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Stock Alert for Central European Distribution Corp. (CEDC)

Brittany Webster — Fri, 03 Feb 2012 06:02:50 +0000

Central European Distribution Corp. (CEDC) is a producer of vodka and is Central and Eastern Europe’s largest integrated spirit beverage business. CEDC produces the Green Mark, Absolwent, Zubrowka, Bols, Parliament, Zhuravli, Royal and Soplica brands, among others. CEDC currently exports its products to many markets around the world, including the United States, England, France and Japan. The Company is also an importer of alcoholic beverages in Poland, Russia and Hungary. In Poland, CEDC imports many of the world’s leading brands, including brands such as Carlo Rossi Wines, Concha y Toro wines, Metaxa, Remy Martin Cognac, Sutter Home wines, Grant’s Whisky, Jagermeister, E&J Gallo, Jim Beam Bourbon, Sierra Tequila, Teacher’s Whisky, Campari, Cinzano, and Old Smuggler. CEDC is also an importer of premium spirits and wines in Russia with such brands as Concha y Toro, among others.

Share Statistics (02-Feb-12)			FY 2009	FY 2010	% Chg	Q3 2010	Q3 2011	% Chg
Symbol	CEDC	Revenue, $Mn	689.41	711.54	3.2%	157.76	228.85	45.1%
Current price	$5.28	Gross marg.	50.6%	46.1%	-8.9%	49.0%	40.7%	-16.9%
52wk Range:	$2.75-$23.70	Oper. margin	–	-3.3%	–	–	-285.1%	–
Avg Vol (3m):	2,314,430	Net margin	11.4%	-14.7%	-228.9%	63.3%	-367.0%	-679.8%
Market Cap.	382.76M
Shares Outstanding	72.49M	EPS, $	1.60	-0.10	-168.8%	1.01	-2.01	-299.0%

Source: Reuters.com, SEC Filings. -

Investment Highlights

Shares of vodka maker Central European Distribution rose as much as 28% to $5.69 Thursday, buoyed by news Russian billionaire Roustam Tariko proposed to raise his stake in the Company. This proposal is seen to help CEDC with its debt, while giving Tariko control of the Company’s management in Russia.

CEDC have gained 33.0% in the last five days and 20.7% in the last month. Year-to-date, the stock is down 77.6%.

According to Reuters’ report, the transaction would see Tariko exchange up to $103 million in CEDC debt maturing next year into common shares at an exchange price of $7.00 per share. The investor also offered to assist the Company in addressing the remaining $207 million in debt maturing 2013, by potentially extending a backstop credit facility to CEDC.

Russian Standard, which is controlled by Tariko, disclosed in an SEC filing that the proposal would enable it to increase its stake in CEDC to as much as 32.99% from 9.9% it currently owns. Tariko previously told Reuters that his Russian Standard intends to take management control of CEDC as part of an international expansion strategy.

William Carey, CEO of CEDC, said his company would consider the proposal as well as other options it is currently exploring.

Late in January, CEDC announced that First Drinks Brands, part of William Grant & Sons, will have the exclusive importation rights to Green Mark, Zubrowka and Kauffman Vodka in the UK. The deal is seen to strengthen CEDC and William Grant & Sons’ international alliance, within which CEDC imports and distributes brands from William Grant & Sons’ portfolio in Poland and Hungary.

CEDC shares rose 18.39% to close Thursday trade at $5.28. Over 6 million shares have traded hands during the session, versus the 10-day average volume of over 1.26 million. Over the past 52 weeks, the stock has traded in the range of $2.75 – $23.70. It is currently above its 50-day moving average of $4.26 and below its 200-day moving average of $5.76.

Source:

http://www.reuters.com/article/2012/02/02/cedc-idUSL4E8D25OE20120202?feedType=RSS&feedName=mergersNews&rpc=43

http://finance.yahoo.com/news/CEDC-Signs-Agreement-With-prnews-2085938112.html?x=0

Financial Summary

CEDC reported net sales of $228.9 million for the three months ended September 30, 2011, compared to $157.8 million reported for the same period in 2010. Operating profit came in at $36.2 million as compared to $32.5 million for the same period in 2010.

Operating profit in the recently reported quarter excluded the impact of a onetime, non-cash, impairment charge on goodwill and brands of $674.5 million, as well as other cost associated with restructuring and relicensing in Russia.

On a U.S. GAAP basis, CEDC reported a net loss of $839.9 million, or $11.59 per fully diluted share, for the quarter, compared to net income, excluding discontinued operations, of $68.9 million, or $0.98 per fully diluted share, for the same period in 2010. In addition to the impairment charge, the comparable net income excludes the unrealized non-cash foreign exchange loss of $170.8 million from the revaluation of long term debt recognized during the period. The number of fully diluted shares used in computing the earnings per share was 72.5 million for 2011 and 72.1 million for 2010.

