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<title>Dutton Associates Research Alerts</title>
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<description>Latest research alerts from Dutton Associates.</description>
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<title><![CDATA[LogicVision Rating Maintained At Strong Speculative Buy; We Believe Logicvision Has Never Had A Better Opportunity To See Its Technology Experience Fast And Widespread Adoption]]></title>
<pubDate>Wed, 27 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/LGVN/index.html?08272008</guid>
<description><![CDATA[August 27, 2008. Wayne M. Lottinville, CFA. LogicVision (Nasdaq: LGVN) makes a semiconductor-testing technology called built-in self-test, or BIST. This is a technique of designing additional hardware and software features into integrated circuits (ICs) to allow them to perform self-tests using their own circuits, as opposed to the older method that employs external automated test equipment (ATE). The main driver for the widespread development and use of BIST techniques is the growing complexity of IC&#39;s. BIST helps designers better evaluate the functionality and performance of their devices throughout each stage of a complex semiconductor&#39;s life cycle. BIST is particularly useful in the newer state-of-the-art, system-on-a-chip (SoC) designs. Its BIST technology is a perfect fit for these advanced chips. Digital consumer devices, including automotive devices, account for 95 percent of its business. The most important recent developments and drivers for the Company are the renewals of existing contracts, such as that with Broadcom, and the signing of new contracts, such as the one with Qualcomm. We find the Company to be a compelling, if speculative, investment opportunity. We believe LogicVision has never had a better opportunity to see its technology experience fast and widespread adoption. Our target price is based on an average price-to-sales multiple of 1.5x, which we extracted from a list of companies in LogicVision&#39;s industry. This target price reduction largely reflects the Company&#39;s revised sales expectations and pushing expected profitability into 2009.]]></description>
<dc:creator><![CDATA[Wayne M. Lottinville, CFA]]></dc:creator>
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<title><![CDATA[Maine & Maritimes Buy Rating Maintained In Update Coverage; Target Price Increased To $54 Representing a 4.5x EBITDA Valuation]]></title>
<pubDate>Wed, 27 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/MAM/index.html?08272008</guid>
<description><![CDATA[August 27, 2008. Sally H. Wallick, CFA. Maine & Maritime (AMEX: MAM) reported 2Q operating revenue of $9.9 million, up 24% and a loss from continuing operations of $56,000, or $0.03 per diluted share, versus the prior-year&#39;s income of $186,000. Results fell short of our estimate of a $0.15 per share profit. However, the Company booked $518,000 of expense in the quarter, reflecting a change in deferred directors&#39; compensation as a result of a 54% increase in the Company&#39;s share price from the end of 1Q to the end of 2Q. Excluding this item, which was not included in our projection, we estimate that operating earnings may have equaled or beaten our estimate. We believe that the outlook for MAMs&#39; regulated business is enhanced by steadily increasing energy consumption in the U.S and rising electricity rates. Also, several developments may have positive implications for the Company&#39;s long-term growth, including the 2006 construction of Maine&#39;s largest wind farm and plans for a second, even larger, wind farm within MPS&#39;s service territory; MPS&#39;s pursuit of a large-scale transmission project that would connect it to the New England power grid; and USG&#39;s potential to contribute incremental revenue and earnings long term. Our 12-month price target is $54 per share or approximately 4.5 times projected 2008 EBITDA.]]></description>
<dc:creator><![CDATA[Sally H. Wallick, CFA]]></dc:creator>
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<title><![CDATA[Day Software Reports 23% Increase in European Revenues for Second Quarter]]></title>
<pubDate>Wed, 27 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/DYIHY/index.html?08272008</guid>
