www.TheSmallCapInvestor.com - Now LIVE

Announcing that The Meehan Report will be moving to its new home.

www.TheSmallCapInvestor is now "Live".

The site is a comprehensive platform for small cap research and is free for individual use. At launch, the site had approximately 350 research reports on small cap companies and that number is growing.

All current and future Meehan Capital Equity Reports will be available at www.thesmallcapinvestor.com.

Just a word of "Thanks" to all the readers of this blog. I look forward to hearing from you after your review of the new site and reading reports at www.thesmallcapinvestor.com. May we all continue to find interesting opportunities to invest in tomorrow's top stocks during these turbulent times.

Take Care,

Trey Meehan

Update: The Small Cap Investor

My intention was to have www.thesmallcapinvestor.com fully functional by now. However, the development process is taking longer than I anticipated. We were not able to get started as soon as I first thought and the actual site development has become a more robust platform from my original thoughts. The process just takes time and we are getting there, slowly but surely.

Upon completion, the website will be the premier destination for locating relevant information on small cap stocks. The site will have news and information on stocks that have available research on the site. There will also be news on other small cap stocks that we don't have research on.

There is a section titled "TSCI Street Pulse" where we have a number of market professionals who will be writing columns on small cap stocks, trading strategies, the markets, etc.

Through the section titled "TSCI Subscriber's Voice", we will have a platform for individual investors to be heard. Subscriber's can submit their column to our editorial staff and we will keep a flow of ideas on the front page.

There will be a chat room for investors to gather and discuss stocks, trading and other on-topic ideas. There will be a customizable portfolio tracker enabling investors to get their research reports, trading strategies, communications, stock quotes and small cap news all in a single location.

I will be posting The Meehan Report via www.thesmallcapinvestor.com as soon as it is up and running. Immediate access will be reserved for Premium Members and everyone else can get my report on a 24 hour delay.

I am hopeful to have several dozen research reports when we launch. Some analysts are waiting to see the site before they commit. Once they see the final product, I think there will be more than a few analysts that will want to place their content on the platform. Premium subscribers will have full access and Free subscribers can purchase Proprietary Equity reports on a per download basis. Sponsored Equity Research will be available to everyone, free of charge.

We are hoping to have it up and running within the next 2-3 weeks. It will be a resource like no other on the internet once we launch. If you have not already signed up, go ahead and sign up. It is free and as soon as something is available, we will have you in the system already.

Sign up at: www.thesmallcapinvestor.com

Out.

OPTIMIZERx Corp (OPRX)

On February 4, 2009, I released the first Sponsored Equity Report for the Research Division at Meehan Capital. The featured company, OPTIMZERx Corporation, is a very interesting investment opportunity that has a nice upside. The Company has filed to become reporting and to date has done ZERO communications with the investment public. I understand that they may start to attend investment conferences and work a road show upon their SEC Registration Statement going effective. They filed it in November and have answered a couple of comments and now are just waiting to clear the SEC. I anticipate that they could be effective in the next 30 days.

To review the report, please visit: Meehan Capital Equity Research

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I am hoping to have an update on CryoPort ready in the next week or so. I am working my channels and things appear to be heading in a very good direction, but everything is being kept very tight lipped right now. I will see what I can find out and report back as soon as I hear something of merit.

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For those of you who are wondering when The Small Cap Investor website will be up and running, we are shooting for March 1, 2009 - but it will be tight. We are working out the final conditions for a marketing program with ValueClick (NASDAQ: VCLK) to take our subscriber base over 50,000 members before the summer.

If you have not already signed up for The Small Cap Investor, just visit the site and sign up. (If you already recieve FCI News Alerts, we will migrate your information over so no need to worry.)

It should get interesting very soon!!

DISCLOSURE: All conflict, compensation and other "legal" material regarding our analyst opinion on OPTIMIZERx is located at the end of the Equity Report.

The Small Cap Investor Update

At the request of several people, I have decided to re-start The Small Cap Investor website and I am going to be focusing my attention on "Under The Radar" stocks.

Through an online marketing program, I am developing a large opt-in subscriber stock trader database ... aka, my "traderbase". I expect that the traderbase will be maintained somewhere around 50,000 subscribers. I will be talking stock selections, trading strategies, publishing research and more on small companies that don't receive much exposure and whom I believe offer interesting trading opportunities.

For some companies that I follow I will receive compensation ("Sponsored Research"), for others I will not ("Proprietary Research"). As always, if I have any type ownership, compensation, or other conflict, etc., it will be disclosed. And for the record, I will usually have some type of conflict as I also want to trade these stocks as well.

As many of you know, my focus for the last decade has been primarily focused on the small cap sector. Based on my experience in working as a consultant to over two dozen small cap companies, my belief is that many lightly followed stocks in this sector can experience signficant price appreciation if investors become focused on them and have the ability to buy stock.

My goal is not to simply get short term liquidity into a stock. Although stocks may trade with price volatility and volume changes as a side effect of my coverage, my goal is to introduce investors to stocks that are under the radar and would otherwise go unnoticed. Of course, some of these investors will be short term and some will be long term, but regardless of which type of investor they are, when 50,000 investors decide that a stock that trades under the radar needs to get noticed, it will get noticed in a BIG way.

The service will be 100% free to investors. Once the program is up and running, I will offer additional services for subscribers who wish to upgrade to a "Premium Account". Premium accounts will only cost $99 per year. I believe this cost could be recovered in a single trade. Premium accounts will have full download access to proprietary research, additional resources on the website and will receive The Meehan Report delivered real-time. In the future, Premium Members will receive invitations to conferences, special events and the like.

The Meehan Report will be changing focus and will no longer be a free online blog. It will become my primary communiction tool for trading commentary. The Meehan Report will be delivered to Premium Members upon completion of writing. Subscribers who are part of the "free" traderbase will also receive The Meehan Report, however, it will be on a 24-hr delayed basis.

