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Beacon Research Issues TraderNotes on FEED, WRSP, AUXL, CBLI, ABFS for January 29, 2008

Today’s TraderNotes include: AgFeed Industries, Inc. (Nasdaq: FEED), WorldSpace, Inc. (Nasdaq: WRSP),  Auxilium Pharmaceuticals, Inc. (Nasdaq: AUXL), Cleveland BioLabs, Inc. (Nasdaq: CBLI), Arkansas Best Corporation (Nasdaq: ABFS)

 

AgFeed Industries, Inc. (FEED) TraderNote – FEED Strengthened by its Unique Retail Distribution Model

AgFeed Industries, Inc. (FEED) closed yesterday at 9.45, a positive change of 0.20 or an increase of 2.16 % from the previous close of 9.25.   AgFeed Industries, Inc., through its subsidiaries, engages in the research and development, manufacture, marketing, and sale of fodder and blended feed for domestic animal husbandry markets in the People's Republic of China.  Its products primarily include pre-mix fodder that is designed for use in all stages of a pig's life; and blended feeds, which is used for the infant stage of a pig's life.  The Company also produces piglet blended feed to nourish and protect newborns.  It offers its products primarily to distributors, large-scale pig farms, and husbandry farms.   Since January 2007, AgFeed has developed a highly effective retail product sales channel of distributing AgFeed products through independently owned stores across China. These stores exclusively market AgFeed premix products to end users including small- and medium-sized hog farms and individual hog farmers.  AgFeed believes that its unique retail distribution model not only deepens market penetration, but also establishes long-term brand loyalty among hog farmers.  The Company's fast growth is marked by its newly opened 510th product distribution chain store in China.   In yesterday's daily chart, FEED's RSI indicator reflects a reading of 51.00%, in the neutral zone with no indication of an exhausted condition.  MACD indicator so far, with readings of 0.036 12-day EMA and 0.070 26-day EMA, is in the positive zone; the histogram reading so far of -0.034 must return above the 0 level to confirm an upward trend.  Slow Stochastics indicator so far with readings approaching the 20% level at 23.95 %K and 23.08 %D indicates an almost oversold condition to confirm a buying signal upon the lines crossing the 20% level downwards and back through it upwards.  With FEED's opening at 9.25 and closing at a higher price of 9.45, a near-term bullish signal is indicated.     

 

WorldSpace, Inc. (WRSP) TraderNote – WRSP Entered into a Loan Facility Agreement with Yenura

WorldSpace, Inc. (WRSP) closed yesterday at 1.99, a positive change of 0.05 or an increase of 2.58% from the previous close of 1.94.  WorldSpace, Inc. engages in the design, development, construction, deployment, and financing of a satellite-based radio and data broadcasting service.  It offers various international, national, and regional radio programming services, which include music, news, sports, and entertainment channels. The Company also provides consumer audio receivers and has operations primarily in the United States, France, Kenya, South Africa, Singapore, China, and India. As of December 31, 2006, the Company had approximately 199,000 paying subscribers, including 162,000 subscribers in India, 2,000 subscribers in the Middle East, 26,000 subscribers in Africa, and 6,000 subscribers in Europe. WorldSpace was founded in 1990 and is headquartered in Silver Spring, Maryland.  Recently, the Company entered into a loan facility agreement with Yenura Pte. Ltd., a Singapore company pursuant to which Yenura has agreed to make available up to $40 million to the Company.  Under the terms of the Facility Agreement, the Company may draw down up to $40 million on or prior to January 31, 2008. The Company will issue subordinated convertible notes to Yenura in the principal amount of each draw down in consideration for the funding.  The Subordinated Convertible Notes will bear interest at the rate of 8% per annum (payable annually in arrears as additional principal amount and not in cash).  The principal amount of each such Subordinated Convertible Note will be convertible into the Company's Class A Common Stock at $4.25 per share.  In yesterday's daily chart, WRSP's RSI indicator is in the neutral zone of 49.27% with no indication of an exhausted condition.  MACD indicator so far reflects a weak bullish signal with the histogram reading above the 0 level at 0.077, but the 12-day and 26-day EMAs are in the negative zone of -0.166 and -0.246, respectively.  Slow Stochastics indicator so far is in the neutral zone with readings of 57.49 %K and 47.60 %D, with the lines steeply curved upwards to indicate a bullish direction in the near-term.    With 46.32% up from its 52-week low of 1.36 hit last January 9, share prices are reversing upwards after testing a significant support level turned pivot point for the stock. 

