The Micro Cap Opportunity

03/25/2008
The MCO Daily - Before the Bell for Wednesday, March 26th, 2008

On the Radar: HSOA, AURC, XDSL, PLTG, GNBT, DESC

This morning's top Micro Cap trading ideas include Home Solutions of America, Inc. (OTCPK: HSOA), Aurus Corp. (OTCPK: AURC), mPhase Technologies, Inc. (OTCBB: XDSL), Platina Energy Group, Inc. (OTCBB: PLTG), Generex Biotechnology Corp. (NASD: GNBT), Distributed Energy Systems Corp. (NASD: DESC).

?HOME SOLUTIONS OF AMERICA, INC.  (OTCPK: HSOA)
Up 75.00% Yesterday

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

Home Solutions of America, Inc. is a provider of restoration, construction and interior services to commercial and residential customers. Its Fireline subsidiary is involved in providing construction services, rebuilding, catastrophic storm response and contents restoration for commercial, industrial and residential properties. Based in Tampa, Fireline is certified in multiple aspects of the restoration industry, including smoke, fire, water and mold. The Company has operations in California, Texas, Florida, Alabama, Georgia, Louisiana, Mississippi and North Carolina. Home Solutions Restoration of Louisiana, Inc., which does business as Associated Contractors ("Associated"), is a Louisiana based commercial, industrial and residential contractor working in the governmental and private arenas. Associated has been one of the larger players in redeveloping public schools in the aftermath of Hurricane Katrina. Its clients include the State of Louisiana, the City of New Orleans, the Louisiana National Guard, the historic French Market and Louis Armstrong International Airport. For additional information, please visit the Company's Web site at http://www.hsoacorp.com.

Recent HSOA News:

March 25th, 2008 - Home Solutions Appoints One of Largest Outside Shareholders as New Chairman and Names Interim Chief Financial Officer

Home Solutions of America, Inc. (Pink Sheets:HSOA), a provider of restoration, construction and interior services to commercial and residential customers, announced today the appointment of Michael J. McGrath, Jr. to its Board of Directors. Mr. McGrath, who acquired a 5.7% ownership position in the Company through open market purchases of common stock, will serve as Chairman of the Board. The former Chairman, Frank J. Fradella, will remain as a Director and President and Chief Executive Officer. Mr. McGrath has waived his right to compensation as a director.
The Company further announced that the ongoing Audit Committee investigation into related party transactions and other matters has ended. In concluding its investigation and report, the Audit Committee confirmed its support for Mr. Fradella and the current management team.
"I am pleased to welcome Mike to our management team," said Mr. Fradella. "His confidence in the prospects for our business has been reflected through his significant purchases of our common stock."
Mr. McGrath is the Founder, Chairman and CEO of U.S. Mortgage Corporation ("USM"). Through its subsidiary CU National Mortgage, USM provides lending solutions to credit unions throughout the country. He is also a regional advisory board member of Fannie Mae. Prior to forming USM, Mr. McGrath was a founder, Senior Vice President and a member of the Board of Directors of West Jersey Community Bank, a publicly traded company that was purchased by Sovereign Bancorp in 1996. Mr. McGrath's experience extends to residential and commercial lending, construction and renovation of office and industrial complexes, and all aspects of financial analysis and budgeting.
The Company also announced the appointment of James M. Grady, a Senior Director with Alvarez & Marsal (A&M), as Interim Chief Financial Officer.
Mr. Grady, through his affiliation with A&M, provides management and advisory services for public sector and corporate organizations. His primary areas of concentration are developing and implementing strategic financial and operational turnaround plans, and developing and analyzing operating budgets and financial projections. Mr. Grady has assisted clients in industries such as construction, education, mining, manufacturing, professional services and healthcare.
With over ten years of restructuring experience, Mr. Grady's specific background includes leading detailed business planning and forecasting, identifying and implementing cost reduction and performance improvement opportunities, and managing asset dispositions and balance sheet restructurings in both the public and private sectors.
On November 9, 2007, the Company filed on Form 12b-25, a notification of late filing of its quarterly report for the third quarter of 2007. On November 14, 2007, the Company announced that it would further delay the filing of the quarterly report past the extended filing deadline. On December 14, 2007, the Company announced that it and its auditors had concluded that the Company's financial statements for the first two quarters of 2007 need to be restated and should no longer be relied upon. On March 21, 2008, the Company filed, on Form 12b-25, a notification of late filing of its Annual Report on Form 10-K for 2007. The delays arose due to the Audit Committee investigation, which has now ended. The Company is working diligently to file all required reports as soon as practicable.