Source: http://finance.yahoo.com/news/Central-European-Distribution-prnews-2207350927.html?x=0&.v=1

Financial Strength (02-Feb-2012)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	1.75	1.23	0.69	0.59
Current Ratio (MRQ)	2.11	1.68	0.94	0.95
LT Debt to Equity (MRQ)	182.89	44.62	24.69	94.90
Total Debt to Equity (MRQ)	190.76	52.58	35.04	133.68
Interest Coverage (TTM)	-2.51	0.73	0.63	28.68

Source: Reuters.com, SEC Filings.

Technical Analysis

Source: http://stockcharts.com

CEDC is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

The MACD for CEDC currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Feb-02-2012	symbol	Share, $	$ Mn	2011	2012	2011	2012
Heineken NV	HINKY	23.95	28.33B	14.43	14.17	1.29	1.26
Iconic Brands Inc.	ICNB	0.0004	21.01K	n/a	n/a	n/a	n/a
Constellation Brands Inc.	STZ	21.68	4.33B	10.58	9.81	1.63	1.57
Beverages – Wineries & Distillers Median				16.43	n/a	1.52	n/a
Central European Distribution Corp.	CEDC	5.28	382.76M	25.14	10.56	0.42	0.41

Source: Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice. The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

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Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

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We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Small-Cap Stock on Watch: Vringo Inc. (VRNG)

Editor — Fri, 03 Feb 2012 04:40:10 +0000

Vringo Inc. (VRNG) shares traded as much as 46% to $1.97 higher Thursday, joining other stocks in the social media sector risng amid news of Facebook going public. The stock added $0.35, or 25.9%, to close the session at $1.70 on above-average volume of 3.95 million.

Vringo, based out of New York, New York, provides software platforms for mobile social and video applications. With its award-winning video ringtone application and other mobile software platforms – including Facetones, Video Remix and Fan Loyalty – Vringo transforms the basic act of making and receiving mobile phone calls into a highly visual, social experience.

Late last month, the company unveiled a new version of Facetones customized for the latest mobile devices released by mobile phone giant Nokia. The Facetones app is integrated with Facebook and generates an automatic, visually exciting slideshow of photos displaying one’s friend’s face and other social content each time one communicates with that friend using a mobile device.

With the latest version of Facetones, the application is now fully optimized for Nokia’s Symbian^3 operating system, including its latest Anna and Belle extensions, which were released in the second half of 2011, Vringo said in a statement.

“The ongoing innovation that Vringo brings to the latest Symbian handsets further solidifies our commitment to delivering best-of-breed video and social experiences to Nokia users around the world, especially in the Middle East, Asia, and Europe,” commented Vringo CEO Jon Medved.

According to Vringo president Andrew Perlman, Vringo has developed Symbian versions of its Video Ringtone, Fan Loyalty, and Facetones apps for S40, S60, and Symbian^3 device since 2007, potentially reaching over 1 million Nokia users and enhancing many calls along the way.

Vringo reported revenue of $182,000 for third quarter ended September 30, 2011, an increase of 237% from third quarter of 2011. The Company realized a net loss of $2.1 million for the period, an improvement of 25% from the prior year period.

The company attributed the decrease in net loss to increased revenues, lower R&D and marketing expenses and partly offset by a concurrent increase of G&A expenses pursuant to merger and acquisition activity and non-cash costs relating to share based compensation.

Vringo reported that it surpassed the 400,000 download mark for its Facetones application during the period and stated that it remains committed to becoming the new leader in the fast growing mobile social arena.

Shares of VRNG have gained 77.1% in the last five days and 71.7% in the last month.

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Disclaimer:

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. BeaconEquity.com is a wholly owned subsidiary of BlueWave Advisors, LLC. BlueWave Advisors has been compensated ten thousand dollars from the company for VRNG advertising and promotion. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision.

Stock Alert for Corinthian Colleges Inc. (COCO)

Brittany Webster — Thu, 02 Feb 2012 06:02:26 +0000

Corinthian Colleges Inc. (COCO) operates as a post-secondary education company in North America. It offers diploma and degree programs that prepare students for careers in demand or for advancement in their chosen fields. The Company’s program areas include health care, business, criminal justice, transportation technology and maintenance, construction trades and information technology. The Company has 123 Everest, Heald and WyoTech campuses, and also offers degrees exclusively online. As of December 31, 2011, COCO has over 94,860 students.

Share Statistics (01-Feb-12)			FY 2010	FY 2011	% Chg	Q3 2010	Q3 2011	% Chg
Symbol	COCO	Revenue, $Mn	1.76B	1.87B	6.3%	500.41	414.04	-17.3%
Current price	$4.14	Gross marg.	44.9%	40.5%	-9.8%	43.1%	35.8%	-16.9%
52wk Range:	$1.24-$5.75	Oper. margin	–	-4.4%	–	–	-3.1%	–
Avg Vol (3m):	1,385,010	Net margin	8.3%	-5.9%	-171.1%	6.6%	-2.3%	-134.8%
Market Cap.	350.40M
Shares Outstanding	84.84M	EPS, $	1.64	0.39	-76.2%	0.38	-0.04	-110.5%

Source: Reuters.com, SEC Filings.

