Trends, Observations, and Exclusive Opinion
Three SmallCaps Enter New Territory
FXEN: Enters Joint Agreement with the Polish Oil and Gas Company
LIOX: Co Also Launches 'Global Communication Today' Web Site
MITI: MT103 in Trials for Treatment of Acute Lymphoblastic Leukemia
First up this morning we have FX Energy Inc., (FXEN) http://www.fxenergy.com/ currently trading in the $4.47 range. FXEN has a 52-week high of $4.97 set on 04-15-10 with current trailing twelve month revenues of $22+ million. FXEN operates as an independent oil and gas exploration and production company with principal operations in Poland. FXEN primarily explores on the Rotliegend sandstones of the Permian Basin, Poland. FXEN also holds interests in 9 project areas encompassing approximately 4.7 million gross acres in Poland. FXEN also explores for and produces oil from fields in Montana and Nevada. FXEN has approximately oil and gas reserves of 50.4 billion cubic feet of the natural gas equivalent. Yesterday FXEN announced the signing of a definitive Joint Operating Agreement with the Polish Oil and Gas Company ("POGC") covering operations in the Company's 710,000 acre Kutno concession block in central Poland. POGC will earn a 50% interest in the block in connection with drilling of the first well; FXEN will be the operator. The two plan to test a previously undrilled 35,000 acre (140 square kilometer) 2-D defined Rotliegend structure at a depth of approximately 19,000 feet (6,000 meters). The prospect is believed to be the largest undrilled Rotliegend structure on-shore Europe. Well design and engineering are currently underway with drilling planned in 2011. FXEN has the option to hold its full 50% share or farm down its interest further. Andy Pierce, VP of OPS for FXEN said, "The Kutno well is a classic exploration well: high risk, high potential reward. The Rotliegend has not been penetrated in Poland at this depth, so there are legitimate concerns about reservoir characteristics and gas quality. On the other hand, the structure is massive; at 35,000 acres it has multi-Tcf gas potential. In a time of consumer concern over gas supplies in Europe, a multi-Tcf discovery would have real impact. We are excited to be moving forward on this project." At a half a buck off its high, FXEN would be a short-term (3 Mo) ‘Buy’ consideration for me.
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Next up this morning we have Lionbridge Technologies (LIOX) http://www.lionbridge.com/ currently trading in the $4.61 range. LIOX has a 52-week high of $6.21 set on 04-26-10 with current trailing twelve month revenues of $409+ million and a positive ttm diluted EPS of +$0.11. I like those earnings. LIOX provides language, development, and testing services. LIOXs’ Global Language and Content segment provides product localization services, such as creating foreign language versions of its clients products and software applications, including the user interface, online help systems, and documentation; and content translation services, such as translating and maintaining clients Web-based content, eLearning courseware and training materials, technical support, and sales and marketing information. LIOX also provides interpretation communication services, such as onsite interpretation, over-the-phone interpretation and interpreter testing, training, and assessment services in approximately 360 languages and dialects. The company serves the technology, mobile and electronics, life sciences, consumer, publishing, manufacturing, automotive, and government industries globally.
Monday LIOX announced a joint initiative to integrate its Translation Workspace with the TDA language data exchange portal. With this joint innovation, Lionbridge will provide an industry-scale, real time live asset management system for automated, on-demand reuse of previously translated material contained within TDA's repository of industry-shared language data. As a result, TDA members can, for the first time, seamlessly maximize the value of pooled language assets and make them operationally accessible as part of their translation process. Cool. “Our collaboration with TDA demonstrates our common commitment to open, extensible platforms that move language out of static silos and into the real-time cloud,” said Rory Cowan, CEO of LIOX. “The integrated solution connects TDA members to our 2,000 Translation Workspace subscribers who have produced over three billion words in our cloud platform. And, it accelerates further integration with machine translation engines and other applications.”
On Oct 1 LIOX launched Global Communication Today, an online news and social media portal dedicated to global enterprises that manage global brands, marketing, technical support and other communication in worldwide markets. "By delivering high-quality news, trend stories and in-depth features each day, Global Communication Today eliminates the need for time-consuming web searches by global marketers and communications professionals and provides a trusted, single industry resource for deep insight and valuable information about global content creation, delivery and consumption," said Paula Shannon, Chief Sales Officer and SVP at LIOX. On Aug 3 when LIOX was trading in the $5.26 range it was a long-term ‘Buy’ consideration for me. As of today, I’m going to stick with that consideration for the remaining 10-Months.
Finally this morning we have Micromet Inc., (MITI) http://www.micromet.de/ currently trading in the $7 range. MITI has a 52-week high of $8.98 set on 03-24-10 with current trailing twelve month revenues of $21+ million. MITI is a bio-pharma development company focused on the treatment of cancer, inflammation, and autoimmune diseases. The MITI product development pipeline includes novel antibodies generated with its proprietary BiTE antibody platform, as well as conventional monoclonal antibodies. MITIs’ lead product MT103 is in Phase II clinical trials for the treatment of acute lymphoblastic leukemia, as well as in Phase I trial for non-Hodgkins lymphoma. The Phase II trial product also includes MT201 for solid tumors; and Phase I trial products comprise MT110 and MT293 for solid tumors, and MT203 for the treatment of inflammatory diseases. MITI has numerous candidates in preclinical stage studies. On Sept 20 MITI began the initiation of the phase II trials of lead product candidate blinatumomab MT103. “Existing treatment options for relapsed/refractory ALL fail to produce durable remissions in the majority of patients,” said Christian Itin, Ph.D., MITIs’ President and CEO. “This trial will enable us to validate blinatumomab's potential utility in patients with relapsed/refractory ALL with more advanced disease, and, if successful, would be the basis for potential pivotal studies in relapsed/refractory ALL.” At $2 off its 52-week high, MITI is a ‘Buy on the Dips’ consideration for me.
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