Tuesday, 31 March, 2009

Multi Million Dollar Resource Sits On Top Of Gold Mine

Anglo Swiss Resources Inc.
(TSX-V: ASW) (OTCBB: ASWRF) (BERLIN: AMO)
Basic Shares 100.5 million
Fully Diluted 129.5 million
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Anglo Swiss is not only busy proving up a gold and copper resource but today the company announced its cash flow opportunity from the surface of its Kenville property located in south-eastern British Columbia.
According to an independent technical report that is called a 43-101, ASW has a resource of over 16.5 million tonnes on just a portion of the Kenville property.


Munroe Geological Services utilized computer modeling of data obtained from a total of 79 sites comprised of trenching and drill holes from the 2007 and 2008 exploration programs. The 43-101 compliant resource report is important in terms of its recognition by the stock exchange and regulators.

Last year, Anglo sold small amounts of sand and gravel to the local Kootenay region at between $15 and $18 per tonne. Multiply that by the 16.5 million tonnes and the number jumps through $200 million. The beauty of this asset is that it should generate more than sufficient cash flow to fund all gold processing operations at a new mill plus ongoing exploration. When this comes to pass, ASW will be in a unique position compared to the hundreds of other junior exploration companies that are fighting for dollars these days.

Management is in the throes of securing 200 tonne/hour processing equipment for the aggregate operation and is targeting a late summer start. The company has applied for an amendment to its existing quarry permit, which is required prior to full start-up.

The great unknown is what type of cash could be thrown off by what we'll call the "industrial aspect" of the ASW story? This is very good news for the "what if" scenario.

The area that has been studied for this report covers just over half of the Kenville property. As well, there is more aggregate material over the remainder of the property that has not yet been quantified.

Even further good news lies in the fact that there is gold and other valuable minerals in this aggregate that will be processed before it is sold. The cash potential from this is not considered in the $15 - $18 per tonne.

The full MGS report can be viewed by clicking here

Anglo is in a strong commercial position as it is already permitted to supply construction grade materials processed from its waste rock from the mine shafts. According to ASW management, the local market from the south-eastern Kootenay area to the northwestern United States is facing a shortfall in construction aggregate material.
See full news release by clicking here......

Thursday, 19 March, 2009

Med BioGene Announces LungExpress Dx™ has the Potential to Increase Five-Year Patient Survival by up to 33%, Decrease Healthcare Costs Significantly


MED BIOGENE INC. (MBI:TSX-V)
Basic shares: 40 million
Fully diluted: 58 million
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Med BioGene yesterday announced the expansion of its exclusive license and collaboration agreement with the University Health Network in Toronto for the development and commercialization of LungExpressDx™, a proprietary gene expression-based test for early-stage lung cancer to select patients who will benefit from chemotherapy.

More significantly, in the announcement MBI noted that by better selecting patients for chemotherapy, LungExpress Dx™ has the potential to increase the five-year survival rate by up to 33% while decreasing health care costs significantly. This is a significant improvement upon current outcomes and is expected to change the standard of care for lung cancer patients.

“Not all patients benefit from chemotherapy and not all patients require chemotherapy after surgery,” said Dr. Ming-Sound Tsao of the University Health Network. “Knowing that a patient has a genetic signature for a more aggressive cancer and that their chance of cure may be improved with chemotherapy gives patients and their doctors a clearer picture of the need for post-operative treatment.”

MBI CEO, Erinn Broshko stated: “We are pleased to be extending our relationship with the University Health Network, and, in particular, its world-class team of lung cancer clinical researchers. Importantly, we now have clinical data demonstrating that LungExpress Dx™ has the potential to increase the cure rate of early stage lung cancer and save the health care system millions of dollars in costs.”

Med BioGene announced in April 2008 its initial exclusive license and collaboration agreement with the UHN for the development and commercialization of LungExpressDx™.

