OTCPicks.com: OTCPicks.com Stocks to Watch for Friday, August 1st HGLC, BDFC, CTGI, AGIX, AVLN, ZONS

Aug 01, 2008 (M2 PRESSWIRE via COMTEX) -- ZONS | Quote | Chart | News | PowerRating -- Our Stocks to Watch tomorrow include Hunt Gold Corp. (OTC: HGLC), B&D Food Corp. (OTCBB: BDFC), CSMG Technologies Inc. (OTCBB: CTGI), AtheroGenics Inc. (Nasdaq: AGIX), Avalon Technology Group Inc. (OTC: AVLN) and Zones Inc. (Nasdaq: ZONS).

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HUNT GOLD CORPORATION (OTC: HGLC | Quote | Chart | News | PowerRating) "Up 150.00% on Thursday"

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

Hunt Gold Corporation is a Gold Mining & Exploration Company focused on the development and exploration of its Gold properties, namely "Mockingbird," "Ambassador," "Golden Eagle," "American Molygold," "Gladstone Lookout," "Lady Alde," "Lookout Silver," "Starlight," "American Flag," "Venezia," "Stormcloud," "Cherry," "Buffalo Limecap," "Red Cloud" and "Federal" interests.

HGLC News:

July 31 - Hunt Gold Corporation Ponders Takeover Bid

Company Confirms It Is Considering a Very Serious Offer Which Could Lead to a Takeover of the Company

Hunt Gold Corporation (OTC: HGLC | Quote | Chart | News | PowerRating) confirmed on July 29, 2008 that it has received a number of serious offers for the Company; which if successful, could lead to a buyout of the Company.

The Company can now confirm that it received, early this morning; a serious takeover offer for the Company.

The Board of Directors will seek external advise on this offer and advise stockholders accordingly.

The Board is therefore now duty bound to enter into formal discussions with all of the various bidders for the Company.

B&D FOOD CORPORATION (OTCBB: BDFC | Quote | Chart | News | PowerRating) "Up 75.00% on Thursday"

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

B&D Food Corp. acquires, organizes, develops, and upgrades companies in the food industry, with a focus on the coffee industry. The company, through its subsidiaries, produces and packages various kinds of coffee products, such as instant, ground, roasted, and soluble coffees, as well as various related beverages, including cappuccino, soluble spray dried, milk, agglomerated, instant tea, and chocolate beverages. It also offers milk powder, chocolate dust, and other products; and express coffee, food service, and coffee machinery rental services primarily to pubs and restaurants. B&D Food Corp. offers its products under Brazilian Best, Samba Cafe, Torino, Vivenda, Coffee Canaan, Marroscos, Metropolis, and Mendense Coffee brand names. The company was incorporated in 1995 and is based in New York, New York.

BDFC News:

July 31 - B&D Food Corp. Announces the Signing of a Non-Binding LOI to Acquire a Leading Processing and Distribution Company in Sao-Paulo, Brazil

B&D Food Corporation (OTCBB: BDFC | Quote | Chart | News | PowerRating) is a Delaware company that acquires and merges with companies in the food and beverage industry, specifically in the coffee and coffee related sector.

The target company, established in the 1950's, is one of the leading brand names in its field, distributes products to wholesale and retail customers throughout Sao-Paulo State. Over the past years the company has shown a solid revenue growth with sales exceeding $40 million in 2007.

B&D expects to conclude this acquisition in the coming months and begin implementing the operational synergies between both companies.

CSMG TECHNOLOGIES INCORPORATED (OTCBB: CTGI | Quote | Chart | News | PowerRating) "Up 73.68% on Thursday"

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

CSMG Technologies, Inc., a development stage company, together with its subsidiaries, operates as a technology management company. The company engages in financing, owning, developing, patenting, managing, licensing, and marketing technologies in Ukraine and other eastern European countries. It provides live biological tissue bonding technology that focuses on bonding living soft biological tissue used in surgical procedures, which eliminates the need for sutures, staples, sealants, or glues; and carbon dioxide separation of landfill gas technology that separates carbon dioxide and other impurities from the gas produced in landfills and converts the remaining gas to a cleaner, up to 98% pure methane gas for use in internal combustion engines or for sale to natural gas companies. The company, formerly known as Consortium Service Management Group, Inc., was incorporated in 1992 and is headquartered in Corpus Christi, Texas with an additional office in Kiev, Ukraine.

CTGI News:

July 31 - CSMG Technologies Announces U.S. FDA 510(k) Clearance for Live Tissue Connect's VAD System

CSMG Technologies, Inc. (OTCBB: CTGI), a technology management company, announced its subsidiary Live Tissue Connect, Inc. (LTC) received 510(k) clearance from the U.S. Food and Drug Administration (FDA) to market its LTC VAD System. The LTC VAD System consists of a LTC VAD.400 bipolar electrosurgical generator and two disposable sealing instruments. FDA clearance allows LTC to market these products in the USA.

