The Micro Cap Opportunity

06/03/2008
The MCO Daily - Before the Bell for Wednesday June 4th, 2008

The Micro Cap Opportunity 'Daily'
‘Before the Bell’ for Wednesday, June 4th, 2008

On the Radar: SRSR, UVSS, WFYW, CHMD, ICOG, CYTR

This morning's top Micro Cap trading ideas include, Sarissa Resources, Inc. (OTCPK: SRSR), Universal Systems, Inc. (OTCPK: UVSS), Wherify Wireless, Inc. (OTCBB: WFYW), China Media Group Corp. (OTCBB: CHMD), ICO Global Communications Holdings Ltd. (NASD: ICOG), CyRx Corp. (NASD: CYTR).

SARISSA RESOURCES, INC. (OTCPK: SRSR)

Down 5.36% Yesterday

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

Sarissa Resources is an American junior exploration company that identifies and explores mineral properties in North America. Currently, Sarissa has interests in properties with base metal, precious metal, uranium and niobium prospects in Northern Ontario, Canada.

Recent SRSR News:

June 3, 2008 - Sarissa Resources Appoints Mining Industry Veteran to Board of Directors

Sarissa Resources, Inc. (PINKSHEETS: SRSR) announced today that the Company has appointed seasoned mining industry veteran and project geologist, Alan A. Hawke B.Sc. M.Sc to its Board of Directors. Mr. Hawke, currently based in Tianjin, China, will offer his considerable experience to assist Sarissa in the ongoing exploration program of its Nemegosenda carbonatite deposit and extensive industry connections to source new and compelling exploration properties for the Company's property portfolio.

In a distinguished mining and exploration career that has spanned 30 years and three continents, Mr. Hawke has operated in key managerial roles -- encompassing mine development and construction management -- with prominent mining companies including eight years in Indonesia with PT Kelian Equatorial Mining. While at Kelian as project geologist, Mr. Hawke was responsible for all exploration activities, definition drill-out and resource studies that identified the Kelian Gold Mine.

Sarissa Resources CEO, Scott Keevil, stated, "I am thrilled to be working with Alan again, and want to warmly welcome him on board. He is the consummate exploration and mining professional possessing a stellar reputation among the industry's elite. His operational know-how and deep-rooted business connections will help create enormous value for Sarissa shareholders."

Ben Fuschino, who had served as Sarissa's president before Mr. Keevil, has resigned from the Board to concentrate on his other business ventures.

UNIVERSAL SYSTEMS, INC. (OTCPK: UVSS)
Up 14.29% Yesterday

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

Universal Systems, Inc. (USI) is a publicly traded holding company focused on providing economically and ecologically viable water and wastewater treatment solutions. USI offers a FULL SERVICE turn-key water treatment service, specializing in "slop oil" and CBM (Coal Bed Methane) produced water.

In 2007, USI obtained an exclusive worldwide licensing agreement to provide slop oil and processed wastewater treatment services to the oil industry. The company's mission is to become the leader in the development and delivery of cost-effective slop oil and processed wastewater treatment. USI joined Powell Water Systems, Inc. (PWS) and Water Solutions, LLC (WS) to bring PWS's patented electrocoagulation technology to the oil industry, making large flow waste oil, and water treatment efficient and cost effective.

More recently, USI has discovered the immediate need to become involved in building, owning, and operating central produced water processing facilities. This service is widely needed wherever natural gas is produced; the diminished capacity to handle processed water from natural gas production is causing some production wells to be shut in until alternative-treating plants can be brought on line. As stricter water discharge regulations are being imposed, the need is becoming even greater.

USI's business plan for expansion includes the purchase or acquisition of other specialized trade service companies that will complement and enhance the overall product and service offering of the company.

Recent UVSS News:

June 3, 2008 - Universal Systems Meets With Major Oil Companies to Discuss Wastewater Treatment

Universal Systems, Inc. (PINKSHEETS: UVSS) announced today that for the past several months key members of the company's engineering team have met with two major oil companies to review solutions to wastewater concerns associated with "oil drilling and refinery" operations.

