MissionIR Small-Cap Investor Blog

Tuesday, November 11, 2014

Continental Stock Transfer & Trust Remains Sturdy Competitor amid Industry Consolidations

During the last decade or so the stock transfer agency market has undergone considerable consolidation as smaller agencies exited the business or were acquired by larger agents. New technology, changing regulation and increasing competition also whittled the size of the playing filed into what is now an industry led by a small handful of vendors.

With healthy competition among the remaining players, companies seeking out a transfer agent can enjoy an easier selection process by vetting each agent’s customer service, price options and track record. Competition is divided into larger and smaller agencies, and what many small-cap companies discover is that bigger isn’t always better.

Mega transfer agents typically work with larger companies with hundreds of thousands of shareholders; certainly a valuable service to behemoth brands. Companies with 50,000 or fewer shareholders, however, benefit from the cost, personal attention, expertise and availability of a smaller agent such as Continental Stock Transfer & Trust. The agent’s award-winning, 50-year history bucks the notion that quality is compromised when delivered in a smaller package.

Continental offers the fundamentals and extended offerings you’d expect from a transfer agent that not only survived but gained strength throughout mass industry consolidation.

The agent offers comprehensive shareholder recordkeeping, transaction history, shareholder and stock activity reports, annual meeting management, dividend distribution, as well as industry-mandated services such as shareholder searches and escheatment. The agent also offers stock plan administration and services pertaining to corporate actions and escrow services. Continental has managed hundreds of IPOs and virtually all special-purpose acquisition companies (SPACs ) brought to market in the last 20 years.

Continental was founded in 1964 to fully support smaller to midsize emerging and growth companies with optimal client responsiveness and uniquely tailored business solutions. The agent has maintained this vision and commitment to this specific market throughout its history.

As the fourth-largest agent (again, among only a handful) in the United States, Continental offers something mega transfer agents cannot: an approach aptly focused on providing each company with personal attention from senior staff, flexible offerings and innovative technology. Annual industry surveys back Continental’s claims, year after year demonstrating the agent’s stellar track record of superior customer satisfaction.

For more information, visit www.continentalstock.com

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Net Element, Inc. (NETE) Makes SME Sector History with the Release of Aptito 2.0

Net Element, an innovative provider of mobile payments and value-added transactional services, has unveiled Aptito 2.0, its newest version of a cloud-based, point of sale (POS) platform for the hospitality industry. The technology was upgraded to add many new features and represents a significant overall improvement over previous versions.

The new version is optimized for iOS 8.1and offers several tools unique to the Net Element brand. The enhanced Aptito 2.0 includes:

• Offline Mode. This hybrid architecture allows merchants to always remain online, even if the Internet connection is lost to the cloud. Net Element’s local server solution is synchronized with Amazon cloud, providing 99.99% uptime.

• Interactive Ordering Kiosk. Aptito’s stand-alone kiosks put the eye-catching digital menu in front of customers and helps them avoid waiting in line during busy peak hours.

• Digital Menu Module. Aptito’s digital menus make self-ordering fun and easy while streamlining operations. The intuitive interface improves the overall “Customer Experience” for guests while saving money on labor costs at the same time.

• Tableside Ordering. Orders placed tableside by customers directly speed up the process and improve overall efficiency. Aptito’s next generation mobile POS system provides portability to your staff while performing all the same functions as a traditional POS system, and more.

• Business management and Analytics. Business management functions of Aptito 2.0 alongside with Unified Insights, which was announced earlier this year, cover many different business management, market sales and revenue analytics required by the most demanding business owners and historically available only to large national merchants.

“We are proud to introduce this innovative platform, which supports the latest technologies and state-of–the-art business analytics and management tools historically not available to SME sector,” Oleg Firer, CEO of Net Element, stated in the news release. “All of our packages can be configured individually to suit virtually any business owner and are significantly cheaper than conventional PC-based POS packages while offering a stable Apple iOS platform.”

Net Element owns and operates a global mobile payments and transaction processing provider, TOT Group. In addition to Aptito, TOT Group companies include Unified Payments, recognized by Inc. Magazine as the No. 1 Fastest Growing Private Company in America in 2012; and TOT Money, which has a leading position in Russia and has been ranked as the No. 1 SMS content provider by Beeline, Russia’s second largest telecommunications operator.

For more information visit www.netelement.com

About MissionIR

MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.

Sign up for “The Mission Report” at www.MissionIR.com

Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html

Friday, November 7, 2014

ChinaNet Online Holdings, Inc. (CNET) Announces Expansionary Plans in Fuijan Province in Conjunction with Gov’t Redevelopment Action Plan

Today before the opening bell, ChinaNet Online Holdings announced it plans to expand its efforts to attract new small-to-medium-sized enterprises in the Fujian province. The announcement comes at a time when the Provincial Government is rolling out a redevelopment plan to promote more service-based industries within this region.

Committed to shifting the province’s economy toward a modern service industry model, the government projects the service economy’s added value will reach 1 trillion RMB, which would account for more than 42 percent of GDP in the Fujian Province. It was reported most of the service industry brands are incorporating a franchise development model. ChinaNet looks to capitalize on these redevelopment plans by expanding its efforts at local outreach, including attendance at regional events.

