WEDNESDAY, AUGUST 15, 2007:: Wall Street pulled back sharply Tuesday as investors worried about fundamental economic problems as well as the ongoing fallout from credit market problems and stocks' own volatility. The Dow Jones industrials skidded more than 200 points. The downturn in stocks was first triggered by a report from Wal-Mart Stores Inc. that profit will fall below expectations this year as consumers rein in spending. Home Depot Inc., the world's biggest home improvement chain, added to the slide when it said weakness in the housing market caused quarterly profit to slide. Confirmation that Sentinel Management Group Inc., which oversees $1.6 billion in assets, is seeking to halt investor redemptions exacerbated the selling. Other funds are said to have similar problems as they face withdrawal demands at a time it has become difficult to value low-quality debt. Hedge funds and other big institutional investors have taken a beating in recent weeks due to the market turbulence. On Monday, Goldman Sachs Group Inc. said three funds it manages have had significant losses -- and infused $3 billion in capital into one of them.

Wall Street has been pummeled as a deepening credit crunch spooked the market, and led to unease about potential losses at financial firms and funds. The Federal Reserve, which has injected some $64 billion of liquidity into the U.S. banking system since Thursday, said it stood ready to act again should market conditions warrant. While the market seemed to be looking past most economic news in recent weeks, on Tuesday the earnings reports and their implications for consumer spending compounded an already high state of anxiety on Wall Street. "The market is very, very sensitive at this point, and any news about a potential financial problems is going to affect the way that the market trades," said Scott Fullman, director of investment strategy for I.A. Englander & Co. "We've been seeing extreme sensitivity in the financials, but also in the consumer stocks and industrials during the session."

The Dow fell 207.61, or 1.57 percent, to 13,028.92. The benchmark index is now on the verge of falling back below the psychologically-important 13,000 mark, which it first crossed in late April. Broader stock indicators were lower. The Standard & Poor's 500 index shed 26.38, or 1.82 percent, to 1,426.54, and the Nasdaq composite index fell 43.12, or 1.70 percent, to 2,499.12. The retreat ended a one-day reprieve from triple-digit moves in the Dow, but no one really had expected that the market had moved past its protracted period of volatility. The Dow, which went from 13,000 to 14,000 in just 57 trading days ended in mid-July, is now up only 4.54 percent for the year. Meanwhile, the S&P 500 is close to wiping out all its gains and is ahead just 0.58 percent. The Nasdaq is up 3.47 percent. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.73 percent from 4.78 percent late Monday. The fixed-income market has rallied as stock investors move into securities deemed less volatile.

Stocks originally were lifted in early trading on government data that indicated inflation remains in check. But, that gave way to further concerns about consumer spending and widening credit worries. The Labor Department said wholesale prices rose in July for the fifth time in six months. Its Producer Price Index advanced 0.6 percent amid higher energy costs. Excluding often volatile food and energy costs, however, what's known as core PPI rose a modest 0.1 percent. Mike Malone, a trading analyst at Cowen & Co., said efforts by central banks to stabilize the markets had been somewhat successful. On Tuesday, the European Central Bank injected another $10.5 billion into money markets and said conditions were normalizing after several days of volatility. There was no action Tuesday by the Fed. He said "there is still a tremendous amount of risk out there."

Among the hardest hit sectors on Tuesday were financial services stocks, which have been sliding as worries mounted that subprime loan trouble could spread to other parts of the economy. Major investment banks have reported losses linked to mortgage-backed securities. Goldman Sachs fell $7.75, or 4.4 percent, to $169.75 -- extending losses from Monday. Bear Stearns Cos., which earlier this summer disclosed that two of its funds were all but wiped out, fell $3.60, or 3.3 percent, to $106. Sentinel Management said in a letter to clients it cannot meet investors' requests to withdraw their money without selling investments at a steep discount. Sentinel did not respond to calls for comment. The firm sent a request to the Commodity Futures Trading Commission for permission to stop investors from cashing out, but it was rejected. Retail stocks were also hit after Wal-Mart, one of the 30 stocks included in the Dow, lowered its profit forecast amid weak economic conditions that it blames for hurting consumer spending globally. The retailer said some of its customers were straining under economic pressures such as higher oil prices.