Investment Highlights

Corinthian Colleges Inc. (COCO) shares headed higher on Wednesday after the for-profit education provider reported profitability for its fiscal second quarter, which came in ahead of Street estimates. Investors also cheered the Company’s forecast for the current period. Shares reached an intraday high of $4.37 before closing the session at $4.14, up 36.6% from the previous session’s close, on high volume of 11.44 million shares.

Shares of COCO have risen 32.0% in the last five days and 90.3% in the last month. Year-to-date, the stock is down 23.7%.

Having cut expenses amid slowing enrollment, the Company reported net income of $1.8 million, or $0.02 a share, for the three months that ended December 31. That reverses the prior year’s loss of $163.7 million, or $1.94 a share, when it reported $206 million in severance charges.

Adjusting to exclude impairment and severance charges, COCO earned $0.04 a share, versus the prior year quarter’s $0.23 a share. Analysts polled by Thomson Reuters I/B/E/S expected adjusted earnings of a penny a share.

Revenue for the latest quarter came in at $415.5 million, down 14% from $481.7 million reported a year ago, but slightly ahead analysts’ expectations of $415.2 million.

“In the second quarter we remained focused on student outcomes, balancing expenses with current and projected enrollment, and improving the efficiency of back-end operations,” Jack Massimino, chairman and CEO, commented in the release. “Our student attrition and graduate employment trends continue to make incremental improvement, primarily the result of reducing the risk profile of our students and our ongoing efforts to help students succeed.”

The Company has trimmed its annualized operating expenses by about $150 million over the past 18 months, while continuing to pursue several growth initiatives, such as introducing new program offerings, opening new campuses, and growing its exclusively online enrollments, Massimino said.

The Company reported total student population of 94,860 at December 31, 2011, compared to 105,210 at December 31, 2010, a decrease of 9.8%.

Looking forward to a strong third quarter, COCO forecast earnings of $0.15 to $0.17 a share, compared to analysts’ expectations of $0.13.

Source:

http://finance.yahoo.com/news/Corinthian-Colleges-Reports-pz-493340308.html?x=0

http://www.reuters.com/article/2012/02/01/corinthian-idUSL4E8D15K420120201?type=companyNews&feedType=RSS&feedName=companyNews&rpc=43

Financial Strength (01-Feb-2012)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	–	1.71	0.70	0.65
Current Ratio (MRQ)	1.37	1.95	0.96	1.02
LT Debt to Equity (MRQ)	37.07	29.43	25.13	96.17
Total Debt to Equity (MRQ)	37.32	38.14	35.43	135.09
Interest Coverage (TTM)	43.60	1.12	0.63	27.46

Source: Reuters.com, SEC Filings.

Technical Analysis

Source: http://stockcharts.com

COCO is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

The MACD for COCO currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Feb-01-2012	symbol	Share, $	$ Mn	2011	2012	2011	2012
Apollo Group Inc.	APOL	53.00	6.70B	15.54	14.36	1.56	1.54
DeVry Inc.	DV	37.76	2.57B	10.40	10.52	1.22	1.23
ITT Educational Services Inc.	ESI	68.17	1.78B	8.61	8.98	1.33	1.35
Education & Training Services Median				15.82	n/a	1.41	n/a
Corinthian Colleges Inc.	COCO	4.13	350.40M	17.21	12.91	0.21	0.20

Source: Thomson Financial

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

OTC Stock Spotlight: SNAP Interactive Inc. (STVI)

Editor — Thu, 02 Feb 2012 00:25:28 +0000

Continuing on their winning streak for the third straight day, shares of SNAP Interactive Inc. (OTC: STVI) rose 25.00% to close Wednesday trade at $2.05. Over 940.15 K shares have traded hands during the session, versus the 10-day average volume of about 209.17 K. The stock is currently above its 50-day and 200-day moving averages of $0.91 and $0.86, respectively.

Headquartered in New York City, SNAP Interactive operates as a provider of online dating applications for social networking Web sites, which has over 47 million installed users.

The company also owns an online dating Web site called AreYouInterested.com, a unique online dating site that integrates with the AreYouInterested.com iPhone & Facebook applications. Singles can have one overall experience on AreYouInterested.com across the various platforms deeply integrated with Facebook.

Shares of SNAP Interactive, along with many social media related stocks, have been drawing investors’ attention as rumors of Facebook going public began to float in the air.

SNAP Interactive was recently highlighted in a SeekingAlpha report, which suggests that it is one of the companies that could benefit from the estimated $100 billion worth IPO of Facebook. Built on the back of the Facebook platform, SNAP Interactive’s success at building and marketing Facebook platform apps and services could cause it to gain increased recognition from investors searching for additional Facebook related investment options, the report said.

SNAP Interactive last week announced it has retained strategic communications firm ICR to assist the company with its investor relations activities. According to the company, retaining ICR marks the first step as part of an overall plan to improve communication with investors and increase its profile and visibility within the overall investment community.

STVI shares have gained 70.8% in the last five days and 215.4% in the last month. Year-to-date, the stock is down 9.7%.

