The Micro Cap Opportunity

03/10/2008
The MCO Daily - Before the Bell for Tuesday, March 11th, 2008

On the Radar: VYEY, UPBS, AXVC, PSCP, WJCI, MITI

This morning's top Micro Cap trading ideas include Victory Energy Corp. (OTCBB: VYEY), Upstream Biosciences, Inc. (OTC: UPBS), Axial Vector Engine Corp. (OTCPK: AXVC), PSI Corp. (OTCPK: PSCP), WJ Communications, Inc. (NASD: WJCI), Micromet, Inc. (NASD: MITI).

VICTORY ENERGY CORP (OTCBB: VYEY)
Up 24.60% Yesterday

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

Victory Energy Corporation (http://www.victoryenergyoilandgas.com) is a publicly traded, developmental stage petroleum company primarily dedicated to energy-related opportunities. The Company goal is to evaluate profitable options, develop a solid foundation through leadership and sound business acumen, and acquire producing wells as well as other potentially profitable prospects within the Oil & Gas Industry.

Recent VYEY News:

March 10, 2008 - Victory Energy Posts Revenues From Gas Production

Victory Energy Corporation (OTCBB: VYEY) announced today that it has received the first payment for revenue from natural gas sales from its wells in the Corporation's Canyon Sandstone Gas play located in the Texas Permian Basin.
Victory deposited its first revenue of approximately $63,500, pre-distribution, for natural gas sales of 11,960 MCF of natural gas production from its interest in six gas wells. The revenue was based on December 2007 natural gas pricing of $7.5825 per MCF. This revenue number will continue to grow each month as new wells are drilled, completed and brought online with their production.
As Victory's production has a 20% higher BTU content, the Corporation receives a 20% bonus in pricing. At the close business Friday, March 7, 2008 natural gas pricing was $9.77 per MCF, Victory's price with its 20% bonus is $11.724 per MCF. Each well will deliver approximately 500 Million Cubic Feet of proven undeveloped gas reserves per well to Victory.
Well 166-6 is flowing on its own at a steadily increasing production rate and continues to clean up the water from the stimulation treatment at a rate of approximately 30 bbls of frac water per day. The single point test is on hold until the production is dryer and the water does not interfere with the test results.
Well 166-8 should reach total depth of approximately 5000 feet by March 14. As the operator nears the target production zone, the drilling rate will slow down as the rig drills through the Canyon Sandstone formation.
The next drill site is already under construction and should be ready for the new drilling rig by March 17. By this date, all of the necessary auxiliary equipment for the new drilling rig will be ready for the rig to go into service and drill its first well.
"As new wells are drilled and completed, we anticipate increased interest by our investors into this gas field. With this, we intend to increase our activity in the Texas Permian Basin through purchase of additional equipment and the resources required to support them. These steps are strategic in the growth and long term development of shareholder value," stated Jon Fullenkamp, President of Victory Energy Corporation.

UPSTREAM BIOSCIENCES, INC. (OTCBB: UPBS)
Up 26.53% Yesterday

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

Founded in 2004, Upstream Biosciences is a pioneer in the discovery and development of novel compounds for tropical parasitic diseases and in the development of genetic diagnostics for cancer susceptibility and drug response. Upstream's innovative approach to drug discovery and its proprietary data mining pipeline enable it to apply advanced computational approaches to generating novel drug candidates and to locating and analyzing the genetic variations important to disease progression and drug response. For more information, visit www.upstreambio.com.

Recent UPBS News:

March 10, 2008 - Upstream Biosciences' Novel Agents to Treat Leishmaniasis Demonstrate Promising Safety Profile in Initial Toxicity Testing

