The Broader Market Falls; Small-Caps (ATAI) and (SUAI) Post Record Gains and Volumes

A dark forecast today by the World Bank for 2009 sent the major markets into an early tailspin. The World Bank cut its 2009 global growth forecast, saying the world economy will shrink by 2.9 percent and warning that a drop in investment in developing countries will increase poverty. Global trade is expected to plunge by 9.7 percent this year, while total gross domestic product for high-income countries contracts by 4.2 percent, the bank said.

Trading today at nearly 20 times normal 3-Month average daily trading volume of 36,392 to 677,476 shares ATA Inc., (ATAI) (no U.S. web site) and trading in the $11 range on the Nasdaq soared past a 44% gain of $3.35 in early trading. 

A FIVE DAY CHART FOR ATAI

With a market cap of $245 million, ATAI (a January 2008 IPO and the leading provider of computer-based testing services in China,) recently announced it has successfully delivered the China Banking Professional Certification ("CBPC") Exam in 130 cities across China, including Hong Kong. The exam has established a new milestone in the industry, with close to half a million test takers, utilizing 408 testing centers and 3,533 testing halls. ATA also successfully held pilot tests for two new titles, company credit and personal loan, in six provinces and cities including Beijing, Liaoning, Inner Mongolia, Jiangsu, Hunan and Gansu.

That brought the buyers out today.

ATA leveraged its unique technology platform to provide unmatched support services to the CBPC exam including remote monitoring, and data analysis. China Banking Association representatives in Beijing monitored the exam in different testing centers remotely through real time online video conference. They also made an onsite visit to the exam site at Beijing University of Science and Technology

ATA's test center network comprised 1,925 authorized test centers located throughout China as of March 31, 2009, which the Company believes is the largest test center network of any commercial testing service provider in China. Combined with its test delivery technologies, this network allows ATA's clients to administer large-scale nationwide tests in a consistent, secure and cost-effective manner. ATA has delivered over 28 million tests including 18.4 million billable tests since it commenced operations in 1999, and in June 2008 delivered tests to approximately 470,000 test takers over a single weekend for the China Banking Association through its test delivery platform.

At $11, ATAI is off its 52-week high of $15.45 set on 07-22-08 and is well above its 52-week low of $2.75 set on 01-26-09. At $11, it far ahead of both its 50-day and 200-day moving averages and its shares out versus float is within comfortable limits for stability.

The buyers also came out today for Specialty Underwriters Alliance Inc., (SUAI) http://www.suainsurance.com/ trading on the Nasdaq in the $6 range. On news that Insurer Tower Group Inc. (TGGP) has agreed to buy Specialty Underwriters' Alliance Inc. for about $107 million in stock, share volume traded today increased nearly 20 percent as well past SUAI's 3-Month average daily trading volume of 18,550 shares.

The agreement announced today gives Specialty Underwriters' Alliance shareholders Tower common shares valued at $6.72 for each share of Specialty Underwriters, based on Tower's closing price of $24 on Friday. The exchange ratio is subject to adjustment.

Tower said it expects its 2010 profit will be in the range of $3.50 per share and $3.70 per share, which accounts for additional shares expected to be issued.

SUA offers commercial automobile, property, inland marine, physical damage, general liability, and workers' compensation coverage products. It also provides insurance and risk management services for artisan and specialty trade contractors, general contractors, and roofing contractors engaged in residential and/or commercial construction.

Trading at $6, SUAI has trailing twelve month revenues of $152 million and its current shares out versus float is near-parity. Near its yearly high, SUAI has a 52-week low of $2 set on 12-22-08.

A FIVE DAY CHART FOR SUAI

With no official news released by the company, MTR Gaming Group (MNTG) http://www.mtrgaming.com/ trading on the Nasdaq in the $2.50 range gained over 25% in value this morning and doubled its 3-Month average daily trading volume of 70,187 shares.

MNTG is a gaming company and the only news I could find was on a message board that said the Governor of Ohio (where MNTG has a racetrack) is going to let slot machines be installed at the track.

MNTG has a market cap of $73 million and reported in mid-May of 2009 that it turned profitable in the first quarter by controlling costs and improving operating results at its Presque Isle Downs racetrack. MNTG earned $752,000 or three cents per share, in the period, compared with a loss of $2.6 million, or 10 cents per share, a year earlier. Also in May, the Company appointed a new COO.

MNTG has slot machine gaming operations and live thoroughbred horse racing with parimutuel wagering, and offers online and telephone wagering on horse races. The company owns and operates The Mountaineer Casino, Racetrack & Resort in Chester, West Virginia; Presque Isle Downs & Casino in Erie, Pennsylvania; and Scioto Downs in Columbus, Ohio.

At $2.50, MNTG is less than half of its 52-week high of $5.24 set on 07-08-08 and is above both its 50-day and 200-day moving average. MNTG has trailing twelve month revenues of $467 million and its shares out versus float are close enough for comfort.

Enters Phase III Trials

Good news today for Oncothyreon Inc., (ONTY) http://www.oncothyreon.com/ also trading on the Nasdaq in the $2.50 range. ONTY announced that Merck KGaA of Darmstadt, Germany, has initiated a global Phase III trial of ONTY's Stimuvax vaccine for patients with hormone receptor-positive, locally advanced, recurrent or metastatic breast cancer. Doubling its 3-Month average daily trading volume today and surging past an 18% gain in share value today, ONTY has a market cap of $51 million.

"Advanced-stage breast cancer remains a devastating and challenging disease and we urgently need new treatment options," said Dr. Larry Shulman, Chief Medical Officer and Senior Vice President for Medical Affairs, Dana-Farber Cancer Institute, Boston, Massachusetts, and Principal Investigator. "If the results from the Phase III study prove positive, this could make a difference for patients with hormone receptor positive metastatic breast cancer."

A ray of light and for investors a good place to put their money to work.

ONTY's pipeline of clinical and pre-clinical stage proprietary small molecule product candidates comprise PX-478, a Phase I trial product, which is a small molecule inhibitor of hypoxia inducible factor-1a for advanced metastatic cancer; PX-866, an inhibitor of the phosphatidylinositol-3-kinase /PTEN/Akt pathway indicated for advanced solid tumors and glioma; PX-12, a Phase II trial product for pancreatic cancer; and PX-316, a chemical inhibitor that prevents translocation, the movement of the target protein in the cell to its site of activation. In addition, the company offers BGLP40 Liposome Vaccine, a preclinical stage liposomal glycolipopeptide cancer vaccine for use in various cancer indications, including breast, thyroid, colon, stomach, pancreas, and prostate, as well as various types of lung cancer.

At $2.50, ONTY is off its 52-week high of $4.89 set on 04-28-09 and is above its 200-day moving average of $1.83 and below its 50-day moving average of $3. It s shares out versus float ratio is near-parity.