   

Auxilium Pharmaceuticals, Inc. (AUXL) TraderNote – AUXL Gets U.S. Patent for its New Product Testim

Auxilium Pharmaceuticals, Inc. (AUXL) closes yesterday at 31.70, a positive change of 1.00 or an increase of 3.26% from the previous close of 30.70.  Auxilium Pharmaceuticals, Inc., a specialty biopharmaceutical company, focuses on developing and marketing products to urologists, endocrinologists, orthopedists, and select primary care physicians primarily in the United States. It markets Testim, a topical 1% testosterone gel, for the treatment of hypogonadism.  The Company's products in clinical development include AA4500, an injectable collagenase enzyme, which is in Phase III of development for the treatment of Dupuytren's contracture, and in Phase II of development for the treatment of Peyronie's Disease and Frozen Shoulder Syndrome.  Auxilium, using its transmucosal film delivery system also develops AA4010, which is in Phase I of development for the treatment of overactive bladder. In addition, the Company has two pain products using its transmucosal film delivery system in pre-clinical development. Further, it has rights to six additional pain products and products for hormone replacement and urologic disease using its transmucosal film delivery system, and options to indications using AA4500 for non-topical formulations.  Auxilium Pharmaceuticals, Inc. and Bentley Pharmaceuticals, Inc. recently announced that the United States Patent and Trademark Office has issued U.S. Patent No. 7,320,968 covering Testim, 1% testosterone gel, marketed by Auxilium under license from Bentley.  The patent will expire in January 2025.  According to the Company, Testim is a great product that continues to take market share and grow at a high rate, so extending their patent protection through January 2025 is an important accomplishment for them.  In yesterday's daily chart, almost all technical indicators for AUXL are pointing north.  RSI indicator so far with a reading of 66.23% reflects a bullish signal with the line directed towards the 70% level.  MACD indicator also reflects readings in the positive territory with the 12-day and 26-day EMAs at 0.556 and 0.456, respectively, and the histogram reading at 0.100 to indicate a bullish signal or buying move.  Slow Stochastics indicator likewise indicates a bullish signal with high readings of 83.99 %K and 80.04 %D with no confirmation of an overbought condition.  With share prices hitting the stock's 52-week high at 32.10 in yesterday's trading, a significant resistance is established, which if broken becomes the next support or buying entry level for the stock.

 

Cleveland BioLabs, Inc. (CBLI) TraderNote – CBLI Gains Strong Demand for its Products for Cancer Treatment and Protection of Normal Tissues from Radiation and Toxins

