The Micro Cap Opportunity

05/05/2008
The MCO Daily - Before the Bell for Tuesday May 6th, 2008

The Micro Cap Opportunity 'Daily'
‘Before the Bell’ for Tuesday, May 6th, 2008

On the Radar: BIEL, PRPM, MENV, NNVC, DSCO, SYNM

This morning's top Micro Cap trading ideas include, Bioelectronics Corp. (OTCPK: BIEL), Propalms, Inc. (OTCPK: PRPM), Micron Enviro Systems, Inc. (OTCBB: MENV), NanoViricides, Inc. (OTCBB: NNVC), Discovery Laboratories, Inc. (NASD: DSCO), Syntroleum Corp. (NASD: SYNM).

BIOELECTRONICS CORP. (OTCPK: BIEL)
Up 7.14% Yesterday

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

Bioelectronics Corporation is the maker of the ActiPatch(TM). ActiPatch is a drug free anti-inflammatory patch with an embedded battery operated microchip that delivers weeks of continuous pulsed therapy for less than a dollar a day. The unique ActiPatch delivery system, using patented technology, provides a cost-effective patient friendly method to reduce soft tissue pain and swelling. ActiPatch is U.S. Government Food and Drug Administration (FDA) cleared for use in reducing edema (swelling) following blepharoplasty and has no known side effects. The product is also approved by Health Canada for the relief of pain in musculoskeletal complaints and is widely available in pharmacies across Canada. The European Union has also approved ActiPatch as a Class II pulsed electromagnetic medical device as have numerous other international regulatory agencies. Information on ActiPatch and BioElectronics Corp. is available at the following websites:

    -- U.S. Consumer http://www.actipatchonline.com

    -- Podiatry: www.pemfpodiatry.com

    -- Plastic Surgery: www.plasticsurgery.com and  www.makemeheal.com

    -- German orthopedic foot & ankle: www.diesfussexperten.de

    -- Italy and Switzerland: www.actipatch.it

    -- BioElectronics Corp:  http://www.bioelectronicscorp.com

 
Recent BIEL News:

May 5, 2008 - BioElectronics Corporation Receives Major Orders From Italian Distributor

BioElectronics Corporation (Pink Sheets: BIEL), the maker of the ActiPatch(TM), a drug free anti-inflammatory patch, with an embedded battery operated microchip delivering weeks of continuous pulsed therapy for a nickel an hour, announced today it has received significant new orders from its Italian distributor, TSS Medical, (Tecnica Scientifica Service). TSS Medical has purchased this additional inventory to meet demand in Italy and other European Union counties. BioElectronics is seeing demand for its product increase significantly in Western Europe, which combined with expanding sales in the U.S. and other countries, is likely to drive quarterly revenues to record levels.

Andrew Whelan, President and CEO of BioElectronics Corp. comments, "These are exciting times for all of us at BioElectronics. We expect demand from Italy to increase over the coming months as the product is rolled out to pharmacies across the country. We have also expanded the relationship with our Italian partner to include distribution to additional areas in Europe for which we have now received an initial stocking order. Many Europeans are very interested in the drug-free nature of our products at a time when NSAIDs, such as Vioxx(R) and Celebrex(R), have been determined to have potentially serious cardiovascular side effects. We believe health consumers with pain and soft tissue injuries will continue to view our proven, state-of-the-art ActiPatch therapy as an effective alternative to pharmaceuticals."

PROPALMS, INC. (OTCPK: PRPM)
Up 7.14% Yesterday

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

Propalms TSE, the complete Server-Based Management solution that extends Microsoft Terminal Services 2000/2003, offers features such as Application Publishing, Seamless Windows, Resource-based Load balancing, and Web-based management consoles.

Recent PRPM News:

May 5, 2008 - Propalms, Inc. Completes Acquisition of Leading Security Solution Company

Propalms, Inc. (Pink Sheets:PRPM) is pleased to announce that the Company has completed the acquisition of vFortress, a leading security solution company. The acquisition gives Propalms the rights to all vFortress customers and property, including the worldwide IP rights and source code of a Virtual Private Network (VPN) solution. The acquisition was an all-cash transaction, which means there will be no dilution to the stock. Propalms expects Company sales to double within the next 24 months as a result of the acquisition and will rebrand the VPN product within two to three weeks.

Propalms will rename the product to "Propalms VPN." Propalms VPN will be sold as an individual application for enterprises that already have server-based computing, which opens up new multimillion dollar opportunities for Propalms. According to ZDNet Research, the IP VPN market is expected to grow to over $5.8 Billion in 2009. Propalms VPN will also provide secure remote access for small to large enterprises without any restrictions on the amount of users logging in remotely, which will enable companies to run more efficiently and cut down on their operational costs.

