CEO of Mexican Silver Mines Spells Out Optimistic Outlook for Three Properties in Northern Mexico

Last evening, in Manhattan, Feisal Somji, CEO of Mexican Silver Mines Ltd., based in Calgary, Alberta, Canada, provided an overview of his company's outlook over the next couple of years to a group of investors and financial industry professionals.

Mexican Silver Mondes (TSVX:MSM) is a Canadian junior resource company with a focus on silver and base metal exploration in parts of Mexico that have seen historic production but little-to-no modern exploration.

Through a wholly owned Mexican subsidiary, it owns three properties -- Providencia, Ral and Anillo de Fuego -- all in the Nueva Leon State in northern Mexico. All together, the properties total more than 322,000 acres and include more than 12 historic producing silver mines that have been mined only to relatively shallow depths. Early sampling on the properties has returned values in excess of 7,000 grams per ton of silver and 30% zinc.

The management team's goal is to achieve near-term production and maximize the potential for new precious metal discoveries in Mexico. The team has more than 100 years of combined international resource sector experience, including the discovery of world-class mineral deposits on four continents.

In the prolific Northern Mexico region, many of the silver-lead-zinc deposits have been in production since the 1600s. Past production runs have been in the millions of tons of ore, averaging 80 to 350 g/t silver and combined lead-zinc of about 10%

Within this region, MSM's three properties include eight historic silver mines which have been mined to only relatively shallow depths.

An independent technical report by A.C.A. Howe International recommends a comprehensive C$1 million exploration program for MSM's two high-priority properties, El Ral and La Providencia. Drilling has begun at La Blanca and Vallecillo.

The stock's September 24, 2007 price was $0.95 per share (55.2 million shares fully diluted, 40 million shares outstanding), with a 52-week range of $0.70 to $$2.25. The company has $12 million in cash, and at the recent price, its market cap was $38 million.

CEO of Osteologix Makes the Case for Its Strontium-Based Osteoporosis Drug

At a dinner meeting in Manhattan last evening, the CEO of specialty pharmaceutical company Osteologix Inc. (www.osteologix.com) predicted a significant market penetration for the firm's osteoporosis drug NB S101.

The product, which is currently in Phase II clinical trials, offers a number of benefits vs. the other osteoporosis drugs currently on the market today, including significantly fewer side effects, Osteologix president and CEO Philip J. Young told the group.

NB S101 (strontium malonate) is a "dual acting bone agent which significantly improves bone density and reduces fracture risk," the company says. "In preclinical models of osteoporosis, NB S101 has demonstrated beneficial effects on both reducing bone resorption and increasing high quality strong bone formation and bone mineralization. This dual action on bone ... suggests that NB S101 could fundamentally change the treatment paradigm of patients with osteoporosis."

Young projected that FDA approval of the drug will take another year or two, and in the meantime, the company continues to raise money to conduct clinical trials and promote the company with investors.

Huge Market for Osteoporosis Drugs

Young noted that the market for osteoporosis drugs is huge (about $6 billion in 2006) and is forecast to grow at about 5% a year over the next 15 years. At the same time, market penetration is only modest -- only about 20%-25% of people afflicted with osteoporosis in the U.S. are actually being treated for the problem -- so that there is tremendous room for growth of the Osteologix product.

Young stressed that NB S101 represents "a new class of drugs" providing the dual action on bone -- and with much fewer and reduced side effects -- thus representing the opportunity for substantial market penetration.

Further, the new product has patent protection through 2024 -- so that if FDA approval is received, there will be plenty of time for healthy growth.

There are currently about 25 million shares of the stock outstanding. The price as of September 26 was $1.15 per share, and the 52-week range is $0.80 to $1.45 per share. The company is based in Glen Allen, VA.

In initiating coverage of Osteologix last December with an Outperform rating, investment firm Rodman & Renshaw said that while the company is a long-term play, "with both clinical and dilution risks, we find the shares of Osteologix compelling." It added that, "OLGX is in possession of what appears to be a highly differentiated product that faces little competition in its class."

China Water & Drinks Sees Rapid Growth Toward Goal of Top Bottled Water Producer for China Market

Last week, Joe Chan, CFO of China Water & Drinks Inc., presented his company's outlook for the next couple of years at a dinner meeting in Manhattan.

The company (CWDK, OTC BB), with 2006 revenue of $36 million and net income of $8.8 million, is looking for sharp growth through 2009 -- with projected revenues of $69 million, $105 million and $165 million for 2007, 2008 and 2009, respectively.

CWDK, with headquarters in Shenzhen City, Guangdong Province, produces bottled water for the China market. Right now, it is a small player in the market (4% market share at the end of 2006), but according to the presentation, has as its goal to be the largest in the industry in China.