<description><![CDATA[August 27, 2008. David P. Soetebier, CFA. Day (DYIHY OTC) a leader in Web content management software reported total revenues of CHF 5.85 million for the June 2008 quarter compared with CHF 5.58 million for the same period a year ago. The results were about CHF 450,000 below our estimate with the shortfall caused by lower sales in the Americas, (off 11%) especially software licenses that were down 44.5%. We attribute the lower sales in the Americas to U.S. economic conditions not any problems at the Company. General and administrative expenses were above our estimate at CHF 1.26 million compared with our estimate of CHF 1.03 million. Other costs and expenses were in line with our estimates. In summary, the lower revenues and higher expenses resulted in a loss per ADR of $0.12 compared with our estimate of a loss of $0.05. The June shortfall versus our estimate does not dampen our longer-term enthusiasm for Day. Our 12-month target remains $9.25 that is about a 5% discount to 25X our 2009 estimate of $0.39 per ADR. We reiterate the Speculative Buy Rating.]]></description>
<dc:creator><![CDATA[David P. Soetebier, CFA]]></dc:creator>
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<title><![CDATA[LogicVision Extends Distribution Reach in Southern Europe]]></title>
<pubDate>Wed, 27 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/LGVN/index.html?08272008</guid>
<description><![CDATA[August 27, 2008. Wayne M. Lottinville, CFA. LogicVision, Inc. (Nasdaq: LGVN), has expanded its sales and customer service in Europe with the addition of Paris-based Amblot SARL as an exclusive manufacturer&#39;s representative for LogicVision products in southern Europe. Under the terms of the agreement, Amblot will be able to sell the complete line of LogicVision test solutions. Amblot also distributes system-on-a-chip (SoC), application-specific integrated circuit, and other semiconductor-related products from AerieLogic, Cast, Dafca, Jeda Technologies, and Sequence.]]></description>
<dc:creator><![CDATA[Wayne M. Lottinville, CFA]]></dc:creator>
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<title><![CDATA[NexMed: Rating Suspended]]></title>
<pubDate>Wed, 27 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/NEXM/index.html?08272008</guid>
<description><![CDATA[August 27, 2008. Denise T. Resnik, M.S.. Until we have the opportunity to further discuss with management the decision of Novartis AG relating to the filing of a NDA by NexMed (Nasdaq: NEXM), we are suspending our rating.]]></description>
<dc:creator><![CDATA[Denise T. Resnik, M.S.]]></dc:creator>
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<title><![CDATA[BluePoint Energy, Inc. Files SEC 8-K Detailing Capital Raise; Dates Set for Special Stockholders Meeting; Rating Continues Suspended]]></title>
<pubDate>Tue, 26 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/CPEU/index.html?08262008</guid>
<description><![CDATA[August 26, 2008. Richard W. West, CFA. Chapeau, Inc., d/b/a BluePoint Energy, Inc. (OTCBB: CPEU), filed an SEC 8-K, dated August 26, 2008, covering several events, including: BluePoint&#39;s agreement with the Gordon V. and Helen C. Smith Foundation for the sale of 2,565,880 shares of BluePoint common stock, par value $0.001 per share, at a purchase price of $0.3605 per share. At a meeting of BluePoint&#39;s Board of Directors, held on August 22, 2008, a date of October 6, 2008, at 1:00 p.m. PT was set for the special meeting of shareholders demanded by Saga Capital Management, LLC, and described in greater detail in BluePoint&#39;s current report on Form 8-K, filed with the U.S. Securities and Exchange Commission on August 18, 2008. In response to the change in management and directors, the continued need for financing, and the uncertainty surrounding this situation, we continue the Suspended Rating of BluePoint Energy.]]></description>
<dc:creator><![CDATA[Richard W. West, CFA]]></dc:creator>
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<title><![CDATA[Baldwin to Present to Wall Street Analysts]]></title>
<pubDate>Mon, 25 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/BLD/index.html?08252008</guid>
<description><![CDATA[August 25, 2008. Wayne M. Lottinville, CFA. Baldwin Technology Company, Inc. (Amex: BLD), is scheduled to make a presentation in New York City September 8 that will be broadcast on the internet. Last week Baldwin reported that in its fiscal year ended June 30, sales surged 17.3% to $236.3 million. After eliminating the effect of favorable currency translation, sales still rose a solid 9.3%.]]></description>