The platform will have 3 primary components: 1) Research 2) The Small Cap Investor Newsletter and 3) The Meehan Report.

1) RESEARCH: When I see an opportunity in a stock, I will issue a research report with commentary on the stock and why I think it offers an opportunity for price appreciation (or conversely, if I really dislike a stock, why I would short it). I will provide updates to my coverage stocks any time that it seems relevant to do so.

2) NEWSLETTER: I will bring back The Small Cap Investor newsletter. I currently anticipate this will be monthly, but it will depend on how much time it takes me to write and how big it gets.

3) THE MEEHAN REPORT: When I see a piece of interesting news on a stock that I have an interest in, I will send it out to my traderbase. Topics such as trading strategies, news updates, arbitrage opportunities, etc. will all be fair game. I currently expect this to be the primary communication piece.

Again, 50,000 investors with the abillity to buy or sell stock has a lot of power. And, "In The World Of Investments, Knowledge Is Power".

I am currently designing the new website and the layout of communications to members. However, I have set up the database for those who want to get signed up. Again, it is 100% FREE, no strings attached. Premium upgrades are not yet available, but will be as soon as the site goes live.

To be part of the Beta Testing, just sign up at: www.TheSmallCapInvestor.com

Hope to see your name on my list real soon!

~ The Small Cap Investor
(aka: Trey Meehan)


Disclosure: Other business interests:

Meehan Capital Management Group, Inc.
www.meehancapital.com
Registered Investment Advisor
CRD Number: 142115

First Capital Investors, Inc.
www.firstcapitalinvestors.com
Capital Markets Advisory

Primordium Equity LLC
www.primordiumequity.com
Private Equity Management

M3 Venture Capital LLC
www.M3VC.com

OPTIMIZERx (OTCPK: OPRX)

As per the terms of the $3.5 million funding agreement that it received in September, OPTIMIZERx filed its Form S-1 with the SEC on Monday. (I didn't see the filing show up on EDGAR, so I called the Company and they indicated that it was filed late in the day and would not show up until Wednesday due to Veterans Day.) The filing clears the way for the Company to eventually move to NASDAQ once the registration statement is deemed effective by the regulatory bodies.

Although OPTIMIZERx is still a young company, the management team is a group of seasoned veterans and they have aligned with company with a couple of the largest players in the industry through their partnership with Cegedim Dendrite (Paris: CGM) and also S&H Digital of Sudler & Hennessey, a division of WPP Group (NASDAQ: WPPGY or London: WPP).

Cegedim Dendrite (www.dendrite.com) provides pharmaceutical companies around the world with vital support for successful Customer Relationship Management (CRM) activities. With nearly 200,000 sales representatives using its products worldwide, Cegedim Dendrite is the world's leading CRM provider for the life sciences industry. This business unit, created in May 2007 when the France-based CEGEDIM S.A. Group acquired Dendrite International, also provides sales, marketing and regulatory compliance solutions in more than 80 countries.

Sudler & Hennessey (www.sudler.com) is a global healthcare marketing and communications organization with offices around the world. The network includes two global communications agencies – Sudler & Hennessey, with U.S. headquarters in New York City, and Sentrix Global Health Communications, with U.S. headquarters in Berkeley Heights, New Jersey. S&H also has specialized divisions in medical education (IntraMed Educational Group, Precept Medical Communications, and Current Medical Directions), as well as in market research and strategic planning, branding, publication strategies, sales training (HealthAnswers), and digital solutions (S&H Digital).

I think this Company bears taking a very close look at for those who want to get into a small company that has not yet been put in front of the masses. The market that they serve is enormous and they are positioning themselves right in front of a massive wave as the baby boomer generation ages and prescription medications become a larger component of everyday life.

DISCLOSURE: I am a consultant to OPTIMIZERx and own stock in the Company. On my First Capital Investors website I have an investor fact sheet available on their client page @ http://www.firstcapitalinvestors.com/client_optimizerx.php

Announcement: The Small Cap Investor Is Back

At the request of several people, I have decided to re-start The Small Cap Investor website and I am going to be focusing my attention on "Under The Radar" stocks.

The way it will work is this: Through an aggressive marketing program, I will develop a large opt-in subscriber stock trader database ... aka, my "traderbase". I expect that the traderbase will be somewhere around 50,000 members. I will be making stock selections that I believe offer interesting trading opportunities. For some picks I will receive compensation, for others I will not.

As always, if I have any type of conflict of interest, it will be disclosed. And for the record, I will usually have some type of conflict as I want to own these stocks as well. Assuming that I like a stock, if a company wants to pay me to introduce it to my traderbase, even better!

As many of you know, my focus for the last decade has been primarily focused on the small cap sector. Based on my experience in working as a consultant to over two dozen small cap companies, my belief is that many lightly followed stocks in this sector can experience signficant price appreciation if investors become focused on them and have the ability to buy stock.

My goal is not to simply get short term liquidity into a stock, although that may be a side effect. My goal is to introduce investors to stocks that are under the radar. Some of these investors will be short term, some will be long term. Regardless of which type of investor they are, when 50,000 investors decide that a stock that trades under the radar needs to get noticed, it will get noticed in a BIG way.

In the beginning the service will be 100% free to investors. Note: I reserve the right to offer additional services for a fee in the future, as well as conferences and the like, but in the beginning everything will be free.

The platform will have 3 primary components: 1) Research & Commentary, 2) Newsletter and 3) News Alerts.

1) RESEARCH & COMMENTARY: When I see an opportunity in a stock, I will issue a research report with commentary on the stock and why I think it offers an opportunity for price appreciation (or conversely, if I really dislike a stock, why I would short it). I will provide updates to my coverage stocks any time that it seems relevant to do so.

2) NEWSLETTER: I will bring back The Small Cap Investor newsletter. Presently, I am not sure if this will be quarterly or monthly as it will depend on how much time it takes me to write and how big it gets.