Cleveland BioLabs, Inc. (CBLI) closed yesterday at 4.49, a positive change of 1.07 or an increase of 31.29% from the previous close of 3.42.  Cleveland BioLabs, Inc. engages in the discovery, development, and commercialization of products for cancer treatment and protection of normal tissues from radiation and toxins in the United States.  Its products in development include Protectans, the modified proteins of microbes that protect cells from apoptosis; and Curaxins, the small molecules that destroy tumor cells by simultaneously targeting two regulators of apoptosis.  The Company's lead product candidates, CBLB502 showed radioprotective efficacy as a single therapy in non-human primates; and Protectan CBLB612 provided protection in a mouse model from lethal hematopoietic-induced radiation sickness.  In addition, it is developing Curaxin CBLC102, a Phase II clinical trial product, for the treatment of hormone refractory prostate cancer. Cleveland BioLabs has a collaboration agreement with Cleveland Clinic Foundation to use Cleveland Clinic's research base underlying the Company's therapeutic platform; a strategic research partnership with Roswell Park Cancer Institute to develop its cancer and radioprotectant drug candidates; and a strategic partnership with ChemBridge Corporation to access a chemical library of 214,000 compounds, and jointly manage the development and commercialization of compounds arising from selected projects.  In yesterday's daily chart, CBLI's RSI indicator reflects a reading of  48.66%, with the line steeply directed towards the positive territory almost touching the 50% level.  The MACD indicator so far reflects a weak bullish signal, with the histogram reading above the 0 level at 0.272 but the 12-day and 26-day EMAs in the negative zone of -1.162 and -1.434, respectively.  However, with share prices opening at 3.50 and closing at a higher price of 4.49, a near-term bullish signal is indicated.  Slow Stochastics indicator also reflects a bullish signal with the %K at 76.60 trading above the %D at 49.32, indicating a strong buying move in the near-term with the lines steeply curved upwards.  With the present price up 121.18% from its 52-week low of 2.03 hit last January 16, an upward trend reversal is indicated after touching a significant support level and pivot point for the stock.  Current price level is mid-way of the wide technical trading gap formed by Jan. 3rd's close at 8.00 and Jan. 4th 's open at 3.32 and approaching the significant psychological resistance level of 5.00 before testing the higher end of the gap.  

 

Arkansas Best Corporation (ABFS) TraderNote – ABFS' Q4 Net Income Fell to $13.5 Million but Overall Revenue Rose to $459.3 Million

 

Arkansas Best Corporation (ABFS) closed yesterday at 28.28, a positive change of 0.83 or an increase of 3.02% from the previous close of 27.45.  Arkansas Best Corporation, through its subsidiaries, provides motor carrier transportation services in the United States. The Company offers national, inter-regional, and regional transportation of general commodities, including food, textiles, apparel, furniture, appliances, chemicals, nonbulk petroleum products, rubber, plastics, metal and metal products, wood, glass, automotive parts, machinery, and other manufactured products. It also provides vehicle maintenance service that coordinates scheduled and non-scheduled service to truck fleets, owner-operators, original equipment truck manufacturers, and after-market equipment providers.  The Board of Directors of Arkansas Best Corporation has recently declared a quarterly cash dividend of fifteen cents ($0.15) per share to holders of record of its Common Stock, $0.01 par value, on February 7, 2008, payable on February 21, 2008.  The Company recently reported that its quarterly profit fell, although its operating revenue rose slightly from a year earlier.  The Company said its fourth-quarter net income fell to $13.5 million, or 54 cents per share, compared to $14.2 million, or 56 cents per share in the same period a year earlier.  However, revenue rose to $459.3 million from $454.3 million, but operating expenses rose slightly.  It said it expected capital expenditures in 2008 to total around $60 million to $70 million, down from $85 million in 2007.  In yesterday's daily chart, almost all technical indicators for ABFS are in the positive territory.  RSI indicator with a reading of 72.79%, indicate a bullish signal, with no confirmation of an overbought condition.  MACD is likewise in the positive zone with the 12-day EMA at 0.832 and histogram reading at 1.130, indicating a strong bullish signal.  With the present price up 57.64% from its 52-week low of 17.94 hit last January 9, an upward trend reversal is reflected after testing a significant support level turned as pivot point of the stock.  Slow Stochastics indicator likewise is bullish with high readings of 83.87 %K and 82.57 %D, to indicate a continuation of the upward trend.   

Beacon Equity Research Disclosure

 

The analysts contributing to this report do not hold any shares of AgFeed Industries, Inc. (Nasdaq: FEED).  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. Beacon Equity Research and its affiliates have been directly compensated three thousand five hundred dollars from a non-controlling third party for this release and other services related to FEED.  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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