<dc:creator><![CDATA[Wayne M. Lottinville, CFA]]></dc:creator>
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<title><![CDATA[Lime Energy Co. Completes 1st of 13-Energy Efficiency Projects for Jetro. Strong Buy Rating Reiterated]]></title>
<pubDate>Mon, 25 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/ELC/index.html?08252008</guid>
<description><![CDATA[August 25, 2008. Richard W. West, CFA. Lime Energy Co.&#39;s (Lime Energy) announced on August 21, 2008, that it had recently completed the first of 13 energy efficiency retrofit projects for the restaurant supply firm Jetro Cash and Carry/Restaurant Depot. This restaurant supply firm saving energy and dollars from reduced energy use is a hallmark of Lime Energy&#39;s importance in today&#39;s increasing awareness of the dire need for energy efficiency. Lime Energy&#39;s common stock has not recognized the many positives of the past six months or the potential for the balance of FY 2008 and beyond. We reiterate our Strong Buy Rating and maintain the 12-month price target of $17.50.]]></description>
<dc:creator><![CDATA[Richard W. West, CFA]]></dc:creator>
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<title><![CDATA[Znomics Continues Building Staff with Appointment of Senior Director of Chemistry; Neutral Rating Reiterated.]]></title>
<pubDate>Mon, 25 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/ZNOM/index.html?08252008</guid>
<description><![CDATA[August 25, 2008. Wayne M. Lottinville, CFA. Znomics, Inc. (OTCBB: ZNOM), has named Ofir Moreno, Ph.D., as the company&#39;s new senior director of chemistry, a newly created position. Dr. Moreno is a medicinal chemist with 14 years of experience in the pharmaceutical industry and a track record of successful drug discovery. He has held research positions at Merck, Amgen, Corvas International, and Dendreon where he served as senior director of chemistry. He is an expert in leading outsourced research projects from the earliest stages of discovery through clinical candidate identification. Dr. Moreno received his doctorate in organic chemistry from Harvard University and a dual bachelor of arts degree in chemistry and biology from Cornell University. Neutral Rating Reiterated.]]></description>
<dc:creator><![CDATA[Wayne M. Lottinville, CFA]]></dc:creator>
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<title><![CDATA[GoldSpring Speculative Buy Rating In Initiating Coverage; The First Opportunity For Investors In The Comstock In Over A Century With Over 80% Of The Comstock Fragmented Ownership Interests Now Consolidated]]></title>
<pubDate>Fri, 22 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/GSPG/index.html?08222008</guid>
<description><![CDATA[August 22, 2008. Mike Niehuser. The Comstock is one of the greatest mining stories in U.S. history because of the historic level of gold-silver production, the large number of technological innovations laying the foundation for modern underground mining, and otherwise one the most colorful periods in the Old West. Eventually technological advancements reached their inevitable limitations in the 1880&#39;s for deep underground mining, and with falling metal prices and fragmented approach to mining. GoldSpring has consolidated over 80% of the fragmented ownership interests making possible the first comprehensive development/production of the Comstock with modern exploration/mining technology during a period of stable and rising precious metal prices. The first opportunity for investors in the Comstock in over a century. GoldSpring has the dominant land position on the Comstock in the Virginia City area, south of Reno, Nevada. GoldSpring appears well positioned to rapidly move forward with the second phase of production, having assembled a property position in a prolific mining area, a mining operation, and a capable mining team. Production should help fund additional development of the historic Comstock District. As only 5% to 10% of their land position has been subject to modern exploration techniques and equipment, it would appear that there is ample opportunity to locate and mine previously unknown or unavailable resources. While GoldSpring is early in its understanding of the potential of the historic Comstock district, it appears that there is significant upside in the area mining from both open pit and underground.]]></description>