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Stock Alert for Pinnacle Airlines Corp. (PNCL)

Brittany Webster — Wed, 01 Feb 2012 06:02:56 +0000

Pinnacle Airlines Corp. (PNCL), an airline holding company with over 8,000 employees, is the parent company of Pinnacle Airlines Inc. and Colgan Air Inc. Flying as Continental Express, Delta Connection, United Express and US Airways Express, PNCL operating subsidiaries operate 199 regional jets and 69 turboprops on more than 1,540 daily flights to 188 cities and towns in the United States, Canada, Mexico and Belize. Corporate offices are located in Memphis, Tenn., and hub operations are located at nine major U.S. airports.

Share Statistics (31-Jan-12)			FY 2009	FY 2010	% Chg	Q3 2010	Q3 2011	% Chg
Symbol	PNCL	Revenue, $Mn	845.51	1,020.77	20.7%	302.33	319.76	5.8%
Current price	$1.41	Gross marg.	24.4%	21.9%	-10.2%	22.5%	18.5%	-17.8%
52wk Range:	$0.72-$7.69	Oper. margin	–	6.0%	–	–	2.0%	–
Avg Vol (3m):	165,513	Net margin	5.0%	1.3%	-74.0%	3.1%	-1.2%	-138.7%
Market Cap.	26.97M
Shares Outstanding	19.13M	EPS, $	2.42	1.06	-56.2%	0.51	-0.11	-121.6%

Source: Reuters.com, SEC Filings.

Investment Highlights

Making gains for the second day in a row, Pinnacle Airlines Corp. (PNCL) shot up 42.4% to close Tuesday’s trade at $1.41. Over 1.70 million shares traded hands during the session, topping the 10-day average of 260.07 K. The rally took the price to an intraday high of $1.85.

Shares of the Memphis-based airline holding company have gained 83.6% in the last five days and 72.0% in the last month. Year-to-date, the stock is down 80.4%.

Investors last week welcomed the news that the company has inked an deal with Export Development Canada to defer payments owed to the credit agency, a move seen as an effort to keep off bankruptcy.

According to a filing with the SEC, PNCL and subsidiary Colgan Air were scheduled to pay principal and interest of $16.6 million from January 14 to March 31. Under the deal, the debt would be delayed until April.

Shares plummeted earlier in January after the Company warned of a possible Chapter 11 filing if it is unable to trim costs. “On the current path, our financial position will continue to worsen at an alarming rate; we need to act immediately,” CEO Sean Menke stated in a letter to employees. According to him, the company needs to reach cost-cutting agreements with labor, vendors and other partners.

In other news, PNCL last month announced capacity and operational results for its subsidiaries for December of 2011, showing decreases in all measures of traffic. The Company reported total passengers of about 1.49 million for the month, compared to over 1.50 million in 2010. Revenue Passenger Miles (RPMs) was 631.35 K, down 6.9% from 678.02 K reported in the previous year. Load Factor was 72.5%, dropping 0.1 points from the previous year’s 72.6%.

PNCL conducts the majority of its operations under capacity purchase agreements. Fluctuations in total Passengers, RPMs, and Load Factor do not affect revenue earned by the Company under these types of agreements.

Source: http://phx.corporate-ir.net/phoenix.zhtml?c=131072&p=irol-newsArticle&ID=1651181&highlight=

http://www.bloomberg.com/news/2012-01-20/pinnacle-s-ceo-warns-of-chapter-11-amid-worsening-financials-1-.html

Financial Summary

PNCL recorded consolidated operating revenue of $319.8 million for the third quarter of 2011, an increase of $17.4 million, or 5.8%, over the same period in 2010. The Company attributed the increase to an increase in its Q400 operations with United and the year-over-year increase in the rates earned under its operating contracts, which were partially offset by the wind-down of its Saab operations with Delta as well as reduced regional jet flying with Delta.

The Company reported operating income and operating margin for the quarter of $2.6 million and 1.6%, representing decreases of $12.9 million and 8.0 percentage points, respectively, from the third quarter of 2010. Financial results were negatively impacted by an increase in pilot wage rates related to the new labor agreement with ALPA, an increase in crew related expenses resulting from scheduling changes by Delta, which resulted in the reallocation of flight crews and increases in crew staging. Also, the Company reached a tentative settlement of a dispute with Delta related to the reimbursement of certain heavy airframe maintenance costs.

PNCL realized a net loss of $3.5 million, or $0.19 per share, for the quarter. Excluding special items, net loss was $1.7 million, or $0.09 per share.

The Company reported unrestricted cash and cash equivalents of $82 million at September 30, 2011.

Source: http://finance.yahoo.com/news/Pinnacle-Airlines-Corp-prnews-1893771371.html?x=0&.v=1

Financial Strength (31-Jan-2012)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	0.58	1.06	1.34	0.65
Current Ratio (MRQ)	0.72	1.15	1.69	1.02
LT Debt to Equity (MRQ)	655.60	151.69	53.25	96.17
Total Debt to Equity (MRQ)	712.61	188.56	79.76	135.09
Interest Coverage (TTM)	1.92	0.09	0.50	27.46

Source: Reuters.com, SEC Filings.