"As we continue our worldwide expansion of Propalms product line, we expect to acquire more companies like vFortress as we strive to introduce new products to the market. Propalms VPN will not only further expand our customer base, but will open up additional revenue streams for Propalms to reflect a larger market share and will enable Propalms to compete with VMware, Microsoft and Citrix," stated Owen Dukes, CEO of Propalms, Inc.

Propalms held a nationwide teleconference on May 1, 2008. Some key points Company executives addressed were: that in the last two years, in North America alone, 40% of Propalms TSE customers were former Citrix users; a beta version of TSE 6.0 will be released next week and available to download on Propalms' Web site; and, as soon as the Company releases TSE 6.0, Propalms will become a Microsoft Gold Certified Partner. During the teleconference, Robert Zysblat, the President of Propalms, discussed that during the fiscal year 2008, Propalms increased its revenues by approximately 50%, while significantly decreasing its net loss, versus the prior fiscal year. Owen Dukes, CEO of Propalms, also detailed the status of Propalms' pilot project with Toyota Group and explained that even if Toyota converts only 50-60% of their total desktops to thin clients, it would equate to an order of approximately $10 million for Propalms.

MICRON ENVIRO SYSTEMS, INC. (OTCBB: MENV)
Up 20.00% Yesterday

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

Micron is an emerging oil and gas company that now has exposure to multiple leases consisting of interests in 50.5 gross sections (31,945 acres) in the Oil Sands of Alberta, Canada, which is one of the largest oil producing regions in the world. Micron holds 100% interest in 4 sections, 50% interest in 16 other sections, 5% interest in 26 sections, and has a 4.17 % net interest in 4.5 additional Oil Sands sections. Management's goal is to build the asset base of the Company through strategic alliances and independent acquisitions that will build long-term shareholder value. Management continues to look for additional projects that would contribute to building Micron's market capitalization, including additional Oil Sands projects. Please visit our website for detailed maps of the locations of Micron's prospects at www.micronenviro.com.

Recent MENV News:

May 5, 2008 - Micron Enviro Systems Inc. Submits Coal Permits in East Central Saskatchewan

Micron Enviro Systems, Inc.'s (OTCBB: MENV)(GERMANY: NDDA) ("Micron" or the "Company") wishes to announce that it has submitted coal permits encompassing one township (approximately 23,000 acres) in east central Saskatchewan, Canada. There are no guarantees that any of these proposed permits will be awarded to Micron. Bradley Rudman, president of Micron stated, "It has been a very tough time in the Canadian Oil Sands recently. The investing sentiment regarding junior Oil Sands companies is not the same as conventional oil and gas companies are receiving at this time. Management feels that with 100 dollar plus oil currently, it is only a matter of time that the sentiment becomes positive again for Canadian Oil Sands companies. Management is very positive about the future potential of the significant acreage acquired in the past few years and plans to continue to attempt to develop and accumulate Oil Sands assets in the future. That being said the Company has been much too inactive in the past year intends to change that now. Management will be very proactive in attempting to build back shareholder confidence and value going forward. This potential new coal acquisition is in the same region of the recently announced (April 28, 2008) Goldsource Mines Inc. new coal discovery. In addition to this new coal prospect, management is actively evaluating additional prospects in multiple sectors, and further announcements are anticipated in the future."

NANOVIRICIDES, INC. (OTCBB: NNVC)

Up 23.19% Yesterday

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

NanoViricides, Inc. (www.nanoviricides.com) is a development stage company that is creating special purpose nanomaterials for viral therapy. The Company's novel nanoviricide(TM) class of drug candidates are designed to specifically attack enveloped virus particles and to dismantle them. The Company is developing drugs against a number of viral diseases including H5N1 bird flu, seasonal influenza, HIV, hepatitis C, rabies, dengue fever, and Ebola virus, among others.

Recent NNVC News:      

May 5, 2008 - Anti-HIV NanoViricide Drug Candidate Demonstrates Significant Therapeutic Efficacy in Animal Trials

 NanoViricides, Inc. (OTC BB: NNVC.OB), said that its anti-HIV drug candidates demonstrated significant therapeutic efficacy in the recently completed preliminary animal studies. The studies were performed at a Bio-Safety Level 3 Laboratory (BSL-3) facility in Boston, MA. These mouse model studies were conducted by Dr. Krishna Menon, PhD, VMD, MRCS, a world-renowned authority in preclinical and toxicological studies of innovative therapeutics.

