Friday, 29 July, 2011

U.S. Analyst: 12-month Neptune Shares at $9



Neptune Technologies & Bioressources
TSXV: NTB - NASDAQ: NEPT
Basic Shares: 48.2 million
Fully diluted: 53.9 million

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Roth Capital Partners, an influential U.S.-based firm especially in the biotech space, issued its initiating analyst report on Neptune Technologies today with a BUY recommendation and 12-month target price of $9.

Given that Neptune closed yesterday at $4.03, that's a hefty premium.

The author of the report is Joseph Pantginis, received an M.B.A. in Finance from Pace University; a Ph.D. in Molecular Genetics and an M.S. from Albert Einstein College of Medicine; and a B.S. from Fordham University.
And rather than pull out highlights from his report, please click here to read it all.

Wednesday, 27 July, 2011

Third Quarter Results & More Insider Buying at IWG

International Water-Guard (TSX-V: IWG)
Basic Shares: 38.1 million
Fully Diluted: 45.6million


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A firm control on expenses produced a surprising third quarter earnings report from IWG Technologies today.

Before share restructuring costs and taxes, IWG was able to report earnings of $93 thousand for the quarter ending June 30th, compared to a loss of $160 thousand for the same period last year.

That's a roughly $200 thousand gain compared to the third quarter of 2010, in a period where sale revenues were almost flat and the Canadian dollar was annoyingly high for a company that sells most of its technology in U.S. dollars.

To appreciate the challenges IWG management faced, third quarter sales this year were just over $1.1 million, compared to just over $1 million for the same period last year.

Yet net earnings after taxes for this year's third quarter were $1,196 compared to a net loss of $115,080 in the previous year.

Six month sales to June 30th were roughly $3.2 million, just slightly more than the same period last year.
Another positive sign came after IWG's first acquisition was announced earlier this month when IWG president & CEO, David Fox, purchased 60 thousand company shares on the open market.

More recently, IWG board member and aviation industry veteran, Michael J. Piscatella, was reported to have purchased 74 thousand shares.

It's always a good sign to see board members and company executives buying up shares.
On the third quarter results, Mr. Fox said:

"Our third quarter results reflect a solid year, and our related cash position remained stable, notwithstanding our corporate restructuring costs, and the ongoing challenge of a very strong Canadian dollar."
"At the close of the quarter we held $1.1M in cash, against which we have now drawn down funds for the recently announced acquisition of the On-Demand Aircraft Water Heater line of Keltech, Inc.," Mr. Fox added.

"We maintain good cash reserves of the order of $700K for future activities, and a half million dollar operating line of credit. The Keltech transaction will be reflected in our fourth quarter results."
To read the full news release, please click here.

Tuesday, 26 July, 2011

Influential Writer Pegs New Era For Neptune/Acasti


Neptune Technologies & Bioressources
TSXV: NTB - NASDAQ: NEPT
Basic Shares: 48.2 million
Fully diluted: 53.9 million

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Widely followed, U.S.-based biomed writer, M.E. Garza in a just released commentary noted that three recent events have propelled Neptune onto a much higher stage and brought it to a valuation that could be over five times higher than where it currently sits.

In other words, he can see the market cap rising from its current $200 million to $1.2 billion once Neptune's 60% owned subsidiary, Acasti Pharma, successfully concludes the Phase II clinical trial of its drug candidate CaPre.

Bold predictions!

But given the stellar successes of competitors with similar but possibly less effective products than what is expected of CaPre and the appointments of Dr. Anthony Holler to Neptune's board of directors and Dr. Harlan Waksal to Acast's executive offices, it isn't an outrageous proposition.

"It goes without saying that the go ahead into Phase 11, and the (two) recent appointments, represent the beginning of a new era for Neptune and its subsidiary, Acasti," Mr. Garza wrote.

"The appointments are specifically symbolic of a new confidence and willingness to bring in experts who have "been there, done that." This should help the execution of this evolving multi- billion-dollar play," Mr. Garza concluded.

Biomed released its first commentary on Neptune/Acasti in mid-April. The stock was $2.30 (USD) at the time and has almost doubled in the past three months.

To read the full report, please click here.

Thursday, 21 July, 2011

VentriPoint adds Depth to its Board of Directors

VentriPoint Diagnostics Ltd.
VPT - TSX Venture
Shares issued: - 79.4 million

Fully diluted: - 99.6 million

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VentriPoint is adding some serious talent to its Board of Directors.

Don Black is a renowned healthcare executive who ran the Child Health Care Corporation of America for over 20 years. During his tenure this business grew from a handful of hospitals to the USA’s largest business alliance of children’s hospitals.

