The Micro Cap Opportunity
Proven Strategies for the Astute Micro Cap & Nano Cap Stock Speculator
07/15/2008
The MCO Daily - Before the Bell for Wednesday July 16th, 2008
The Micro Cap Opportunity ‘Daily’‘Before the Bell’ for Wednesday July 16, 2008
On the Radar: LLSR, WNBD, LEVP, AVNU, SANM, CALP
This morning’s top Micro Cap trading ideas include, Lantis Laser, Inc. (OTCPK: LLSR), Winning Brands Corp. (OTCPK: WNBD), Lev Pharmaceuticals, Inc. (OTCBB: LEVP), Avenue Group, Inc. (OTCBB: AVNU), Sanmina-SCI Corp. (NASD: SANM), Caliper Life Sciences, Inc. (NASD: CALP).
LANTIS LASER, INC. (OTCPK: LLSR)
Down 3.33%Yesterday
Detailed Quote: http://finance.yahoo.com/q?s=LLSR.PK
Lantis was formed to commercialize the application of novel technologies in the dental industry. The criteria for selected products include competitive edge, exclusivity and large market potential. Lantis is currently in Phase 2 and Phase 3 development, moving through beta systems, product development and application for FDA clearance and plans to launch the OCT Dental Imaging System(tm) in the first quarter of 2009. Lantis has exclusive rights to the application of OCT technology in the field of dentistry under its license Agreements with Lawrence Livermore National Laboratory (exclusive); Lightlab Imaging (non-exclusive) and AXSUN (exclusive).
Recent LLSR News:
July 15, 2008 - Lantis' OCT Dental Imaging System Featured in Report on Light-Based Diagnostic Modalities for Early Decay
Lantis Laser Inc. (Pink Sheets:LLSR) (http://www.lantislaser.com) issued a statement today drawing attention to a recent significant report on a leading professional dental website, www.DrBicuspid.com, highlighting the status of light-based diagnostic modalities for the early detection of decay.
Early detection of decay is an important part in the practice of minimally invasive dentistry and the "medical model" of finding disease early and treating it early with topical or chemical means to avoid surgical intervention.
Lantis' OCT Dental System is addressed in Part III.
The report was published on the internet in three parts, with the last, Part III, titled:
Beyond x-rays: Part III -- OCT brings early decay to light
http://www.drbicuspid.com/index.aspx?sec=sup&sub=img&pag=dis&ItemID=300735&wf=34
Links to Part I and Part II, which discuss currently available diagnostic products, are accessible at the end of Part III.
Lantis' OCT Dental Imaging System is based on novel, light-based bio-medical imaging technology, Optical Coherence Tomography (OCT), that enables the dentist to do diagnostic imaging, chairside and in real-time. Images can be captured at a resolution of up to 10 times that of x-ray, enabling early detection of decay and detailed examination of microstructural defects. As the power source is light-based, unlike x-ray there is no harmful radiation.
WINNING BRANDS CORP. (OTCPK: WNBD) Up 20.00% Yesterday
Detailed Quote: http://finance.yahoo.com/q?s=WNBD.PK
Winning Brands' mission is to replace hazardous chemicals in widespread use with safer alternatives with an initial focus on cleaning products. Winning Brands manufactures Winning Colours® Stain Remover for consumer and commercial use as an eco-responsible alternative to traditional solvents, KIND(TM) Laundry Detergents and CLEAN1(TM) Outdoor/Indoor All Purpose Cleaner amongst other products for home and industry. For the dry cleaning industry, Winning Brands manufactures SMART(TM) Wet Cleaning Solution alternative to Perchloroethylene. SMART(TM) is used in conjunction with Professional Wet Cleaning and finishing equipment for results that make virtually all "Dry Clean Only" garments processable with water instead of solvents. The effluent from this process is recycled by the cruise ships that are increasingly using the SMART(TM) Wet Cleaning System for professional on-board garment cleaning. The SMART(TM) Wet Cleaning System is available through Solvent Free Solutions Inc. (www.SolventFree.ca). Main production for Winning Brands takes place at the Grand Rapids, Michigan facility of Surefil LLC, with some sizes being produced at Winning Brands' St. Catharine's, Ontario facility.
