Status Archives

Valence Technologies - VLNC - April 15, 2008; Reiterated July 5, 2008

Oncovista Innovative Therapies, Inc. - OVIT - August 8, 2008 - Initiated

NewCardio, Inc. - NWCI - September 3, 2008 - Initiated

NWCI UPDATE: January 12, 2009

On or or about January 5, 2009, management of New Cardio advised us that it has serious doubts as to the outlook on its ability to bring any of its commercial product offerings to the marketplace as originally projected and detailed in the Status Equity Research report dated September 2, 2008.  We are fairly optimistic that New Cardio's management will obtain the necessary financing to bridge its operational burn rate to a point where either QTinno and/or Visual ECG are made commercially available for sale. However, given the current economic climate for financing small business, we believe that the company would have to make serious concessions and assume a cost of capital that would likely boost our views on dilution regarding the company's proforma shares as well as add significant pressure levied against any breakout to the upside for the stock, as previously suggested.  Accordingly, we are revising our 12 month target from $7.00 a share, down to $2.25 per share.  On balance with any continued short to mid term weakening in the stock market as well as the difficulties that remain in corporate financing for small business, the current share price of $1.55 (mkt. cap of appox. $34 million) could be easily drop an additional 30 to 50%, bringing the shares into a trading range of $.75 to $1.00 per share.  Such price declines would be a fairly decent opportunity for highly speculative investors to take a shot with NWCI.  We remain hopeful that NWCI's management will make the critically correct decisions going forward and guide its operations in accordance with the very narrow and treacherous straits that currently remain open for small businesses to finance their respective going concerns.