Today Don has a thriving healthcare consulting practice. He works with hospitals/health systems, medical device manufacturers, healthcare technology companies, private equity firms and industry associations. With his business he provides venture and private equity investment advice on matters of governance and quality to health system management teams. Don's expertise helps organizations translate business strategy into action.

To learn more about Don go to www.askdonblack.com .

Hugh Cleland is one of Bay Street’s leading venture portfolio managers. He is a Harvard business grad who started with Sceptre Investment Counsel as an analyst. Following that he worked for an investment banking firm before taking on money management with a private family.

He then founded Northern Rivers Capital Management where he demonstrated an ability to ‘find’ investment opportunities by focusing on growth companies using a personal ‘box’ of qualitative, quantitative and technical approaches. Northern Rivers Funds is part of Blumont Capital Corporation where Hugh continues to seek out high growth investment opportunities.

Of note, Hugh was a substantial participant in the most recent $3.5 million financing for VentiPoint.

This is the first time that Hugh has taken on the role as a Director of a Public Company. This is a significant move which speaks well to the potential that VPT is clearly showing. Investors should expect that his involvement will open doors of interest into the VentriPoint opportunity.

To view the press release click here

Wednesday, 20 July, 2011

Insider Buying & First Sale from IWG's Acquisition

International Water-Guard (TSX-V: IWG)
Basic Shares: 38.1 million
Fully Diluted: 45.6million

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The ink was barely dry on IWG's contract to buy a U.S. company's product line - instant water heaters for high-end aircraft - when IWG announced its first sale.



The product line purchase was completed less than two weeks ago so it was welcome news to pluck the first fruits so soon.

And to ease the path forward for future sales, IWG president and CEO, David Fox, wrote in the news release that his company is using its aviation industry expertise to gain difficult-to-acquire industry accreditation's that will allow a number of facilities around the world to install the water heaters.

"In any acquisition, despite all of the due diligence, there is always a question of what the reality of the business will look like," Mr. Fox said. We have been seeing a very positive response from our customer base on the news, and now less than two weeks after closing the transaction we are receiving a first purchase order."

To read the full news release, please click here.

Investors might also take note that IWG insiders - including Mr. Fox - have been steadily purchasing company shares.

Since the acquisition was announced, Mr. Fox bought 60 thousand shares, according to Canadian Insider.

Neptune's Target Share Price Hiked to $7

Neptune Technologies & Bioressources
TSXV: NTB - NASDAQ: NEPT
Basic Shares: 48.2 million
Fully diluted: 53.9 million


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Catalyst Equity Research analyst, Robin Cornwell, dramatically increased his one-year target price for Neptune shares from $5 to $7 in a July 20th update report.

That's a hefty premium over the current market price of $3.90 at the time of writing.

His target price of $2.75 for Acasti Pharma shares remained unchanged at a time when Acasti shares were trading at $1.45.

Mr. Cornwell wrote that a number of recent positive business developments, plus some soon-to-be expected announcements gave rise to the increase.

Among them was the recent announcement that two heavyweight U.S. distributors signed up to
sell Neptune Krill Oil, that Neptune's production was scheduled to double, that subsidiary, Acasti Pharma, recently got the green light to conduct phase 11 clinical trials on its krill-oil based drug candidate and that the results from clinical trials conducted by Nestle and Yoplait are expected soon.

"The important message for investors to understand is that each of these components has exceptional potential in their own right which adds huge leverage for Neptune as a whole, " Mr. Cornwell wrote.

To read his full report, please click here.

Tuesday, 19 July, 2011

VentriPoint Raises $3.5 Million

VentriPoint Diagnostics Ltd.
VPT - TSX Venture
Shares issued: - 79.4 million

Fully diluted: - 99.6 million

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The real news here is that VentriPoint closed a $3.5 Million financing during a challenging time in the markets.

This successful milestone was achieved because:

  • The investors recognized the enormous potential value of the VMS™ technology
  • The fortitude and perseverance of the Company’s CEO, who pitched this story continuously over several months .
  • The CEO’s ability to attract key relationships which brought more capital

Since the beginning of the year the company has attended several echocardiography and cardiology conferences where they were able to speak about VMS™ , or provide demonstrations within a booth.

These efforts have resulted in over 160 expressions of interest to purchase the product. The response at these conferences will continue as more cardiologists get an opportunity to see the VMS system.

This raise will allow the company to expand their installation team, to widen the cardiac service options offering ( e.g.Pulmonary Hypertension ...PHT), and to assist the sales efforts.

The VentriPoint story is getting stronger and we believe that the markets are looking for ‘tech’ companies which have substance and a strong market potential.