Upstream Biosciences Inc. (OTCBB: UPBS) today announced that the company's novel drug candidates to treat the parasitic disease leishmaniasis have demonstrated good safety profiles in their first in vivo toxicity tests in mice. The toxicity screening studies were conducted at Makerere University in Uganda, which is also conducting initial efficacy and toxicity screening for Upstream's candidates to treat trypanosomiasis, or African sleeping sickness. An estimated 350 million people in 88 countries are at risk of contracting leishmaniasis each year, and the incidence of infection is on the rise.
"We are encouraged by these positive results from our first toxicity tests in living animals," said Dr. Enock Matovu, the project's lead researcher in the Department of Parasitology and Microbiology at Makerere University. "The leishmaniasis parasite causes painful, disfiguring and potentially lethal infections that are a daily hazard for a significant portion of the world's most disadvantaged populations, yet current drugs are expensive, toxic and too often suffer from poor overall efficacy and the emergence of resistant strains. We are therefore very pleased to be collaborating with Upstream to advance the development of these novel anti-parasitic drugs, and we look forward to reporting the results of further safety and efficacy studies soon."
The Makerere researchers reported that the leishmaniasis candidates were well tolerated by mice at doses that were many times higher than the expected therapeutic dose levels, up to 25 mg/kg, with no signs of serious toxicity.
"Positive initial in vitro tests of biological activity along with these positive initial toxicity data in mice support further testing of these promising compounds," said Dr. Joseph Olobo, Associate Professor of Microbiology, Department of Parasitology and Microbiology at Makerere University and an expert in tropical parasitic diseases. "We support Upstream's innovative efforts to address these devastating parasitic diseases and welcome the opportunity to help advance our scientific understanding of their potential."
"Upstream's advanced computational approach to drug discovery has produced broad spectrum anti-protozoan compounds whose structural class has already demonstrated initial in vitro efficacy against leishmaniasis, trypanosomiasis and most recently malaria," noted Armando Jardim, Ph.D., Associate Professor of Parasitology at the Institute of Parasitology at McGill University. "As a wholly novel class, these agents also have a better chance of working against the increasing problem of drug-resistant strains. I am encouraged to see that in their first in vivo toxicity testing, representatives of the class have performed well, demonstrating a good safety profile at dosages many times higher than the expected therapeutic dose levels."
Upstream's library of novel compounds has demonstrated encouraging therapeutic potential in vitro against the tropical parasitic diseases malaria, leishmaniasis and trypanosomiasis, or African sleeping sickness. These three diseases are caused by related parasites.
"These positive toxicity results in mammals represent a major milestone for our program to develop new agents to treat tropical parasitic diseases," said Joel L. Bellenson, Chief Executive Officer of Upstream. "The excellent safety profile seen to date with our novel structural class is another validation of our artificial intelligence approach to drug discovery. This unique approach develops algorithms that leverage our growing knowledge base to filter out potential drug candidates with chemical structural patterns likely to cause toxicity. Similarly, the approach 'filters in' candidates with chemical structures likely to be effective against these challenging pathogens. Based on preclinical testing to date, we are very encouraged that our approach has great potential to produce the safe and effective new drugs that are so urgently needed by the millions at risk of these disabling and deadly diseases."
Upstream CEO Joel Bellenson will be discussing the company's innovative drug development programs for tropical parasitic diseases with other participants at the Bill & Melinda Gates Foundation-sponsored Partnering for Global Health Forum 2008 being held March 11 and 12, 2008 in Washington, D.C.
About Leishmaniasis
Leishmaniasis is a severe, geographically widespread parasitic disease caused by a protozoan flagellate and spread by the bite of infected sand flies. There are several different forms of leishmaniasis. The cutaneous type causes skin sores, the mucocutaneous form causes disfiguring lesions of the oral cavity area and the visceral type affects internal organs such as the spleen, liver and bone marrow. Visceral leishmaniasis can be lethal if untreated. Leishmaniasis is increasing in incidence with an estimated two million cases per year, and 350 million people in 88 countries are estimated to be at risk. More than 90% of the world's cases of visceral leishmaniasis are in India, Bangladesh, Nepal, Sudan, and Brazil. Leishmaniasis is also found in Mexico, Central America, and South America.
About Makerere University
Makerere University located in Kampala, Uganda is one of sub-Saharan Africa's oldest and most prestigious institutions of higher learning. It is among the largest universities in East and Central Africa, with a student population of over 30,000 undergraduate and 3,000 postgraduate students. Makerere consists of 22 faculties, institutes and schools and is an active center of research. While some faculties including Medicine were founded as early as 1924, Makerere was established as the University of East Africa in 1963, and became an independent national university of the Republic of Uganda in 1970. For more information visit: www.mak.ac.ug

AXIAL VECTOR ENGINE CORP (OTC: AXVC)
Up 11.67% Yesterday

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

Axial Vector(TM) Engine Corporation is a publicly traded company (Pink Sheets: AXVC) that owns, develops and licenses proprietary intellectual property regarding unique internal combustion engine technologies. AVEC is applying these technologies to develop an exciting, new, smaller and lighter internal combustion engine that produces significantly greater horsepower and three times more torque on less fuel than conventional engines of similar size.