3) NEWS ALERTS: When I see a piece of interesting news on a stock that I have an interest in, I will send it out to my traderbase.

Again, 50,000 investors with the abillity to buy or sell stock has a lot of power. And, "In The World Of Investments, Knowledge Is Power".

I have not started marketing the program yet, as I have a lot of work to do in the design of the website and the layout of communications to members. However, I have set up the database for those who want to get signed up. Again, it is 100% FREE, no strings attached.

To be part of the Beta Testing, just sign up at: www.TheSmallCapInvestor.com


Hope to see your name on my list real soon.

~ The Small Cap Investor

CryoPort, Inc. (OTCBB: CYRX)

Lions and Tigers and Bears, oh my.

DuPont and Quest and Mayo ... OH MY!

I think that we will start to see operations begin to follow the news over the next 90 days. Be on the lookout for a build up of inventory and subsequent revenues.

As more people begint to learn about this company, in my opinion, the stock will begin to react. I think at this point it is simply a matter of time.

Six months ago, the train was moved from the storage shed to the trainyard. Two months ago, it pulled into the station. Now it is getting filled with fuel and preparing to leave the station. The train's name is: The CryoPort Express.

Out.

CryoPort (OTCBB:CYRX) - Coverage Initiation

Meehan Capital Management Group, Inc. published today for public review its October 7, 2008 Equity Report initiated with a Speculative Buy Rating and a 12-18 month price target of $7.50.

To review the report, which will be available for free review until October 31, 2008, click the following link: CryoPort, Inc. (OTCBB: CYRX) - 10-07-2008 Coverage Initiation

NOTE: Effective November 1, 2008, Meehan Capital Management Group will begin offering both Proprietary Research and Sponsored Research Coverage. Proprietary Coverage will be available to clients of the MCMG Private Client Group and available for purchase to interested parties. Our Sponsored Research will be paid for by the Company or a third party and will be available to interested parties at no charge.

Disclaimer: I received NO compensation for the writing of the research on CryoPort. From April 2005 thru August 2007, I served as a consultant to CryoPort and received minimum compensation in that position (mostly reimbursement of expenses). I have not been affiliated with the firm since August 2007. I do own stock and warrants in CYRX. See disclosure in the research report for additional disclosure material.

Update: Gateway International Holdings

After a much anticipated 2 year waiting period, I am pleased to report that on Wednesday, October 1, 2008, Gateway International Holdings, became a fully reporting Company once again by filing its Form 10k annual report with the Securities and Exchange Commission.

I wish to extend a word of congratulations to Tim Consalvi, CEO and Chairman of Gateway Int'l. Tim inherited a difficult sitution and has worked diligently to get the Company back in compliance with the SEC. I would also like to thank Steve Kasprisin, who in April returned to assist the Company as a contract CFO. Steve assisted the Company through the filing requirements and I am quite sure that Tim and the Board leaned heavily on Steve for his expertise in these regards.

Now the question is "When will the Company's stock begin trading again?" I have not received comment from the Company on this regard, but based on standard procedures, I would guess that right now the Company is in process of getting a broker/dealer to file a 15c2-11 with FINRA. Once this filing is cleared, the stock could begin trading.

I look forward to seeing this stock trade again. Prior to the SEC's deregistration of the Company's securities, the stock traded as high as $2.35 per share. Based on the information included in the 10k, this price might be a little high given the current economy, but I would not be surprised at all to see the stock settle around $1.50 per share when it begins trading. Last year the Company achieved almost $19.5 million in revenues. There were a lot of non-standard costs that were charged against earnings last year, including legal and filing fees. Historically, the Company has average around 12% pre-tax profit. Not assuming any growth, but simply maintaining during the upcoming 12 months, if the Company achieves 12% margins on equivalent sales, we would expect around $2.35M in profits. On a per share basis, based on reported TSO of 28,378,645, this would equate to approximately $0.083 of earnings per share. The stock has historically experienced internal growth over 25% per year based on ongoing operations. Rather than use aggressive estimates, assume a high end rate of 25% and a low end growth rate of 15%. Utilizing a PEG ratio of 1 (typical value investor model), that would indicate a stock with a fair value in the range of $1.25 to $2.07 per share (hence my middle of the road target of $1.50 per share).

I have liked this little "nuts and bolts" company for a long time. Clients in the MCMG Private Client Group own a fair amount of stock in this company and I remain increasingly optimistic that this investment will provide a very nice, time weighted return.

Disclosure: Through First Capital Investors, I provided consulting services to Gateway Int'l from 2003 thru 2007. I was one of the largest open market purchasers of the stock from 2003 thru 2005 and have purchased shares in private transactions since the deregistration. I continue to hold all of my shares. I have not worked with the Company at any time during 2008.

OPTIMIZERx (OTCPK: OPRX)

OPTIMIZERx (OTCPK: OPRX) announced today that it plans to partner with S&H Digital to launch the newest platform to assist in drug promotion and compliance: ADHERxE.

Full press release: OPTIMIZERx to Partner with Sudler and Hennessey.

Many people may not have heard of S&H Digital, but this is actually a very BIG development. S&H Digital is the interactive division of Sudler & Hennessey, which is one of the over 100 companies that make up the WPP GROUP (NASDAQ: WPPGY).

WPP Group, www.WPP.com is a global communications firm based out of London. WPP Group is one of the world's largest communications services groups, with more than 110,000 people working in over 2,000 offices in 106 countries.

WPP common shares are listed on the London Stock Exchange under the symbol WPP. American Depository Receipts (ADR) are traded in the United States on the NASDAQ under the symbol WPPGY.

This is a very important step for OPTIMIZERx as it further builds their brand and helps to put the company in front of every major pharmaceutical manufacturer on the planet.

Recently, OPTIMIZERx announced that they had received $3.5 million in funding from Midtown Partners & Co. LLC a FINRA member and SIPC Broker/Dealer. Given the current credit environment, this funding is looking even more impressive.