Technical Analysis

Source: http://stockcharts.com

PNCL is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

PNCL’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Jan-31-2012	symbol	Share, $	$ Mn	2011	2012	2011	2012
Southwest Airlines Co.	LUV	9.38	7.44B	11.44	8.69	0.43	0.41
SkyWest Inc.	SKYW	12.80	649.24M	n/a	20.00	0.18	0.17
Republic Airways Holdings Inc.	RJET	5.52	266.63M	26.29	6.99	0.09	0.10
Alaska Air Group Inc.	ALK	76.13	2.70B	8.18	7.71	0.58	0.56
Regional Airlines Median				20.73	n/a	0.47	n/a
Pinnacle Airlines Corp.	PNCL	1.41	26.97M	n/a	70.50	0.02	0.02

Source: Thomson Financial

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Stock Alert for FriendFinder Networks Inc. (FFN)

Brittany Webster — Tue, 31 Jan 2012 06:02:27 +0000

FriendFinder Networks Inc. (FFN) is an Internet-based social networking and technology company operating several of the most heavily visited Web sites in the world, including AdultFriendFinder.com, Amigos.com, AsiaFriendFinder.com, Cams.com, FriendFinder.com, BigChurch.com and SeniorFriendFinder.com. Through a recent acquisition, the Company expanded into the social commerce market and now owns and operates JigoCity Web sites in more than five countries, providing members high quality, daily deals that are relevant to their individual lifestyles. FFN also produces and distributes original pictorial and video content and engages in brand licensing.

Share Statistics (30-Jan-12)			FY 2009	FY 2010	% Chg	Q3 2010	Q3 2011	% Chg
Symbol	FFN	Revenue, $Mn	327.69	346.00	5.6%	84.62	82.74	-2.2%
Current price	$1.06	Gross marg.	72.0%	68.1%	-5.4%	66.7%	66.3%	-0.6%
52wk Range:	$0.51-$10.01	Oper. margin	–	18.6%	–	–	17.8%	–
Avg Vol (3m):	157,710	Net margin	-12.6%	-12.5%	-0.8%	-5.8%	-6.5%	12.1%
Market Cap.	33.09M
Shares Outstanding	31.22M	EPS, $	-1.27	-1.32	3.9%	-0.36	-0.17	-52.8%

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares of FFN have gained 32.8% in the last five days and 41.3% in the last month; though the stock dropped 74.0% in the last six months to date.

FFN on Monday jumped 19.1% to close the session at $1.06, stretching gains into a second day. Over 3.53 million shares traded hands during the session, versus the 10-day average volume of over 241 K. The stock has a 52-week high of $10.01 and a low of $0.51. FFN is currently above its 50-day moving average of $0.72 and below its 200-day moving average of $2.10

The Boca Raton, Fla.-based Internet and technology company last week announced a cost reduction initiative aimed at more closely aligning its cost structure with its new business model.

The Company said the cost reduction initiative includes the consolidation of its offices globally to fewer locations and relocating a number of operations to its main facility in Sunnyvale. In connection with this consolidation, there have been changes to the Company’s workforce across multiple locations.

In the first quarter of fiscal 2012, the Company expects to record a total charge of about $500 K attributable mainly to workforce changes, consisting primarily of cash expenditures for separation related benefits. The Company expects these cash expenditures will be paid through May 2012.

“We are confident these actions will enable our individual business units to operate more efficiently, and therefore, in a more cost-effective manner as we focus on growing our revenues,” commented Marc Bell, CEO of FFN.

As a result of these actions, the Company is expected to trim its operating expenses by $10 million per year.

Source: http://www.ffn.com/category/public-relations/

Financial Summary

FFN reported revenue of $82.7 million for the third quarter of 2011. The Company said its revenue was impacted by a decrease in traffic and a decline in new subscribers and renewal orders primarily in European markets. Social networking revenue was offset by an increase in live interactive video.

The Company realized income from operations of $14.7 million for the quarter, impacted by a lower gross margin and an increase in product development, selling and marketing, and general and administrative spending. The increase in these expenses was primarily due to an increase in headcount across the Company as it develops its business units and general and administrative expenses related to stock compensation expense.

FFN posted a net loss of $5.4 million, or $0.18 per share, for the quarter. Adjusted EBITDA came in at $20.3 million.

As of September 30, 2011, the Company had cash and cash equivalents of $28.2 million, compared to $42.0 million at December 31, 2010. As of November 14, 2011, the Company had outstanding principal debt of $491.8 million. On November 4, 2011, the Company paid down $7.3 million of New First Lien Notes and Cash Pay Second Lien Notes. Free Cash Flow per Share was $0.36 and $1.99 for the three and nine months ended September 30, 2011, respectively.

Source: http://www.ffn.com/press/friendfinder-networks-inc-reports-financial-results-for-third-quarter-2011/

Financial Strength (30-Jan-2012)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	0.38	0.68	1.11	0.65
Current Ratio (MRQ)	0.39	2.97	2.74	1.01
LT Debt to Equity (MRQ)	–	11.79	13.35	96.40
Total Debt to Equity (MRQ)	–	19.13	23.10	135.57
Interest Coverage (TTM)	–	1.25	1.97	27.39

Source: Reuters.com, SEC Filings.

