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Healthextras
On April 1, 2003 we were hired by Healthextras (HLEX). Their shares traded fewer than 30,000 per day and were bid at $3.90. The company had publicly announced financial projections for the 2003 fiscal year of $375 million in revenue and $9 million plus in earnings. The lack of trading activity for a company with their fundamentals meant that they were underfollowed.
We immediately contacted approximately 300 stockbrokers in our network and a few buy-side fund managers. The stock quickly began trading in excess of 100,000 shares a day and the price of the stock doubled in less than 90 days. As of July 2004, the shares were trading at approximately $16.00. Several buy and sell side research reports were also issued between April 2003 and July 2004 and many significant institutions have acquired large positions in the stock - Healthextras has delivered on its financial expectations, acquired significant customers and completed a large acquisition since our engagement. They are no longer considered an orphan stock.
During 2005 we facilitated research reports issued by Raymond James and JP Morgan and also got HealthExtras featured on James Cramer's CNBC Television program. At the beginning of 2006 HealthExtras' shares were trading above $30.00.
Hawk Corporation
We were hired by Hawk Corporation (Amex: HWK) in February of 2004. Several weeks earlier Hawk had been delisted from the NYSE for failing to meet continued listing criteria. We had the Company retain a specialist recommended by us. The shares opened for trading just above $3.00 and traded maybe 5000 shares per day. Hawk supplies "friction" materials that are incorporated into brakes and clutches, and they also manufacture "powdered metal." Revenue for 2003 was in excess of $200 million. However, with softness in the economy the prior two to three years to our engagement, their customer base (Eaton, Caterpillar, Boeing, John Deere, to name a few) had been impacted adversely, limiting Hawk's growth.
The economy having picked up, management was committed to getting Hawk's message out to the investment community. We were very assertive in our efforts - brought in an initial audience of 300 stockbrokers; conducted two days of meetings with fund managers in NY; and had a handful of buy-side fund managers buy shares of the Company. The result as of July 1, 2004 - trading volume has exceeded 100,000 shares a day several times, the share price hit a 52 week high of $8.60 and the Company has produced two consecutive quarters of record sales and revenue. Two previously unmotivated sell-side analysts also initiated research coverage. The Company is now back on the map, so to speak.
In April of 2005 we facilitated research coverage from a well regarded sell-side brokerage firm who forecast a share price of $20.00 over a 12 to 18 month period. As of 2006 Hawk's shares were trading above $14.00.
Answers Corporation
Answers Corporation is an "Answers" engine - they provide specific answers to requests for definitions of words, places or things via the Internet. They became a public company in October of 2004 at $5.00 per share. In early 2005 the share price achieved a high in excess of $26 and currently trades around $11.00 Through our efforts we have brought substantial numbers of brokers, fund managers and analysts to the Answers Corporation story. We had the CEO invited to the 2005 Thomas Weissel Internet conference, Roth Capital's February 2005 small cap conference and other speaking engagements.
In February 2006 we facilitated the company's first research report issued by Canaccord Adams with a target price of $20.00.
Clarient Inc.
Clarient engaged our services in late November 2007 when the stock was near $1.00 with erratic trading volume. By April 2007 the stock achieved a 52 week high of $2.65 with a meaningful increase in trading volume. We also faciliated a research report by an institutional brokerage firm based on the West Coast. |
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