<dc:creator><![CDATA[Mike Niehuser]]></dc:creator>
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<title><![CDATA[Debut Broadcasting Corporation Inc. Reports Second Quarter of Fiscal 2008]]></title>
<pubDate>Fri, 22 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/DBTB/index.html?08222008</guid>
<description><![CDATA[August 22, 2008. Randy Wilson. Debut Broadcasting Corporation Inc. (OTCBB: DBTB) recently reported its second quarter of fiscal 2008, ended June 30, 2008. Net revenue in Q2-2008 totaled $726,438, an increase of $725,831 compared to net revenue of $607 in Q2-2007. The Company continues to see an increase in net revenue from its radio syndication arm (Impact Radio Networks) and expects to continue adding radio stations under the Debut Broadcasting umbrella to drive revenue growth. For the six-month period ending June 30, 2008, The Company generated net revenue of $1,177,783, an increase of $913,709, or 446 percent year-over-year growth, compared to $264,074 for the first six months of 2007. Debut narrowed their ordinary loss to $263,285 from $602,274 in Q2-2007. The loss was flat with Debut&#39;s Q1-2008 ordinary loss despite including approximately $95,000 in one-time and seasonal expenses.]]></description>
<dc:creator><![CDATA[Randy Wilson]]></dc:creator>
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<title><![CDATA[Peoples Educational Holdings, Inc. Reports FY08 Results; Provides Upbeat Guidance; FY09 Estimate Raised; Target Lowered; Rating Changed from Buy to Strong Speculative Buy.]]></title>
<pubDate>Fri, 22 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/PEDH/index.html?08222008</guid>
<description><![CDATA[August 22, 2008. Sally H. Wallick, CFA. Peoples Educational Holdings, Inc. (PEDH: NASDAQ) reported fourth quarter revenue of $8.2 million, down 10% year over year, and a diluted loss of $0.15 per share versus a $0.01 per share profit in the fourth quarter of fiscal 2007. Results were disappointing relative to our estimates. Full-year revenue totaled $40 million, up 3% year over year, and the Company reported a net loss of $774,000 ($0.17 per share), non-GAAP net income of $502,000 versus a $620,000 loss in fiscal 2007, and free cash flow of $981,000 compared with negative free cash flow of $4.3 million in fiscal 2007. We believe that fourth quarter and full-year fiscal 2008 results were held back by weakness in the supplemental materials market, although it appears that Peoples gained market share during these periods. We believe that new products contributed to Peoples&#39; superior performance. Despite disappointing fourth quarter results, Peoples&#39; management is upbeat about the Company&#39;s fiscal 2009 outlook. It projects fiscal 2009 revenue of $41 million to $43 million, GAAP net income of $600,000 to $1.0 million or $0.13 to $0.22 per share; non-GAAP net income of $1.3 million to $1.8 million or $0.29 to $0.40 per share, and positive free cash flow of $1.5 million to $2.0 million. In light of management&#39;s guidance for fiscal 2009, we are raising our earnings estimate for the year to $0.13 per share from $0.05 per share, while reducing our revenue estimate from $44 million to $41 million. We project EBITDA of $8.2 million ($1.83 per share), non-GAAP earnings of $1.5 million ($0.33 per share), and free cash flow of $1.5 million. If management&#39;s guidance proves to be accurate, there could be upside to our estimates. Equally, there could be downside risk if budget pressures being experienced by many states at present result in cutbacks in spending on education. Peoples&#39; shares are trading at approximately 15 times our fiscal 2009 earnings projection, about one time our EBITDA estimate, and less than six times our non-GAAP earnings and free cash flow projections. Given these low valuations, especially relative to EBITDA, non-GAAP earnings, and free cash flow, we are changing our rating on the shares from Buy to Strong Speculative Buy. At the same time, in light of the current challenging stock market environment, we are lowering our target price from $5.00 per share to $4.25 per share, or about 13 times projected non-GAAP earnings and free cash flow. Investors should note that our "speculative" rating reflects a high level of uncertainty arising from today&#39;s difficult economic environment and resulting pressures on state budgets and, therefore, greater-than-average risk to estimates and projections.]]></description>
