The Micro Cap Opportunity

02/11/2008
The MCO Daily - Before the Bell for Monday, Fedruary 11th, 2008

On the Radar: DKAM, RBTI, DEGH, EFTI, MLXO, NCNC

This morning's top Micro Cap trading ideas include, Drinks Americas Holdings Ltd. (OTCBB: DKAM), Red Branch Technologies Inc. (OTC: RBTI), Double Eagle Holdings Ltd. (OTCBB: DEGH), EarthFirst Technologies Inc. (OTC: EFTI), Michelex Corp. (OTC: MLXO), New Century Companies Inc. (OTCBB: NCNC).

DRINKS AMERICAS HOLDINGS LTD (OTCBB: DKAM)
Up 7.41% on Friday

Detailed Quote: http://finance.yahoo.com/q?s=DKAM.OB

Drinks Americas develops, owns, markets, and nationally distributes alcoholic and non-alcoholic premium beverages associated with renowned icon celebrities. Drinks Americas' portfolio of premium alcoholic beverages includes Trump Super Premium Vodka and Willie Nelson's Old Whiskey River Bourbon. The Company's non-alcoholic brands include the distribution of Paul Newman's Own Lightly Sparkling Fruit Juice Drinks and Flavored Waters.

Other products owned and distributed by Drinks Americas include award-winning Damiana Liqueur and Aguila Tequila from Mexico, Cohete Rum Guarana from Panama, and Rheingold Beer. Damiana, Old Whiskey River, Aguila Tequila and Cohete Rum are Gold and Silver Medal award winners respectively from the International Beverage Tasting Institute and the San Francisco International Wine and Spirits Competition. For further information, please visit our website at www.drinksamericas.com

Drinks Americas was founded in 2004 by J. Patrick Kenny, a leading expert in beverage sales and marketing. Mr. Kenny developed his industry expertise in a variety of management positions at the world's leading beverage companies, including Joseph E. Seagram and Sons and The Coca-Cola Company. He has also acted as advisor to several Fortune 500 beverage marketing companies, and has participated in several beverage industry transactions.

Recent DKAM News:

February 8th, 2008 - Trump Super Premium Vodka Awarded "Superb Rating" by Wine Enthusiast Magazine

Drinks Americas Holdings, Ltd. (OTCBB: DKAM), a leading developer and marketer of premium beverages that partners with renowned icons, announced today that Trump Super Premium Vodka has received a "90-95," "Superb Highly Recommended" rating from the respected Wine Enthusiast Magazine in its forthcoming March Buying Guide issue.

This is the second coveted award for Trump Super Premium Vodka, crafted and produced in Holland, having also received a "Four Stars," "Highly Recommended" rating from F. Paul Pacult's Spirits Journal.

Patrick Kenny, CEO of Drinks Americas, stated, "Following the sale of a portion of Ketel One also a Dutch vodka doing several million cases per year to Diageo, the value of Trump Super Premium Vodka, now selling nationally and internationally, becomes apparent. The great quality and exceptional taste, combined with the Trump standard of luxury and excellence, is what continues to drive Trump Vodka sales. These awards confirm that in addition to superb packaging and effective marketing, Drinks Americas has done a great job with our Dutch distillery in assuring a magnificent product and luxury taste in the bottle."

Trump Super Premium Vodka recently sponsored the VIP Trump Vodka Lounge at 944 Magazine's Super Village during the Super Bowl festivities in Phoenix. Celebrity guests such as Paris Hilton, Shia LaBeouf, Kim Kardashian and Juliette Lewis sipped Trump Vodka in the exclusive Trump Vodka VIP Lounge where they enjoyed front row seating to performances by 50 Cent, Wyclef Jean and Velvet Revolver. The celebrity studded lounge offered bottle service featuring the 24-karat gold, Donald Trump signed Trump Super Premium Vodka bottles. Trump Vodka VIP Lounge boasted gold-painted lounge hostesses and extraordinary ice bars that chilled the five-time distilled super premium vodka from Holland. Guest bartenders such as Brody Jenner and Kim Kardashian served up chilled Trump Super Premium Vodka to thousands. The 944 Super Bowl Village played host to over 25,000 people throughout the week where over 50,000 trump vodka cocktails were served.