View the press release here

Is Carfinco Undervalued? Three Analysts Say Yes!

Carfinco Income Fund
TSX: CFN.UN
Units outstanding: 23.97 million
Units fully diluted: 24.6 million
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Carfinco has had its share of accolades over the last two years and recently has been a Top Pick of two BNN celebrities - Sprott Analyst Jamie Horvat and Jason Donville of Donville Kent Asset Management.

After recent news of another record quarter and the winning of a major servicing contract, increasing the company's loan portfolio by $150 million (June 29th), each of three analysts covering Carfinco have increased the earnings targets for the fund and more importantly, the targeted value of the unit price.

Fred Westra of Industrial Alliance has upgraded Carfinco's target price to $9.50 and continued to give it a "Top Pick" recommendation which is only given to 3% of IA's coverage universe. The updated report can be viewed by clicking here and Fred had this to say;

We are increasing our estimates based on strong Q1/11 results, the upside in the fund servicing agreement and the impact of IFRS. Our revised FY11E and FY12E EPS increase to $0.70 and $0.82, respectively, from $0.63 and $0.74. We maintain our valuation methodology applying a 14x multiple on 2011E EPS to derive a new target price of $9.50 from $8.80 and reiterate our TOP PICK recommendation. This equates to a potential total return of 52.2%.

CFN has outstanding profitability (59.0% ROE) and a yield of 4.7% (payout of only 39%). Investors should accumulate as we view CFN as not only a great defensive play in volatile markets given its strong credit quality, favourable demographics and used auto sales trends, but also offers a very attractive growth profile.

GMP Securities Steven Boland increased his target price to $9.50 and continued his Buy recommendation with this to say;

We value CFN.UN by applying an 11.0 times P/E multiple (was 11.0x on F11) to F12E EPU. Applying our multiple to our new F12E EPU of $0.88 produces our target price of $9.50 which is increased from $8.00. With greater than 20% growth, a sustainable ROE above 50%, a healthy yield and new products, institutions should revisit this story.

Click here to view the GMP report.

Stonecap Securities analyst Dylan Steuart increased his target price on June 16th to $9.00 with an Outperform rating which is the top rating used at the firm. He summarized the Carfinco opportunity with the following;

Increased loan book, stable margins, and a meaningful improvement in the underlying credit all show that the trust is executing well on its strategy and the primary reasons behind our decision to raise our EPU estimates. The trust remains very much a high yield (4.7%), high return (59% ROE) investment story with promising growth potential. Maintain OUTPERFORM.

See full Stonecap report here.

Monday, 18 July, 2011

Solid Resources Fills Its Till with $1 Million


Solid Resources

TSXV - SRW

Shares Outstanding - 86.21 million
Fully Diluted - 129.63 million

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Insiders bought 15% of the total raise with President & CEO Greg Pendura contributing $100,000 Randy Hayward, Chairman of the Board investing $50,000.

In total, the company issued 10 million units at a price of $0.10 per unit. Each unit consists of one common share and one common share purchase warrant. Each Warrant is exercisable into one additional Common Share for a period of 24 months after the closing at a price of $0.15 per Common Share. The units are free trading as of November 16th.

The Company will use the proceeds to fund exploration of the Company's Doade-Presqueira Tin, Tantalum and Lithium project in Spain in addition to the Gold and Copper project in Peru, plus general working capital. The company is now well funded and intends to complete the NI 43-101 and metallurgy reports for its Spanish rare metals property expected in Q4 of this year.

To view the full news release, please click here

Thursday, 14 July, 2011

Drills Are Turning At Pure Nickel's Tower Property

Pure Nickel
(TSX: NIC)(OTCBB: PNCKF)
Basic Shares: 67.8 million
Fully Diluted: 75.5

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Drilling is underway on two untested conductors that were discovered through recent geophysical work on Pure Nickel's optioned Tower property in central Manitoba.

Pure Nickel's option partner Rockcliff Resources Inc. (TSX-V: RCR) has the right to earn up to 70% interest in Tower, which has had showings of high grade copper from an extensive 24 drill hole exploration program completed this past May.

Of note is that one area has a strike length of more than one KM and is similar in nature to already discovered copper zones. More drilling is expected at the copper zone this fall.

North American Energy Market Now Open For MicroPlanet

MicroPlanet Technology Corp.
TSXV: MP
OTC Pink: MCTYF
As of March 18, 2011
Shares Outstanding: 63.2 million
Fully Diluted: 82.2 million
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Today MicroPlanet announced that it received Underwriters Laboratories (UL) certification for two of its voltage regulation products. According to management, by receiving this designation the company now meets specific safety requirements requested by prospective clients.