"As the demand for oil increases, so does the problem of wastewater," stated Mr. Kevin Chambers, CEO of Universal Systems, Inc. "However, this is not a new problem, but an issue that has plagued the oil and gas industry for decades, compounded by harsher EPA regulations and costs associated with its disposal."

For more than 10 years, both Powell Water Systems, Inc. (PWS) and Water Solutions, LLC (WS) have provided their customers with proven "cost-effective" wastewater treatment solutions, representing a variety of manufacturing industries. Today, they have collectively manufactured and deployed over 350 units worldwide. Through the combined research and development and licensing relationship with USI, these products are now available specifically for the oil and gas industry. However, instead of focusing on manufacturing and sales, USI is distinctively poised to capitalize on the "process service" side of the business, thus increasing long-term income potential for the company.

Mr. Chambers further commented, "It's exciting to see how our R&D efforts are finally being taken seriously by the industry. As more and more oil companies begin to understand how our unique and efficient process can save them valuable time and money, our market opportunities will continue to grow exponentially."

WHERIFY WIRELESS, INC. (OTCBB: WFYW)
Up 34.62% Yesterday

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

Wherify Wireless, Inc. (OTC Bulletin Board: WFYW) is a pioneering developer of personal location products and services. With patented personal location and position tracking technology and patent pending GPS locator communications capability, Wherify Wireless continues to be a leader in location technology development. Wherify's Aided-GPS location has been integrated into more than 100 GSM cellular networks world-wide. Wherify's expertise in GPS technology for wireless devices and its patented back-end location service engine enable customers to obtain real-time location information on individuals and property directly through the Internet or any phone. The Smithsonian Institution Museum has recognized Wherify's groundbreaking first product, the Child Locator, by putting it on permanent display as the world's first commercial personal GPS tracking device. In 2007, Wherify's Wherifone(TM) received the Consumer Electronic Show's Award for Excellence in Innovation in Wireless Communications. Wherify was founded in 1998, and is located in San Mateo, California.

Recent WFYW News:

June 3, 2008 - Wherify Wireless Announces Letter of Intent to Merge with Lightyear Network Solutions

Wherify Wireless, Inc. (OTC Bulletin Board: WFYW), home of the award winning Wherifone GPS Locator Phone and the Springboard Location Based Services Platform, today announced that it has entered into a non-binding letter of intent with Lightyear Network Solutions, Inc. to merge its business into Wherify.

The proposed merger of Wherify and Lightyear would be conditioned on, among other things, negotiation and execution of a definitive agreement, approval of the merger by the shareholders of both companies, obtaining a minimum of $15 million in new equity capital and restructuring of existing debt. The letter of intent specifies that no more than $2.5 million of the new equity capital would be used to restructure Wherify's current unsecured liabilities (approximately $16 million) and $2.5 million of such equity capital would be used to restructure Wherify's secured debt with Yorkville Associates. The letter of intent contemplates that the combined company would retain approximately $2.5 million of secured debt with Yorkville Associates. After repayment of approximately $800,000 of expected new bridge indebtedness and payment of transaction expenses and associated legal fees, the combined company would have approximately, $6.5 million in working capital. Wherify has not yet obtained binding commitments for the bridge financing, equity financing or debt restructuring. There is also no guaranty or assurance that the final restructuring terms, if any, will not be materially different upon further negotiations and due diligence.

Wherify, a pioneer in the rapidly emerging location based service business, is in the process of completing its proprietary location based service platform, Springboard. The Springboard platform is being designed to enable mobile communications carriers, mobile application providers and mobile device manufacturers to develop a wide array of location based services applications for their products, such as mobile social networking, mobile community search and shopping and fleet management. Springboard technology includes support of both GPS and non GPS equipped devices.

Lightyear, a closely-held private company, is a business and network service solutions company generating annual revenues in 2007 of approximately $65 million with an EBITDA of $2.2 million. Lightyear provides a host of telecom products and services for business and individual customers, including, among other things, integrated network access service for voice, data, private lines, VoIP services to over 4,000 business enterprise clients nationally. Sherman Henderson, Lightyear's President and CEO and the six-year incumbent chairman of COMPTEL, said, "Merging the unique location based services platform from Wherify with Lightyear's strong customer service focus, our potent multi-channel distribution network and our strong telecom industry relationships has the potential to geometrically enhance the combined company's business prospects."