Recent WNBD News:
July 15, 2008 - U.S. Radio Ads Begin for Winning Brands CLEAN1(TM) Outdoor Cleaner
Winning Brands Corporation (PINKSHEETS: WNBD) (FRANKFURT: WMU) (www.WinningBrands.ca) reports that its CLEAN1™ Outdoor Cleaner which was recently listed and delivered to New York's Hackett's stores will be the target of Winning Brands' first ever U.S. radio commercials.
Q Country 102.9 based in Ogdensburg, New York broadcasts over most of the area in which the Hackett's stores are located. Choosing a country music format for the CLEAN1™ launch is a deliberate choice by Winning Brands to reach out beyond stereotypes about who might be interested in eco-responsible products. "Making smart choices is not just a trendy urban phenomenon," says Winning Brands' CEO Eric Lehner. "Eco is the new normal, and Winning Brands' eco-responsible cleaning choices are the new mainstream," he adds. "If CLEAN1™ Outdoor Cleaner and its companion eco products KIND™ Laundry and Winning Colours® Stain Remover can do well in the small towns and countryside of America, then there is no corner left in on the continent where we can't be successful." The Hackett's chain was sufficiently impressed with the benefit to its customers of having a full range of eco-responsible cleaners to mobilize all its stores in June 2008 by listing all three Winning Brands products. The CLEAN1™ radio commercials will begin July 17th and represent the first of the advertising programs that were presaged in the June 2008 Hackett's announcement about listing Winning Brands.
CLEAN1™ advertising is also breaking new ground by being targeted to men more than conventional cleaners are. Bikes, boats, BBQ's, siding and swimming pools are only a few of the big important outdoor cleaning jobs that men do without realizing that they are usually using products that are designed for indoors and kept under the kitchen sink. CLEAN1™ is recognizing the reality that men are often the ones doing these jobs and is filling the current gap in messages directed toward men that are relevant to their lifestyles -- and the women who share those interests. Winning Brands CEO Eric Lehner has become known for setting policies in the company's dealings with advertising agencies and media partners that no commercials will be condescending or demeaning of men. "I don't recognize the type of men that appear today on North American television and in movies," says Lehner. "The men out there in reality are much better than the depictions. Winning Brands will choose positive options when considering the depiction of any people -- and that includes men." The CLEAN1™ radio ad format can be heard at: http://wnbd.wikidot.com/media-gallery.
CLEAN1™ Outdoor Cleaner is manufactured by Winning Brands Corporation for consumer and commercial use as an eco-responsible alternative to cleaning the many things that get dirty outdoors. Main production takes place at the Grand Rapids, Michigan facility of Surefil LLC with certain sizes still being manufactured at Winning Brands' St. Catharines, Ontario facility. Winning Brands' full product range includes a variety of advanced cleaning solutions, such as its non-toxic SMART™ Wet Cleaning liquid alternative to Perchloroethylene used in Dry Cleaning, KIND™ Laundry Products and Winning Colours® Stain Remover -- a skin friendly alternative to conventional stain removers and solvents. The company's mission is to replace hazardous chemicals in widespread use with safer alternatives. The initial focus is on cleaning products.
LEV PHARMACEUTICALS, INC. (OTCBB: LEVP)
Up 28.65% Yesterday
Detailed Quote: http://finance.yahoo.com/q?s=LEVP.PK
Lev is a biopharmaceutical company focused on developing and commercializing therapeutic products for the treatment of inflammatory diseases. Lev's lead product candidate, Cinryze(TM) (C1 inhibitor (human)), is being developed as a replacement therapy for hereditary angioedema (HAE), also known as C1 inhibitor deficiency. Additionally, Lev is in the process of prioritizing its C1 inhibitor development platform for the treatment of selective other diseases and disorders in which inflammation is known or believed to play an underlying role.
Recent LEVP News:
July 15, 2008 - ViroPharma To Acquire Lev Pharmaceuticals
ViroPharma Incorporated (Nasdaq: VPHM) and Lev Pharmaceuticals, Inc. (OTC Bulletin Board: LEVP) today announced that the companies have signed a definitive merger agreement under which ViroPharma will acquire Lev, a biopharmaceutical company focused on developing and commercializing therapeutic products for the treatment of inflammatory diseases, for $442.9 million of upfront consideration, or $2.75 per Lev share, comprised of $2.25 per share in cash and $0.50 per share in ViroPharma common stock (subject to a collar). Contingent consideration of up to $1.00 per share may be paid on achievement of certain regulatory and commercial milestones. The transaction with a potential net aggregate value of up to $617.5 million has been unanimously approved by the boards of directors of both companies. The companies expect the transaction to be completed by the end of 2008. In addition, concurrently with the execution of the merger agreement, ViroPharma purchased $20 million of Lev common stock.