The VAD.400 generator and the two disposable instruments are intended for use in open general surgical and gynecological procedures for the ligation of vessels and ducts as an alternative to mechanical clamping (clips or staples) and suturing. LTC's new third generation bipolar system can be used on vessels (veins and arteries) up to 7 mm diameter, on ducts up to 2 mm diameter and tissue bundles as large as will fit in the jaw electrodes of the instruments.

Donald S. Robbins, President and CEO of CSMG Technologies, said, "I am very pleased for our shareholders to be able to announce the most important and long awaited event in the history of LTC. By LTC receiving its first U.S. FDA 510(k) on the generator and the two instruments they are now able to start marketing in the U.S. market. I wish to publicly congratulate all the medical device professions involved with the LTC technology and the LTC team in Santa Barbara, California. I also want to personally thank as well all the CSMG shareholders who have believed in our potential and stayed the course waiting for this key corporate event."

Frank D. D'Amelio, President of LTC said, "The 510(k) clearance of our generator and disposable instruments marks the completion of a major milestone for LTC. The technology embodied within the VAD.400 generator and the interconnecting disposable instruments represents years of scientific research regarding the effects of RF energy on tissue. The LTC bipolar system has undergone extensive animal clinical testing; has been the subject to numerous peer-reviewed papers; and has passed all applicable quality standards. Having now obtained this clearance, we will next implement our USA sales representative recruitment plan and ramp up our production for distribution."

ABOUT LIVE TISSUE CONNECT

LTC's surgical tissue bonding / welding device is a patented platform technology that bonds and reconnects human soft tissue through fusion, in contrast with conventional wound closing devices such as sutures, staples, sealant, or glues. LTC currently holds a total of approximately 31 patents and pending patents in the U.S., Australia, Canada, European Union, Ukraine and other countries.

ATHEROGENICS INCORPORATED (NASDAQ: AGIX | Quote | Chart | News | PowerRating) "Up 52.75% on Thursday"

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

Atherogenics Inc., a research-based pharmaceutical company, focuses on the discovery, development, and commercialization of drugs for the treatment of chronic inflammatory diseases, including diabetes and coronary heart disease. The company's V-Protectant technology based products include AGI-1067, a phase III clinical trial product for the treatment of type 2 diabetes and atherosclerosis; AGI-1096, a phase I clinical trial antioxidant and selective anti-inflammatory agent for the treatment of transplant rejection; and other V-Protectant compounds for the treatment of cardiovascular and inflammatory disease. AtheroGenics has collaboration with Astellas Pharma, Inc. to develop AGI-1096 as an oral treatment for the prevention of organ transplant rejection. The company was founded in 1993 and is based in Alpharetta, Georgia.

AGIX News:

July 31 - AtheroGenics Reports Positive Results From ANDES Phase 3 Clinical Trial of AGI-1067 in Type 2 Diabetes

AtheroGenics, Inc. (Nasdaq: AGIX), a pharmaceutical company focused on the treatment of chronic inflammatory diseases, announced top-line results from its ANDES Phase 3 clinical trial of AGI-1067 (succinobucol) for the treatment of Type 2 diabetes demonstrating that both doses (75mg and 150mg) of AGI-1067 met the primary efficacy endpoint of the reduction in glycosylated hemoglobin (A1c) versus placebo at the end of the study's six month dosing regimen.

"We are pleased that the ANDES trial met the primary endpoint and showed a dose response in reducing A1c. Based on the results of this successful trial, AtheroGenics intends to rapidly move forward with development of AGI-1067," said Russell M. Medford, M.D., Ph.D., President and Chief Executive Officer of AtheroGenics. "We believe that AGI-1067, through its unique mechanism of action, could become the first diabetes treatment with demonstrated cardiovascular safety, and with the potential to reduce cardiovascular hard events including cardiovascular death, heart attack and stroke, as reported from the 6,144 patient Phase 3 ARISE trial, which concluded in 2007."

ANDES, an international, double-blind trial, showed a dose-dependent, statistically significant drop in A1c of 0.6% and 0.4% in the 150mg and 75mg arms, respectively, at 6 months, compared to baseline (p < 0.001 for 150 mg versus placebo, p = 0.016 for 75 mg versus placebo). The placebo group decreased 0.2% from baseline.

In the trial, a regional variation was observed in the placebo arm. Eastern Europe showed a significant decrease of 0.5% for A1c in the placebo arm versus baseline. The other study regions showed an increase of 0.1% in A1c in the placebo arm versus baseline. Importantly, A1c reductions in both AGI-1067 treatment arms were similar across all of the regions in the study. The study analysis plan was prospectively designed to detect and analyze the effect of regional differences. AtheroGenics will continue to analyze the trial data, including the impact of regional differences.