Full Press Release: OPTIMIZERx Closes $3.5M Funding


Stay tuned. This one could get interesting.


DISCLAIMER: I handle some public relations services for OPTIMIZERx and received a few restricted shares shortly after they became a public company. I have never sold any stock in this company and have no intention of doing so at this time. I just happen to really like the company and its management, so I agreed to help them on their public relations efforts, primarily regarding their press releases at this time.

CryoPort, Inc. (OTCBB: CYRX)

Over the past two weeks I have had numerous private clients and outside investors contact me requesting my opinion on CryoPort (OTCBB: CYRX) and when/if I would make additional comments. Back in the summer, I indicated that "if it became necessary" that I could become an agent of change in this situation. Again, this is only if necessary to protect the interest of my clients. As a Registered Investment Advisor, I have a responsibility to ensure that I am doing everything I can to properly oversee our investments and if it means that I need to get involved in additional ways, I will.

I have been gathering data over the last couple of months, and I am currently putting together an Equity Research Report that I intend to publish through my firm, Meehan Capital Management Group (www.meehancapital.com). My current intention is to publish this Equity Report in October and in the report, I will discuss various aspects of the stock, valuations, potential deals and pitfalls, current financial stability, future financial outlook and more. The names and trading symbols of companies that "I believe" could be doing business with CryoPort in the future will be included in my report.

I am hoping that we will hear some communications from the company before I issue the report as a detailed shareholder communication could clear some unresolved items that I have. I will attempt to once again reach out to company management and I hope that they will speak frankly with me as to the ongoings of the business. If they will not, I will utilize the best information that I have and make an opinion.

I have been told by the Company that the Annual Shareholder meeting will be discussed at the 4th Quarter Board of Directors meeting. Thus far, I have not received clarification as to whether it is "fiscal" 4th quarter or "calendar" 4th quarter (CryoPort's year end is 3/31). In the event that there is not a shareholder meeting held by the end of November, I am considering using the rules set forth in CryoPort's ByLaws to call a shareholder meeting utilizing the appropriate level of shareholder participation. The shareholder meeting will be open to all shareholders and I believe that if company management is forced to meet face to face with its sharholders, they will finally understand that investors want to see action NOW and put additional efforts into closing a deal.

For shareholders who are concerned with the lack of transparency being exhibited by this company, the only thing that I can say is to contact the company and let them know your concerns. I think that most investors out there understand my position by now, but the Equity Report will provide a clear explanation of my opinion of the stock.

In the meantime, I hope that everyone has weathered the current financial fiasco without too much stress and maybe even made a few bucks.

Update: Gateway International Holdings

Just a quick update to make everyone aware that Gateway International Holdings has filed an ammended Form 10-12.

Amended Form 10-12G

I don't have anything to report at this time, other than it seems evident that management is moving through the process. Given that this is the 2nd amendment (3rd filing including the original submission), I am hopeful that the stock will be reporting and trading during the 3rd or 4th quarter of this year.

Should any positive news that can be reported come my way, I'll keep you posted.

CryoPort (OTCBB: CYRX)

I have received a number of calls and emails over the last several days asking for my opinion on the CryoPort quarterly report. I have been dealing with and preparations for Tropical Storm Fay, which we thought was going to hit us directly as a potential hurricane, so I have not had time to update before now. Thankfully, my area has thus far been spared a majority of the effects of this storm, but say a prayer for those in the Melbourne, Florida area as they have received in excess of 24" (2 FEET!) of rain over the last 2 days and it is still raining.

As to CryoPort's 10Q. Well, unfortunately it is about what I expected. There is a very small buildup of inventory and they spent about $2M of the cash they have brought in during the past year. Now, if there was something to show for that cash, I would feel a little better. However, unless I am just missing something, I don't see assets on the books that indicate to me that those funds were used for much other than covering operations and old debts. I was hoping for an announcement of some type of deal, but it has not materialized to date. It is hard for me to understand the idea of getting ready to roll out the program in any meaningful way, while having virtually no inventory and having actually shipped very few units, but I feel sure they have their reasons.

I will say this about Mr. Berry. Peter has run a pretty tight ship for several years, often times stretching money as far as it could possibly go. That said, I don't think the company is wasting money. On the contrary, he is generally a very good steward of the funds. My biggest area of concern is that since announcing production began in December, CryoPort has only produced around $100k of product. That would be about $15k (dollars) per month or maybe a couple hundred shippers each month. Something doesn't make sense in that scenario. Either they have not been in manufacturing as we were led to believe with company press releases, or the inventory that was supposedly being built up is not being reflected on the books as one might expect. I suspect that the company has only made as many units as the pilot programs required, which is fine, but it does seem strange to think that the roll out is near, yet no inventory has been created.

I will be asking some questions to try to get some answers and will report my findings on this blog in the future. I have heard rumblings from a couple of sources that indicate there may be something coming soon, confirming the comments in the shareholder letter. However, I can not confirm anything at this time as to either who the deals are with and at what level. Hopefully I can get some clarity over the next couple of weeks. Perhaps there will be news in that time frame.

If I have not received confirmation or clarification as to the business developments alluded to by Mr. Berry in the shareholder letter by the end of August, I will request a firm date for the annual shareholders meeting. Last year this was held in October, and I would expect roughly the same this year. I have several large shareholders, plus myself, that are interested in attending this year's meeting and we need appropriate notice to address any scheduling conflicts so that we can attend. If a firm date is not provided, I will politely help provide one by calling for a shareholder's meeting with the proper notice and voting minimums.

I am hopeful that my involvement as anything other than a shareholder and the biggest cheerleader on the street will become a moot point. However, if we happen to fall back into a communications rut, I don't intend to stay on the sidelines.

CryoPort (OTCBB: CYRX)

Today, CryoPort released a letter to shareholders (click HERE to read) from Mr. Peter Berry. While I am pleased to see that the Company is communicating with its shareholders, I am just not quite sure what the point of this particular letter was supposed to address.

