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Beacon Research Issues TraderNotes on USSU, LCBM, ARNA, VIGN, SUMT for January 16, 2008

Today’s TraderNotes include: USA Superior Energy Holdings, Inc. (OTCBB: USSU), Lifecore Biomedical, Inc. (Nasdaq: LCBM), Arena Pharmaceuticals, Inc. (Nasdaq: ARNA),  Vignette Corporation (Nasdaq: VIGN), and SumTotal Systems, Inc. (Nasdaq: SUMT).

 

USA Superior Energy Holdings, Inc. (USSU) TraderNote – USSU Renegotiated the 333 Acre “Rust Lease” in Zavalla County, Texas

 

USA Superior Energy Holdings, Inc. (USSU) closed yesterday at 1.00 and opened today at 1.00.  So far the stock is trading mid-day within the range of 1.00 – 1.05.  USA Superior Energy Holdings, Inc., a development stage company, operates in the energy industry in the United States. The Company, through its wholly owned subsidiary, USA Superior Energy, Inc., engages in the development, ownership, and operation of prospects and energy projects in East and Southeast Texas. It also focuses on using nitrogen technology to recharge and produce oil and gas from under-pressured partially depleted reservoirs.  Recently, USA Superior Energy Holdings, Inc. has renegotiated the 333 acre "Rust Lease," in Zavalla County, Texas, and expects to begin drilling wells with 20 acre to 40 acre spacing this year. The depth of the drilling at the desired pay zone is 3,500 to 4,000 feet keeping in line with the Company's focus on shallow wells.  In today's daily chart so far, almost all technical indicators for USSU are pointing north.  RSI indicator so far has a reading of 60.5, reflecting a bullish signal with no confirmation of an overbought condition.  MACD likewise indicates a strong bullish signal with both 12-day and 26-day EMAs above the 0 level with readings of 0.033 and 0.011, respectively, and the histogram reading also in the positive zone of 0.022.  Slow Stochastics indicator also reflects a bullish signal so far with readings of 89.47 %K and 89.38 %D, indicating a buying move.    

 

Lifecore Biomedical, Inc. (LCBM) TraderNote – LCBM Acquired by Warburg Pincus for $239M

 

Lifecore Biomedical, Inc. (LCBM) closed yesterday at 16.76 and opened today at 16.66.  So far today the stock hit a high of 16.71 and touched a low of 16.66.  Lifecore Biomedical, Inc. manufactures biomaterials and medical devices for use in various surgical markets, and provides related specialized contract aseptic manufacturing services in the United States and internationally. It operates through two divisions, Hyaluronan and Dental. The Hyaluronan division engages in the development and manufacture of products utilizing hyaluronan, a naturally occurring polysaccharide that is distributed in the extracellar matrix of connective tissues in both animals and humans.  The Dental division develops and markets precision surgical and prosthetic devices for the restoration of missing dentition.  Lifecore Biomedical markets and distributes its hyaluronan products to end-users through corporate partners; and dental products through direct sales force in the United States, and through distributors internationally.  In LCBM's daily chart today, the RSI indicator so far reflects a reading of 76.81, indicating a strong bullish signal for the stock or a potential buying move for the near-term.  MACD likewise reflects a strong bullish signal with the 12-day EMA at 0.533 and 26-day EMA at 0.294, and the histogram reading at 0.238, with a steep curve of the lines upward.  Intra-day price at 16.71 is so far within yesterday's price range continuing the strong bullish signal indicated by a wide technical gap formed by Jan. 14th’s close at 12.84 and yesterday's open at 16.75.  Slow Stochastics indicator so far also reflects a bullish signal with readings of 72.09 %K and 43.03 %D with lines steeply curved upwards and with no indication of an exhausted condition.  

 

Arena Pharmaceuticals, Inc. (ARNA) TraderNote – ARNA Boosted by Its Lorcaserin Drug for Treatment of Obesity Without Causing Heart Damage

 

Arena Pharmaceuticals, Inc. (ARNA) closed yesterday at 8.29 and opened today at 8.24.  So far today, the stock hit a high of 8.49 and touched a low of 8.24.  Arena Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of oral drugs for cardiovascular, central nervous system, inflammatory, and metabolic diseases. It is developing a pipeline of compounds targeting orphan G protein-coupled receptors using its drug discovery technologies, including constitutively activated receptor technology and Melanophore technology.  The Company's drug candidate, lorcaserin hydrochloride, is in Phase 3 clinical trial program for the treatment of obesity.  Share prices rose yesterday as a Banc of America analyst upgraded shares of Arena Pharmaceuticals Inc., predicting clinical trial data will show Arena's drug candidate Lorcaserin does not cause heart damage.  In ARNA's daily chart today, RSI indicator so far has a reading of 54.35%, a bullish indication but near neutral.  MACD likewise indicates a weak bullish signal so far with histogram reading above the 0 level at 0.102, but with the 12-day and 26-day EMAs below the 0 level at -0.175 and -0.278, respectively.  Slow Stochastics indicator lines are so far climbing above the 50% level with readings of 61.50 %K and 50.77 %D, indicating a bullish signal for the near-term.     