Technical Analysis

Source: http://stockcharts.com

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Jan-30-2011	symbol	Share, $	$ Mn	2011	2012	2011	2012
Renren Inc.	RENN	6.35	2.51B	n/a	n/a	21.27	14.18
Linkedin Corp.	LNKD	75.00	7.34B	241.94	131.58	14.28	8.91
Quepasa Corp.	QPSA	4.99	171.03M	n/a	n/a	4.49	3.54
Groupon Inc.	GRPN	19.63	12.62B	n/a	65.43	7.94	5.54
Internet Software & Services Median				30.56	n/a	1.77	n/a
FriendFinder Networks Inc.	FFN	1.06	32.78M	0.60	0.58	0.10	0.10

Source: Thomson Financial

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Biotech Stock on Watch: Arena Pharmaceuticals Inc. (ARNA)

Editor — Tue, 31 Jan 2012 01:22:58 +0000

Shares of Arena Pharmaceuticals Inc. (Nasdaq: ARNA) continued their gains from the previous two sessions, adding 11.3% to close Monday’s trade at $1.77. Over 13 million shares traded hands during the session, topping the 10-day average of 2.11 million.

Arena shares have gained 8.6% in the last five days, though the stock dropped 5.4% in the last month. Year-to-date, the stock is up 8.6%.

San Diego, Calif.-based Arena is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs that target G protein-coupled receptors (GPCRs), an important class of validated drug targets, in four major therapeutic areas: cardiovascular, central nervous system, inflammatory and metabolic diseases.

Arena’s most advanced drug candidate, lorcaserin, is intended for weight management. The company submitted a New Drug Application (NDA) for lorcaserin to the U.S. Food and Drug Administration (FDA) for regulatory approval in December 2009. The FDA then issued a complete response letter (CRL) in October 2010, outlining non-clinical and clinical reasons for its decision to not approve the drug, and provided recommendations relating to addressing the issues it raised in the CRL. In January 2010, the Company completed an end-of-review meeting with the FDA for the locaserin NDA, which resulted in additional requirements.

On January, Arena and partner Eisai announced that the FDA has accepted, for filing and review, Arena’s resubmission of the NDA for its obesity drug. The FDA considers the resubmission a complete, class 2 response.

The company announced the submission of its response to the FDA’s CRL a week earlier, which includes data and analyses that were not incorporated in the original NDA, including the results of its Phase III BLOOM-DM (Behavioral modification and Lorcaserin for Overweight and Obesity Management in Diabetes Mellitus) clinical trial, which evaluated lorcaserin for weight loss in patients with type II diabetes. The FDA target action date is set for June 27, 2012.

Also recently, Arena agreed to sell over 9.95 million shares of its common stock, at a price of $1.65775 per share, and about 9,953 shares of its Series D Convertible Preferred Stock, at a price of $1,657.75 per share, in a registered direct public offering to entities affiliated with healthcare investment organization Deerfield Management.

The Company expected to receive gross proceeds of around $33 million from the offering, $5 million of which will be used to prepay a portion of the loan principal that otherwise would have been required to be repaid in June 2013 under the existing facility agreement between Arena and Deerfield.

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Stock Report for FiberTower Corp. (FTWR)

Brittany Webster — Mon, 30 Jan 2012 06:02:13 +0000

FiberTower Corp. (FTWR) is a backhaul and access services provider focused primarily on the wireless carrier market. With its extensive spectrum footprint in 24 GHz and 39 GHz bands, carrier-class fiber and microwave networks in 13 major markets and master service agreements with nine U.S. wireless carriers, FTWR is an alternative carrier for wireless backhaul. The Company also provides backhaul and access service to government and enterprise markets.

Share Statistics (27-Jan-12)			FY 2009	FY 2010	% Chg	Q2 2010	Q2 2011	% Chg
Symbol	FTWR	Revenue, $Mn	63.24	76.12	20.4%	18.39	23.43	27.4%
Current price	$0.18	Gross marg.	7.9%	20.0%	153.2%	17.3%	18.9%	9.2%
52wk Range:	$0.15-$4.10	Oper. margin	–	-47.3%	–	–	-34.2%	–
Avg Vol (3m):	1,641,500	Net margin	-3.4%	-64.9%	1808.8%	-71.0%	-49.1%	-30.8%
Market Cap.	8.82M
Shares Outstanding	46.44M	EPS, $	-4.22	-0.98	-76.8%	-0.26	-0.20	-23.1%

Source: Reuters.com, SEC Filings.

Investment Highlights

Shares of FiberTower Corp. (FTWR) dropped as much as 18.00% Friday, extending two straight days of losses. The troubled telecommunications services company saw its shares plummet nearly 39% Thursday, a day after it announced the receipt of a delisting notification from the Nasdaq stock exchange.

Shares of FTWR have dropped 53.7% in the last five days; 13.6% in the last month; and 95.3% year-to-date.

Although the Company has the right to appeal the Nasdaq’s determination, it does not intend to do so. Accordingly, the Company’s common stock will be suspended at the opening of business on January 30, 2012, and Nasdaq will file a Form 25-NSE with the Securities and Exchange Commission to remove the Company’s securities from listing and registration on the Nasdaq.