The acquisition of Lev Pharmaceuticals further enhances ViroPharma's pipeline with Cinryze(TM) (C1 inhibitor (human)), which is currently under regulatory review for approval by the U.S. Food and Drug Administration as a replacement therapy for patients with hereditary angioedema (HAE), also known as C1 esterase inhibitor (C1-INH) deficiency. The use of replacement therapy in patients with C1-INH deficiency is supported by more than 35 years of clinical practice experience in Europe. C1-INH depletion is also implicated in a number of other serious inflammatory disorders.
Hereditary angioedema, or C1-INH deficiency, is a dangerous and potentially deadly inflammatory disease affecting up to 10,000 patients in the United States, caused by a genetic deficiency in an essential protein called C1 esterase inhibitor. Clinical studies have shown that prophylactic C1 inhibitor replacement therapy with Cinryze can significantly reduce the severity, duration and frequency of HAE attacks.
"This transaction is consistent with ViroPharma's stated objective of broadening our portfolio of therapies for serious life-threatening conditions in selected specialty markets," commented Vincent Milano, ViroPharma's president and chief executive officer. "Lev's orphan drug Cinryze(TM) is a life-saving therapy treating a very dangerous disease. This opportunity provides a clear strategic fit with ViroPharma: Cinryze targets a market that is addressable with modest additional infrastructure and further serves patients suffering from a disease with few treatment options. We are very pleased to add the expertise of Lev to our organization, and Cinryze to our growing portfolio of options for underserved patient populations with critical and urgent needs."
"We believe this transaction recognizes the value we have created at Lev and provides our shareholders with attractive financial terms, through the upfront payment and the opportunity to continue to share in the success of Cinryze(TM) through the ownership of ViroPharma shares and the contingent value rights," commented Judson Cooper, Lev's chairman of the board. "Leveraging the combined resources of both companies not only strengthens our C1 inhibitor development platform, but also underscores our commitment to serving patients with critical unmet medical needs."
Transaction Terms
Under the terms of the merger agreement, ViroPharma will acquire the outstanding common stock of Lev for $2.25 per share in cash and $0.50 per share in stock ("Upfront Consideration"), subject to a collar. The Upfront Consideration value could be lower or higher if the ViroPharma average common share price is lower than $10.03 or higher than $15.68 per share during the twenty trading day period prior to closing. In addition, Lev shareholders will receive the non-transferrable contractual right to two contingent payments ("CVR Payments") of $0.50 each that could deliver up to an additional $174.6 million, or $1.00 per share in cash, if the Company meets certain targets. The first CVR payment of $0.50 per share would become payable when either (i) Cinryze is approved by the FDA for acute treatment of HAE and the FDA grants orphan exclusivity for Cinryze encompassing the acute treatment of HAE to the exclusion of all other human C1 inhibitor products or, (ii) orphan exclusivity for the acute treatment of HAE has not become effective for any third party's human C1 inhibitor product for two years from the later of the date of closing and the date that orphan exclusivity for Cinryze for the prophylaxis of HAE becomes effective. The second CVR payment of $0.50 per share would become payable when Cinryze reaches at least $600 million in cumulative net product sales within 10 years of closing. The Upfront Consideration of $2.75 per share and the potential for a total value of $3.75 per share represent premiums of 49% and 103%, respectively, over Lev's closing stock price on July 14, 2008.
Closing is subject to certain conditions including approval under the Hart-Scott-Rodino Act, the approval of Lev's shareholders and other customary closing conditions. Mr. Judson Cooper, Lev's chairman of the board, and Dr. Joshua Schein, Lev's chief executive officer, respectively, and their affiliates, who collectively hold an aggregate of approximately 23% of the outstanding Lev shares, have agreed to vote their shares in favor of the transaction.
Additionally, ViroPharma agreed to make a $20 million investment in Lev, at signing, by purchasing 9,661,836 shares of Lev common stock at a 10 percent premium to the five day average closing price of Lev's shares for the period ending Friday, July 11, 2008, sold pursuant to Lev's effective registration statement on Form S-3.