AURUS CORP. (OTCPK:AURC)
Up 30.43% Yesterday

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

Aurus Corporation is a publicly traded mining holding company with several precious metal properties with over 5 million ounces in gold reserves, trading under the ticker symbol AURC on the US Pinksheets market. Aurus seeks to continue to acquire proven gold and other precious metal reserves in Russia and other emerging countries and operate its mines through joint ventures and/or partnerships.

Recent AURC News:

March 25th, 2008 - Aurus Prepares for Gold Extraction

AURUS CORP (PINKSHEETS: AURC) announces that the steps leading to processing rare earth minerals from the tailings in the Roshal territory has now begun. An Agreement was signed with InvestGasProm LLC to connect all equipment to the electric substation.
This prepares for the arrival of the first party of the newly purchased equipment built specifically for the extraction of gold and rare earth minerals from tailings. "We are most fortunate to acquire this unique processor which separates minerals by identifying their color spectrum," states Fedpr Dovgan, president.
The extraction Complex that is being put in place will include equipment with modern technologies for the extraction of other minerals based on magnetic separation and gravitational enrichments.
"The best season for mining these tailings is rapidly approaching and we will be ready," adds Mr. Dovgan.

MPHASE TECHNOLOGIES, INC. (OTCBB: XDSL)
Up 14.47% Yesterday

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

mPhase Technologies Inc. (OTCBB: XDSL), through its wholly owned subsidiary AlwaysReady, Inc., is focused on developing and commercializing a new battery technology based on a well patented phenomenon known as electrowetting which provides a unique way to store energy and manage power that will revolutionize the battery industry.

Recent XDSL  News:

March 25th, 2008 - mPhase/AlwaysReady Successfully Transfers NanoBattery Processing Steps to Commercial Foundry

mPhase/AlwaysReady, Inc. (OTCBB: XDSL) today said that it has successfully transferred certain processes critical to the manufacturing of its Nano Smart Battery originally developed at the New Jersey Nanotechnology Consortium to a commercial contract foundry facility.
This successful transfer takes us one step closer step towards commercializing the production our Microfludic Nano Smart Battery.
"We have overcome significant scientific challenges in this transfer which now allows for repeatability of certain structures enabling the phenomenon of electrowetting to occur which keeps the electrodes 'dry' and away from the active electrolyte by means of a nano structured super hydrophobic surface thereby creating an almost infinite shelf life battery," said Ronald A. Durando, CEO of mPhase Technologies.

PLATINA ENERGY GROUP, INC. (OTCBB: PLTG)
Up 28.57% Yesterday

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

Platina Energy is an environmentally responsible, fast growing E&P strategic reserve Company. Since organization in 2005, it has acquired proven producing and proven non-producing reserves in addition to other possible reserves. The Company also owns rights to German Inspired oil extraction technology. The Company continues to be aggressive in acquiring new and existing producing fields.

Recent PLTG News:

March 25th, 2008 - Platina Energy Group Announces Oil Production of 1500 Barrels per Month

Platina Energy Group, Inc. (OTCBB: PLTG), (FRANKFURT: O5Y) reports its production run-rate estimates across holdings in Kentucky, Oklahoma, Wyoming and Texas fields. Although Platina has positioned itself as a proven reserve Company, validation of such reserves are further solidified by gross production numbers that will likely exceed 50 barrels per day before the end of April.
These are preliminary forecasts, for oil now being produced in Texas, Oklahoma and Kentucky. Revenue interests vary but will be further delineated in subsequent SEC filings. The Company is compiling data on its natural gas production that will be available shortly.
Blair Merriam, President and CEO comments, "During a time when the general stock market is under pressure, we are exceeding forecasted performance. Our primary focus remains on the accumulation of reserves. With oil and gas near all time highs, we have incredible hidden proven reserve value behind our stock, positioning Platina as an attractive Company on a fundamental basis."

GENEREX BIOTECHNOLOGY CORP. (NASD: GNBT)
Up 26.32% Yesterday

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

Generex is engaged in the research, development, and commercialization of drug delivery systems and technologies. Generex has developed a proprietary platform technology for the delivery of drugs into the human body through the oral cavity (with no deposit in the lungs). The Company's proprietary liquid formulations allow drugs typically administered by injection to be absorbed into the body by the lining of the inner mouth using the Company's proprietary RapidMist(tm) device. The Company's flagship product, oral insulin (Generex Oral-lyn(tm)), which is available for sale in Ecuador for the treatment of patients with Type-1 and Type-2 diabetes and which was approved for sale in India in October 2007, is in various stages of clinical development around the world. For more information, visit the Generex website at www.generex.com.

