OTCPicks.com

For Tuesday, September 2nd

MONA, MSTF, PENC, SRDG, DLIA, JMBA

Our Stocks to Watch tomorrow include MonArc Corp. (OTC: MONA), Monarch Staffing Inc. (OTC: MSTF), Pinnacle Energy Corp. (OTCBB: PENC), Southridge Enterprises Inc. (OTCBB: SRDG), dELiA*s Inc. (Nasdaq: DLIA) and Jamba Inc. (Nasdaq: JMBA).

MONARC CORPORATION (OTC: MONA)
"Up 150.00% on Friday"

Detailed Quote: http://www.otcpicks.com/quotes/MONA.php

Monarc Corporation was formed in 2000. The company acquired multiple subprime short term lending companies for the B2C marketplace doing business under the brand name "Cash Now" in 2003. The company also had an array of other financial products such as IFGX and Cash Next under development for the B2B marketplace; such as invoice discounting and factoring. In 2005 the company suffered a setback with 4 consecutive strikes of hurricanes of 2005 while domiciled in Florida. Unable to operate on a day to day basis without interruptions, the company was delisted from being am SEC reporting issuer soon after and consequently its stock was re-ranked as an unsolicited stock and 2006 was a reconstructing year. The company used the time out to raise capital with the issuance of preferred convertible shares. Soon after, in January 2007, it resumed operations. With the sweeping changes in the subprime industry and with most of the States and Provinces restricting this product use the company looked at different industries. In 2007, it launched a Check 21 product and a Forex division and looked towards China as a growth market. In late 2007 MONA sold these aforementioned operating assets to a China-based company and the proceeds of that sale were distributed to its shareholders. In early 2008, MONA looked for another growth industry and decided to enter beverage control. The company acquired 3 start-up entities in the hospitality control industry. In December 2007, the controlling interest of Monarc was purchased by Brookcor Holdings, on an all cash and stock basis. Those businesses were spun out several months later and the paid stock returned to the treasury. MONA identified a China-based mass distribution company and completed a reverse merger with them through their Belize holding company Fulushu Limited in June 2008. The company continues operating these entities as it nears completion of the development of its B2B product line. The company is also currently in a process of filing certain documents to remove the warning sign from the Pink Sheets quotation system and to again become a solicited company, with future plans on becoming an SEC reporting issuer. MONA is also taking measures to raise the pink sheets ranking from "Yield limited information" to a "pink check mark status."

MONA News:

August 28 - MonArc Corporation Sale To China Marketing Company

MonArc Corporation (OTC: MONA) (www.monacorporation.com) provided its shareholders and followers the following update on the upcoming sale to the Chinese Marketing Company (MCD). The company has received many inquiries about the purchase and the company is using this opportunity to briefly introduce the buyer and their business activities.

The following description was taken from the MCD corporate Chinese based web site, and translated into English.

"MCD (establishing branch offices in 18 countries and regions around the world,) is an International enterprise group that operates a distribution system method, in the realm of the worldwide direct marketing. MCD is expecting to attain 150 thousand distributors. Currently MCD has 5,000 shareholders in China whose families enjoy the high quality products offered by the company. The total gross sales is projected at US$2.5 billion worldwide by the end of 2010, from which sum the company earns its commissions and revenues, in the several million dollar range".

MCD is engaged in the distribution of herbal type cosmetically enhanced supplements.

The following is being provided to MONA shareholders on the interim basis until MCD launches its official English web site which is scheduled to coincide with the closing of the sale transaction.


MONARCH STAFFING INCORPORATED (OTC: MSTF)
"Up 60.00% on Friday"

Detailed Quote: http://www.otcpicks.com/quotes/MSTF.php

Monarch Staffing, Inc., through its subsidiaries, provides healthcare staffing services to commercial and government sector customers in the United States. It furnishes personnel to perform a range of pharmacy technician, nursing, and other health care services in support of the operations of government and commercial facilities. The company is based in Irvin, California.

MSTF News:

August 25 - Monarch Staffing, Inc. Launches Nurse Consultants to Build Its Nurse Staffing Business

New Operating Division Will Be Led by Industry Veteran and Based in Fresno

Monarch Staffing, Inc. (OTC: MSTF), and its wholly owned subsidiary Drug Consultants, Inc., a provider of healthcare staffing services, announced the launch of Nurse Consultants, a new operating division focused on the nurse staffing business.