Vince Sheeran, Wherify's Chief Executive Officer, said, "Bringing together Wherify's proprietary location based service platform with Lightyear's established leadership in customer support, multi-channel distribution and carrier presence is an excellent fit. We believe the proposed merger of Wherify and Lightyear has the potential to unlock the unfulfilled promise that location based services have represented for the wireless industry."

If the merger is completed as contemplated in the letter of intent, Mr. Henderson would be named the Chairman and CEO of Wherify, and Wherify would change its name to Lightyear Network Solutions. Under the present terms of the non binding letter of intent, Lightyear shareholders would receive approximately 51% of the pro-forma fully-diluted shares outstanding on the closing date of the merger and will have the right to choose 60% of the Board of Directors.

To facilitate the combination, Yorkville Advisors and Wherify entered into a forbearance agreement on May 19, 2008 under which Yorkville Advisors agreed in principal to the terms of the letter of intent and to forbear from exercising its rights and remedies under its secured debenture with Wherify.

About Lightyear Network Solutions, LLC

Lightyear Network Solutions, LLC was founded in 1993 when J. Sherman "Sherm" Henderson III began operations under the name of UniDial. Sherman Henderson was named one of the top 25 Most Influential People in Telecommunications and has been elected for six consecutive terms as Chairman of Comptel, the leading industry association representing communication service providers. Lightyear markets and sells telecommunication services to medium to small businesses and residential consumers primarily through independent agents and representatives throughout the United States. Lightyear built its own VoIP network in 2004 to enhance its product offerings to its customers. Lightyear has partnered with some of the biggest names in telecom including: Verizon, AT&T, Level 3, Qwest, Sprint, Embarq, PAETEC, Sylantro, Cisco, Adtran, Voicecom, Iperia and Acme Packet. Lightyear is located in Louisville, Kentucky.

CHINA MEDIA GROUP CORP. (OTCBB: CHMD)
Up 30.00% Yesterday

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

China Media Group Corporation (OTCBB: CHMD) is a "Next Generation" advertising / media company focusing on the very lucrative Chinese market. It has offices in China, Hong Kong and Texas, USA. The company was incorporated in Texas on October 1, 2002. The Company is currently entering the fast growing advertising industry in China and plans to expand its offices in key cities such as Shanghai, Guangzhou and Shenzhen. The Company will also cooperate with strategic partners in other cities to serve our clients for nationwide advertising coverage.

Recent CHMD News:      

June 3, 2008 - China Media Group Corporation Announces July Commercial Shipment of M.A.G.I.C. Shiv1 and Video Footage of the Recent Commercial Launch

China Media Group Corporation (OTCBB: CHMD) ("CMG") announces today that it has been informed by Advance tech Communications Limited that it can expect to receive the first commercial shipment of M.A.G.I.C. in July 2008. In addition China Media Group also announces that a live video recording of the recent commercial launch of M.A.G.I.C. has been posted on the YouTube video link:

http://www.chinamediagroup.net/video/magicpress/

Mobile Advanced Global Integrated Communicator (M.A.G.I.C.) is one of the world's first true convergent devices for the ubiquitous platforms of today. M.A.G.I.C. is a laptop computer miniaturized to the size of a handheld device, and incorporates a mobile phone, digital camera and global positioning device, which we believe is one of the most powerful true convergent multimedia devices of its kind in the world today. M.A.G.I.C. is able to deliver rich multimedia experiences like a powerful desktop PC because of its powerful hardware.

Mr. Con Unerkov, Chairman of China Media Group stated, "This is exciting news for the Company. I recently attended the commercial launch of M.A.G.I.C. Shiv1 in Malaysia where I indicated that China Media would be placing an initial purchase order for over 5,000 units to be delivered in stages. We are excited that we will receive these commercial units and be in a position to take these to the market where we expect them to be highly sought after based on the feedback we have already received."