In case you have not read it, the letter rehashed much of the same verbage from several prior press releases. Mr. Berry stated that the Company has made significant progress inroads with CRO's (Contract Research Organizations) and that the company has over $2 million in cash on hand which will be enough to support the CryoPort Express Shipper rollout, including manufacturing and recycling.

My first reaction to the shareholder letter is that there are probably not going to be many positives in the Q1 financials that are expected out later this week and this is an attempt to soften the blow.

My second reaction is that this is a method to buy time with shareholders. I understand that when dealing with large companies like FedEx or a big medical company there will be delays and this requires patience. I get that and I am remaining patient as I have been for a number of years.

These two reactions both get back to the same point: What is the point of the letter?

We know that the CryoPort Express Shipper has been completed since January 2007 ( Read January 8, 2007 Release).

We know that after receiving over $4M in net funding last fall, CryoPort started producing shippers ( Read Dec 6, 2007 Release).

We know that CryoPort is partnered up with FedEx (NYSE: FDX), (Read Dec 19, 2007 Release) so I think we can feel fairly comfortable that the product is legit.

We have known for a while that pilot programs were underway for pharmatceutical firms as of April 2007 (Read Apr 23, 2007 Release). Additionally, CryoPort started shipping stem cells for Celprogen in December 2007 (Read Dec 20, 2007 Release).

We know they were shipping internationally for Quest Diagnostics (NYSE: DGX) (Read Apr 17, 2008 Release).

We know that CryoPort received an additional $1.0625M in follow-on investment back in June 2008 (Read June 10, 2008 Release).

So where does all of this information leave investors? Well, I have a couple of items that I will be trying to answer in the near term. Since the company has received $5.0625 million in funding over the last 12 months, and according to Mr. Berry there is currently over $2 million on hand, what has been accomplished with the other roughly $3 million that has apparently been used? This company has always run on a pretty tight operational budget, so unless something has changed in the spending patterns, there should be something else that is absorbing a fair amount of cost. That should not be too hard to determine because CryoPort started manufacturing the express shippers approximately 9 months ago (see news link above). I expect to see some of that production begin to show up in the quarterly reports. If they are shipping pilot programs and manufacturing units as described in press releases and their regulatory filings, I would also expect to see some initial revenue figures begining to show up on the financial statements.

I get the impression that some investors want to see "big" results in the upcoming financials. Prior to the shareholder letter, I did not expect to see much. After the shareholder letter, I do not expect to see much. What is most important from my perspective is that the Company is moving in the right direction. If CryoPort has $2 million remaining of the money it raised over the past year as Mr. Berry stated, it would indicate that CryoPort has spent approximately $3 million over the last 10 months, translating into a burn rate of approximately $300k per month. Not to get down to specifics without all of the information, but that would leave about 6-8 months of operating capital remaining at the implied rate. Knowing Peter personally, I feel sure that it is being handled appropriately, but I also believe that the owners of the company (both my clients and others) have a right to know how their money is being spent. Since this has not been easy to determine, it will require a little more effort.

I am not sure as to when the Annual Shareholders Meeting will be scheduled (I would expect early fall), but I would hope that management will be prepared to clearly demonstrate to the owners as to how the company is progessing. I believe that being transparent with your investors is a trademark of all successful companies. I would also hope that by the time the meeting arrives there will be some significant developments that will give everyone a positive outlook.

Closing comments from today's press release: "In closing, I would like to thank all of our shareholders for their continued support and look forward to reporting significant sales events in the not too distant future. - Peter Berry"

At this point it is about measuring the performance and to do that we need actual data and hard numbers. Hopefully we will be getting them soon. The only questions remaining are what is "significant sales" and what is "not too distant future"? As soon as these questions are answered, along with some reasonable transparency to allow investors to properly evaluate the merits of this stock, I believe that the market will begin to recognize the extraordinary value that this company has in its future.

Multi-company update

This will just be a short update on various companies.

Phantom Fiber (OTCBB: PHFB) - Phantom Fiber is moving ahead nicely and it is somewhat perplexing as to why the stock doesn't get more support in the open market. In many cases, small/micro cap stocks are overvalued in the marketplace due to so much of the price of the stock being tied up in "potential". In my opinion, Phantom Fiber is one of the most UNDERVALUED small caps that I have come across. For example, the total float on Phantom Fiber is around 20M and they have a stock price of $0.18 with a resulting market cap of around $3.6 million. The recent deals that they have announced will result in more income over the next 12-18 months than their entire current market capitalization. My personal opinion is that the stock should be priced over $1 per share, at a minimum, but I am currently running numbers to come to my own valuation. I'll let you know when I have a better handle of the "current" value and where I think it could go.

Gateway Int'l Holdings - They filed an amended Form 10 last month. I presume that it was amended to address comments from the SEC (this is standard procedure). I have not heard anything from the company, but did notice that at a couple of brokerage firms they are now quoting an old price again, so that tells me that something is at least moving through the system. If I hear any updates, I'll pass on what I can.

CryoPort, Inc. (OTCBB: CYRX) - I am just waiting for Q1 financials. We have seen a little bit of support in the stock over the last week or two, which is a positive sign. Ludlow Capital has a very basic write-up on CryoPort and recently increased their price target to $1.50. The price target on the stock represents a nice percentage increase, but does not reflect the value in this company. If CryoPort announces that they have signed a significant deal, it will be very interesting to see the stock react. My biggest concern is that because the stock is not on a lot of radar screens, a big deal on paper will not be a "big deal" in the market. If we can get some eyes on the stock before significant news is out there, it will give positive news more impact when it materializes. Hopefully there is good news coming down the line either concurrent or before quarterly results are released.

Redux (OTC: RDXH) / Naturade (OTCBB: NRDCQ) - Not sure how this one is going to play out exactly just yet. There is still a bit of negotiating on both sides. My thoughts are currently that instead of all of the assets of Redux going over to Naturade, it is more likely just to be the business divisions that have a Nutritional & Supplements connection. Once the details are worked out, I'll post them here and also on www.firstcapitalinvestors.com.