Nurse Consultants will be lead by Edwina Chong, Executive Vice President, a nurse staffing industry veteran. Prior to joining Drug Consultants, Inc., Ms. Chong built one of the largest local nursing recruitment and staffing firms in the country. From 2001 to 2007, she was Area Manager with Supplemental Health Care where she grew annualized revenues in excess of $21 million. "I am extremely excited to lead the growth of our new operating division," commented Ms. Chong.

Nurse Consultants has opened a new office in Fresno, CA to house its sales & marketing, recruiting and scheduling operations.

"The launch of Nurse Consultants and the opening of a new operating office in Fresno advances our plan to penetrate the growing nurse staffing business. Additionally, we expect the launch will help diversify Monarch Staffing's service offerings and customer base," commented David Walters, Chairman.


PINNACLE ENERGY CORPORATION (OTCBB: PENC)
"Up 49.32% on Friday"

Detailed Quote: http://www.otcpicks.com/quotes/PENC.php

Formerly named Gas Salvage Corp., Pinnacle Energy has recently completed a name change and a three-for-one forward stock split. The company now trades under the OTC symbol "PENC." All of the above-listed changes were made effective with FINRA on August 14, 2008. More information about these changes may be found in a FORM 8-K filed with the Securities and Exchange Commission on August 8, 2008. Pinnacle Energy Corp. is an independent oil and gas producer focused on acquiring and developing mature oil & gas producing assets. Pinnacle Energy Corp. is headquartered at 333 River Front Ave., Suite 153, Calgary, Alberta, T2G 5R1, Canada and can be contacted at (866) 822-0325.

PENC News:

August 29 - Pinnacle Energy Corp. Acquires Six Oil & Gas Producing Wells

Pinnacle Energy Corp. (OTCBB: PENC), an independent oil and gas producer, announced that it has acquired working interests in six wells located in Pawnee County, Oklahoma, USA. Five of the six wells produce high gravity light sweet crude oil, and the sixth is a saltwater disposal well.

As of August 27, 2008, the five oil wells are producing 20 barrels of oil per day, and 30 MCF (30,000 cubic feet) of gas per day, net to the Company’s interest. Acquisition cost for the wells was $1,000,000 USD, and Pinnacle Energy has a 25.5% working interest (20.4% net revenue interest) in two wells, a 20% working interest (16% net revenue interest) in three wells, and a 17% working interest (13.6% net revenue interest) in the remaining well.

“Current production and reserve reports suggest that the Glencoe field in Pawnee County, Oklahoma has excellent long-term development potential,” said Pinnacle Energy CEO Nolan Weir. “We look forward to developing the field to its fullest potential in the very near future.”


SOUTHRIDGE ENTERPRISES INCORPORATED (OTCBB: SRDG)
"Up 40.00% on Friday"

Detailed Quote: http://www.otcpicks.com/quotes/SRDG.php

Southridge Enterprises is a renewable energy company with a mission to become the ethanol producer of choice. The Company is focusing its efforts in an area which offers abundant supplies of corn, superior transportation infrastructure and expedited permitting processes. The Company is actively acquiring and developing ethanol production facilities and anticipates start-up of the first phase of these operations in 2009. Southridge Enterprises is headquartered in Dallas, Texas.

SRDG News:

August 25 - Southridge Receives $7.5 Million for Brazil Ethanol Plant

Southridge Enterprises, Inc. (OTCBB: SRDG) (the "Company") announced that the Company's subsidiary, Southridge Brasilia Corp. ("SBC"), has received a total of $7,500,000 from its project partners for the construction of the ethanol facility in Brazil.

Southridge director, Mr. Marcio Santos, has been working closely with our Brazilian partners Durmundo Carasca SA (DCSA) and Briskul Transaccao LTDA (BTL) in the development of the Company's plant in Brazil. DCSA has now completed their $5,000,000 contribution for their 15% interest in the new facility. In addition, BTL has exercised their option to increase their position in SBC for an additional $3,270,000, bringing their total interest to 35%.

The ethanol industry in the United States is facing diminishing profit margins that have put many viable and well-funded projects in an increasingly difficult position to continue operations. Due to the high commodity prices for corn and natural gas in United States, Southridge management has decided to put both the Mississippi and Texas ethanol plants on hold until market conditions improve the viability of these projects. As a result, the Company has refocused and accelerated the development of the El Salvador and Brazil plants, as well as increased the revenue from our ethanol sales efforts.

Dallas-based Southridge is developing ethanol plants in El Salvador and Brazil.