Wal-Mart shares tumbled $2.35, or 5.1 percent, to $43.82. Home Depot warned that it expects profit to decline for fiscal 2007 because of a sluggish housing sector. Shares fell $1.72, or 4.9 percent, to $33.52. Mattel Inc. shares fell 57 cents, or 2.4 percent, to $23 after it announced the recall of 8.8 million toys. It was Mattel's second big recall of Chinese-made toys in two weeks. Declining issues outpaced advancers by a 3 to 1 on the New York Stock Exchange, where consolidated volume came to 3.72 billion shares, up from 3.54 billion on Monday. Light, sweet crude rose 76 cents to $72.38 on the New York Mercantile Exchange. The dollar was lower against other major currencies, while gold prices fell.

Top Stories

Conservationist and Former Hedge Fund
Guru Announces Partial Stake
Volatility was the name of the game again as reports circulated of liquidity problems surrounding Sentinel Management Group. Weak reports from Wal-Mart and Home Depot also caused concern regarding consumer health.

One of the only positives of the day was the IPO of VMware Inc. which saw the software spinoff climb more than 75% during the day. The IPO saw the gains spread to many in the technology sector.

One name in the small cap space that has received attention over the past few months was Octillion Corp. (OCTL). The Company is a technology incubator focused on the identification, acquisition, development and eventual commercialization of emerging technologies. Through relationships with universities, hospitals and government agencies, the Company attempts to identify technologies and business opportunities on the leading edge of innovation that have the potential of serving significant and unmet market needs. With much of the buzz surrounding the alternate energy sectors, the Company recently decided to focus Octillion’s financial and managerial resources on the development of leading edge solar energy technologies. Their proprietary technology that they are attempting to develop is a first of its kind transparent glass window capable of generating electricity.

In an 8-K from July, the Company noted that they created an early lab scale model of Octillion’s transparent photovoltaic ‘NanoPower Window’. Scientists successfully engineered and assembled a mechanically stable, see-through developmental prototype, which achieved optically active down-conversion and displayed good electrical properties with no electrical shorts.

Also in the filing, Octillion noted the key development of the NanoPower Windows was a proprietary spray coating of a silicon nanoparticle film, which is fluorescent and able to convert the sun’s energy into electricity. The process of producing these silicon nanoparticles is supported by 10 issued US patents, 7 pending US patents, 2 issued foreign counterpart patents and 19 pending foreign counterpart patents.

The process for spraying the silicon nanoparticles onto glass surfaces is unique to Octillion, and is among the Company’s major research achievements. Earlier this year, researchers developed a protocol for reliably depositing nanoparticles onto glass surfaces using a proprietary electro spray system able to produce nanofilms of controllable thickness. Importantly, the silicon nanoparticles retained their high efficiency of down conversion of UV light to the visible after being sprayed.

With the speculative nature that surrounds buzz sectors, investing in these types of names is very risky evident by ethanol seeing its premium valuations eroding over the past year.

But the name has one aspect to it that many others in the alternate energy do not; an investment from a leading conservationist. David Gelbaum made a mark on the hedge fund landscape years ago. His career lasted 3 decades in this highly volatile industry which saw him become a key ingredient in the first market neutral hedge fund. Gelbaum was one of the first math researchers hired by the fund to track and exploit the price discrepancies between a company’s stocks and its options, warrants and convertible bonds. The fund never had a losing quarter and increased investors’ money more than 13-fold over 1970 through 1989. The fund, named Princeton-Newport Partners, was dissolved in 1989 after being sidetracked by illegal activities when brokers in New Jersey were convicted of scheming tax losses. Gelbaum was never implicated in the discrepancy and went on to found Sierra Enterprises Group where he eventually retired.