Mr. Unerkov added, "There are over 480 million mobile phone owners in China. This is greater than the population of USA and UK combined. In China, 35 out of 100 people have mobile phones and this is continuing to increase. Whilst the number of mobile phone users increase year by year, the value added mobile services continues to increase rapidly. As an example it was reported that in 2006, 12 billion SMS greetings were sent during the CNY holiday. For Broadband, China has already become the 2nd largest number of subscribers in the world where according to CNNIC, the number of broadband users as of June 2007 was 122 Million users and growing rapidly."

Mr. Unerkov added, "M.A.G.I.C. is a device that is in a position to take advantage of these growing market trends. It is a device that allows users the ability to conduct business in the manner that they choose rather than altering their business habits to cater to the devices that they use. We are all excited with what the future holds for the company and all shareholders."

ICO GLOBAL COMMUNICATIONS HOLDINGS LTD. (NASD: ICOG)                                                                                                                           Up 10.29% Yesterday

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

ICO Global Communications (Holdings) Limited is a satellite communications company developing an advanced next-generation hybrid media system, combining both satellite and terrestrial communications capabilities. ICO G1 is capable of supporting wireless voice, data, and/or Internet services throughout the United States on mobile and portable devices. ICO is deploying a mobile interactive media service known as ICO mim(TM). ICO mim will combine ICO's unique interactive satellite capability with nationwide coverage to deliver a new level of navigation, enhanced roadside assistance and the ultimate mobile video experience, including 10-15 live channels of premium television content. ICO is based in Reston, Virginia. For more information, visit www.ico.com.

Recent ICOG News:

June 3, 2008 - Information on ICO Litigation with Boeing Satellite Systems

ICO Global Communications (Holdings) Limited (NASDAQ:ICOG) today is responding to a number of requests for information on its pending litigation with The Boeing Company and Boeing Satellite Systems International (Boeing).

ICO has been notified by the Court that the trial, which was previously scheduled to begin on May 5, 2008, has now been confirmed to commence on June 16, 2008. The trial will be open to the public, and case information can be found at www.lasuperiorcourt.org, case number BC320115.

CYRX CORP. (NASD: CYTR)
Up 6.82% Yesterday

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

 CytRx Corporation is a biopharmaceutical research and development company engaged in the development of high-value human therapeutics. The Company has three clinical-stage compounds based on its small-molecule "molecular chaperone" co-induction technology. CytRx owns and operates a research and development facility in San Diego. CytRx also maintains a 49% equity interest in RXi Pharmaceuticals (Nasdaq: RXII). For more information on the Company, visit www.cytrx.com.

Recent CYTR News:

June 3, 2008 - CytRx to Present at the GTCbio's Third Assay Development & Screening Technologies Conference

CytRx Corporation (Nasdaq: CYTR), a biopharmaceutical company engaged in the development and commercialization of human therapeutics, today announced that Bin Zhang, Ph.D., Associate Director of Biochemistry and Screening, is invited to present CytRx's novel high-content screening (HCS) assay for small molecule amplifiers of the cellular chaperone response at GTCbio's Third Assay Development & Screening Technologies Conference being held June 5 and 6 in San Francisco. Some of the hit compounds from the HCS assay showed significant cellular protection under various stress conditions including cell-based models for both stroke and Parkinson's disease.

"During the last few months, scientists at our San Diego laboratory successfully developed a fully automated, high-content screening process for CytRx's drug discovery program. This novel, high-content, image-based assay allows us to quickly identify potential drug candidates from CytRx's proprietary compound libraries. The assay is unique in that it allows discovery of small molecules that amplify multiple aspects of the molecular chaperone response in stressed cells while having no effect on normal cells," commented Dr. Zhang.

"We believe that our initial success with this screening approach is just the beginning, because the use of high-content screening can greatly accelerate the process of discovering potential small molecule chaperone modulators," added Shi Chung Ng, Ph. D., Senior Vice President of Research and Development. "The encouraging results from our laboratory suggest that we can potentially enter additional therapeutic areas related to protein misfolding diseases with novel, next-generation compounds."

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