Featured Pick
RED BRANCH TECHNOLOGIES INC (OTC: RBTI)
Down 7.32% on Friday

Detailed Quote: http://finance.yahoo.com/q?s=RBTI.PK

Red Branch Technologies, Inc. makes business travel easier, more secure and more responsive for both the hard-charging business traveler and the corporation by meeting travel needs at each point in the travel cycle. The company's innovative my/mTravel(r) and mTravel(r) products automate the business travel process from planning and booking to en route services and support, through post travel reporting and unused ticket redemption. Red Branch's Magellan360, provides agency and net-delivered back office services to independent professional travel marketers. For more information, please visit: www.redbranchtechnologies.com.

Recent RBTI News:

February 7th, 2008 - Red Branch Technologies Debuts First 'Personal Agent Technology' for Business Travelers

Red Branch Technologies, Inc. (Pink Sheets:RBTI) today announced the launch of its new mTravel Assistant(r) 'personal agent technology' for business travelers, a first in the business travel industry. Designed specifically to provide business travelers with round-the-clock access to all the services and insights of a personal travel assistant, the mTravel Assistant(r) will be fully integrated into the Company's online my/mTravel(r) service for the independent business travelers in addition to its mTravel(r) product for deployment in large and medium-sized corporate environments.

Phil Wherry, RBTI CTO, commented, "Now, the same system that we designed from the ground-up to maximize utility and minimize waste associated with individual and corporate business travel can actually make the comparison, booking and ongoing notification and update process virtually effortless." He continued, "The mTravel Assistant(r) knows your "likes" and "dislikes", such as preferred hours of travel, and how to optimize your travel arrangements for such things as flight duration versus preferred airline or ticket price versus airport convenience. The mTravel Assistant(r) even watches how the travel selections you make change over time and adjusts the scoring of your travel arrangements accordingly, just as a personal assistant would."

Using proprietary adaptive algorithms developed by the Red Branch technology team, mTravel Assistant(r) scores, or "ranks" all travel options presented to the traveler, the highest scoring arrangements appearing first based on a rich set of initial preferences and ongoing "learned preferences" observed over time. The system even features a "single click" search and booking option that presents the optimum itinerary Air, Car and Hotel, in a travel universe of seemingly limitless options, all in less than 35 seconds.

"Red Branch Technologies takes the business traveler's perspective into account for every product or feature we build," says Doug Foran, President/CEO. "The mTravel Assistant(r) embodies that commitment and uses a new technology to make business travel easier. Optimizing an itinerary requires the consideration of countless variables. Most travel tools, online or off, have built-in "biases" that favor particular vendors and/or factors. The mTravel Assistant(r) is truly adaptive, works exclusively for the travelers' best interests and gets the arrangements they want at the prices they need." He continued, "We are excited at the finalization and implementation of the baseline mTravel Assistant(r) functionality and expect to introduce new capabilities on an ongoing basis as part of our commitment to be "With You All the Way." 

DOUBLE EAGLE HOLDINGS LTD (OTCBB: DEGH)
Up 22.22% of Friday

Detailed Quote: http://finance.yahoo.com/q?s=DEGH.OB

Double Eagle Holdings, Inc. (www.doubleeagleholdingsltd.com) is a closed-end investment company that invests in value-based opportunities that are typically either privately held or considered small or micro cap publicly traded companies. Double Eagle's investment objective is to generate both current income and long term capital appreciation through debt and equity investments. Double Eagle Holdings, Inc. is a registered business development company under the Investment Company Act of 1940 ("1940 Act").

Recent DEGH News:

February 7th, 2008 - Double Eagle and Zatso Choose University of Oklahoma for Test Market of Web-Based Social Gaming

Double Eagle Holdings, Ltd. (OTCBB:DEGH) is pleased to announce that the University of Oklahoma has been chosen as the initial test market for its groundbreaking social gaming and networking model.

"By forming partnerships with businesses and institutions in Norman, OK, we are giving students at OU the chance to play Zatso and compete with one another for cash and prizes while being the first to experience and evaluate Zatso," stated Samuel J. Bein, Vice-President of Business Development.

Zatso is one of the first games of its kind to provide gamers with a competitive experience that is both virtual and active, combining all forms of gaming in every subject imaginable. Players will compete online and in the marketplace, completing challenges ranging from complex, web-savvy experimental challenges to scavenger hunts around the city of Norman on quests that will be fun, exciting and compelling. Ultimately, millions of players will compete with each other while simultaneously offering the players a chance to network with friends and make new acquaintances (www.playzatso.com).

"This is a great opportunity for OU to experience an exciting new interactive service that has never been done before," Bein said. "Not only will Zatso provide interactive social gaming exploration in an unrivaled new format, but it will also provide extensive data and marketing potential for this young adult demographic."