"Dr. Menon has indicated to us that the results of the study validate the Company's HivCide-I as a potential treatment for HIV/AIDS," said Eugene Seymour, MD, MPH, CEO of NanoViricides, adding, "Over the next several weeks, we expect to release additional study data." The Company's scientists are now designing the protocol for a follow up anti-HIV study to be performed at a major United States government research facility.

The Company also said that animal studies for its drug candidates against bird flu (H5N1) are due to be scheduled at a major United States government research facility. The company has previously reported that animal studies against Ebola would be undertaken following the success of in vitro studies. These studies are continuing.

NanoViricides, Inc. is using injectable nanoviricides for its initial HIV studies. Future plans call for the development of a long-acting anti-HIV skin patch. The Company feels that this delivery method will result in markedly improved patient compliance.

DISCOVERY LABORATORIES, INC. (NASD: DSCO)                                                                                                 Up 31.03% Yesterday

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

Discovery Laboratories, Inc. is a biotechnology company developing Surfactant Replacement Therapies (SRT) for respiratory diseases. Surfactants are produced naturally in the lungs and are essential for breathing. Discovery Labs' technology produces a peptide-containing synthetic surfactant that is designed to closely mimic the essential properties of natural human lung surfactant. Discovery Labs believes that, with its proprietary technology, SRT has the potential, for the first time, to advance respiratory medicine and address a variety of respiratory diseases affecting neonatal, pediatric and adult patients.

Discovery Labs' lead product candidate, Surfaxin(r), is the subject of an Approvable Letter from the FDA for the prevention of Respiratory Distress Syndrome in premature infants. Surfaxin is also being developed for other neonatal and pediatric indications. Aerosurf(tm), Discovery Labs' aerosolized SRT, is being developed to potentially obviate the need for intubation and conventional mechanical ventilation and holds the promise to significantly expand the use of surfactants in respiratory medicine. For more information, please visit our website at www.Discoverylabs.com.

Recent DSCO News:

May 5, 2008 - Discovery Labs Provides Guidance On FDA Approvable Letter for Surfaxin for RDS

Discovery Laboratories, Inc. (Nasdaq:DSCO) on May 1, 2008 received an Approvable Letter from the U.S. Food and Drug Administration (FDA) for Surfaxin(r) (lucinactant) for the prevention of Respiratory Distress Syndrome (RDS) in premature infants. Discovery Labs' Manufacturing, Quality and Regulatory management have performed an assessment of the remaining conditions set forth in the Approvable Letter that must be satisfied to gain U.S. marketing approval for Surfaxin.

Discovery Labs believes that the steps required to file a response to the Approvable Letter may be completed in the upcoming 6 to 8 weeks and the response may potentially be designated by the FDA as a Class 1 resubmission with a review target of 60 days, rather than the longer 6 month review target. The overall timeline may be shortened or extended following discussions with the FDA to clarify certain requests in the Approvable Letter. Importantly, the Approvable Letter contains no requirement for additional clinical trials to gain Surfaxin approval.

Status of Surfaxin NDA Approval Progress Prior to May 1st Approvable Letter

Key achievements towards gaining FDA approval of Surfaxin include the following:

 *  On April 30th, Discovery Labs and the FDA agreed to the content

    of the Surfaxin package insert.  Discovery Labs is pleased with

    the competitive profile of the proposed package insert.

 *  Discovery Labs has successfully addressed quality and

    manufacturing issues at its manufacturing operation in Totowa,

    New Jersey:

    o In March 2008, the FDA completed a pre-approval inspection

      (PAI) of Discovery Labs' manufacturing operations and recently

      issued an Establishment Inspection Report (EIR) indicating an

      approval recommendation. Discovery Labs' manufacturing

      operations are prepared for Surfaxin commercial production.

    o In support of the Surfaxin NDA, Discovery Labs manufactured

      three Surfaxin process validation batches.  As of March 2008,

      these batches successfully attained 12 months stability and

      continue to demonstrate conformance to established stability

      specifications.

  *  The quality control and quality assurance facilities and

     operations of Discovery Labs were inspected by the FDA with

     acceptable results.

May 1st Approvable Letter

Discovery Labs has completed an assessment of the remaining comments set forth in the Approvable Letter that must be addressed to gain U.S. marketing approval for Surfaxin. Discovery Labs firmly believes that this recent Approvable Letter reflects notable progress towards gaining FDA approval for Surfaxin. This Approvable Letter does not include any comments related to Surfaxin analytical chemistry methodology, drug product impurity qualification, or comparability of the current Surfaxin manufacturing process to that used to manufacture drug product employed in the pivotal study.

