Brands, Inc. Announces Q1 Results
* Q1 Net Income Rises 10% to $448,000 or $0.13 Per Share ($0.12 Fully Diluted)
* Q1 EBITDAS Rises 15% to $1,031,000 or $0.29 Per Share ($0.28 Fully Diluted)
* Chairman and CEO Files Canadian Early Warning Report on Share Purchases and Stock Options
Leading Brands, Inc. (NASDAQ: LBIX), North America's only fully integrated healthy branded beverage company, announces results for its first quarter of fiscal 2011, which ended May 31, 2011. All financial amounts are denominated in Canadian dollars, with all financial figures rounded to the nearest $000.
Q1 net income was $448,000 or $0.13 per share ($0.12 fully diluted) versus net income of $408,000 or $0.10 per share in the same quarter of fiscal 2010. Q1 net income before stock based compensation (SBC) increased to $617,000 or $0.18 per share ($0.17 fully diluted) versus $478,000 or $0.12 per share in the same quarter last year.
Q1 EBITDAS (Earnings Before Interest, Depreciation, Amortization and SBC) was $1,031,000 or $0.29 per share ($0.28 fully diluted), a 15% increase over $897,000 or $0.23 per share during the same period last year.
Gross profit margin for the quarter was 40.3%, up from 39.2% in the same quarter last year. In Q4 of fiscal 2010 the Company adjusted how it applied certain overhead, freight and warehousing costs, thereby increasing cost of goods sold and reducing SG&A costs.
Gross revenue for Q1 was $5,345,000, versus $5,556,000 last year. The small decline in revenues is principally due to colder than average weather conditions in the Company's principal markets during Q1. Additionally, the Company discontinued distribution of a licensed beverage brand in January 2011.
Discounts, rebates and slotting fees were $340,000 in Q1, down from $419,000 in Q1 of the prior year. SG&A expenses were $1,208,000 in Q1 of fiscal 2011, versus $1,195,000 the previous year.
As at the end of Q1 the Company had cash and available credit totaling approximately $2,139,000. This is lower than the same time last year as the Company increased inventory in advance of the busy summer season higher than in the previous year and an account receivable by the Company was overdue at quarter end and that amount has now been fully collected.
During Q1 the Company repurchased an additional 98,813 shares of its common stock at an average price of $3.36 US per share, pursuant to its share repurchase program. As at May 31, 2011 the Company had outstanding 3,484,536 common shares. The Company believes that its common share price remains undervalued and will continue with its share repurchase program, which has $930,000 US remaining authorized under it.
Early Warning Notice
The Company's Chairman and CEO, Ralph McRae, has acquired common shares and options to acquire common shares which together have increased his ownership or control over common shares and stock options of the Company to approximately 12.2% (on a partially diluted basis assuming exercise of the options held by Mr. McRae). As at this date, Mr. McRae owns or controls 176,616 common shares of the Company and 283,500 stock options that are vested. During the past year Mr. McRae acquired ownership of, or control over, options to purchase 265,000 common shares of the Company at $2.45 US per share, privately as an incentive under the Company's compensation arrangements. 20,000 of those options were acquired by his spouse who provides sales and marketing services to the Company. Mr. McRae acquired ownership of an additional 20,220 common shares of the Company via open market transactions during the past year.
Of the securities owned or controlled by Mr. McRae, 91,000 common shares are held by BBI Holdings, Inc. and 4,040 common shares and options to purchase 26,170 common shares are held by his spouse. Mr. McRae is the sole shareholder and director of BBI Holdings, Inc.
Mr. McRae has no present intention to dispose of these securities, although he may in the future acquire or dispose of securities of the Company through the market, privately or otherwise, as circumstances and market conditions warrant.
A copy of the Early Warning Report being filed with the applicable securities regulators regarding the transactions will be available on SEDAR (www.sedar.com). A copy of the Early Warning Report and further information may also be obtained by contacting Marilyn Kerzner of the Company at (604) 685-5200 (x270).
AGM
The Company's Annual General Meeting was held on June 29, 2011. All motions put to the Meeting, being those described in the Notice of Meeting and supporting materials mailed to shareholders, were passed with significantly greater percentages than required. James Corbett was elected as a director of the Company for an additional three-year term.