J.P. Morgan Securities Inc. advised ViroPharma and DLA Piper acted as legal counsel. In addition, Piper Jaffray & Co. provided a fairness opinion to ViroPharma's board of directors. J.P. Morgan Securities Inc., as successor to Bear, Stearns & Co. Inc., advised Lev and provided a fairness opinion to Lev's board of directors. Willkie Farr & Gallagher LLP and Becker & Poliakoff, LLP acted as legal counsel to Lev.
Conference Call and Webcast Information
ViroPharma will host a live teleconference and webcast (featuring slide presentation) with senior management to discuss the strategic acquisition of Lev Pharmaceuticals on Tuesday, July 15, 2008 at 10:30 a.m. ET. Members of Lev Pharmaceuticals senior management will be available during the question and answer period. To participate in the conference call, please dial 888-299-4099 (domestic) and 302-709-8337 (international). After placing the call, please tell the operator you wish to join the ViroPharma investor conference call.
Alternatively, the live webcast of the conference call and slide presentation can be accessed via ViroPharma's website at http://www.viropharma.com. Windows Media or Real Player will be needed to access the webcast. An audio archive will be available at the same address until August 1, 2008.
Cinryze(TM) Regulatory Status
On May 2, 2008, the Blood Products Advisory Committee (BPAC) to the U.S. Food and Drug Administration (FDA) voted unanimously that there is sufficient evidence of the safety and efficacy for the approval of Cinryze for the prophylactic treatment of HAE. The data from Lev's acute treatment trial was not presented before the BPAC and is currently under active review at FDA. On May 6, 2008, Lev announced that FDA accepted for review Lev's complete response submission for Cinryze targeting an action date of October 14, 2008.
AVENUE GROUP, INC. (OTCBB: AVNU)
Up 50.00% Yesterday
Detailed Quote: http://finance.yahoo.com/q?s=AVNU.OB
Avenue Group, Inc. (OTCBB: AVNU) is engaged in the exploration and development of oil and gas reserves. Its strategy is to acquire a portfolio of oil and gas assets that include the acquisition of low risk oil and gas reserves and the generation of low risk drilling opportunities.
Avenue owns a 50% interest in the Heletz-Kokhav License and a 25% interest in the Iris License which together encompass the Heletz oilfield. The Heletz Field, Israel's only producing oil field, was discovered in 1955 and has produced over 17 million barrels of oil to date.
Recent AVNU News:
July 15, 2008 - Heletz Field Production Update
Avenue Group, Inc. (OTCBB: AVNU) ("AGI"), with its wholly owned Israel subsidiary, Avenue Energy Israel LTD. ("AEI"), is pleased to announce that it has produced over 1,300 barrels of oil from its 50% owned Heletz-Kokhav License, part of the Heletz Field in southern Israel ("Heletz"). Since restarting production on June 12, 2008, three wells have been returned to production with total daily production exceeding 60 Barrels of Oil Per Day (30 BOPD net to AEI). Three additional wells are being prepared to return to production over the next few weeks.
Levi Mochkin, AGI's Chief Executive Officer, commented:
"We are very pleased with the production rates from Heletz and the overall progress of the Heletz Field redevelopment project."
SANMINA-SCI CORP. (NASD: SANM)
Up 7.48% Yesterday
Detailed Quote: http://finance.yahoo.com/q?s=SANM
Sanmina-SCI Corporation (Nasdaq: SANM) is a leading electronics contract manufacturer serving the fastest-growing segments of the global electronics manufacturing services (EMS) market. Recognized as a technology leader, Sanmina-SCI provides end-to-end manufacturing solutions, delivering superior quality and support to large OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, computer technology and multimedia sectors. Sanmina-SCI has facilities strategically located in key regions throughout the world. Information about Sanmina-SCI is available at http://www.sanmina-sci.com.
Recent SANM News:
July 15, 2008 - Sanmina-SCI Reaffirms Third Quarter Fiscal 2008 Guidance
Sanmina-SCI Corporation ("the Company") (Nasdaq: SANM), a leading global electronics manufacturing services (EMS) company today announced third quarter fiscal 2008 revenue from continuing operations was approximately $1.9 billion, exceeding previously provided guidance of between $1.775 to $1.875 billion. Non-GAAP diluted earnings per share for continuing operations is expected to be at the high-end of the previously provided guidance of $0.03-$0.05. Cash and cash equivalents at the end of the quarter increased by more than $100 million from the prior quarter.
