The Micro Cap Opportunity

07/17/2008
The MCO Daily - Before the Bell for Friday July 18th, 2008

The Micro Cap Opportunity ‘Daily’

‘Before the Bell’ for Friday July 18, 2008

On the Radar: WSRA, LLSR, ETLC, MMTIF, VICL, NTWK

This morning’s top Micro Cap trading ideas include, Western Sierra Mining Corp. (OTCPK: WSRA), Lantis Laser, Inc. (OTCPK: LLSR), eTELCHARGE.com, Inc. (OTCBB: ETLC), Micromem Technologies, Inc. (OTCBB: MMTIF), Vical, Inc. (NASD: VICL), NetSol Technologies, Inc. (NASD: NTWK).

WESTERN SIERRA MINING CORP. (OTCPK: WSRA)                                                          Up 9.09% Yesterday

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

Western Sierra Mining is an aggressive gold and silver exploration and mining company focused on the historic mining districts of the Bradshaw mountains of Arizona, with additional ares of interest within Nevada and Mexico. Current projects include the SunGold, Oro Cache, and the Big Chief mining group, all of which have demonstrated high-grade mineralization with previous histories of production. Western Sierra Management's intends to continue to acquire attractive gold and silver properties in Arizona, Nevada and Mexico and to identify the character and size of our potential deposits. Long-term Company goals are to create maximum shareholder value by continuing to build a strong base of properties and advance these projects toward production or entering into joint ventures with other Junior mining companies.

Recent WSRA News:

July 17, 2008 - Western Sierra Mining Reports Valuation of Recent Arizona Mining Property Acquisition for Accounting and Reporting Purposes

Western Sierra Mining Corp. (OTC: WSRA) announced today that the Company has determined the valuation of the Company's recent acquisition of eight ore bearing properties in Arizona and recorded this amount on the Company's books for accounting and future reporting purposes.

Despite proven gold reserves in excess of 100,000 oz - a gross value of approximately $80 million based on a discounted spot gold price of $800/oz and 590,000 oz of proven silver reserves - a gross value of approximately $8 million based on a spot silver price of $12/oz - Western Sierra Mining Corp. has elected to record the recently finalized acquisition on the Company's books at the significantly discounted valuation amount of approximately $18 million equal to $.08 per common share on a fully diluted basis. Management has also elected not to include in the valuation nor record on the books the probable/indicated gold reserves in excess of 400,000 oz - a gross value of approximately $330 million based on a discounted spot gold price of $800/oz, nor the probable/indicated silver reserves in excess of 360,000 oz - a gross value of approximately $6 million based on a silver spot price of $12/oz. Management has furthermore applied various discounts in calculating the valuation in order to arrive at a conservative amount.

Michael Chaffee, CEO & President of Western Sierra Mining, commented, "Our CFO Dennis Atkins has worked diligently with management to value the acquired properties in what could only be characterized as an 'ultra conservative' manner. The full face-value of the proven reserves - even at below prevailing market prices - would be approximately $80 million or $.36 per share of book value for the proven gold reserves, approximately $320 million or $1.45 per share for the probable/indicated gold reserves and roughly $6 million or an additional $.03 per share for the probable/indicated silver reserves." He continued, "The recorded value of $18 million for these properties is testament to our financial conservatism. We believe it is in the best interests of all shareholders when management is committed to a set of rigorous financial controls and standards which to allow the market to value the Company properly, and we are firmly committed to holding to this standard as we continue to acquire and develop high-quality ore-bearing properties going forward."

Western Sierra Mining also released an up-to-date capital structure for the benefit of shareholders. As of Tuesday, July 15, 2008, the Company has 300,000,000 common shares authorized and 220,000,000 common shares issued and outstanding, of which approximately 21,000,000 are either freely trading or free trading eligible common shares in the DTC system.

LANTIS LASER, INC. (OTCPK: LLSR)
Down 6.45%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 17, 2008 - Form S-1/A Lantis Laser Inc. (10K)

eTELCHARGE.COM, INC. (OTCBB: ETLC)
Up 45.45% Yesterday

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

Etelcharge.com (OTCBB: ETLC), the first Web 2.0 online payment system, provides online shoppers the ability to charge approved transactions to their telephone bill. While addressing the concerns online shoppers have about identity fraud and identity theft, the Etelcharge.com payment option is also a perfect match for the millions of individuals without a credit card, or even a bank account. For more information, go to www.Etelcharge.com.

Recent ETLC News:

July 17, 2008 - Etelcharge Announces Decision of California Bankruptcy Court to Approve Etelcharge's Acquisition of Payment One

Etelcharge.com (OTCBB: ETLC), the new online way to pay(TM), today announced that the Company's acquisition of Payment One was approved by the United States Bankruptcy Court for the Northern District of California (San Jose, CA). As previously disclosed, Etelcharge entered into an agreement to acquire the outstanding equity of Payment One Corporation from The Billing Resource, which had filed for bankruptcy protection late last year. The decision of the Bankruptcy Court removes the most significant substantive condition to the closing of the transaction. It is anticipated that the additional customary closing conditions will be satisfied and the acquisition consummated within 45 days.