Chan noted the major opportunity in bottled water in China, with an average annual growth from 1994 to 2005 of 38% -- from 300 million liters in 1994 to 14 billion liters in 2005. Even with that growth, bottled water consumption in China is only 9.5 liters per capita, vs. 25.4 liters globally, nearly 100 liters in the U.S. and nearly 200 liters in Italy. Thus, there is tremendous room for growth.

Sharp Growth in Chinese Middle Class

The potentially rapid growth will in large part be due to the sharp growth in China's middle class -- with greater disposable income, Chan said, citing McKinsey statistics.

The company, which started in 1996 (incorporated in Nevada), is banking on an important relationship with Coca Cola. It was the first bottled water supplier for Coke, and is now the largest bottled water supplier to that company in China. It also has OEM relationshps with Uni-President (Taiwan) and JianLiBao (China).

CWDK also produces bottled water under the Darcunk brand name, as well as producing private label for Sands and Macau Casino.

Rapid Capacity Expansion

Among recent actions, China Water acquired Nanning Taoda Drink Co. Ltd., Aixin Bottled Water Co., and Hutton Holdings Corp. (HTTH.OB), indicating a rapidly expanding capacity. It is also building a new production plant in Changchun City (expected completion November 2007); in Guangzhou City (January 2008) and Beijing (January 2008).

Production volume was 650 million liters of purified water in 2006. As of September 2007, the production capacity was up by 37% to 890 million liters. In addition, the company projects at least a 50% increase in capacity each year for the coming couple of years. It has an "aggressive action plan" going forward, with plans to acquire 12 plants at the beginning of 2008.

It marketing strategy includes: growing with Coke (Olympic sponsor, quick expansion prior to the Olympics); exclusive supplier to the Fifth China Changchun International Auto Expo (one of the top three auto shows in China); and over 3600 distributors and retailers in 11 provinces.

With all this planned growth, China Water & Drinks can be expected to increase its market share over the next several years.

CWDK had a share price of $9.00 as of September 25, down from $10.00 at the previous close. It has about 94 million shares outstanding. The company projects EPS of $0.21 this year and $0.33 in 2008.

SaaS Enterprise Portal Developer EnterConnect, Inc. Offers $12 Million in Convertible Notes

EnterConnect Inc. , San Jose, CA, a developer of enterprise portal strategies and best practices, is seeking to raise $12 million through a convertible note offering paying a coupon of 6%.

In a presentation to investors on Wednesday evening, Sept. 5 in New York, CEO Sam Jankovich spelled out the company's business plans, its market outlook, and the rationale for the funds raise.

Capitalizing on Projected Rapid Growth in SaaS

EnterConnect (www.enterconnect.com), less than a year old in its current incarnation, is seeking to capitalize on the overwhelming growth in demand for software-as-a-service (SaaS) offerings in the enterprise marketplace as a substitute for the traditional software product sales. Instead of paying for a software product all at once, SaaS markets the software as a subscription service, available on the Internet. The subscription service creates a stream of income, rather than a one-time sale.

In his presentation, Jankovich used SaaS growth forecasts from Gartner, Inc., a respected technology analytical and consulting firm to bolster his case for a strong company business outlook. Noting the Gartner forecast of a 48% annual SaaS growth rate in the next several years vs. 6% growth for the traditional enterprise software market, the company says it plans to leverage its products and delivery platform to gain market share in the coming years. He noted the Gartner forecast of $19.3 billion in worldwide SaaS worldwide revenues by 2011, or about 25% of total software revenues.

The proprietary EnterConnect software application provides document management, content management, collaboration, search and security. It was developed by, and acquired from, another company in which Jankovich had a substantial interest. Jankovich said that the program has taken about eight years to develop in its present form -- with all of its current properties and capabilities.

The company's products and SaaS offerings are deployed through its own proprietary application exchange, which also Saas-enables other Independent Software Vendors (ISVs) to deliver their own applications.

EnterConnect has the following assets: a proprietary portal application platform; two business-ready product lines; partnerships with software industry leaders BEA Systems and Oracle; and a tiered distribution channel program, including direct and indirect channels. It plans to launch a scalable Internet sales channel called SOAPPS.com this coming Monday, September 10, 2007, in conjunction with BEA Systems.

The company is marketing its products and applications with the theme: Transforming Business On-Demand: Moving Software and Productivity Online.

Structure of the Note Offering

The new $12 million convertible note offering has been fashioned by Bridgestream Partners, of San Diego. The offering is structured using Bridgestream's Proprietary Principal Protection Program ("P4") "to fully collateralize 100% of the [$12 million] principal in case of a default." The structure uses "senior life settlement insurance policies that are A-rated or better, plus an over-allotment purchase of these policies to provide the necessary fully collateralized protection of payment the of the original note principal amount. In addition, the premiums on these policies are prepaid for the life of the term to assure no possible lapse in policy protection."

The new offering follows a raise of $2.1 million in November 2006 to acquire the EnterConnect platform from Enterpulse, Inc., a Georgia corporation; as well as a July 31, 2007 private placement that raised $585,000.