Recent AXVC News:

March 10, 2008 - Dubai Investor Agrees to 'Standstill' Agreement With Axial Vector Engine Corporation.

Axial Vector Engine Corporation (Pink Sheets: AXVC) (Frankfurt: BAE1) announced today the signing of a stock standstill agreement with Emirates International Capital Advisory. EICA has agreed not to purchase or option any further equity in the company until the company has traded in excess of $4.00 per share for ten consecutive trading days.
Axial Vector has agreed to a freeze on any future investments from others and the stock position currently held by EICA may not be diluted without a two-thirds majority vote of the shareholders.
EICA has provided project financing to AVEC of $45,000,000 dollars for its engine and generator technology rollout.
Mr. Ahmed Khalifa, Chairman of AVEC stated, "We are delighted to have completed this agreement for financing and shareholder protection. While this agreement protects the investment of EICA, our largest shareholder, it also assures that the interest of our thousands of shareholders around the world are also protected as we begin the long awaited launch tomorrow of our products which have such enormous potential for revenue and profits."
A new audio-taped web cast interview with EICA Senior Managing Director Arash Masom is now available for listening on the WEBCASTS page at http://www.thegreenbaron.com.
This webcast to discuss developments with Axial Vector Engine Corporation is available as well at http://www.StrictlyStocks.com, "Where Wall Street speaks to the World". 

PSI CORP. (OTCPK: PSCP)
Up 42.86% Yesterday

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

PSI Corp: provides interactive customer communications systems and applications that support the targeted marketing programs at point-of-purchase (POP) service and information. The company has two vertical products: full motion video digital signage and full service Cash Express(TM) Kiosks/ATM.

Recent PSCP News:

March 10, 2008 - PSI Corp. Announces First Order of its Cash Express(TM) Kiosk/ATM

PSI Corp. (Pink Sheets: PSCP) a provider of customer facing, public access and self- service systems, today announced it has received a 10 unit order of its Cash Express(TM) Kiosk/ATM from Tellagent, a Credit Union Service Organization (CUSO) of Paragon Federal Credit Union. Paragon Federal Credit Union is one of the largest credit unions headquartered in New Jersey with over 62,000 members.
David Foni, chairman and CEO of PSI Corp. stated, "This purchase order is the first ever received by PSI Corp for its Cash Express(TM) Kiosk/ATM. It is indicative of the successful effort extended by both PSI Corp and Tellagent in developing a comprehensive solution for providing a bevy of services to credit union members on a 24 hour service level." Mr. Foni further stated, "PSI Corp anticipates that subsequent to a soon to be initiated 90 days beta test of its initial tranche of units, PSI Corp will be in a position to receive additional orders for its Cash Express(TM) Kiosks/ATM."
David Gardner, National Director of Sales for Tellagent LLC, a CUSO of Paragon Federal Credit Union, quotes Richard Rays, CEO of Paragon, "We are excited about the marketing opportunity afforded to us with the Cash Express(TM) Kiosk/ATM. It is an extraordinary device which will revolutionize the financial service industry. We are confident that this unit will permit our credit union, as well as over 8000 other credit unions, to have the ability to utilize the Cash Express(TM) Kiosk/ATM, expand both our memberships in the credit union and provide more sophisticated financial services to our existing members."

WJ COMMUNICATIONS, INC. (NASD: WJCI)
Up 12.94% Yesterday

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

WJ Communications, Inc. is a leading provider of radio frequency (RF) solutions serving multiple markets targeting wireless communications, RF identification (RFID), WiMAX, and RF power solutions. WJ addresses the RF challenges in these multiple markets with its highly reliable amplifiers, mixers, RF integrated circuits (RFICs), RFID reader modules, chipsets, and multi-chip (MCM) modules.

Recent WJCI News:

March 10, 2008 - WJ Communications to be Acquired by TriQuint Semiconductor

WJ Communications, Inc. (NASDAQ:WJCI), a leading designer and supplier of radio frequency (RF) products and solutions for the wireless infrastructure and radio frequency identification (RFID) reader markets, today announced a definitive agreement by which TriQuint Semiconductor, Inc. (NASDAQ:TQNT), a leading RF supplier to the wireless communications industry, will acquire all of the outstanding shares of WJ Communications. Under the terms of the merger agreement TriQuint will pay $1.00 per share in cash, implying a total purchase price of approximately $72 million. The Board of Directors of WJ Communications has unanimously approved the merger agreement and recommends that its stockholders approve and adopt the merger agreement, the merger and the transactions contemplated by the merger agreement.
"We have spent the last several months evaluating strategic alternatives for the Company in order to maximize shareholder value and accelerate the success of our products and technologies in the global market place," commented Bruce Diamond, President and Chief Executive Officer of WJ Communications. "We are pleased to announce this agreement with TriQuint, which will provide our stockholders with a substantial cash premium over the recent trading price of our stock. Additionally, we believe the combination will drive increased scale and efficiencies that will lead to a level of success commensurate with our innovation and product leadership."
The cash consideration represents an 18% premium to the March 7, 2008, closing price of WJ's common stock on the NASDAQ Global Market and a 50% premium to the average closing price for the prior thirty days.
The transaction has also been approved by the Board of Directors of TriQuint and is expected to close within 90 days, subject to approval by WJ's stockholders and other customary closing conditions.
Thomas Weisel Partners LLC is acting as exclusive financial advisor to WJ and has rendered an opinion to the Board of Directors of WJ Communications as to the fairness, from a financial point of view, to WJ's stockholders of the consideration to be received by the stockholders in the merger transaction. Shumaker, Loop & Kendrick, LLP is serving as legal counsel to WJ.
Conference Call
TriQuint Semiconductor will host a conference call and Web cast with investors today, Monday, March 10, 2008, at 10:00 a.m. Pacific Time (1:00 p.m. Eastern Time) to discuss the transaction. Investors and other interested parties may access the call by dialing 888-813-6582 with the Reservation ID 38668579, at least 10 minutes prior to the start of the call. Following the live conference call a telephone replay will be available by dialing 800-642-1687 with the same Reservation ID.
 
MICROMET, INC. (NASD: MITI)
Up 3.77% Yesterday

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

Micromet, Inc. is a biopharmaceutical company developing novel, proprietary antibodies for the treatment of cancer, inflammation and autoimmune diseases. Three of its antibodies are in clinical development. MT103 (MEDI-538), the most advanced antibody in Micromet's product pipeline developed using the BiTE(R) antibody technology platform, is being developed in a phase 2 clinical trial for the treatment of patients with acute lymphoblastic leukemia, and in a phase 1 clinical trial for the treatment of patients with non-Hodgkin's lymphoma. BiTE antibodies represent a new class of antibodies that activate a patient's own cytotoxic T cells to eliminate cancer cells. Micromet is developing MT103 in collaboration with
MedImmune, Inc., a subsidiary of AstraZeneca plc. The second clinical stage antibody is adecatumumab (MT201), a human monoclonal antibody targeting EpCAM-expressing solid tumors. Micromet is developing adecatumumab in collaboration with Merck Serono in a phase 1b clinical trial evaluating adecatumumab in combination with docetaxel for the treatment of patients with metastatic breast cancer. The third clinical stage antibody is MT293 (TRC093), a first-in-class humanized monoclonal antibody that inhibits angiogenesis and tumor cell growth by binding cleaved collagen. MT293 is licensed to TRACON Pharmaceuticals, Inc. and is being developed in a phase 1 clinical trial for the treatment of patients with cancer and age-related macular degeneration. In addition, Micromet has established a collaboration with Nycomed for the development and commercialization of MT203, Micromet's human antibody neutralizing the activity of GM-CSF, which has potential applications in the treatment of inflammatory diseases, such as rheumatoid arthritis, as well as autoimmune diseases.

Recent MITI  News:

March 10, 2008 - Micromet, Inc. to Host Conference Call and Webcast to Discuss Fourth Quarter and Full Year 2007 Financial Results

Micromet, Inc. (Nasdaq: MITI), a biopharmaceutical company developing novel, proprietary antibodies for the treatment of cancer, inflammation and autoimmune diseases, today announced that it will host a conference call and audio webcast on Thursday, March 13, 2008, at 9:00 am Eastern Time (2:00 pm Central European Time) to discuss its fourth quarter and full year 2007 financial results. Micromet anticipates releasing its financial results at 7:00 am Eastern Time (12:00 pm Central European Time) on Thursday, March 13, 2008.
To participate in this conference call, dial 800-561-2813 (U.S.) or 617-614-3529 (international), passcode: 29595857. The audio webcast can be accessed at: www.micromet-inc.com in the investor relations section of the website.
A replay of the call will be available from 11:00 am Eastern Time on March 13, 2008 (4:00 pm Central European Time) through Thursday, March 20, 2008. The replay number is 888-286-8010 (U.S.) or 617-801-6888 (international), passcode: 40638317.

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