Importantly, this opens the door to North America for MP’s power regulating and power quality technologies.

According to www.ul.com, UL is a global independent safety science company offering expertise across five key strategic businesses: Product Safety, Environment, Life & Health, University and Verification Services.

MicroPlanet also announced the sale and shipment of two orders of its Voltage Regulation units.

1) An Australian electric utility customer for specific rural customers.

2) Second being to the United States Department of Defense related customers on the island of Guam. The Guam units will be used in newly constructed multi-family homes.

MicroPlanet’s proprietary smart grid Voltage Regulation technology provides voltage optimization which results in energy efficiency, cost savings and lowered greenhouse gas emissions from the production of surplus electricity.

To view the full news release, please click here

Wednesday, 13 July, 2011

Pure Nickel Receives Multi Million Dollar Settlement

Pure Nickel
(TSX: NIC)(OTCBB: PNCKF)
Basic Shares: 67.8 million
Fully Diluted: 75.5

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After a lengthy legal process, Pure Nickel will have a healthier bank account and closure on its claims battle in a Utah copper project.

The dispute went legal after Western Utah Copper Company (WUCC) and its parent Copper King Mining Corporation filed for bankruptcy in May 2010. The issue was that Pure Nickel's 100% owned subsidiary, Nevada Star Resources, was to be receiving royalties from production that was supposed to have started in late 2008. As a result, NIC and its subsidiary filed a statement requesting the return of the land claims.

Enter Skye Mineral Partners! It subsequently purchased the majority of the secured debt in WUCC and then approached Pure Nickel to reach a sedttlement. The terms are as follows:

1. An initial term sheet has been agreed to and a long form agreement will be negotiated as soon as possible between Skye and Pure Nickel;

2. Subject to WUCC’s exit from bankruptcy, an initial payment of two million dollars (US$2,000,000) will be made by Skye to Pure Nickel;

3. A payment of an additional one million five hundred thousand dollars (US$1,500,000) will be made twelve months from the date of the initial payment;

4. The granting by Skye to Nevada Star of a 1% NSR in all properties acquired by Skye from WUCC and Nevada Star which NSR is subject to a total royalty cap of eight million dollars (US$8,000,000).

NIC management is anticipating it will take about 90 days for the paperwork to be completed. If this is the case, the company would have the cheque in hand early in Q4. The question becomes, what will the company do with the money? We expect some clarity on that question in the not too distant future.

Smartcool Sells To The World's Largest Oil Company

Smartcool Systems Inc.
TSX.V: SSC
Basic Shares 60.2 million
Fully Diluted 77.4 million

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Smartcool's ESM(TM) unit has undergone significant testing within Saudi Arabia's national oil company, Saudi Aramco.

The world's largest oil company is now a believer as it realized substantial energy savings in its first installation and will now place Smartcool's technology throughout its operations.

Smartcool and its distributor, US Chiller Services MENA, which sold the product to Saudi Aramco is looking forward to a long and profitable relationship with the oil giant.

To view the full news release, please click here

Tuesday, 12 July, 2011

Major Canadian Newspaper Spotlights AMA

AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 118.58 million
Fully Diluted: 134.33 million
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Calgary Herald business writer, Kim Guttormson, skillfully described the complex world of AeroMechanical's technology in a lengthy article published today.

To read the full article, please click here.

Influential Blog Focuses on Neptune

Neptune Technologies & Bioressources
NTB - TSX V) (NEPT - NASDAQ)
Basic Shares: 48.2 million
Fully diluted: 53.9 million
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Neptune Technologies (NTB) was today featured in an influential blog called BioTuesday.

Penned by retired Globe and Mail writer, Leonard Zehr, the well-written article weaves its way through the complex science driving Neptune and its subsidiaires, publicly-traded Acasti Pharma (APO) and NeuroBioPharm, which hasn't opened on public markets yet.

It's a must read for the most sophisticated current investor and, certainly, potential investors.

BioTuesday is a healthcare business and investment news blog published by a New York-based investor relations firm called Kilmer Lucas that specializes in the healthcare sector.

VentriPoint CEO Dr. Adams Talks About Plan to Capture Billion Dollar Market


VentriPoint Diagnostics Ltd.
VPT - TSX Venture
Shares issued: - 79.4 million
Fully diluted: - 99.6 million

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A 16 minute interview with Dr. George Adams, President and CEO of VentriPoint has been posted on http://www.investmentpitch.com/ . Dr. Adams is interviewed by investment industry veteran Ted Ohashi.