DELIA*S INCORPORATED (NASDAQ: DLIA)
"Up 34.59% on Friday"

Detailed Quote: http://www.otcpicks.com/quotes/DLIA.php

dELiA*s, Inc. operates as a direct marketing and retail company in the United States. The company's dELiA*s brand develops, markets, and sells a collection of apparel, sleepwear, swimwear, room ware, footwear, outerwear, and key accessories for teenage girls. Its Alloy brand markets and sells branded junior apparel, accessories, swimwear, footwear, and outerwear for teenage girls. The company's CCS brand markets and sells apparel, footwear, skateboard, and snowboard products for teenage boys. dELiA*s also sells third party brands through its catalogs and the e-commerce Web pages. In addition, it operates dELiA*s retail stores that sell a range of lifestyle oriented apparel and accessories for teenage girls. The company sells its products through direct mail catalogs, Websites, and mall-based specialty retail stores. As of February 2, 2008, it operated 86 dELiA*s mall-based specialty retail stores. The company was founded in 1997 and is based in New York, New York.

DLIA News:

August 29 - dELiA*s, Inc. Announces Second Quarter Fiscal 2008 Results

* Revenues increase by 10.8%; comp store sales up 5.2%
* Operating margins improve by 200 basis points

dELiA*s, Inc. (Nasdaq: DLIA), a direct marketing and retail company comprised of three lifestyle brands primarily targeting consumers between the ages of 12 and 19, announced the results for the second quarter ended August 2, 2008.

Fiscal Second Quarter Results

Total revenue increased 10.8% to $58.1 million from $52.4 million in the second quarter of fiscal 2007 driven by increases in both segments, with a greater percentage increase in the retail segment. Revenue from the retail segment increased 22.0% to $23.6 million, or 40.6% of total revenue. Revenue from the direct segment increased 4.3% to $34.5 million, or 59.4% of total revenue.

Total gross margin increased to 35.3% in the second quarter of fiscal 2008 as compared to 34.6% in the second quarter of fiscal 2007. The increase was driven primarily by higher merchandise margins at dELiA*s Retail and dELiA*s Direct, reflecting improvements in initial mark-ups and full price selling. These improvements were partially offset by higher shipping costs in the direct segment.

Selling, general and administrative (SG&A) expenses were $25.3 million compared to $23.4 million in the second quarter of fiscal 2007. As a percentage of sales, SG&A improved to 43.4% of sales for the second quarter of fiscal 2008 from 44.7% of sales for the prior year’s quarter. The improvement in SG&A as a percentage of sales was primarily due to the Company’s ability to leverage selling and other operating expenses on increased sales. The operating loss for the quarter was thus reduced by $0.6 million, or by 200 basis points as a percentage of sales, compared to last year.

The net loss for the second quarter of fiscal 2008 was $5.0 million, or $0.16 per diluted share, as compared to a net loss of $5.1 million, or $0.16 per diluted share, in the second quarter of fiscal 2007, reflecting increased interest expense and a provision for income taxes in this quarter, compared to a tax benefit in last year’s results.

Robert Bernard, Chief Executive Officer, commented, “We are pleased with the progress we made in the second quarter. For the retail segment, we achieved positive comparable store sales growth and increased segment sales, driven by growth in our store base over the past year. For the direct segment, we achieved steady sales and margin growth, driven largely by the strong performance of our dELiA*s Direct brand.

“We are pleased with our important back-to-school selling period so far, with high single-digit comps in July and continued strength thus far in August,” Mr. Bernard continued. “We have said that back-to-school would mark an inflection point for the dELiA*s brand, and these results are indicative of why we are quite optimistic about our future. Early indications are that we are seeing a payback for the investments we made earlier in the year in merchandising, store operations, and inventory planning and allocation. We intend to continue to drive sales growth and margin improvement as we carefully manage our business through this challenging retail environment.”

Results by Segment

Retail Segment Results:

Total revenue for the retail segment increased 22.0% to $23.6 million from the second quarter of fiscal 2007. Retail comparable store sales increased 5.2% for the second quarter on top of an increase of 4.6% for the fiscal second quarter of 2007. Gross margin for the retail segment, which includes distribution, occupancy and merchandising costs, increased to 22.5% from 18.6% in the prior year period due to leverage of occupancy costs and improvement in product margins. SG&A expenses, which include allocated overhead, were $10.8 million, or 45.6% of sales, in the second quarter compared to $9.3 million, 48.1% of sales, in the prior year period, reflecting the leveraging of store selling expenses. The quarterly operating loss for the retail segment was reduced to $5.5 million compared with an operating loss of $5.7 million in the prior year period.

The Company opened two store locations and relocated one store during the second quarter of fiscal 2008. The Company ended the period with 94 stores.

