Research Reports

Augme Technologies, Inc. (OTC BB: AUGT). We believe that Augme Technologies, Inc. (“Augme”, “AUGT”, or “the Company”) offers speculative investors a compelling opportunity to participate in the projected exponential growth of  “mobile marketing” over the next several years.  An expanding number of national and regional brand-name companies, along with their advertising agencies, are seeking to seamlessly integrate brands, promotions, video and other digital content through the power of the Internet and mobile communications.  Augme, which offers the only end-to-end mobile marketing solution available today, can provide companies the control they need to quickly create, deploy and measure rich-media, interactive marketing campaigns across all Internet-enabled networks and devices.  We expect AUGT’s revenues, which increased 740% in the first quarter of FY2011, to continue growing rapidly as advertisers turn to mobile marketing campaigns in order to target and interact with existing and potential customers in a variety of industries, including consumer packaged goods and healthcare products.  Augme also has an expanding portfolio of intellectual property (“IP”), including key patents on technologies that enable the dynamic customization of any networked content, such as Web pages, based upon user information (e.g., behavioral targeting); and the rendering of websites to all types of mobile devices.  The Company has filed lawsuits against at least three companies, to date, including AOL and search engine giant Yahoo!, for infringement of its patents and/or trademarks.  We believe that, should Augme prevail in litigation related to its IP, the benefit to AUGT shareholders could far exceed the Company’s current market value.

Consolidated Water Co. Ltd. develops and operates reverse osmosis seawater conversion plants and water distribution systems in areas of the world where naturally-occurring supplies of drinking water are scarce or non-existent. The Company currently operates water production plants in five countries in the Caribbean region - Cayman Islands, the Commonwealth of the Bahamas, the British Virgin Islands, Barbados, and Belize. The Company has paid cash dividends to common stockholders since 1985.

Please contact Jan Carroll at 800-377-9893 or jancarroll@rjfalkner.com for a complete investor packet on the company.

Digital Ally, Inc. (Nasdaq: DGLY)

Please contact Jan Carroll at 800-377-9893 or jancarroll@rjfalkner.com for a complete investor packet on the company.

The Female Health Company (Nasdaq Capital Market: FHCO)The Female Health Company (“FHCO” or “the Company”) has entered a period of impressive growth in sales and earnings that we believe will drive the Company’s common stock price significantly higher in the upcoming 12-18 months.  After spending more than 13 years and investing over $100 million to develop and commercialize its patented, FDA-approved FC Female Condom™, we believe the Company stands at the threshold of realizing the substantial potential of its products as key weapons in the global battle against HIV/AIDS. The female condom has proven highly effective in sub-Saharan Africa, Brazil and many other countries in protecting women against sexually-transmitted infections (“STI’s”), including HIV/AIDS.  With the support of HIV/AIDS prevention programs by the World Health Organization, the United Nations, USAID, and other high-profile public health agencies, FC2 Female Condoms are currently available in over 105 countries throughout the world.  Going forward, virtually all of the Company’s sales will be derived from shipments of its second-generation FC2 Female Condom, which was approved by the FDA in March 2009 and sells at a lower price than the first-generation FC1, but which generates higher gross profit margins.  The Company sold 40.2 million female condoms in FY2009 and increased its annualized manufacturing capacity in Malaysia by over 150% to more than 80 million units, in anticipation of continued increases in global demand.  The Company’s business model has been highly successful in delivering value to investors, as evidenced by the fact that the return on beginning shareholders’ equity in FY2009, excluding income tax benefits but including non-recurring restructuring charges, was an outstanding 52%.  We believe FHCO’s unit sales can increase at a 20%-25% average annual rate and that yearly earnings can grow at an even faster pace in coming years.  While quarterly results can fluctuate significantly due to the timing of orders and shipments, we consider FHCO’s annualized operating results to be relatively unphased by the global economic environment.  The Company recently commenced the payment of quarterly cash dividends, further enhancing the appeal of FHCO shares to investors.  It is our opinion that FHCO shares have the potential to significantly outperform the general stock market during the next 12-18 months, and we consider the stock attractive for both income- and growth-oriented investors.