Beginning January 30, 2012, the Company expects trading on the OTC Pink-Limited Information Tier, operated by OTC Markets Group, using the same stock symbol it has on the Nasdaq, FTWR.

FTWR also last week said it has engaged a corporate restructuring consultant to assist the Company with identifying and evaluating financial and strategic alternatives.

The stock lost $0.04, or 17.05%, to close at $0.18. Over 6.40 million shares exchanged hands during the session, versus the 10-day average of 4.10 million shares. Over the past 52 weeks, FTWR shares have traded between $0.15 and $4.10. Market capitalization currently stands at 8.82 million and it has 46.44 million outstanding shares.

Source: http://www.fibertower.com/corp/news-press-releases.php

Financial Summary

FTWR reported service revenues of $23.4 million for the second quarter 2011, an increase of $5.0 million, or 27%, compared to $18.4 million reported in the prior year period During the quarter, the Company recorded $3.4 million of non-recurring revenue from the collection of early termination liabilities (ETL). Revenue excluding the ETL was $20.0 million, increasing 11% compared to the second quarter of 2010. This increase was primarily driven by selling additional capacity and Ethernet services.

Operating expenses were $31.5 million in the second quarter, compared to $28.0 million in the second quarter of 2010. Included in second quarter 2011 operating expenses is a $3.1 million impairment charge related to the write-off of excess equipment compared to a $0.9 million impairment charge in the second quarter of 2010. Excluding these charges, operating expenses increased primarily due to increases in cost of service revenues, including higher fiber service provider charges reflecting growth in Ethernet services and fiber network expansion and higher depreciation expense.

The Company posted a net loss of $11.5 million for the second quarter 2011, compared to a net loss of $13.1 million for the comparable quarter last year.

At June 30, 2011, FTWR’s consolidated cash and cash equivalents totaled $12.4 million, compared to $21.3 million at December 31, 2010.

In late September, FTWR did not have a specific financial outlook as visibility on 2011 revenue and Adjusted EBITDA remains low amid volatility. However, CFO Thomas Scott said the Company’s liquidity at quarter-end reflects both ETL collections and its conservation of cash, and FTWR continues to believe its cash position will be sufficient to cover its estimated liquidity needs at least through June 2012.

Source: http://www.fibertower.com/corp/downloads/investors/11-08-04%20FTWR%20Q211%20Results%20Release%20Final.pdf

Financial Strength (27-Jan-2012)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	–	1.51	1.41	0.66
Current Ratio (MRQ)	2.39	1.64	1.54	1.03
LT Debt to Equity (MRQ)	64.12	39.12	44.05	97.01
Total Debt to Equity (MRQ)	64.40	48.78	53.82	136.12
Interest Coverage (TTM)	-1.77	0.02	0.12	27.53

Source: Reuters.com, SEC Filings.

Technical Analysis

Source: http://stockcharts.com

FTWR is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

The MACD for FTWR currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Jan-27-2012	symbol	Share, $	$ Mn	2011	2012	2011	2012
AT&T Inc.	T	29.16	173.16B	12.00	11.22	1.35	1.34
Verizon Communications Inc.	VZ	37.25	105.68B	14.90	13.30	0.92	0.89
Comcast Corp.	CMCSA	26.35	71.94B	17.45	14.02	1.27	1.18
Wireless Communications Median				12.91	n/a	0.92	n/a
FiberTower Corp.	FTWR	0.22	9.89M	n/a	n/a	0.14	0.13

Source: Thomson Financial

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

Renewable Energy Stock on Watch: JA Solar Holdings Co. Ltd. (JASO)

Editor — Sat, 28 Jan 2012 03:57:31 +0000

Shares of JA Solar Holdings Co. Ltd. (JASO), along with the rest of the solar sector, got a lift Friday after a proposed one-time subsidy cut along with a limit on installations in Germany failed to achieve a unanimous decision.

JA Solar saw its shares rose 5.1% to $1.84, continuing its winning streak for the second consecutive day. Over 8.80 million shares traded hands during the session, versus the 10-day average of 9.85 million shares.

Over the last 52 weeks, the stock has ranged from a low of $1.21 to a high of $8.57. It is currently trading above its 50-day moving average of 1.53 and below its 200-day moving average of $2.53. Market capitalization currently stands at 302.97 million and it has 164.66 million outstanding shares

Following the stalled overhaul of the country’s clean-energy subsidy system, analysts expect a rush of solar panel installations in the coming weeks. In a phone conversation with Bloomberg, Klaus Breil, a lawmaker with the Free Democratic Party junior coalition partner, said “This delay means we’re headed toward installations of 4 gigawatts (GW) through April as subsidies are currently way too generous.”

Germany represents a major sales market of several sector bellwethers. For Yingli Green Energy (YGE), Trina Solar (TSL) and Suntech Power (STP), the news is even more significant considering that these three manufacturers get most of their demand from the European country. Germany installed 7.5 GW of solar power last year — topping the prior year’s record of 7.4 GW.

Solar products manufacturer JA Solar, based out of Shanghai, China, sells its products to solar manufacturers worldwide, who then assemble and integrate solar cells into modules and systems that convert sunlight into electricity for residential, commercial, and utility-scale power generation.