Needless to say, Gelbaum is in the hedge fund hall of fame and probably the California Conservationist hall of fame. With his amassed fortune, Gelbaum became California’s greatest conservationist. According to an LA Times article in 2001, Gelbaum had donated in the neighborhood of $250 million dollars to education and conservation programs.

Now he and wife, Monica Chavez Gelbaum, are involved in a trust named, The Quercus Trust. Quercus which is the Latin term for oak tree seems to be a logical name and symbol for the investments the trust holds. Included in its holdings are other alternate energy names such as Beacon Power Corp (BCON), Emcore Corp (EMKR), Open Energy Corp. (OEGY), Worldwater & Power Corp (WWAT) and now Octillion.

On August 10th, the trust filed a Schedule 13D displaying a 6.7% stake had been acquired in Octillion Corp. The acquisition, which began in late June, has 3,444,700 shares at a cost basis of $2.45. But even with the tidy 67% profit, past acts of conservation and donation would suggest the investment was made for the long term.

In any event, speculative names that reside in buzz sectors and have limited funding, (the company only had $1.07 million in cash according to their latest 10-Q), no revenues, and speculative products cause many wise investors to tread carefully in these name, but with what would seem to be an authority on stocks and conservation efforts directly involved invested in the Company, the name could gain attention over the coming months. Investors would be wise to watch.

Oramed Pharmaceuticals Completes Successful
Preliminary Trial of Oral Insulin Gel Capsule
Oramed Pharmaceuticals, Inc. (ORMP) has successfully completed its exploratory Phase 1A clinical trial with it’s oral insulin gel capsule as a replacement for insulin injections. The trial examined changes in insulin, glucose and C-peptide plasma concentrations over time in healthy volunteers under several differing oral dosing scenarios. With the exception of the anticipated insulin related hypoglycemic side effects, no significant adverse effects were noted after administration of Oramed’s insulin gel capsule. Nadav Kidron, CEO of Oramed, stated, "Although preliminary, the results from this exploratory study confirm the applicability and safety of Oramed’s peptide delivery technology in humans. We are all very encouraged by these findings." More than 6 percent of all people between the ages of 20 and 74 years and more than 12 percent of persons over age 40 have type 2 diabetes, and insulin is used in the treatment of patients with diabetes of all types. Oramed Pharmaceuticals’ is an Israeli based company focused on the development of oral delivery solutions based on proprietary technology. The Company seeks to develop a pill that will not break down in the stomach or intestines and will be effective in delivering insulin to the bloodstream for the treatment of diabetes. Oral insulin tablets enable the delivery of insulin in a more physiological manner than by injection. The Company is also pursuing the development of oral delivery solutions for other drugs and vaccines. Two provisional patents applications have been filed for a suppository application to its technology portfolio. The first of the two technologies is focusing on a rectal application for insulin. The second patent has been filed for the usage of this rectal application to other polypeptides that at present are required to be injected. Many companies are developing methods that allow for the administration of insulin through other means such as inhalers, into the lungs and then into the bloodstream, and also oral administration of insulin. Studies show that inhaled insulin is less effective than injected insulin in terms of delivery of the insulin into the bloodstream. Therefore, inhalable solutions require more insulin and will likely be more expensive to produce. Although the FDA has approved Pfizer’s (PFE) dry powder insulin inhaler product called Exubera(R), it recommends that smokers and people with some types of lung disease, including asthma, avoid using the product. Exubera is approved only for people aged 18 or older. Eli Lilly & Co. (LLY), Alkermes (ALKS) and Mannkind Corp. (MNKD) are developing dry powder insulin products. Novo Nordisk (NVO) and Aradigm Corp. (ARDM) are developing inhalable liquid insulin. Through May 31, 2007, the Company has incurred losses of $1.9 million since inception and cash on hand of $51,000. Oramed recently completed a $2 million private placement by a number of private investors with strong connections to the Pharmaceutical industry. This investment ensures that Oramed has enough funds to reach completion of Phase 1 trials, which are expected by mid-2008.