To read the full release, click here

Wednesday, 18 March, 2009

Star's Lawsuit Decision Out Of Alice in Wonderland

AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 82.5 million
Fully Diluted: 88 million

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Star Navigation's March 17th announcement that it was abandoning its patent infringement lawsuit against AeroMechanical left AMA investors both relieved and riled.
Relief came with the removal of what AMA consistently labelled as a "frivolous" lawsuit that nevertheless hung like a dark cloud over AMA's share price.
But anger erupted among many AMA investors when they read that the reason Star tucked its tail between its legs was because AeroMechanical's "meagre sales" meant it would cost more to carry on with the litigation than Star could collect in damages.

With respect, let's look at the facts:

  • Star knew when it first launched its lawsuit in 2007 what AMA's financial statements were. They were filed on SEDAR;
  • Star knew what AMA's updated financial statements were when it filed several major revisions to its lawsuit over the years. Those financial statements were also on SEDAR;
  • Star's chances of succeeding with its patent infringement lawsuit were seriously damaged three months ago when Star lost its challenge to the validity of AMA's patents at the United States Patent Office;
  • Star's sales are a pittance compared to AMA.
S0 given all of the above, many AMA shareholders were stunned that Star felt the need to poke AMA investors in the collective eye with what appears to be a nonsensical reason for its exit from the courtroom.
But shareholders shouldn't despair.
To understand the nonsensical, all they have to do is recall the famous line from Alice in Wonderland when the Mad Hatter issued a riddle to which he knew there was no answer:
"Why is a raven like a writing desk?"

Tuesday, 17 March, 2009

Hugh Cleland Sings AMA's Fuel-Saving Praises

AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 82.5 million
Fully Diluted: 88 million


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Hugh Cleland, founder and portfolio manager of Northern Rivers Funds wrote to his fund shareholders yesterday about the continuing slumping markets.
But contrasted to the dismal market performance, Mr. Cleland highlighted some substantial business developments at AeroMechanical, one of Northern Rivers' core investments.

Mr. Cleland described in detail the importance of AMA's March 4th announced contract with Sierra Nevada Corporation, (SNC), the billion-dollar, private U.S. corporation that provides military aerospace technology. "The significance of this deal is difficult to overestimate," Mr. Cleland wrote before pointing out how SNC's up-front payment to AMA gives AMA the cash it needs to carry on business without doing another immediate financing.

He also pointed out other critical aspects of the contract that will be an enormous benefit to AMA:
  • it precludes the need for AMA to use its working capital on inventory;
  • it greatly reduces AMA's research and development costs;

  • it becomes "a powerful channel" for sales into the global military market;

  • it enhances AMA's marketing of its new fuel-saving program because SNC wants to use the fuel-saving aspect in its sales to military markets.

Mr. Cleland also wrote how he went to a recent AMA presentation in Toronto about the fuel-saving program and was awed at the presentation and how much it can cut aviation fuel bills - even for airlines that already have aggressive fuel-saving programs in place.

For airlines that don't have well-run fuel-saving plans in place, Mr. Cleland wrote that AMA's technology could chop anywhere from $150,000 to $900,000 per year in fuel savings, or $50 to $200 every flight hour.

For airlines that already have fuel saving programs in place, Mr. Cleland wrote he was impressed to hear that AMA could save those airlines another roughly $30 per hour of flight, or $100,000 per aircraft, per year.

"From customer questions/reactions/statements, it was very clear that sales will be forthcoming from that seminar," Mr. Cleland wrote. In conclusion, Mr. Cleland wrote that the SNC contract and AMA's fuel-saving program were,"two company-transforming developments."
To read his insights into the general stock market and the developments at AMA, please click here.

Med BioGene Appoints New CFO


MED BIOGENE INC. (MBI:TSX-V)
Basic shares: 40 million
Fully diluted: 58 million

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In a news release issued on March 16, 2008, Med BioGene announced the addition of Canadian life science industry veteran, David Matthews as Chief Financial Officer.

Med BioGene will be leaning on Mr. Matthews’ experience as the company gears up to commercialize LungExpressDx™, a proprietary gene expression-based assay for early-stage lung cancer that will be used to determine patients who will benefit from chemotherapy. Management expects a full launch to occur during the second half of 2009.