RIT TECHNOLOGIES (NASDAQ: RITT)
"Up 52.78% in morning trading"
RiT is a leading provider of intelligent solutions for infrastructure management, asset management, environment and security, and network utilization. RiT Enterprise solutions address datacenters, communication rooms and workspace environments, ensuring maximum utilization, reliability, decreased downtime, physical security, automated deployment, asset tracking, and troubleshooting. RiT Carrier solutions provide carriers with the full array of network mapping, testing and bandwidth qualification capabilities needed for access network installation and service provisioning. RiT's field-tested solutions are delivering value in thousands of installations for top-tier enterprises and operators throughout the world.
RITT News:
June 30 - RiT to Provide its IIM Solution for Datacenter Management to Global Financial Institution
RiT Technologies (NASDAQ: RITT), the world-leading provider of intelligent infrastructure solutions, today announced that it has received several major new orders from one of its largest customers, a top-tier diversified financial services company. The orders, which total over one million dollars, are for the expansion of the PatchView™ intelligent infrastructure management (IIM) systems currently deployed in the client's international headquarters and central datacenters.
This global account has been a satisfied RiT customer for many years, and credits RiT's PatchView(TM) with having helped it maximize network continuity, minimize ongoing maintenance costs, enforce physical layer security and simplify infrastructure planning. The projects will include the implementation of IIM systems in new datacenter and people workspace facilities in branch offices, and the integration of the RiT solution throughout the organization with the customer's internal systems.
"We are proud of the relationship we have built with this prestigious customer, who became one of the industry's earliest adopters of our PatchView IIM, and quickly came to rely on it as a strategic infrastructure management tool," said Eran Ayzik, RiT's President and CEO. "Over the years, our deployments in the customer's mission-critical headquarters and datacenter networks have proved PatchView's ability to streamline complex infrastructure operations and to slash the time required to deploy large-scale projects. In addition, we have differentiated ourselves consistently through our ability to support the customer through all the stages of the project with tailor-made and customized solutions."
Mr. Ayzik continued, "Now that the IIM concept is gaining mainstream acceptance from additional top-tier enterprises, we are benefiting from our extensive track record with this and other satisfied customers worldwide. We believe this will help us secure additional large-scale customers, and hopefully to form relationships that translate into multi-year streams of ongoing revenues."
TEXAS WYOMING DRILLING INCORPORATED (OTC: TWDL)
"Up 42.11% in morning trading"
Texas Wyoming Drilling, Inc. operates as a diversified gold, mineral, and rock mining company. Its projects include the Yellow Jacket Mine, which covers approximately 160 acres located in Moapa and Blue Jacket Mine covering approximately 70 acres located in Nelson in Nevada with gold and silver claims; and Legacy Rock Calcium Mine, a calcium carbonate project. The company was formerly known as eWeb21 Corp. and changed its name to Texas Wyoming Drilling Inc. in April 2008. Texas Wyoming Drilling Inc. is based in Las Vegas, Nevada.
TWDL News:
June 30 - TWDL Begins Gold Mining at Blue Jacket Mine
Texas Wyoming Drilling, Inc. (OTC: TWDL) reports that their wholly owned subsidiary, Legacy Rock, has begun processing gold and other ores at their Blue Jacket Mine in Nelson, NV. Tests have shown that ore already mined from this site will yield in excess of 5,000 ounces of gold, plus silver and other precious metals. The processing is well underway and a large stockpile is ready to go to the final phase of the recovery process.
Legacy Rock has extracted the ores by blasting the rock into smaller pieces, followed by crushing and grinding it into a sand-like texture. They have also established their own laboratory and are planning to build a processing plant on their property. That will enable them to step from the recovery process to the production process where the metals are separated and prepared to go to market.
Scott Whipple, President and Chief Operating Officer of Legacy Rock, says, "We're delighted to have received favorable assays on the gold and other ores at the Blue Jacket Mine. Now that we have gone through the preparatory steps, we're excited to be moving forward with the final phase of the recovery process."
DOUBLE EAGLE HOLDINGS (OTCBB: DEGH)
"Up 25.00% in morning trading"
Double Eagle Holdings is an innovative consumer products holding company and the parent company of Fuse Science, Inc. Based in Aventura, Florida, Fuse Science is the developer of patent-pending conveyance technologies poised to redefine how consumers receive energy, medicines, vitamins and minerals, delivering benefits faster and more effectively than ever before.
DEGH News:
June 29 - Fuse Science Adds Renowned Duke University Team Physician to Board
Double Eagle Holdings, Ltd. (OTCQB: DEGH), the parent company of Fuse Science, Inc. (www.fusescience.com), announced that it has added Dr. David J. Berkoff to the company's Board of Directors as its fifth and final voting member. Dr. Berkoff is a Duke University team physician and associate professor at Duke University's Departments of Emergency Medicine and Sports Medicine. Dr. Berkoff will soon be leaving to join the Department of Orthopedics at the University of North Carolina-Chapel Hill School of Medicine. Fuse Science is a developer of novel, patent-pending technologies poised to redefine how consumers receive energy, medicines, vitamins and minerals.