The interview covers areas such as:

- The opportunity Dr. Adams saw that prompted him to join VentriPoint
- A detailed overview of VentriPoint’s VMS™ technology
- The VMS™ advantage over an MRI
- An overview of the markets for the VMS™ system
- Status of FDA approval
- Positive feedback from first users of technology
- Plan for two year exit strategy

To view the full interview, please click here.

Monday, 11 July, 2011

Breakthrough Contract for AeroMechanical

AeroMechanical Services Ltd. (TSX:V-AMA)
Basic Shares: 118.58 million
Fully Diluted: 134.33 million


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The contract AeroMechancial Services announced July 11th with a French charter airline was a mouse that roared contract.

It was relatively small at $134 thousand.

But it was big in terms of breaking through a barrier that always kept AMA at bay from major airlines in the past.


That is convincing an airline that it is cheaper and better to use an AeroMechanical blue box to take the information off legacy technology (ACARS) on board most aircraft and transmit that data to the airline over a different satellite system.


Most airlines around the world use ACARS and most have that legacy technology connected to the Inmarsat satellite system, as opposed to an AFIRS blue box connected to the Iridium satellite system. The cost differences are significantly in favour of AeroMechanical's state-of-the-art technology and satellite provider.


Also, AeroMechanical can also provide a much lighter technology in today's high fuel price era, where any additional weight on an aircraft costs money. In this contract, AeroMechanical will install three of its latest blue boxes - the AFIRS 228 - on three Boeing 737 aircraft for the ACARS over Iridium service, plus the satellite phone system whereby pilots can contact the airline - or vice versa - anywhere over the world.


There is also something else in this contract that marks a different way forward for AeroMechanical. Once the blue box is aboard an aircraft, AeroMechanical can then use the technology to show the airlines how it can better monitor the aircraft:



  • for real-time maintenance;


  • for real-time tracking and scheduling the airline's entire fleet;


  • to monitor each aircraft's fuel usage in real time;


  • and provide emergency data streaming.


That's why AeroMechanical Chairman and CEO, Bill Tempany, was quoted in the news release saying,"We are in discussion with the client to provide additional services offered by the AFIRS equipment, which would see our revenue grow from this initial installation of AFIRS hardware." It also doesn't hurt that the Boeing 737 is the most popular aircraft in the world today, with over 6,000 in service and 2,000 on order.


To read the full news release, please click here.

Thursday, 7 July, 2011

VentriPoint Steps Into Massive Pulmonary Hypertension Market

VentriPoint Diagnostics Ltd.
VPT - TSX Venture
Shares issued: - 79.4 million
Fully diluted: - 99.6 million


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VentriPoint announced today that they are moving forward with the validation study for pulmonary hypertension (PH) clinical development program with Dr. Robin Barst. The clinical PH expert will act as the Principal Investigator for the studies.

Today’s news release mentions a number of points which are key to understanding what is important about this program:

1) The program director Dr. Robin Barst is one of the best and brightest in this field. She founded the first paediatric and PH center in 1982 at Columbia University, and is a recognized leader in the cardiac community. Dr. Barst is also a consultant to the FDA (Food and Drug Administration).

2) “VentriPoint expects to initiate the PH pilot study this summer and the PH Clinical Validation Pivotal Study needed for FDA submission this fall.”

And, most importantly why all of this is of interest to the investment community...

3)PH clinical use for the VMS™ system is expected to be a $1 Billion market.

To view the full news release, please click here

Wednesday, 6 July, 2011

New Growth Business Plan at IWG

International Water-Guard (TSX-V: IWG)


Basic Shares: 38.1 million
Fully Diluted: 45.6million

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Today marks a new era for IWG Technologies Inc. with the announcement of its first acquisition as part of a mergers and acquisitions program that is designed to continuously add to the IWG family.


It's a change in the business model for IWG, from dependence on one core product - sophisticated water storage and water treatment technology for aircraft - to seizing on opportunities that build on IWG's strengths while also building IWG's bottom line.


Today's announcement is about an agreement to purchase an aviation water heater product line from U.S.-based Keltech Inc. To view a video where IWG President & CEO, David Fox, explains the business strategy and gives further background on this first acquisition target, please click here.


Keltech makes on-demand water heaters for a large variety of applications. But this product line was its only aviation product. The water heaters are used on high-end aircraft requiring lots of hot water - those equipped with showers, for example - in the VIP and business jet markets.


IWG has been building up that same customer base for its water treatment and water storage technology for the past 20 years. So for that and other reasons it's a natural fit.


Keltech produced annual revenues of roughly $500 thousand from this line but IWG believes it can build that up.


To view the news release on the agreement to purchase the Keltech line, please click here.