<dc:creator><![CDATA[Sally H. Wallick, CFA]]></dc:creator>
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<title><![CDATA[LogicVision Establishes Distribution Channel in Taiwan; Reiterate Strong Speculative Buy]]></title>
<pubDate>Thu, 21 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/LGVN/index.html?08212008</guid>
<description><![CDATA[August 21, 2008. Wayne M. Lottinville, CFA. LogicVision, Inc. (Nasdaq: LGVN), has expanded its sales and customer service by the addition of Avant Technology Inc. as exclusive distributor for LogicVision products in Taiwan. Under the terms of the agreement, Avant will be able to sell the complete line of LogicVision test solutions to the Taiwan semiconductor design community. Avant distributes intellectual property and electronic design automation products from a variety of producers and is expected to drive the adoption of LogicVision&#39;s tools in the Taiwan semiconductor market.]]></description>
<dc:creator><![CDATA[Wayne M. Lottinville, CFA]]></dc:creator>
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<title><![CDATA[Patriot Scientific Announces Sale of Patent License to Japan-Based Roland Corporation; President/CEO Releases Letter to Shareholders; Strong Speculative Buy Reiterated]]></title>
<pubDate>Thu, 21 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/PTSC/index.html?08212008</guid>
<description><![CDATA[August 21, 2008. Richard W. West, CFA. Patriot Scientific Corporation (OTCBB: PTSC) announced today, August 21, 2008, that Roland Corporation (Roland) has purchased a Moore Microprocessor Patent&#8482; (MMP) Portfolio license from the TPL Group. The Roland license is the 50th MMP license granted to industry leaders and these continued announcements of license sales is strong evidence that the MMP portfolio is a most useful patent. Rick Goerner, Patriot Scientific&#39;s President/CEO, released a comprehensive letter to shareholders on August 20, 2008, evidencing his intention to keep investors informed as to Patriot Scientific&#39;s progress in establishing an operating company not dependent upon patent license income. We reiterate our Strong Speculative Buy Rating and our price target of $0.55 per share.]]></description>
<dc:creator><![CDATA[Richard W. West, CFA]]></dc:creator>
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<title><![CDATA[Day Software Speculative Buy Rating In Update; Large Market Opportunity Provides Growth Potential; Key Technology Companies Have Integrated This Company&#39;s Software Into Their Products]]></title>
<pubDate>Wed, 20 Aug 2008 07:00:00 GMT</pubDate>
<guid isPermaLink="true">http://www.jmdutton.com/research/DYIHY/index.html?08202008</guid>
<description><![CDATA[August 20, 2008. David P. Soetebier, CFA. Day Software (OTCQX: DYIHY; SE: DAYN) is a Swiss company that provides integrated content, portal, and digital asset management software (i.e., Web management). Day&#39;s software is distributed or included in the software of leading technology companies such as IBM, Oracle, and Microsoft. Day&#39;s customers include major corporations such as Audi, Daimler, Deutsche Post World Net, Intercontinental Hotels Group, McDonalds, UBS, and Volkswagen. We believe these customers and partnerships validate the Company&#39;s technology in the content applications market and the emerging market of standardized Java Content Repositories and Web-centric content technologies. The Company has a strong balance sheet and is cash flow positive. We are projecting favorable revenue growth in the current year but negative earnings per ADR, primarily because of acceleration in spending on product development. Day Software has recently brought in a new CEO and will be bringing a new CFO in September of this year. The ADR shares are rated Speculative Buy with a 12-month target of $9.25. A multiple of 25X our December 2009 estimate of $0.39 is $9.75. We have discounted the 25X target by 5% for the current market environment.]]></description>
<dc:creator><![CDATA[David P. Soetebier, CFA]]></dc:creator>
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