DISCLOSURE: As to my interest in the above companies, they are as follows:

Phantom Fiber is a current client that is contracted with FCI and I have also made a personal private equity investment into the stock and on my advisory side I have a number of clients who have invested as well.

Gateway Int'l Holdings - They were a client until 12/31/07. I currently hold a large position of stock, both personally and with my client base on the advisory side.

CryoPort - They were former client that I helped bring public in March 2005 and worked with until August 2007. Currently I am an investor both personally as well as through my advisory clients. I am in contact with a large number of the outstanding shares who along with me, are waiting to see the Q1 Report to assess progress of the company.

Redux/Naturade - Both companies are current FCI clients to whom I provide consulting services. I am a large shareholder, both personally and through my advisory clients.

CryoPort (OTCBB: CYRX)

Today's announcement from CryoPort that it is experiencing success in its Extreme Conditions Pilot is certainly a positive sign. I am pleased that the Company is communicating the success of this program to its shareholders. I certainly hope that this will be the beginning of a much improved shareholder communications program.

I have spoken with a large number of investors over the last several weeks who contacted me to offer me their support of my last piece on CryoPort. While I am thankful for the support shown to me, please remember that I am simply an investor, like many of those reading this report. Yes, through my network of people, we control a sizable percentage of the stock and yes, I can become a catalyst for change should it become necessary. However, I do want to reiterate that I have faith in the current management and I want to see them succeed as much as anyone. Is my faith misplaced? Am I just being naive? Perhaps, but we will know more about this company in the weeks ahead.

Right now I am focused on several measures that can demonstrate to me whether my clients are being served well through their investment in CryoPort stock. With so many well known stocks selling at record low prices, I have to be assured that my clients who own CryoPort stock are in an investment that has better investment potential than other current opportunities. Otherwise, why should we own it?

I have been asked recently by investors what I am looking for from CryoPort over the remainder of the summer. The answer is three-fold: 1) Improved Shareholder Communications, 2) Improvements in Q1 Financials and 3) Some sort of contract indicating that the Company is moving in the right direction.

The communication between a company and its shareholders is a primary component of the investing process and this is an area where, in my opinion, CryoPort currently fails. I recieve about 10 calls per day asking for updates, but unfortunately I can't help. Investors tell me they can't get any current information about the company from anywhere and when they call the Company directly, they don't get any transparent answers. Not sure why people think I will have they answers they seek, since I am the most vocal critic about the lack of communication, but my line is alway open for those that might have something to say.

I have also reached out to the Company over the last year, but no one apparently wants to speak with me either. Many of you can't believe that I can't get good information, given that I helped bring this company public, represented a majority of the first year market support when the stock remained over $5 per share and have relationships extending to probably 60% or better of the current shares outstanding. Well believe it. So, if you feel like you are not getting relevant information, don't feel like you are the only one.

For a lot of small caps, the problem they have with being properly valued is due to the "product". Some grand idea evolves in someone's head and it has to be the next big thing. I call it the "prettiest baby theory". But it won't be because the product doesn't have a scalable market or maybe it is not really that good. At CryoPort, it is not that the Company doesn't have an excellent product, on the contrary, I believe it has the best product available to the global market place. And I believe that they are years ahead of anyone who might get into their space and there is very large current capacity to use the Express Shipper, providing a very significant upside in regards to investment potential.

My chief concern is that CryoPort has never exhibited the corporate mentality of telling investors why investing in CryoPort is worth taking a look at. I see the CEO's of Fortune 500 companies on CNBC and Bloomberg "pitching" their companies every single day. I think that all companies have to tell their story and I wish CryoPort would, because the only thing holding this stock back from being properly valued is a lack of investor attention. (Again, getting news in front of current investors at other companies with which CryoPort does business would go a long way towards getting CYRX on a bunch of trading screens.)

I was forwarded an email from another investor that included comments from Mr. Fine, CryoPort's IR guy, where he wrote CryoPort's Investor Relations efforts are not intended for the "retail investor", but rather that the stock was being positioned as an institutional play. Huh? This is a microcap company with a $0.75 stock price that trades $25k per day. CryoPort needs the retail investor and is relying on these individual investors to purchase stock at current levels. Many institutional investors are not able to purchase penny stock securities, of which CryoPort currently has title. (Some private groups can, but not the traditional institutional players like mutual funds, pensions, etc.) In the spring of 2007 when the stock was being featured on a couple of trading boards, we saw the power of the retail trader and the stock went to $3.50 per share, with volume improvements that are still being felt in the stock to this day. When the stock is back up to $3-$5 per share, with a reasonable amount of liquidity and when CryoPort has financial results to warrant a look from the large investor, perhaps institutions will take a closer look. But right now, it is a retail investor play and there is not a lot of disputing that.

I have had a lot of people calling me and asking me what I personally think they should do to help improve the stock price. Well first and foremost, improve communications. Investors are starving to hear results from the Company, but the only news that seems to make its way out to the public has been described to me by a number of people as "just fluff". While I don't agree that ALL of the news is fluff, particularly if you look at the big picture and look back at the progression over the past 4 years, I would have to agree that some hard numbers would be beneficial for measuring various performance levels.

Some of the questions that I have had asked of me include:

How many containers can they make each month at the Lake Forest location?
Are they actually getting paid to ship containers yet?
How many containers do they have in current inventory?
What will the price be to ship an Express Shipper?
How many containers will they need for near term demand?
... AND MANY, MANY MORE, Etc., Etc..