Direct Segment Results:

Total revenue for the direct segment increased 4.3% to $34.5 million from the second quarter of fiscal 2007. Segment revenue growth was driven primarily by sales growth in the dELiA*s Direct brand. Gross margin for the direct segment increased to 44.1% from 43.9% in the prior year period due largely to improved product margins in each of our three brands, which more than offset the increase in shipping costs. SG&A expenses were $14.5 million, or 42.0% of sales, in the second quarter compared to $14.1 million, or 42.7% of sales, in the prior year period, reflecting targeted reductions in catalog circulation. Operating income for the direct segment improved to $0.7 million compared with operating income of $0.4 million in the prior year period.

First Six Months Results

Total revenue increased 10.4% to $121.7 million for the six-month period ended August 2, 2008 from $110.2 million in the prior year period. Total gross margin was 34.9% compared to 35.4% for the same period the prior year. SG&A expenses were $50.9 million, or 41.9% of sales, for the first six months of fiscal 2008 compared to $47.8 million, or 43.3% of sales, for the prior fiscal year period. Net loss was $8.9 million, or $0.29 per share, compared to a net loss of $8.4 million or $0.27 per share in the prior fiscal year period.


JAMBA INCORPORATED (NASDAQ: JMBA)
"Up 25.23% on Friday"

Detailed Quote: http://www.otcpicks.com/quotes/JMBA.php

Jamba, Inc., through its subsidiary, Jamba Juice Company, owns and franchises Jamba Juice stores. The company operates as a retailer of blended-to-order fruit smoothies, squeezed-to-order juices, blended beverages, and snacks in the United States. As of January 1, 2008, it operated 707 stores comprising 501 company-owned stores and 206 franchisee-owned stores. The company was founded in 1990 and is headquartered in Emeryville, California.

JMBA News:

August 28 - Nestle USA and Jamba Announce Early Success with Ready-to-Drink Beverages

Jamba® Ready-to-Drink Exceeds Expectations in Eight Western States

Nestlé USA, part of Nestlé, S.A., the world’s largest food and beverage company, and Jamba Inc. (Nasdaq: JMBA), the leading blender of fruit and other naturally healthy ingredients, announced the early success of the Jamba® ready-to-drink beverages in eight Western U.S. states. Since its launch in May, Jamba® ready-to-drink beverages have captured a significant share of the premium juice segment, exceeding initial expectations.

Jamba Smoothies and Jamba Juicies are available in hundreds of locations, including major grocery retailers and convenience stores in California, Oregon, Utah, Nevada, Arizona, Idaho, Washington and Colorado. Retail accounts include Safeway, Albertsons, Ralph’s, 7-Eleven, Raley’s, and Walgreens, among others.

“We are thrilled at the success of the Jamba ready-to-drink beverages, which have surpassed our initial sales expectations,” said Steve Presley, vice president, general manager premium ready-to-drink, Nestlé Beverage Division.

Nestlé is supporting the launch of Jamba RTD with significant product sampling, on-line activity, consumer outreach public relations and in-store promotions. In addition, television ads for Jamba RTD began airing in June in both San Francisco and Portland.

“The initial success of the ready-to-drink product demonstrates the power and strength of the Jamba brand outside the four walls of our retail stores, in California as well as less mature Jamba markets such as Portland,” said Paul Coletta, chief marketing and brand officer at Jamba. “In just a few months, Jamba ready-to-drink has exceeded our expectations for initial sales. Based on this, we see tremendous opportunity for the product as we continue to execute upon our plan to make Jamba Juice available to our customers 24/7.”

The 2008 Jamba ready-to-drink product line includes six SKUs: three Jamba Smoothies, named Strawberries Wild w/Energy Boost, Orange Dream Machine w/Immunity, Banana Berry w/Heart Healthy Boost; and, three Jamba Juicies named Orange Strawberry Banana w/Protein Boost, Mango Orange Peach w/Fiber Boost, Very Berry w/Calcium Boost.

ABOUT NESTLÉ USA

Named one of “America’s Most Admired Food Companies” in Fortune magazine for the eleventh consecutive year, Nestlé USA provides quality brands and products that bring flavor to life every day. From nutritious meals with LEAN CUISINE® to baking traditions with NESTLÉ® TOLL HOUSE®, Nestlé USA makes delicious, convenient, and nutritious food and beverage products that enrich the very experience of life itself. That’s what “Nestlé. Good Food, Good Life” is all about. Nestlé USA, with 2007 sales of $8.25 billion, is part of Nestlé S.A. in Vevey, Switzerland — the world’s largest food company — with sales of $90 billion.

 
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