Based on a preliminary review of the safety data, AGI-1067 was well-tolerated and was not associated with weight gain or hypoglycemia in either of the treatment groups. There was no difference in discontinuations between the groups receiving active drug and placebo. One patient in the 150mg arm and two patients in the 75mg arm had unexplained liver enzyme elevations of greater than five times the upper limit of normal. The liver enzyme elevations either have resolved or are resolving.

The Company also announced that it has developed a patient identification tool to screen for the small number of patients who are potentially at risk for adverse hepatic effects that have been observed during treatment with AGI-1067. The tool has performed well at identifying at-risk diabetes patients across all doses used in the ARISE and ANDES trials.

"We are excited about the advances we have made to date with the patient identification tool for AGI-1067," commented Alexander Fleming, M.D., Acting Chief Medical Officer. "We plan to incorporate this tool into the next AGI-1067 Phase 3 trial."

ABOUT ANDES

The data represent findings from a multinational, double-blind, placebo-controlled, dose-finding study of patients with Type 2 diabetes (ages 18-75) who were on one or no other oral anti-diabetes therapies and whose A1c level was greater than or equal to 7.5% and less than or equal to 10.5% and completed the study. A total of 999 patients were enrolled in the ANDES study, including 887 in the current three-arm protocol. The trial included approximately 150 clinical sites in the United States, South Africa, India and Eastern Europe.

ABOUT AGI-1067

AGI-1067 is a novel oral drug candidate with demonstrated anti-inflammatory and antioxidant properties. AGI-1067 works by selectively inhibiting signaling pathways that are activated in response to oxidative stress and pro-inflammatory stimuli. Oxidative stress and inflammation have been implicated as playing a key role in the pathogenesis of insulin resistance and diabetes.

ABOUT TYPE 2 DIABETES

Diabetes (diabetes mellitus) is a chronic disease in which the body does not produce enough insulin (insulin deficiency), or the cells ignore the insulin (insulin resistance). Insulin is a hormone that is needed to convert sugar and starches (carbohydrates) into energy needed for daily life. The cause of diabetes continues to be investigated, and both genetic and environmental factors such as obesity and lack of exercise appear to play a role. The disease may lead to blindness, heart disease, stroke, kidney failure, amputations and nerve damage. Type 2 (adult onset) diabetes accounts for approximately 90 to 95 percent of all diabetes. This equates to roughly 221 million people with type 2 diabetes globally, and 24 million people in the U.S. alone. The American Diabetes Association recommends an A1c measurement of less than 7% for most people with Type 2 diabetes. A1c is a measurement of a person's average blood glucose level over a two-to-three month period and is considered an important marker of long-term glucose control.

ABOUT ATHEROGENICS

AtheroGenics is focused on the discovery, development and commercialization of novel drugs for the treatment of chronic inflammatory diseases, including diabetes and coronary heart disease (atherosclerosis). The Company's lead antioxidant and anti-inflammatory drug candidate, AGI-1067, is being studied for the treatment of diabetes and has completed a Phase 3 clinical trial known as ANDES (AGI-1067 as a Novel Anti-Diabetic Agent Evaluation Study). In addition, the Company has other clinical and preclinical anti-inflammatory compounds, including AGI-1096, an oral agent for the prevention of organ transplant rejection. For more information, visit www.atherogenics.com.

AVALON TECHNOLOGY GROUP (OTC: AVLN | Quote | Chart | News | PowerRating) "Up 66.67% on Thursday"

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

Avalon Technology Group is a technology company with operations in software, manufacturing and security products. The Company and its affiliates currently conduct government sales under three GSA contracting vehicles including Minority Owned Women Business and Service Disabled Veteran Owned Small Business, which specializes in providing commercial and government entities with quality services, software and biometric technologies.

AVLN News:

July 31 - Avalon Technology Group Receives $7.5 Million Purchase Order for Avalon Biometric Products Avalon Technology Group, Inc. (OTC: AVLN) announced that the company has received a purchase order under a sole source contract for its biometric mouse and flash drives for $7.5 Million. Avalon Technology Group's (ATG) biometric products were chosen over all competitors for its superior software and encryption technology. After extensive product testing ATG received a blanket purchase order with a base of $7.5 million and a potential secondary order of $5 Million for the later part of the fiscal year.

ATG has been working on this supply contract for BSG Group (BSG) which is launching a nationwide rollout on August 15th of a premier identity, data and child protection service underwritten by a worldwide insurance conglomerate. BSG new service, called "The Vault," will use ATG biometric mouse and flash drives combined with the world's leading child protection software and identity theft insurance coverage underwritten by one of the world's largest insurance conglomerates.