Pursuant to the acquisition agreement, Etelcharge will receive, by virtue of its acquisition of the Payment One equity, all of the Payment One assets, customers, nationwide telco coverage, a stellar employee base and technology developed over the past eight years.

"We are extremely pleased that the Bankruptcy Court rendered this decision," stated Rob Howe, Chairman and CEO.

"Our prospects now are extremely bright. Upon closing of the acquisition, our client list will have grown a hundred-fold over night, the prospects for new business are at our front door and we are working with the most talented people I have met during my tenure in the field of high technology. Of equal importance is the transition from a small company generating modest revenue, to a company generating $12 million in yearly revenue. The Payment One acquisition will create the foundation for the future growth of Etelcharge.com, which permits a 50 state strategy to expand our payment processing business," Howe concluded.

MICROMEM TECHNOLOGIES, INC. (OTCBB: MMTIF)
Up 27.35% Yesterday

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

Micromem Technologies, Inc. (www.micromeminc.com) is focused on the development of magnetic random access memory (MRAM) and sensor technology.

Recent MMTIF News:

July 17, 2008 - Micromem Technologies Inc. - Update

Micromem Technologies Inc. (OTC BB: MMTIF) comments that in light of market conditions and the current share price, the company would like to reaffirm that all of its partnerships and commercialization initiatives are moving forward.

Listing: NASD OTC-Bulletin Board - Symbol: "MMTIF"

Shares issued: 80,345,446

SEC File No: 0-26005

VICAL, INC. (NASD: VICL)
Up 10.20% Yesterday

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

Vical researches and develops biopharmaceutical products based on its patented DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases. Potential applications of the company's DNA delivery technology include DNA vaccines for infectious diseases or cancer, in which the expressed protein is an immunogen; cancer immunotherapeutics, in which the expressed protein is an immune system stimulant; and cardiovascular therapies, in which the expressed protein is an angiogenic growth factor. The company is developing certain infectious disease vaccines and cancer therapeutics internally. In addition, the company collaborates with major pharmaceutical companies and biotechnology companies that give it access to complementary technologies or greater resources. These strategic partnerships provide the company with mutually beneficial opportunities to expand its product pipeline and address significant unmet medical needs. Additional information on Vical is available at http://www.vical.com.

Recent VICL News:

July 17, 2008 - Vical Announces Breakthrough for Pandemic Influenza DNA Vaccines With Preliminary Human Data

Vical Incorporated (Nasdaq: VICL) today announced a breakthrough with preliminary clinical trial data demonstrating that DNA vaccines can safely achieve significant immune responses against H5N1 pandemic influenza in humans. DNA vaccines are fundamentally different from conventional vaccines because they do not contain any part of the virus itself, and may offer compelling advantages in response to a pandemic outbreak because of significantly reduced development and manufacturing times.

Specifically, preliminary human safety and immunogenicity data obtained in a 100-subject Phase 1 trial of the company's Vaxfectin(R)-formulated H5N1 pandemic influenza DNA vaccines demonstrated for the first time that DNA vaccines have achieved potentially protective levels of antibody responses (defined as hemagglutination inhibition, or HI, titers of at least 40; responses ranged from 40 to 640) in up to 67% of evaluable subjects in the higher dose cohorts. No significant safety issues were observed at any of the Vical vaccine doses tested. These results support further development of Vaxfectin(R)-formulated DNA vaccines, and could position them as potential alternatives to conventional vaccines.

"The preliminary results from this Phase 1 trial indicate for the first time that an adjuvanted DNA vaccination against H5N1 influenza is well-tolerated and can induce impressive antibody responses even against this relatively weak immunogen," said Robert B. Belshe, M.D., Dianna and J. Joseph Adorjan Endowed Professor of Infectious Diseases and Immunology, Saint Louis University School of Medicine, who was the lead external safety monitor for the study. "Successful development of a safe and effective DNA vaccine will help address the potential public health threat of pandemic influenza."

Vijay B. Samant, Vical's President and Chief Executive Officer, said, "Our preliminary Phase 1 pandemic influenza vaccine results clearly demonstrate the potential of Vaxfectin(R)-formulated DNA vaccines to achieve antibody responses in the same range as conventional vaccines. The ability to manufacture DNA vaccines in weeks rather than the months required for conventional vaccines may provide a significant advantage when dealing with an emerging infectious disease such as pandemic influenza. This trial is also important because it marks the first successful safety evaluation in humans for our Vaxfectin(R) adjuvant, which has potential applications with both DNA vaccines and conventional protein-based vaccines."

The double-blind, placebo-controlled, dose-escalation trial was conducted in approximately 100 healthy volunteers age 18 to 45 at three U.S. clinical sites. The trial was designed to assess safety and immunogenicity following intramuscular vaccination with needle and syringe or with the Biojector(R) 2000 needle-free injection system in different cohorts, and to evaluate monovalent and trivalent Vaxfectin(R)-formulated DNA vaccines at various doses. Preliminary results will be presented by Vical's Vice President of Vaccine Research, Larry R. Smith, Ph.D., at 12:25 p.m. EDT today, Thursday, July 17, at the IBC Life Sciences Next Generation Vaccines conference (National Harbor, MD - July 17-18).