"Dr. Berkoff's extensive experience and research with top athletes and endurance sports make him ideally suited to help guide our company's ongoing development and commercial roll-out of superior products that enhance performance naturally and more quickly than industry alternatives," said Brian Tuffin, Fuse Science's president and chief operating officer. "Our products have the potential to provide athletes superior, performance-measurable benefits."
Dr. Berkoff is a well-respected team physician for Duke University's highly regarded sports programs, which include lacrosse, soccer, football and basketball. He is an expert in the treatment of sports-related injuries in collegiate and young athletes. Additionally, Dr. Berkoff works as a sports medicine consultant for the National Basketball Association (NBA). He has helped conduct pre-World Cup physicals for USA Soccer and is the former Medical Director of the Blue Devil Ironman Triathlon and the New York Triathlon Club. Dr. Berkoff has performed fitness and performance testing at the highest levels. His peer-reviewed research regarding heart rate variability of track and endurance athletes and abstracts addressing electrolyte supplementation and its impact on performance and cramping have been published in often referenced medical journals and bulletins.
Dr. Berkoff received his undergraduate degree from the University of Michigan and completed his medical training at the Albert Einstein College of Medicine at Yeshiva University in New York City. He is also a past-intern in internal medicine at Beth Israel Medical Center and resident in emergency medicine at Jacobi Medical Center. In 2003, Dr. Berkoff moved to Chapel Hill, North Carolina and subsequently completed a fellowship in primary care sports medicine at Duke University.
Dr. Berkoff's clinical interests include non-operative orthopedics and musculoskeletal ultrasound with a focus on endurance athletes such as cyclists, runners and triathletes. He has spent time working in the Michael Krzyzewski Human Performance Lab conducting endurance-related research pertaining to cycling and bicycle fitting and previously owned and operated a private cycling performance business.
"Fuse Science's proprietary technology could represent one of the most exciting and significant new developments for the repletion of electrolyte, vitamin and mineral deficiencies in athletes since the advent of the sports drink," said Dr. Berkoff. "I look forward to working with the company's Board of Directors to advance the applications for this technology."
PRO-POINTER INCORPORATED (OTC: PPII)
"Up 100.00% in morning trading"
Pro-Pointer, Inc. engages in the development of nutraceutical dietary Supplements. The company was founded in 1998 and is based in Henderson, Nevada.
PPII News:
September 30 - Coenzyme-A Announces Introduction of Several New Innovative Products
Pro Pointer, Inc. (OTC: PPII), through its wholly owned subsidiary Coenzyme-A Technologies, Inc., announces that the company remains focused on its business plan and is diligently working towards the introduction and marketing of several new products, including its latest innovative proprietary formula the "PURE COENZYME-A."
"Our product duplicates the biological functions used by the human body in the creation of cellular energy," stated Nickolaos Skoaras, PhD., President / CEO of Coenzyme-A Technologies, Inc. "Coenzyme-A is the most active metabolic enzyme in the human body and as the initiator of the human body's primary energy cycle, this is the purest form of energy there is," Skoaras added.
Coenzyme-A is energy pure and simple. Besides its indispensable energy work, Coenzyme-A initiates the synthesis of a wide variety of other essential substances. These include acetylcholine (the key neurotransmitter in the brain), the steroid hormones (produced in the adrenal glands) and the sex hormones. It supports immune function, including the repair of DNA and RNA, plus healing from physical injury. It facilitates the manufacture of important components of connective tissue necessary to joint health, particularly chondroitin sulfate and hyaluronic acid. Lastly, Coenzyme-A retards the development of lactic acid build up during aerobic exercise preventing sore and stiff muscles.
ABOUT COENZYME-A TECHNOLOGIES, INC.
Coenzyme-A Technologies, Inc. is an innovative company that has applied new technology to the formulation and manufacture of a series of proprietary products which address nutritional deficiencies that result from the stress of modern day living, chemical imbalances within the body, and the deleterious effects of aging. Coenzyme-A is the first nutraceutical manufacture and utilization of cellular Coenzyme-A (The Master Coenzyme). Coenzyme-A contains a specific set of substrates that are designed to assist the body in converting fats, carbohydrates and proteins into energy at the cellular level.