David Matthews’ brings MBI impressive experience, spanning over 20 years in the life sciences industry. Former positions include: Managing Director of Aspreva Pharmaceuticals SA, the European subsidiary of Aspreva Pharmaceuticals, CFO of StressGen Biotechnologies and CFO of Allelix Biopharmaceuticals. Mr. Matthews received his MBA (Finance) at Clarkson University.

Thursday, 12 March, 2009

High Tech Survey Identifies New Anomaly On Pure Nickel Property

Pure Nickel (TSX: NIC)(OTCBB: PNCKF)
Basic Shares: 67.8 million
Fully Diluted: 75.5
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With so many exploration projects in its vast portfolio, Pure Nickel has multiple opportunities to hit a home run.


Today the company released news on a new high tech airborne survey conducted on its Fond du Lac property in northern Saskatchewan. Fond du Lac was the original property that Pure Nickel was created around. The company conducted drill programs in 2006 and 2007.

Fond du Lac is 100% owned by the company and is a priority for exploration as it has a historic resource. This resource is not been brought up to date for today's compliance standards but it is estimated to have over 3 million tons of ore with grades of 0.66% nickel and 0.60% copper.

Geotech Ltd. was the company that in 2005 carried out an electronic ground survey to identify target zones. It recently completed a test of its new patented airborne technology, which overlayed previous work on the property. The new technology labeled ZTEM allows the company to penetrate the ground to depths of up to 2000 metres.

This technology has confirmed past known mineralization on the property giving these targets further definition and has also identified a new anomaly for follow-up exploration. It also identified longer extensions of mineralized areas than previously known. Additional work on Fond du Lac will kick off after NIC completes a summer work program at its number one property at MAN Alaska.

See full news release here.

LMS Postpones Review for another 30 Days

LMS Medical Systems (LMZ - TSX)
Shares outstanding: 25.8m
Fully Diluted: 30.7 million
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The TSX announced today, that it has again extended the review of LMS’ listing for another 30 days.

An approval to maintain a TSX listing hinges upon on LMS’ ability to raise money. We speculate that the TSX would have ceased trading the stock if it did not believe that LMS was having meaningful discussions that could result in a capital injection.

Stay tuned…

To view the full release, click here…

Tuesday, 10 March, 2009

Fundamental Research Issues IWG Report

International Water-Guard (TSX-V: IWG)
Basic Shares: 39.3 million
Fully Diluted: 46.5 million

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A recent upbeat Dow Jones Newswire story on International Water Guard (IWG) was tempered by an analyst's research report which predicted IWG could face a reduction in orders given the worsening economic problems.


As a result, Fundamental Research lowered its prediction for IWG's future stock price from a previous $0.35 per share to $0.30.

However, because IWG has a sound cash position, low debt levels, positive free cash flow and strong fundamentals, research author Siddharth Rajeev concluded that IWG, "will see it through the downturn."
And even if Mr. Rajeev's prediction of a $0.30 IWG stock comes true, investors who buy in at today's price of $0.07 per share will be well rewarded.

Mr. Rajeev wrote in his February 17th report that corporate jet makers should make it through this year relatively comfortable because of the large backlog of orders they built up last year.

But the analyst predicted jet aircraft production could drop in 2010 and 2011.

To view the full Fundamental Research report please click here.

In an earlier Dow Jones Newswire story, IWG President & CEO David Fox drew a distinction between his customers - the manufactures of the largest corporate jets - and the rest of the industry - manufactures of mid-size and small corporate jets.

In the Dow Jones story, Mr. Fox said he was preparing for trouble but was cautiously optimistic that the makers of large corporate jets would be able to fly relatively smoothly through today's and tomorrow's economic tempests.

However, Mr. Fox said all the credible evidence had it that the makers of mid-size and small corporate jets were facing some tough economic squalls.
A customer of IWG's, Gulfstream, a manufacture of large and mid-size corporate jets, then surprised the industry by announcing it was cutting production of its large-cabin aircraft by more than 20% this year.
Prior to the latter announcement, Gulfstream management were unwavering in their belief demand for their highest-end corporate jets would remain firm.