 

Vignette Corporation (VIGN) TraderNote – VIGN's Q4 Revenue Ending Dec. 31 Expected at $52 Million to $54 Million

 

Vignette Corporation (VIGN) closed yesterday at 14.55.  So far today, the stock hit a high of 14.80 and touched a low of 14.50.  Vignette Corporation, through its subsidiaries, develops and markets content management software worldwide. The Company's web content management software manages content, sites, content types, and objects, and the deployment and delivery of content; collaboration software enables organizations to share web-based workspaces; and portal software provides a platform for personalizing and customizing web applications for individuals and groups. Its integration and interaction management software enables organizations to communicate with stakeholders, such as customers, prospects, employees, and partners; and integrate various application, platform, or protocol. The Company has strategic relationships with BEA Systems, Hewlett Packard, Sun Microsystems, and Microsoft. It serves telecommunications, entertainment, new media and publishing, financial services, government, healthcare, high technology, higher education, life sciences, manufacturing, retail, and travel industries in the Americas, Europe, Asia, and Australia.  The Company says  it expects revenue for the quarter ending Dec. 31 to be in the range of $52 million to $54 million, an upgrade from its October prediction of $45 million to $50 million.  Following its earnings update, the Company's stock shot up more than 20 percent yesterday but leveled out near the end of the trading day, up about 17 percent at $14.53.  In today's daily chart, VIGN's RSI so far reflects a reading of 56.43, bullish with near neutral indication.  MACD indicator likewise reflects a bullish but weak signal, with histogram reading at 0.152, but with the 12-day and 26-day EMAs below the 0 level at -0.478 and -0.630, respectively.  Slow Stochastics likewise with a reading of 60.74 %K steeply curved upwards indicates a continuation of the upward trend as indicated by a wide technical gap formed by Jan. 14th's close at 12.38 and yesterday's open at 13.97, indicating a strong bullish signal for the stock.   

 

SumTotal Systems, Inc. (SUMT) TraderNote – SUMT Strengthened by Markets in Education, Financial Services, Government, Healthcare and Utilities Sectors

 

SumTotal Systems, Inc. (SUMT) closed yesterday at 4.58 and opened today at 4.48.  So far today, the stock hit a high of 4.56 and touched a low of 4.40.  SumTotal Systems, Inc. engages in the development, marketing, distribution, and support of talent and learning management software products, and on-demand subscriptions. It offers the SumTotal Systems Enterprise Suite, an integrated suite of software applications that combines learning management, performance management, compensation management, and learning content management. The Company also provides ToolBook Instructor, a multimedia development system for creating applications and simulations; ToolBook Assistant, an authoring product that automates the process of developing learning applications; and Phoenix Solutions that offer authoring, administration, presentation, and reporting on IBM and IBM-compatible mainframes, allowing organizations to manage the CBT life cycle from design through evaluation.  In addition, it offers professional services, technical support, hosting, and business process outsourcing services. The Company's customers include companies operating in various industries, including education, energy, financial services, government, healthcare, manufacturing, retail, services, and utilities.  In today's daily chart, SUMT's RSI so far reflects a reading of 48.50, a near-neutral indication.  The present price at 4.44 so far is within the mid-level of yesterday's range after a technical gap formed from Jan. 14th's close at 3.98 and yesterday's open at 4.27, indicating a strong bullish signal but with price ranging at the moment.  If prices remain above the 4.4 level in the next sessions, prices will see the 4.6 - 4.8 range after a break of the 4.6 psychological resistance level.  

 

 

Beacon Equity Research Disclosure

 

The analysts contributing to this report do not hold any shares of USA Superior Energy Holdings (OTCBB: USSU).  Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. The analyst(s) writing this report recognize and aspire to all of the CFA Institute Guidelines for Independent Research. Beacon Equity Research (“Beacon”) certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analysts in the report. BER and its affiliates have been compensated nine thousand dollars directly from Onyx Consulting for enrollment of USSU in this research program. This report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change.
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