In the Phase 1 trial, subjects were injected at Days 0 and 21. Primary evaluation of antibody responses was by HI antibody titers, the accepted standard correlate of protection for influenza vaccines. Responders were those subjects achieving H5 HI titers of at least 40 and achieving at least a four-fold increase from baseline HI titers. By Day 56, at least 50% and up to 67% of evaluable subjects were responders in each of the three cohorts receiving 0.5 mg or 1 mg H5 DNA doses, and there were no responders in the placebo cohort. More than 90% of the responders had sustained HI titers through the last measurement to date (Day 84). Neutralizing antibody production against H5 was demonstrated separately by microneutralization assays. For comparison, the protein-based pandemic influenza vaccine currently stockpiled by the U.S. government was approved with HI titers of 40 or more in 44% of subjects by Day 56.

Even at the lowest dose tested (0.033 mg H5 DNA), one of the six subjects was a responder by Day 56. Some subjects who received the highest H5 DNA dose were responders at Day 21 after a single vaccine injection. Preliminary analyses also showed cross-strain immune responses against a strain of H5N1 from a clade not matching the vaccine. Cross-strain protection could be important against emerging strains of pandemic influenza that may not match vaccine stockpiles.

Additional assays are ongoing to further evaluate antibody responses, breadth and magnitude of T-cell immune responses, cross-strain responses, and the relative advantages of monovalent vs. trivalent vaccines and needle vs. needle-free injection.

"These results are important to Vical for three reasons," added Mr. Samant. "First, they encourage further development of pandemic influenza DNA vaccines, for which we are currently exploring funding or partnering options. Second, they support advancement of additional Vaxfectin(R)-formulated DNA vaccines toward clinical testing. Third, they provide new incentives for potential commercial partners and collaborators to explore additional applications for our Vaxfectin(R) adjuvant for DNA vaccines as well as protein and peptide-based vaccines. We are excited by these strong preliminary antibody results, and we look forward to evaluating more detailed immunogenicity data as they become available."

DNA vaccines may offer both technical and economic advantages compared with conventional vaccine approaches. DNA vaccines encode certain proteins associated with a target pathogen, rather than using any part of the pathogen itself, and can prime the immune system as well as induce potent antibody and T-cell immune responses. DNA vaccines contain no viral particles, are non-infectious, and can be administered on a repeat basis without unwanted immune responses. Additionally, DNA vaccines have the potential to achieve proof of concept more quickly and cost-effectively than conventional vaccines, and can be manufactured using uniform methods of fermentation and purification, allowing significantly faster development and production.

Vical's monovalent vaccine contains a plasmid (a closed loop of DNA) encoding the hemagglutinin (HA) surface protein from the H5N1 influenza virus strain, A/Vietnam/1203/04. It is designed primarily to elicit antibody responses against the H5 protein but could elicit T-cell responses against H5 as well. Vical's trivalent vaccine contains the H5 plasmid plus separate plasmids encoding consensus sequences of two highly conserved influenza virus proteins: nucleoprotein (NP) and ion channel protein (M2). The trivalent vaccine is designed to elicit a combination of T-cell and antibody responses against all three proteins. Both vaccines are formulated with the company's Vaxfectin(R) adjuvant, which has demonstrated effectiveness with a variety of DNA vaccines in multiple animal models as well as dose-sparing and immune-enhancing ability in animals with a conventional seasonal influenza vaccine.

NETSOL TECHNOLOGIES, INC. (NASD: NTWK)

Up 8.17 Yesterday

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

NetSol Technologies (NASDAQ: NTWK) (DIFX: NTWK) is a worldwide provider of global business services and enterprise application solutions. NetSol uses its BestShoring(TM) practices and highly-experienced resources in analysis, development, quality assurance, and implementation to deliver high-quality, cost-effective solutions. Organized into specialized practices, these product and services offerings include portfolio management systems for the financial services industry, consulting, custom development, systems integration, and technical services for the global Healthcare, Insurance, Real Estate, and Technology markets. NetSol's commitment to quality is demonstrated by its achievement of the ISO 9001, ISO 279001, and SEI (Software Engineering Institute) CMMI (Capability Maturity Model) Level 5 assessments, a distinction shared by fewer than 100 companies worldwide. NetSol Technologies' clients include Fortune 500 manufacturers, global automakers, financial institutions, technology providers, and governmental agencies. Headquartered in Calabasas, California, NetSol Technologies has operations and offices in London, San Francisco, Sydney, Beijing, Bangkok, and Lahore.

Recent NTWK News:

July 17, 2008 - NetSol Technologies to Initiate Fiscal Year 2009 Financial Guidance on July 28

NetSol Technologies, Inc. ("NetSol") (NASDAQ: NTWK) (DIFX: NTWK), a worldwide provider of global business services and enterprise application solutions, today announced the Company will issue financial guidance for its fiscal year 2009 on July 28, 2008, reflecting the period ending June 30, 2009. The Company's financial guidance for its fiscal year 2009 will be released over the news wires and posted on the corporate Website.

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