Recent GNBT News:

March 25th, 2008 - Generex Biotechnology Receives Indian Purchase Order for Generex Orallyn

Generex Biotechnology Corporation (Nasdaq:GNBT), the leader in drug delivery for metabolic diseases through the inner lining of the mouth, announced today that it has received a Purchase Order for 210,000 canisters of Generex Oral-lyn(tm), the Company's proprietary oral insulin spray product, from Shreya Life Sciences Pvt. Ltd. (www.shreya.co.in), the Company's distributor in India. This is the first Indian commercial order for the Company's flagship product. Generex Oral-lyn was approved for sale in India in late 2007 and is the first non-injectable buccal insulin to receive Indian approval. Generex Oral-lyn is delivered into the mouth via the Company's proprietary RapidMist(tm) device. Unlike inhaled insulin products, buccally absorbed Generex Oral-lyn does not enter the lungs.
This order signifies Shreya Life Sciences' commitment to a successful commercial launch of the product in the Indian market.
In August, 2007 Generex entered into a Master Product Licensing & Distribution Agreement with Shreya Life Sciences, a leading Indian-based pharmaceutical company. Shreya is the fourth largest distributor of insulin in the Indian market and has interests in both pharmaceutical and biopharmaceutical products in key therapeutic segments including cardiology, neuropathy, and diabetes.
India has a significant and growing number of people with diabetes. According to the Diabetes Atlas 2007, there are approximately 40.8 million diagnosed patients with diabetes in India. There are also an estimated 35.9 million people who have pre-diabetic conditions which, if not properly treated and managed, could lead to full-blown diabetes. Generex believes that early intervention with insulin therapy could delay the onset and progression of diabetes and its numerous complications. Generex Oral-lyn, as a convenient and pain-free alternative to insulin injections, could encourage prandial insulin therapy among those patients who presently avoid injections.
"We are pleased to anticipate the commercialization of our flagship product in a major market like India and the attendant revenue," said Anna Gluskin, Generex's President & Chief Executive Officer. "We are optimistic about the establishment of a new treatment paradigm for diabetes and pre-diabetic conditions in India and other countries where we are now pursuing approvals. We look forward to working with Shreya to expand the market in India in order to capture a wider patient population."
Generex Oral-lyn is presently in Phase III clinical trials at several sites around the world.
 
DISTRIBUTED ENERGY SYSTEMS CORP. (NASD:DESC)
Up 26.99% Yesterday

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

Distributed Energy Systems Corp. (Nasdaq: DESC) creates and delivers wind and hydrogen power solutions to a decentralized energy marketplace, giving users greater control over their energy cost, quality, and reliability. Northern Power Systems, the company's wind division, has a history of leadership in wind power. The company's installed base of turbines has logged almost 2 million kilowatt-hours of production to date. The Northwind 100 is the company's branded 100kW wind turbine and is most widely known for helping wind-diesel customers in isolated communities save money and improve their power portfolio. More recently, the Northwind 100 has been penetrating the mainstream marketplace and providing wind power in grid-connected applications. For more information, visit www.distributed-energy.com.

Recent DESC News:

March 25th, 2008 - Distributed Energy Systems Books Wind Turbine Orders with Major Canadian Power Company

Distributed Energy Systems Corp. (Nasdaq: DESC), an innovative leader in wind power technology, announced today that it received an order for its advanced Northwind 100 gearless wind turbines from Newfoundland and Labrador Hydro (Hydro), the fourth largest utility company in Canada.
Three Northwind 100 turbines will be installed in Ramea, a small remote island on the south coast of Newfoundland and one of 22 isolated communities served by Hydro. Ramea is the site of a five-year innovative research and development project for an isolated wind-hydrogen-diesel generation system, one of the first of its kind in the world. This project is focused on developing an environmentally-friendly energy solution to be used in small, isolated electrical distribution systems. The project builds on the existing, successful wind-diesel system that has been operating in Ramea since 2004.
"We are very pleased to provide our experience and leading-edge, state of the art wind turbine to this innovative project in Ramea," said Bud Cherry, chief executive officer at Distributed Energy Systems. "The Northwind 100's track record for reliability and the technology and know-how of the DESC team will serve Newfoundland and Labrador Hydro extremely well."
"The Ramea Wind-Hydrogen-Diesel energy project has the potential to significantly reduce Hydro's reliance on diesel generation and provide clean, renewable energy to isolated customers," said Greg Jones, Hydro's vice president of Business Development (Acting). "Distributed Energy Systems' technology and expertise in remote northern communities is a strong fit for us."
With 100kW of rated power, the Northwind 100 was originally designed for use in remote winddiesel applications, and more recently has been released as an alternative power generator for grid-connected customers such as small businesses, commercial farms, small communities, schools and universities, and small corporate and industrial sites. The permanent magnet direct-drive (PMDD) turbine delivers best-in-class reliability and high energy capture to the mainstream wind energy marketplace.

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