Out of all of this, the good news is IWG's order book following Q1F09 (Dec. 31) was at $3 million or three quarters of total revenues in F08.

It's also important to keep in mind that after 9/11, the aviation industry went into a tailspin when air traffic dropped dramatically but it bounced back.

Monday, 9 March, 2009

Is IWG In The Perfect Niche For Troubled Times ?

International Water-Guard (TSX-V: IWG)
Basic Shares: 39.3 million

Fully Diluted: 46.5 million

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Big is better according to a Dow Jones Newswires story on International Water Guard that was published in one of the premier financial newspapers in the world - the Wall Street Journal.

IWG President and CEO David Fox was quoted saying while he is ever vigilant about troubling winds hitting his company from the current economic storm, so far the quality of IWG's customers has shielded it from any disorder.
That's because IWG is selling its drinking-water technology to owners of large luxury planes that are used to fly executives from the biggest corporations in the world and heads of state.

Smaller jets are used by executives from relatively junior companies.
"IWG's potable water systems are used far more frequently on larger aircraft since those planes are far more likely to travel longer distances, including cross borders," the Dow Jones article stated.
"Smaller Learjets and Cessnas are more frequently used for shorter hops in which it's less likely passengers will require food and drink. They also tend to be used domestically, so concerns about water quality at a destination are rare," the article added.

To read the full article, please click here.

Asia Now Founder Takes On Chief Technical Advisor Role

Asia Now (TSX-V: NOW)
Basic Shares: 65.5 million
Fully Diluted: 68.3 million
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Asia Now co-founder Dr. Noel White is changing roles.

Dr. White is stepping down from his role as a Director of Asia Now but will continue on with the company as Chief Technical Advisor.

Dr. White has been with Asia Now for over five years and is as determined as ever to advance exploration of Asia Now's two highly prospective properties in southwest China - Habo and Beiya.

Dr. White was employed by BHP Minerals Exploration until 1999 where he retired as Chief Geologist. After spending the next four years working as an independent consultant, he leapt at the opportunity to help launch Asia Now in 2004.

The board will miss him but shareholders will appreciate his long term commitment.

See full news release by clicking here.

Thursday, 5 March, 2009

Jacques Kavafian Gives Two Thumbs Up

AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 82.5 million
Fully Diluted: 88 million

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Research Capital's aviation analyst, Jacques Kavafian, raved about AeroMechanical's contract with Sierra Nevada Corporation (SNC) adding the deal could be more important for other business doors it opens for AeroMechanical.

"More importantly, (AeroMechanical) will gain greater credibility with large airlines because of the backing from SNC, a respected name in the aerospace field," Mr. Kavafian wrote in his March 5th update report.

"This agreement is very positive news for (AeroMechanical), not only for the upfront cash component of the license (SNC is paying AeroMechanical ), but because it also elevates the company's profile," Mr. Kavafian added.
The SNC contract was announced March 4th, one day before this latest analyst update.

Mr. Kavafian stuck with his BUY recommendation on AMA stock and set a share target price of $0.65, or $0.44 cents higher than AMA's trading price at the time of writing.

Equally interesting are the assumptions Mr. Kavafian made for this year's and next year's AMA budget.

The long-time aviation analyst expects AMA to have 292 of its blueboxes installed on aircraft around the world by the end of 2009.

AMA makes a relatively small amount up front from every bluebox sale and, more significantly, it earns monthly recurring revenue from each installed bluebox.

Mr. Kavafian then estimated the installations could jump dramatically - to 669 by the end of 2010.

Mr. Kavafian also predicts AMA could cut its net income loss by one half by the end of 2009 - to a loss of $3.5 million - and produce an estimated net income of $2.1 million by the end of 2010.

Mr. Kavafian has seen many previous down cycles in the aviation industry and he is keenly aware of the impact the current crisis is having, and will continue to have.