BSG's Vault Service is headed by Todd Folds who has over 5 years' experience in the identity theft industry and shown proven past track record of building major service organizations with tens of thousands of members. BSG service will be vastly superior to the current competition in the identity theft industry whose leaders such as Trusted ID and LifeLock are doing in excess of $100 Million per year with claims in company press releases of adding thousands of members per day. BSG Vault service will offer biometric hardware to protect members' data, child protection software to protect their children, identity theft protection and data monitoring with a proprietary software scanning thousands of databases per day, Early Alert System notifying members by phone 24 hours a day 365 days a year of any alerts and a proprietary data retention and computer recovery service.

ATG and BSG will issue a joint press release for the BSG Vault Service launch on August 15th with further details. ATG also announced today that the company's biometric products are currently being tested for cable subscribers and educational institutions. ATG is confident that the current test will lead to additional major purchase orders and the company is reaffirming its guidance of $35-50 Million in revenue for the current fiscal year and gross profit of $10-15 Million.

ZONES INCORPORATED (NASDAQ: ZONS | Quote | Chart | News | PowerRating) "Up 53.49% on Thursday"

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

Zones, Inc. is a single-source direct marketing reseller of name-brand information technology products to the small-to-medium-sized business market, enterprise accounts and public sector accounts. Zones sells these products through outbound and inbound account executives, a national field sales force, catalogs and the Internet. Zones offers more than 150,000 products from leading manufacturers including Adobe, Apple, Avaya, Cisco, HP, IBM, Kingston, Lenovo, Microsoft, NEC, Nortel Networks, Sony, Symantec and Toshiba.

ZONS News:

July 31 - Zones Announces Financial Results for the Second Quarter of 2008

* Total net sales in Q2 2008 were $158.3 million compared with $192.2 million in Q2 2007

* Net income was $0.25 per share in Q2 2008 compared with $0.30 per share in Q2 2007

* Customer unassisted sales in Q2 2008 represented 35.9% of total net sales

Zones Inc. (Nasdaq: ZONS), a single-source direct marketing reseller of name-brand information technology products, announced its results for the quarter ended June 30, 2008. Total net sales decreased 17.6% to $158.3 million in the quarter ended June 30, 2008 compared with $192.2 million for the same quarter of 2007. The Company reported net income of $3.6 million, or $0.25 per diluted share, for the quarter ended June 30, 2008 compared with net income of $4.4 million, or $0.30 per diluted share, for the same quarter of 2007.

Firoz Lalji, Zones' CEO and Chairman, commented, "Although disappointed by our financial performance this quarter, we continue to be confident we are prepared to face the operating challenges in this period of economic uncertainty." Lalji continued, "In view of prevailing economic conditions, we are reducing our expectations for growth; however, we plan to continue to invest for the longer term through account executive hiring and investments in infrastructure."

Net sales for the six months ended June 30, 2008 decreased 4.5% to $325.1 million, compared with $340.4 million for the corresponding period of 2007. Net income for the six months ended June 30, 2008 decreased 7.5% to $6.2 million, or $0.43 per diluted share, compared with net income of $6.7 million, or $0.46 per diluted share, for the corresponding period of 2007.

Operating Highlights

Consolidated outbound sales to businesses and public sector customers decreased 17.4% to $157.5 million in the quarter ended June 30, 2008 compared with $190.7 million in the corresponding period of 2007. The company experienced sales declines in all segments of its business. Most notable was the 25.1% decline in sales to large enterprise customers. Customer unassisted sales (primarily Web-based) were $56.8 million, and represented 35.9% of total second quarter 2008 net sales.

Gross profit margin was 13.1% in the second quarter of 2008, compared with 11.7% in the second quarter of 2007. The year over year expansion in gross profit margin percentage was primarily due to improvements in selling margins, an increase in contributions from enterprise software agreements, and a decline in lower margin sales to national Fortune 1000 customers, offset by a reduction in vendor programs. Gross profit margins as a percent of sales are expected to vary on a quarterly basis due to vendor programs, product mix, pricing strategies, customer mix, and economic conditions.

Total selling, general and administrative expenses, as a percent of net sales, were 8.4% in the second quarter of 2008. This represents an increase over 6.7% of net sales in the same quarter in 2007. This percentage increases was primarily due to the decrease in sales volume coupled with increases in certain expense categories including salaries, wages and benefits.

Asset Management

The Company's balance sheet remained strong and the quarter ended with a cash balance of $17.1 million. Consolidated working capital was $61.1 million at June 30, 2008, compared with $55.0 million at December 31, 2007.

Inventories decreased to $20.3 million at June 30, 2008 from $21.3 million at December 31, 2007. Inventory turned at a rate of 25 times annually during the quarter. Trade accounts receivable decreased to $67.4 million at June 30, 2008, compared with $73.6 million at December 31, 2007. Days sales outstanding were 39 days compared with 41 days at December 31, 2007.

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