Discovery Labs' assessment of the Approvable Letter is as follows:

  *  The release and stability biological activity test for Surfaxin

     requires further clarification with the FDA.  The Approvable

     Letter included a request to further tighten an acceptance

     criterion for this biological activity test. Based on data

     currently available, Discovery Labs believes that it and the

     FDA can agree upon a final acceptance criterion for the test.

  *  The Approvable Letter included a request to further tighten

     acceptance criteria for lipid drug substance impurities. Based

     on data currently available, Discovery Labs believes that it

     and the FDA can agree upon final acceptance criteria.

  *  The Approvable Letter requests further tightening of 2 of the

     21 physical and chemical drug product acceptance criteria that

     were proposed by Discovery Labs in its October 2007 Complete

     Response.  Based on the Surfaxin data set currently available,

     Discovery Labs can comply with this request.

  *  The FDA also requested that Discovery Labs submit summary

     information from certain equipment-related qualification

     reports for inclusion to the Surfaxin NDA.  This information

     was previously reviewed and found acceptable during the FDA's

     recent pre-approval inspection of Discovery Labs' manufacturing

     operations.

 
SYNTROLEUM CORP.. (NASD: SYNM)
Up 9.68% Yesterday

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

Syntroleum Corporation owns the Syntroleum(R) Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining(R) Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Biofining(TM) technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel. Together with Tyson Foods, Syntroleum is focused on siting, engineering and constructing a plant that produces clean renewable synthetic diesel and jet fuel using low grade fats and greases as feedstock. The 50/50 venture - known as Dynamic Fuels - plans to announce the plant site in the fourth quarter of this year, with production beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects.

Recent SYNM News:

May 5, 2008 - Syntroleum Announces First Quarter 2008 Financial Results

Syntroleum Corporation (NASDAQ: SYNM) today announced financial results for the quarter ended March 31, 2008.

    --  Cash position of $23.9 million compared to a cash position of

        $18.4 million at December 31, 2007.

    --  Net cash used in operating activities was $1.5 million for the

        first quarter of 2008 compared to net cash used in operating

        activities of $6.9 million for the same period last year.

    --  Total costs and expenses of $3.1 million for the first quarter

        of 2008 compared to $9.8 million for the same period last

        year.

    --  Total general and administrative expenses were $2.0 million

        for the first quarter of 2008 compared to $8.8 million for the

        same period last year.

    --  Dynamic Fuels joint venture with Tyson Foods proceeding on

        schedule and on budget, with plant sanction anticipated at the

        end of the second quarter of 2008.

    --  First Quarter revenues of $1.6 million compared to revenues of

        $13.7 million for 2007.

    --  Net loss of ($0.04) versus income of $0.26 for the quarter

        ended March 31, 2007.

Initially the Company forecasted a total cash usage for the year ended December 31, 2008 to be approximately $7.1 million. Based on the collection efforts of receivables, additional asset sales and continued execution of cost reductions completed in the first quarter, the Company now forecasts to remain cash neutral for the year ended December 31, 2008.

The Company's cash balance at March 31, 2008 was $23.9 million, an increase from $18.4 million from the December 31, 2007 year-end. This increase in cash is related to the collection of a $5.8 million receivable owed Syntroleum and the sale of the Company's corporate facility in the amount of $1.3 million. The increase in cash is also related to continued revenues collected for engineering services and a reduction in costs and expenses. The Company has reduced general and administrative expenses by 77% for the quarter ended March 31, 2008 compared to the same period last year. The Company collected an additional $1.5 million on April 30, 2008 for settlement of future payments that would have been calculated on first gross revenues received from our previous international oil and gas interests.

For the first quarter ended March 31, 2008, the Company reported a net loss of $2.2 million, or ($0.04) per share, compared to a net income of $14.8 million, or $0.26 per share, for the 2007 first quarter. Revenues for the current quarter were $1.6 million compared to $13.7 million for the first quarter of 2007. Increased net income and revenue for the first quarter of 2007 related to a non-cash settlement transaction with Marathon Oil Company. The company settled its convertible debt with Marathon resulting in a one time non-cash licensing revenue of $13.7 million and a non-cash gain on extinguishment of debt of $10.1 million.

For additional information, see the Company's Form 10-Q for the March 31, 2008 period, which has been filed with the SEC. The 10-K is available through the Investor Relations section of the Company's Web site, http://www.syntroleum.com.

Conference Call

Syntroleum management plans to hold a conference call with the investment community on Tuesday, June 3, 2008, at 10:00 a.m. Central time (11:00 a.m. Eastern). To participate in the teleconference, investors should dial 800-374-1301 about 10 minutes before the start time and reference the Syntroleum conference call. International callers should dial 706-634-7261. The conference call can also be accessed by visiting the company's Web site, http://www.syntroleum.com.

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