JASO shares have gained 4.6% in the last five days and 39.4% in the last month. Year-to-date, the stock is down 73.9%.

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Stock Alert for National Bank of Greece (NBG)

Brittany Webster — Fri, 27 Jan 2012 06:04:59 +0000

National Bank of Greece (NBG) is a Greece-based financial institution offering a range of integrated financial services, including corporate and investment banking, retail banking (including mortgage lending), leasing, stock brokerage, asset management and venture capital, insurance, real estate and consulting services. In addition, the Company is involved in various other businesses, including hotel and property management, real estate and information technology (IT) consulting. As at September 30, 2011, the Bank’s branch and ATM network in Greece is comprised of 558 domestic banking units and 1,426 ATM’s, throughout the country. It is developing and expanding alternative distribution channels for its products, such as mobile and Internet banking. After acquisitions in SE Europe, the Bank’s network overseas includes 1,144 units.

Share Statistics (26-Jan-11)			FY 2009	FY 2010	% Chg	Q3 2010	Q3 2011	% Chg
Symbol	NBG	Revenue, $Mn	–	–	–	–	–	–
Current price	$3.13	Gross marg.	–	–	–	–	–	–
52wk Range:	$1.64-$11.85	Oper. margin	–	-3.1%	–	–	-15.1%	–
Avg Vol (3m):	763,189	Net margin	–	–	–	–	–	–
Market Cap.	14.96B
Shares Outstanding	4.78B	EPS, $	0.76	-0.45	-159.2%	0.18	-0.03	-116.7%

Source: Reuters.com, SEC Filings.

Investment Highlights

NBG’s American Depositary Shares (ADSs) traded higher on Thursday, joining other Greek banks boosted by the resumption of talks on a debt swap to avert a Greek default in Athens. Over 2.90 million shares exchanged hands during the session, versus the 10-day average of 1.45 million.

Bloomberg, which cited a report by Greek newspaper Kathimerini, reported that Charles Dallara, the managing director of the Washington-based Institute of International Finance, representing Greece’s private creditors, will propose that new bonds issued as part of a debt exchange should carry an average coupon of 3.75% when he resumes Athens talks with Prime Minister Lucas Papademos.

NBG’s ADSs added $0.36, or 13.0%, to close at $3.13, extending gains into a second day. Over the past 52 weeks, shares have traded between $1.64 and $11.85. Market capitalization currently stands at 14.96 billion and it has 4.78 billion outstanding shares.

Earlier this month, NBG announced that it has received notice from the New York Stock Exchange (NYSE) confirming that, from December 31, 2011, its ADS have regained compliance with the NYSE’s continued listing standard that requires a minimum average closing price of $1.00 over 30 consecutive trading days.

Shares have risen 27.2% in the last five days and 50.5% in the last month. Year-to-date, shares have lost 65.0%.

Source:

NBG Press Releases

http://www.businessweek.com/news/2012-01-26/greeks-banks-rise-before-debt-swap-talks-resume-athens-mover.html

Financial Summary

NGB posted a marginal loss of €7 million, excluding impairment losses on Greek Government bonds prompted by PSI 1 (€1,339 million after tax), for the nine months of 2011. That compares with a profit of €259 million in the comparable period of the prior year. NBG cited the persistence of high provisions, which amounted to €1,310 million (up by +32% year-over-year), and impairments in the equities and mutual funds investment portfolio (€133 million in the nine months of 2011).

Source: http://www.nbg.gr/wps/wcm/connect/7425d800493daac4b386f736172d79c7/Press_Release_EN_9M_2011.pdf?MOD=AJPERES&CACHEID=7425d800493daac4b386f736172d79c7

Financial Strength (26-Jan-2012)	Company	Industry	Sector	S&P 500
Quick Ratio (MRQ)	–	0.00	0.31	0.68
Current Ratio (MRQ)	–	0.00	0.86	1.06
LT Debt to Equity (MRQ)	0.00	60.53	95.89	96.26
Total Debt to Equity (MRQ)	97.52	203.80	192.85	135.33
Interest Coverage (TTM)	–	0.00	0.36	27.66

Source: Reuters.com, SEC Filings.

Technical Analysis

Source: http://stockcharts.com

NBG is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

The MACD for NBG currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

Comparative Analysis

Company Name	Ticker	Price per	Mrkt. Cap.	P/E		P/S
Jan-26-2012	symbol	Share, $	$ Mn	2011	2012	2011	2012
Bank of America Corp.	BAC	7.30	76.91B	10.00	6.52	0.83	0.80
HSBC Holdings plc	HBC	42.18	151.91B	10.52	10.36	2.13	1.92
JPMorgan Chase & Co.	JPM	37.49	142.53B	7.96	6.99	1.45	1.40
Citigroup Inc.	C	30.38	88.83B	7.45	6.44	1.15	1.11
Money Center Banks Median				9.25	n/a	2.29	n/a
National Bank of Greece	NBG	3.13	14.96B	n/a	5.05	2.33	2.14

Source: Thomson Financial

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.