ChinaNet has already been busy in increasing its regional networking efforts. The company’s subsidiary, Liansuo.com is participating in the Chinese Franchise Exhibition, which was organized by the Chinese Chain Store & Franchise Association and is being held at the Fuzhou Strait International Conference & Exhibition Center on November 6-8.

Company COO George Chu commented, “We recognized a key opportunity for our services with the Fujian Provincial Government’s plan to bring more franchise and service brands to the region. The government recognizes that franchising is bringing growth throughout China, having experienced 50% to 60% growth and according to data from the Ministry of Finance. We intend to be an important player in this transition, offering our comprehensive suite of fully integrated advertising, marketing and management solutions for small to mid-size franchise businesses.”

ChinaNet Online Holdings is a leading business-to-business Internet technology company providing online-to-offline sales channel expansion services for small-sized and medium-sized enterprises and entrepreneurial management and networking services for entrepreneurs in the People’s Republic of China. Through certain contractual arrangements with operating companies in the PRC, the company provides Internet advertising and other services for Chinese small-sized and medium-sized companies via many sources. These include its portal websites, 28.com, Liansuo.com, and Chuangye.com; TV commercials and program production via China-Net TV; and in-house LCD advertising on banking kiosks targeting Chinese banking patrons.

For more information, visit: www.chinanet-online.com

Thursday, November 6, 2014

Net Element, Inc. (NETE) Aptito is Game-Changer for Food & Beverage Industry

Net Element is a mobile payments and value-added transactional services provider with a portfolio of technology-based, innovative companies such as global mobile payments and transactional processing provider TOT Group, Inc. TOT Group is a consortium of companies that includes Aptito, Inc. a next-gen point of sale (POS) payments platform positioned to revolutionize a significant niche of the food and beverage industry.

Aptito is a digital POS solution packed with robust features designed to seamlessly integrate cutting-edge technology into day-to-day transactions in the restaurant marketplace. Combining traditional POS functionality with digital menus, the cloud-based platform enables mobile ordering, social media, and a wide array of business management tools such as reservation, scheduling, and payroll systems.

Orders placed on the iPad Kiosks can be routed and tracked through Aptito’s signature iPad POS system or can be sent directly to the kitchen, saving the restaurant time and labor costs. iPad menus enable customers to place orders, request a server’s attention, view nutritional info, send special instructions to the chef and pay electronically, allowing for faster service, quicker table turnover and less wait time for consumers.

When it comes to reservations, Aptito is directly synced with the iPad POS system to keep staff informed of which tables are reserved. The real-time reservation system will send patrons an SMS text message when their reserved table becomes available.

The technology is designed for integration with QuickBooks and most other major accounting software, offering the ability to create extensive sales and inventory reports, a detailed client database, labor scheduling, payroll and credit card processing.

Aptito has developed one of the most comprehensive, yet easily self-managed inventory systems on the market today and is available to clients worldwide. Net Element calls the platform “the next evolutionary step for restaurants” as industry participants look for innovative ways to increase customer awareness and loyalty, offer customers a modern and interactive way to order food, and receive personalized and interactive service.

For more information visit www.netelement.com or www.aptito.com

Aemetis, Inc. (AMTX) Growth Strategy Aligned with Rise in Ethanol ‘Blend Wall’

On November 4th of this week, Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA), commented, “This election day — and every day — Americans want the freedom to choose what fuel to put into their vehicles. For years, Big Oil has monopolized the market and limited that choice. But, today’s analysis should send a clear message to the EPA and Congress that E15 is here to stay. Even with falling gas prices, ethanol remains the lowest cost liquid transportation fuel on the planet. If EPA reverses course and embraces the statutory levels of the renewable fuel standard, E15 and higher level ethanol blends will propel our country past the so-called ‘blend wall’ and increased biofuels use will move our country to a clean and sustainable future.”

The RFA analysis uncovered the following trends:

- After approving the use of E15 in some of its 2014 Honda and Acura models, Honda Motor Co. has extended E15 warranty coverage to all models in 2015.

- All Toyota models in 2015 include explicit E15 approval, up from just a fraction of Toyota models in 2014. Just as in 2014, E15 is approved for use in most, but not all, 2015 Lexus models.

- For the fourth year in a row, General Motors approves the use of E15 in all models. Similarly, E15 is approved in all Ford models for the third year in a row. Vehicles from these two automakers alone account for roughly one-third of sales in the United States.

- Audi, Jaguar, Land Rover, Porsche, and Volkswagen also expressly approved the use of E15 in their 2015 models.

Aemetis, Inc. (NASDAQ: AMTX), an international renewable fuels and specialty chemical company, is executing on a strategic plan that finds itself clearly in the right place at the right time as its effort to build shareholder value resides in the production of a variety of renewable fuels that help solve global warming and the dependence on petroleum. Further, the company is active in the acquisition, development, and commercialization of innovative technologies that possess the capacity to replace traditional petroleum-based products and convert first-generation ethanol and biodiesel plants into advanced biorefineries – facilities that integrate biomass conversion processes and equipment to produce fuels, power, heat, and value-added chemicals from biomass.