Simex Technologies To Acquire College
Tonight in Reverse Merger; Change of Control
Simex Technologies, Inc. (SMXT) has entered into a Letter of Intent to acquire College Tonight, Inc., a privately held corporation with its principal headquarters located in Valley Village, California, in a reverse merger. The proposed merger will involve a change in stockholder control of SMXT, change of management, change of corporate name, change of corporate headquarters and other significant matters. The proposed merger is expected to involve a 1:4 reverse stock split of the current outstanding shares of SMXT. The company estimates that the merger will close in 60 days or less.

Fox Petroleum Completes Acquisition
of 32K Acres in Alaska’s North Slope Region
Fox Petroleum Inc. (FXPE) has successfully completed the acquisition of approximately 32,000 acres of prime land in Alaska’s North Slope region in and near Prudhoe Bay. Alaska’s North Slope area has 23 producing hydrocarbon fields that produce 16% of the domestic oil supply for the US, at a rate of over 800,000 barrels of oil per day. Prudhoe Bay, which adjoins the majority of Fox’s leases, is the largest oil field in North America at over 200,000 acres, and with roughly 1,100 active well sites.

Today's Headlines

SUBSIDIARY AMENDS AGREEMENT: EYI Industries Inc. (EYII) announced that its wholly owned subsidiary, Essentially Yours Industries (International) Limited ("EYI INT") has amended the distribution agreement dated July 20, 2007 with Mach 3 Manufacturing, LLC ("Mach 3"). The agreement was amended to include the distribution rights in an additional 19 countries for the Mach 3 SEFS HD fuel performance product. Essentially Yours Industries (International) Limited, President and CEO Dori O’Neill states, "Acquiring the rights to these additional 19 countries: Argentina, Brazil, Burma, Cambodia, China, Greece, Hong Kong, Macau, Austria, Belgium, Finland, Germany, Luxembourg, The Netherlands, Ireland, Denmark, Italy, Sweden and the United Kingdom, may allow EYI INT to expand its customer base and utilize our business contacts in these countries. We believe many business leaders are looking for ways to lower their fuel costs and emissions. We are pleased to offer them the SEFS HD product, which may meet both of these needs." This press release is available on the company’s official online investor relations site for investor commentary, feedback and questions. Investors are asked to visit the EYI Industries IR Hub located at www.agoracom.com/IR/EYI Alternatively, investors can e-mail AGORACOM Investor Relations directly at EYII@Agoracom.com.

SUBSIDIARY RETAINED BY CEP: Allenergy, Inc. (ALRY) announced that Constellation Energy Partners LLC (CEP), has retained Rex Horning Well Services (RHWS), an Allenergy company, to service more than 300 oil and gas wells in the Kansas area. Constellation Energy Partners recent acquired significant coalbed methane properties from EnergyQuest Resources LP in Kansas and Oklahoma. Additionally, Constellation is putting on new wells on a weekly basis and these also will be serviced by RHWS. "Allenergy is purchasing our fourth rig to keep up with the demand," said Company President Larry Sanford. "Our crews are on a 10 hour a day, six day a week schedule to keep up with work made necessary by previous flooding in the area, and this new contract." "This is an exciting time as our Company is expanding rapidly. We have major, new oil and gas leases and our servicing company is now realizing significant revenue growth," Mr. Sanford said.

ANNOUNCES JOINT VENTURE IN INDIA: CinéMaya Media Group, Inc. (CNMY) announced a Joint Venture with Design Mechanics, an online creative services company based in New Delhi, India. The Joint Venture between CinéMaya Media Group’s Indian subsidiary, CinéMaya Media India, and Design Mechanics results in a new entity formally named Design Mechanics Private Limited. Design Mechanics has been servicing well known clients in India such as the Discovery Channel, History Channel, National Geographic, GE, Reebok, Sony, and IndiaTimes, among others.