These are all very good and relevant questions and the type of questions that investors NEED to have answered for CryoPort to have a fair valuation. Some might ask "Why do investors need to know this?" Well, how else is an investor supposed to determine what a company is worth and whether or not they should buy, sell or hold? This company has shown that it can get invovled with some big companies (ie: Quest and FedEx as reported in public filings) but what it has yet to show the investing public is how it will translate those relationships into future earnings. And don't forget, future earnings is the dynamic on which a stock's price is based. Investors, Brokers, Fund Managers, Analyst, Advisers, etc. all want to be able to put some type of valuation on a stock before buying it. Currently with CryoPort it is simply a guess, because the needed information has not come forth. I have been in the stock long enough to know that whatever the "fair value" of the future of this company, it is a lot higher than where it currently trades. Of that I am fairly certain. But how much higher? That is what I intend to find out.

As I have said to a large number of people over the past several weeks, the 1st quarter numbers will be out in the middle of August and I think that those financials should shed some light on how CryoPort is progressing. The Company received funding the middle of last year and outfitted its manufacturing facility last fall. I think that the inventory number should be measurable on a quarter over quarter basis by now and I will also be looking for improvements in top line numbers since we have been told that they are currently shipping for paying customers.

How will these numbers shape up in the Q1 report? I don't know, but I expect that we will see improvements ... or there is something wrong.

August 2007 marks a full year since I last worked with this company in any type of consultative role. The Q1 financials will tell me a lot as to how they have progressed over that time. I have been a long time buyer in the stock and still believe that this stock has the potential to exhibit "star status". I have been asked to be patient, and I have been, and I will remain patient. However, my clients and other shareholders deserve to know how the company is progressing. Clearly defined goals and a transparent way to measure management and finacial performance are the hallmarks of all successful companies (public or private) and these goals and performance measurements should be present at CryoPort as well.

Hopefully we will hear that the pilot programs are complete and maybe a measurable contract or deal will be announced this summer. If we don't see that, I will be looking to measure the performance of multiple items upon reviewing the Q1 finanical results in August. I am hopeful that both of these aspects will be positive and that CryoPort will effecitively communicate its positive operating results to shareholders.

Good luck investing to all.

CryoPort, Inc. (OTCBB: CYRX)

I have been speaking with a number of individuals trying to determine the status over at CryoPort (OTCBB: CYRX). I recently spoke with another investor who indicated that CryoPort might be close to getting an impressive deal done. There were no hard numbers in our conversation, just a couple of companies and some rough estimates thrown about. The two companies are well known and are already doing business with CryoPort - as evidenced in press releases and other publicly available information.

Based on my conversations, using a realistic, but still somewhat conservative, income model on the those estimates would mean that the stock appears to be significantly undervalued at its current level.

Given the nature of my conversation and the source of the information, I am currently optimistic that we are nearing a major milestone and one that will be positive for investors. I am not at liberty to discuss details, however, today's volume has been promising and nearly all of it is coming in at the ask. At 70 cents per share, I can't imagine who would want to sell large volumes of stock, particularly with a potential deal on the horizon, but to each his own.

A review of the recent website redesign at CryoPort (www.cryoport.com) would certainly indicate that they are not shying away from letting everyone know they are in bed with FedEx. Hopefully the next press release that comes out will have some meat on its bones and include the ticker symbol of a large public comapny so this stock will finally get the eyeballs that it so badly needs.

Over the last month, my advisory clients have been net buyers of stock. We don't really want or need to buy more stock as we already have a lot of shares. But the stock is just so attractive here, we had to pick up some. If what I am hearing comes to fruition, I would expect to see a lot of positive momentum in the stock over the near term.

How long will it take to work out the details? I don't know. I do know that a very reliable source ask me to be patient. I know over the past couple of months, I have introduced some new investors who are buying the stock, including: money managers, brokers, individual investors and even a few of the original investors in the Company are buying some additional shares. If we could just get the sellers out of the way, this stock could surge.

I am looking forward to reviewing the Q1 financials and to see what kind of quarter over quarter improvements we are getting from our management team. If I don't see a deal get announced over the next month or measurable financial and operational improvements when reviewing the last 3 quarters when the numbers come out in August, I will begin to push a platform for change. I have already spoken with a number of shareholders that represents a significant amount of stock and believe that I will have the necessary voting block to effect a change should it become necessary.

Together with my advisory clients, we maintain a sizeable ownership in this company. I hear the frustration every day in this stock that we continue to expect so much from. And while I am fully prepared to become a change agent if necessary, I am 100% hopeful that it will be a moot point and we will all be in a much happier place in 30-45 days. If what I hear is accurate, I think we will be both happier and wealthier too.

If you haven't signed up for FCI News Alerts, please go to www.firstcapitalinvestors.com and sign up. It is a free service and it is the fastest way that I have available to me to get news out to those who follow the stocks in which I have an interest. Make sure to check your email because it is a "double opt in" service, requiring you to verify that you signed up. I use this service to make sure that only those who want to recieve the news actually get my emails.

Hope you all had a Great July 4th and are experiencing a restful summer, even in these turbulent markets.

~ Peace ~

Phantom Fiber: OTCBB: PHFB

The last 2 press releases for Phantom Fiber (OTCBB: PHFB) have been very interesting to me. When I originally started looking at this company, I was under the impression that it was more of a software development company for the gaming sector. However, putting together the Investor Fact Sheet (click for PDF) and reading the last 2 press releases have really been educational for me and they demonstrated that this company is not really a "gaming play" at all. Phantom Fiber is a delivery platform for all types of software applications to mobile devices, period. Gaming is a part, and a large part right now, but I suspect that Financial will become the bread and butter over the next year or two and other applications could also become a much larger component of the picture as well.

And if the client base is an inidcation, Phantom Fiber's technology is apparently pretty good as evidenced by the fact that leading casinos, leading gaming sites and leading financial service firms are now using the platform across multiple industries.

The real question now becomes how does the company translate the ability to deliver a leading application delivery platform into a cash machine? I think that the recent announcement of FX Solutions GTS Mobile deal might shed some insight as to how Phantom Fiber will expand its profitability and do so with impressive margins.