The Company will release full financial results for the third quarter ended June 28, 2008 on July 23, 2008. A conference call regarding these results will be held at 5:00 PM ET (2:00 PM PT) on July 23, 2008. The conference call will be broadcast via the Internet and is accessible by logging on to the Sanmina-SCI website at http://www.sanmina-sci.com.
CALIPER LIFE SCIENCES, INC. (NASD: CALP)
Up 7.74 Yesterday
Detailed Quote: http://finance.yahoo.com/q?s=CALP
Caliper Life Sciences is a premier provider of cutting-edge technologies enabling researchers in the life sciences industry to create life-saving and enhancing medicines and diagnostic tests more quickly and efficiently. Caliper is aggressively innovating new technology to bridge the gap between in vitro assays and in vivo results and then translating those results into cures for human disease. Caliper's portfolio of offerings includes state-of-the-art microfluidics, lab automation & liquid handling, optical imaging technologies, and discovery & development outsourcing solutions. For more information please visit http://www.caliperLS.com.
Caliper and LabChip are registered trademarks of Caliper Life Sciences, Inc.
Recent CALP News:
July 15, 2008 - Caliper Life Sciences Introduces LabChip GX and GXII Microfluidic Instruments to Address Specific Needs of Proteomic and Genomic Researchers
Caliper Life Sciences, Inc. (Nasdaq: CALP) today introduced two microfluidics-based separations products, the LabChip(R) GX and LabChip GXII benchtop systems, for fast, automated, 1-D electrophoretic separations of protein, DNA, and RNA samples. The LabChip GX represents a low price entry system targeted at genomics applications, while the GXII combines both genomics and protein research applications. The LabChip GX series of instruments will be marketed by Caliper and is designed to provide scientists novel benefits including extended walk away time, higher throughput and economical plate processing ability. Caliper also provides solutions to scientists with lower throughput needs through its collaborations with Agilent and Bio-Rad.
Both systems combine Caliper's highly reproducible assay technology with advanced data analysis and visualization software. With 96-well and 384-well plate compatibility and the ability to select single wells at any location in a plate, the LabChip GX and GXII systems provide researchers with unmatched throughput, flexibility, and performance. Leveraging Caliper's patented microfluidics technology, users are able to thoroughly analyze samples in seconds instead of minutes, eliminating throughput bottlenecks and improving efficiency. The advanced data management software suite included with each system allows users to visualize results via an electropherogram or virtual gel view. Additionally it provides data in tabular form, which can then be analyzed or easily exported into a spreadsheet format.
"With applications ranging from protein therapeutics research to gene expression analysis to genotyping of transgenic mice, the LabChip GX and GXII represent an integral component of Caliper Life Sciences' overall strategy of developing products that bridge the in vitro - in vivo translational gap," said Rick Bunch, Microfluidics Product Manager, Caliper Life Sciences. "The LabChip GX and GXII provide high quality, accurate, and reproducible data that enable researchers to accelerate their discovery efforts, while saving time and money."
The new LabChip GX instrument has been designed expressly for the needs of genomics researchers for the analysis of RNA integrity for better RT-PCR and microarray gene expression data, DNA fragment analysis for sequencing applications and genotyping transgenic mice, and numerous other applications that require accurate size, concentration, or purity analysis of nucleic acid samples. A unique feature of the LabChip GX is the ability to analyze any single sample, or a subset of samples in a microtiter plate using an intuitive GUI interface. This feature enables researchers to assess RNA integrity by randomly sampling a plate or conduct "hit picking" experiments on samples of particular interest.
The LabChip GXII system, which is a complete functional replacement of the LabChip 90, provides consistent and precise analysis of both protein and nucleic acid samples. The LabChip 90 has been widely adopted by researchers developing antibody-based therapeutics and is ideally suited for quantifying size, titer, purity, and fragmentation. This automated separations platform also enables scientists to explore the effect of multiple variables in parallel -- a process which is prohibitively expensive and time-consuming using manual methods. As a direct consequence, robust methods for protein expression can be established that accelerate high throughput screening, crystallography, and analytical analyses that require large amounts of protein.
Caliper offers a broad portfolio of microfluidics chips and DNA, RNA, and protein assay kits to use with the GX and GXII systems. For additional information or to order the LabChip GX or GXII, please visit: http://www.caliperls.com/products/labchip-systems/.