EARTHFIRST TECHNOLOGIES INC (OTC: EFTI)
Up 28.57% on Friday

Detailed Quote: http://finance.yahoo.com/q?s=EFTI.PK

Recent EFTI News:

February 7th, 2008 - VitalTrust and Earth First Technologies Agree to Transfer of Palm Oil Supply Agreement and Facility Lease

VitalTrust Business Development Company (OTCBB:VTBD) ("VTBD" or the "Company") and Earth First Technologies, Inc. (Pink Sheets:EFTI) ("EFTI") today jointly announce an agreement by which VTBD will assume all rights and obligations of the Lease Agreement and Palm Oil Supply Contract that EFTI entered into with Loder Croklaan USA, LLC. This agreement and contract, which were entered into in April 2007, contemplates the retrofit of an existing Bio-Diesel facility in Channahon, Illinois and a 15 year uninterrupted supply contract for Palm Oil to supply this facility and others in the Untied States. Under the terms of the Agreement, the Company will issue an undisclosed amount of stock to EFTI and anticipates completing the transaction upon completion of the Company's election to withdraw from being treated as a business development company under the Investment Company Act of 1940.

"Our business plan calls for a vertically integrated Renewable Energy structure that will have production of Bio-Diesel as one of its main components," commented Alex H. Edwards III, VitalTrust CEO. "This is the first in a number of actions that the Company is pursuing with regards to increasing our portfolio of assets which will enable us to deliver Renewable Energy to the World."

MICHELEX CORP (OTC: MLXO)
Up 30% on Friday

Detailed Quote: http://finance.yahoo.com/q?s=MLXO.PK

Michelex Plastics, founded in 1972, is currently a manufacturer/importer and distributor of primary plastic packaging products to the optical disc industry.

Recent MLXO News:

February 8th, 2008 - Michelex Corp. Updates Shareholders

Michelex Corp. (Pink Sheets:MLXO) would like to update its shareholders with general comments on recent company activity.

We are pleased to confirm that positive negotiations are ongoing at this time and, while progress has been slower than desired, we feel that a positive conclusion is very likely in the near future. We want to acknowledge the concerns expressed by investors and the company does appreciate that the length of time required to date to conclude the initial transactions has been frustrating for everyone. Timing has been influenced by an evolving opportunity, relationship changes, and recent market and financial conditions outside of the company's control. Communications and details concerning these business activities are non-public and restricted at this time but they will be reported when appropriate.

"As we near the conclusion of current negotiations, I am very excited about the prospects ahead for the company. We expect to conclude some material portion(s) of our efforts in the coming weeks. We continue to expect to have a presence in the plastics, bio-diesel, and zero trans-fat oil markets in the future," stated Thomas Gramuglia, President and CEO.

Investor understanding and continued support is appreciated. The company is working hard to increase the company's value for its shareholders.

NEW CENTURY COMPANIES INC (OTCBB: NCNC)
Up 2.56% on Friday

Detailed Quote: http://finance.yahoo.com/q?s=NCNC.OB

New Century Companies, Inc. is one of the leading U.S.-based makers of machine tools, primarily vertical boring mills and large lathes such as vertical turning centers (VTCs). It specializes in re-manufacturing, starting with existing major castings and fitting them with state-of-the-art, computer-controlled equipment. These products generally cost 40% to 60% less to make than new ones. New Century passes these savings on to its customers, which include such leading manufacturers as General Electric Co., General Dynamics Corp., Siemens AG and Gardner Denver. New Century machines are used to manufacture jet engine components, airplane landing gear parts, power generation equipment, oil and gas production components and construction materials, to name just a few applications. New Century's production facility is in Santa Fe Springs, CA. For more information please visit New Century's Web site at www.newcenturyinc.com.

Recent NCNC News:

February 8th, 2008 - New Century Continues Year-Over-Year Revenue Growth

New Century Companies, Inc. (OTCBB: NCNC), a leading manufacturer and re-manufacturer of machine tools, today announced its guidance for year-end 2007.

New Century is projecting revenue of $10,000,000 for its calendar year ending 12/31/2007, which is approximately a 22% increase over calendar year 2006 revenues.

David Duquette, President & CEO of New Century, commented, "We are pleased with our continued revenue growth and that the company will show improved year-over-year EBITDA. We are also excited about President Bush's new economic stimulus package that offers a 50% bonus depreciation (tax write off) for machine tools. Our quotation request and phone activity has picked up substantially. We expect revenues to grow significantly in 2008 because the bonus depreciation is only good until the end of 2008."

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