Let's review. For the past few years, Phantom Fiber has been in more of a developmental stage. The Company identified several key components that would be required by potential customers and began creating the software that would address the most stringent requirements. From my understanding, 3 primary components, of equal importance, were addressed during the development stage:

1. Graphical interface
2. Speed
3. Security

Graphical interface that allows the mobile device user that have a near PC like experience on their mobile phone or PDA is most advanced in the gaming sector.

Speed is critical in software application delivery. Whether it is in gaming, financial services, healthcare, etc., the delivery of data at full mobile high speed is mandatory for current users.

Security is of the utmost importance in nearly all delivery applications. Of course, being involved in the financial sector, I tend to believe that the "most important" security measures deal with transactions involving the movement of money. This would include financial services and gaming programs. (I do realize that ANY and ALL data requires a 100% secure transaction, it is just that money transfer, at least to me, should be at the top of the list.)

In the gaming sector, the various game manufacturers have very sophisticated applications on casino and gaming websites. Users need to have the same functionality on their mobile devices as they are accustomed to on their personal computers. Phantom Fiber chose the gaming sector as its first market segment to target because this sector allowed Phantom Fiber to ensure that it was addressing each of the 3 major criteria (graphics, speed & security) while concentrating its marketing efforts on a targeted number of potential clients. Based on what I have read, Phantom Fiber has been successful in penetrating this market as it is the leading delivery platform in the mobile space for the Gaming Sector.

In my opinion, the announcement of GTS Mobile deal for FX Solutions is the start of the next phase at Phantom Fiber. While the gaming sector provided Phantom Fiber with the stage for developing and proving its delivery platform is the best available, I anticipate that the finacial sector will be the stage for showing the true power of Phantom Fiber from an operational and financial standpoint.

Providing the platform to banks, brokerage firms, etc. could create an income stream at Phantom Fiber that is not commonly seen at traditional software companies. Yes, Phantom Fiber will get the traditional installation fee, maintainence fees, user fees, etc. BUT, if it can also get a piece of the transaction fees that are generated as a mobile application is used - for example a fee for each stock trade that is completed at a brokerage firm - the cash flow annuity that would be developed over a growing client list could be tremendous.

When I started working on this company on June 4th 2008, the stock was bid at 16.5 cents per share. As I write this, it is currently bid at 27 cents per share. I personally think that we have only scratched the surface on what the value will be over the next couple of years. I am currently buying PHFB shares.

DISCLOSURE: Through First Capital Investors I have a contract with Phantom Fiber to provide advisory services. I receive a monthly fee for my advisory services. In my private equity holdings, I own stock and warrants in the company. Via Meehan Capital Management Group, I am currently acquiring shares in the open market for select investors of the MCMG Private Client Group.

Phantom Fiber: (OTCBB: PHFB)

I have just begun working with Phantom Fiber Corporation (OTCBB: PHFB) as their Investor Relations and Capital Markets Advisor. The Company is a software developer of applications for the mobile space. They are involved in bulding software apps for a number of industries including: Financial Services, Gaming, Medical Records, Logistics and many more.

The founder of Phantom Fiber, Jeff Halloran, is a seasoned veteran in the software space, particularly in the banking sector. was one of Larry Ellison's first employees (employee #6, I think) at Oracle (NASDAQ: ORCL) and helped to develop Oracle's international consulting business.

While completing a enterprise solution for one of the largest banks in Canada, Jeff and his team recognized a major shortfall in the way that software applications were being addressed when "real time" mobile applications were required. Mobile applications relied on a specific network carrier and had delays that were not compatible with performing transactions that need to be "real time". Phantom Fiber developed applications that solve this delay issue and work directly with the customer and their client base of users.

They have a very impressive client list and are partnered with some of the leading companies in multiple industries. They are already the dominant firm in the online gaming sector and are working diligently to become the dominant player in banking and financial services. Banking transactions, brokerage trading, currency trading, etc. etc. are all in the near term pipeline.

I have prepared an Investor Fact Sheet that is currently being reviewed by the Company and I will have it available at www.firstcapitalinvestors.com as soon as the Company's approval.

The Company has a very low number of shares outstanding with only 19M and about 70% or so of that is held by restricted insiders. Not a lot of stock in the float and I don't expect the stock to stay at its current levels for very long. Once some eyes are put on this stock, I expect that we will see a nice price appreciation.

DISCLOSURE: I have a contract with Phantom Fiber to provide advisory services. I receive a monthly fee for my advisory services and I own stock and warrants in the company as part of my compensation. I am currently acquiring shares in the open market for myself and my clients.

UPDATE: Gateway Int'l

I just received a call from Tim Consalvi, CEO of Gateway International Holdings, and he gave me the best news that I have had in quite a while. Gateway Int'l has filed for registration with the SEC!

To review documents or exhibits, see: SEC Form 10-12G

Tim indicated that he expects to receive comments from the SEC on a normal schedule (usually 30 days from filing) and that they will continue to move things forward as quickly as possible. The filing was submitted on May 16, 2008, so I am looking at middle of June as to the SEC comment period.

This is tremendous news for shareholders in Gateway Int'l. I repeat what I have said all along: This is a nice small cap company that continues to plug away at business. It is a bricks and mortar company made up of hardworking Americans who manufacture specialty components for large customers in aerospace, defense, automotive, medical equipment and other sectors.

My hat is off to the management team, Tim Consalvi in particular, for keeping a nose to the grindstone and making their way back. I know the people involved here and know what they have been through. I can tell all of the investors out there that they had to work hard to overcome some of the difficulties that they were presented. I look forward to the day when the company completes its registration and becomes trading again and I know there will be a smile of satisfaction for Tim and his team - one that is well deserved.

My congratulations to the management team at Gateway International Holdings!

DISCLOSURE: I worked with Gateway International Holdings for several years as their Investor Relations consultant. I am a large shareholder of their stock and have a fair amount of stock held by my clients and others throughout my network of relationships. And today is a good day. :)