Given the latter reality, he still estimated AMA could pull off some significant business this year and next.

To read the analyst's full report, please click here.

To read about the SNC contract, please click here.

Wednesday, 4 March, 2009

AeroMechanical Signs Ground Breaking Deal

AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 82.5 million
Fully Diluted: 88 million

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We trust the market will appreciate the significance of today’s announcement about the agreement struck between AMA and Sierra Nevada Corporation.
SNC is a 45-year-old, Nevada-based corporation employing 1,600 people that has a long standing and significant relationship with the U.S. military.
One example of SNC’s aviation prowess is the auto-landing systems it manufactures for unmanned air vehicles and a related capability recently demonstrated that allows autonomous in-air, “hands free” refueling.

Today’s news release is about AeroMechanical and SNC signing a “Manufacturing and Military Partnership Agreement” that:
1) Puts an undisclosed - but significant- amount of cash into AMA’s coffers. The cash comes in two forms. First is an upfront payment for the license to manufacture the afirs™ products for AMA’s sales to the civil markets and market AMA’s technology to the military. The second tranche comes as SNC contributes funds, personnel and expertise to the design of AMA's future afirs™ airborne technologies. The cash influx provides AMA with adequate near-term working capital.
2) Strengthens the company’s balance sheet. Not only does cash come in, but in the future, when the next generation airborne product is developed, the inventory of components and finished goods required at AMA will be minimized.
3) The partnership will elevate AMA in the eyes of operators and aircraft Original Equipment Manufacturers (OEMs) that have been exploring employing AMA’s technology for commercial and civilian purposes. The most significant impact may be with the airframe OEMs and the large fleet operators who set a high bar for suppliers to meet. The OEMs require demonstrated staying power from any companies which supply equipment that will be installed on new aircraft and supported by the OEM for 25-40 years. We know that AMA management has been positioning the product to be offered as a factory option by OEMs, and several customers have requested afirs factory installations from OEMs. This partnership will allow that strategy to be pursued aggressively and effectively.
4) Reduces AMA’s research and development expenditures and downside exposure. SNC’s extensive technical staff will enhance the development program by augmenting AMA’s talented core group. This negates the requirement to add significant numbers of new technical staff at AMA and provides AMA with easy access to hundreds of talented hardware, software, and manufacturing engineers. The ability to deliver on schedule and on budget is improved as a result of the pool of talent and extensive development, testing and manufacturing facilities.
5) Provides AMA with a future revenue stream from afirs and UpTime sales and another recurring revenue stream associated with data capture, interpretation and delivery.
6) Adds a very high level endorsement of the value of the technology based on SNC’s long and successful association with the U.S. military. It stands to reason that SNC would not have joined hands with AMA unless it believed the military would also embrace the benefits of the technology. AMA’s recent contract to install afirs on the ubiquitous C-130 Hercules provides a great jumping off point for joint SNC-AMA marketing to the military.
7) As SNC deals at the billion dollar level with the U.S. military, is it fair to assume that it can see meaningful profits being realized from this partnership?

To appreciate SNC’s business, one must visit its website to understand the scope of its technologies and services.

“SNC is a world-class prime systems integrator and electronic systems provider known for its rapid, innovative, and agile technology solutions. Fast-growing and widely diversified, SNC is a high-tech electronics, engineering, and manufacturing corporation that continues to expand its impressive portfolio of capabilities, products and services.”
http://www.sncorp.com/

One obvious question is, what could this mean for AMA’s future sales? We can’t answer that and are not privy to what SNC is thinking. But based on its many years of success, we can’t imagine that SNC didn’t assess the market potential before signing the partnership agreement with AeroMechanical.

Unknown, but also extremely important, is how many eyebrows will be raised in the corporate offices of airlines, large fleet operators and OEM (original equipment manufacturer) organizations that have been talking with AMA? AeroMechanical can deservedly pump its chest out for closing this deal.

Could its dance card suddenly fill up?

Please click here to read the news release and also appreciate what AeroMechanical has just accomplished.