AMTX operates in both North America and India. The company owns and operates a biodiesel plant in Kakinada, India and an ethanol plant in Keyes, California. Aemetis, Inc. sells biodiesel and glycerin to resellers, distributors, and refiners through its direct sales force and independent agent channels. Other sales platforms include brokers who resell the product to end-users. The company provides ethanol, wet distiller grains, corn oil, and condensed distillers soluble.

For more information on the company, visit www.aemetis.com

Wednesday, November 5, 2014

Net Element, Inc. (NETE) Gaining Traction in Evolving Mobile Payments Marketplace

A recent article by Marco della Cava in USA Today draws attention to how mobile payment options are evolving. Establishment payment options such as QR code-based apps remain the preference of many retailers. But there is growing traction in an alternative known as near-field communication (NFC) options, such as Apple Pay and Google Wallet. This momentum can be seen in cases such as how many mobile users signed up for Apple Pay within hours of its release.

After Apple Pay was debuted to mobile consumers in the release of iOS 8.1 on October 20, there was a flurry of activity. Over 1 million credit cards were signed up in the service’s first 72 hours post-release. And as della Cava points out in the article: even though some merchant parties are being slow to adapt Apple Pay due to varying factors, the powerful force of consumer expectations cannot be disregarded. As Stern Agee analyst Tom McCrohan opines in the article: as NFC options like Apple Pay acquire a wider base among retailers, competitors will be incentivized to readapt and also offer them.

Florida-based Net Element (NASDAQ: NETE) is one company which has been riding this wave of innovation. In September, the company announced the integration of Apple services into its point-of-sale payment acceptance hardware and software. With this alignment, customers will be able to use their iPhone 6, iPhone 6 Plus, or Apple Watch devices for payments to merchants which use Net Element’s mobile payment system provided by Net Element’s subsidiary TOT Group. This timely development, along with increasing numbers of customers who use Apple Pay and other similar options, will help position Net Element for market gains as the mobile payments landscape continues to evolve.

In recent months, Net Element has taken steps to secure its own short-term and long-term positions. As noted in company CEO Oleg Fifer’s letter to NETE shareholders, a few of these milestones were:

• Elimination of almost $15.9 million in debt from Net Element’s balance sheet with Net Element’s debt exchange transaction with Crede Capital Group

• Filing of a universal shelf registration statement with the SEC, which if approved by the SEC, would allow Net Element to raise financing of up to $50 million for future business activities

• Substantial brand exposure to the investment community provided through coverage in media outlets such as USA Today, TheStreet, and 24/7 Wall St

• Attainment of an $11 million credit facility from Russia’s largest private bank, Alfa-Bank, which bolsters support for Net Element’s expansionary activities with TOT Money, a supplier of SMS messaging and mobile billing solutions and a part of TOT Group

• Achievement of company profitability, in which Net Element recorded a net income of $1.3 million in Q2 2014 compared to a net loss of $20.2 million in Q2 2013

Looking to the future, Firer expressed his confidence about Net Element’s growth potential. He also reinforced that Net Element would continue to execute current initiatives, as it pursues new strategic opportunities that will strengthen its growth opportunities and guide it toward sustained profitability.

For more information, visit: www.netelement.com

Tuesday, November 4, 2014

ENGlobal Corp. (ENG) Maintains Stride for Continued Growth

ENGlobal is a specialty engineering services firm specializing in oil and gas automation solutions, subsea control systems and engineering and construction projects. The company offers its vast suite of services through its automation and engineering business segments, servicing the upstream, midstream, downstream, pulp and paper, alternative energy, and government sectors.

ENGlobal’s Automation segment provides services related to the design, fabrication and implementation of distributed control, instrumentation and process analytical systems.

The Engineering segment provides consulting services for the development, management and execution of projects requiring professional engineering, construction management, and related support services. Within the Engineering segment, ENGlobal’s Government Services group is responsible for the engineering, design, installation and operation and maintenance of various government, public sector and international facilities. This group also specializes in the turnkey installation and maintenance of automation and instrumentation systems for the U.S. Defense industry worldwide.

In the second quarter of 2014, ENGlobal reported revenue growth of 32% to $27.2 million compared to the comparable quarter a year ago. Net income was $1.6 million, or $0.05 per diluted share, compared to a loss of $1.6 million, or a loss of $0.06 per share, in the year ago quarter. The second quarter of 2014 marked three consecutive quarters of profit.

ENGlobal CFO Mark Hess attributes the year-over-year improvements to initiatives executed over the last two years. With expectations to continue this pattern of growth, the company recently secured a $10 million revolving credit facility with Regions Bank, replacing the company’s former facility with PNC Bank.

The Regions facility provides ENGlobal with ongoing working capital for general corporate purposes as the company maintains its focus on exploring external growth opportunities and capitalizing on its differentiated expertise and proprietary technologies. ENGlobal’s overarching vision is to become a leading provider of automation integration services and select EPCM projects for clients worldwide.

For more information, visit www.englobal.com