Franklin Credit Management Corporation (Nasdaq GM: FCMC) ("Franklin") is a specialty consumer finance company primarily engaged in the servicing and resolution of performing, reperforming and nonperforming residential mortgage loans. Franklin’s portfolio consists of loans secured by 1-4 family residential real estate that generally fall outside the underwriting standards of Fannie Mae and Freddie Mac and involve elevated credit risk as a result of the nature or absence of income documentation, limited credit histories, higher levels of consumer debt or past credit difficulties. The Company purchased these loan portfolios at a discount to the unpaid principal balance and originated loans with interest rates and fees calculated to provide a rate of return adjusted to reflect the elevated credit risk inherent in these types of loans. Franklin originated non-prime loans through its wholly-owned subsidiary, Tribeca Lending Corp. and has generally held for investment the loans acquired and a significant portion of the loans originated. The Company's executive, administrative and operations offices are located in Jersey City, New Jersey. Additional information on the company is available on the Internet at our website at www.franklincredit.com. Franklin's common stock is listed on the NASDAQ Global Market under the symbol "FCMC"

Please contact Jan Carroll at 800-377-9893 or jancarroll@rjfalkner.com for a complete investor packet on the company.


Ireland Inc. (OTC BB: IRLD) Ireland Inc. (“Ireland”, “IRLD” or “the Company”) is a mining exploration and development company that is focused upon the extraction of precious metals from mineral deposits in the Southwestern United States. The Company’s flagship mining property is the Columbus Project, a 19,680-acre property in Esmeralda County, Nevada that initial drilling results suggest potentially contains significant amounts of gold beneath the Columbus Salt Marsh. A pilot production facility, which is designed to prove the commercial feasibility of the Columbus Project, commenced operations in the fourth quarter of 2008. Results from a 2008 drill program have identified three new mineralized zones, containing 199.5 million tons of material, that are potentially surface mineable using the dredge-type mining method currently used at the Company’s pilot production facility. The average grade of all the samples taken within this 199.5 M tons was 0.041 ounces per ton (“opt”) gold (Au) equivalent. We believe the Columbus Project has the potential to become a large, low-cost gold production facility. Ireland also has an option to acquire up to 100% of a second mining property prospective for gold, silver and tungsten in the historic Rand Mining District in San Bernardino County, California. With gold prices trading around $900 per ounce, we believe the potential economics of both mining projects present a compelling opportunity for speculative investors.

Research Frontiers Incorporated (Nasdaq CM: REFR) During the past year, royalty and other fee income has begun to flow from a number of licensees of Research Frontiers Incorporated’s widely patented SPD “light-control” technology, and we expect a growing number of end-user products in a variety of industries, including architectural, automotive, marine and general aviation to be on the market within the next 12-24 months. With a highly scalable business model that should allow over 90% of incremental royalty income to fall directly down to the “bottom line” once revenues exceed breakeven levels (estimated at $5 million annually), we believe the Company’s common stock, which trades on The Nasdaq Capital Market under the symbol “REFR”, has the potential to deliver outstanding returns to investors over the next several years. Accelerating royalty growth and the announcement of additional SPD product introductions by licensees should allow REFR shares to outperform the overall stock market during the next 12-18 months. Longer-term, with approval from its Board of Directors, the Company could pay out a portion of its earnings to shareholders in the form of cash dividends.


Rocky Mountain Chocolate Factory, Inc. (Nasdaq GM: RMCF) While the shares of Rocky Mountain Chocolate Factory, Inc. (“RMCF” or “the Company”) have recovered along with most market indices during the past year (the stock has risen 60% since we published our previous Research Profile in February 2009), we continue to view RMCF as an attractive investment opportunity for income- and growth-oriented investors.  The Company franchises gourmet chocolate and confection stores and manufactures an extensive line of premium chocolates and other confectionary products.  Although RMCF’s trailing twelve-month revenues of approximately $28 million represent a tiny fraction of the $17 billion market for chocolate in the United States, RMCF has carved out a solid niche as a leading retailer of  “premium” chocolate candies and related products.  The Company’s business model has been highly successful in delivering an outstanding return on beginning shareholders’ equity in recent years (27.0% in FY2010), and we believe Rocky Mountain Chocolate Factory can grow its EPS at a 15%-plus average annual rate once the current economic recession in the U.S. has run its course.  RMCF’s new co-branding relationship with Cold Stone Creamery could develop into a new “growth driver” for the Company, with significant revenue and earnings potential that should result in an expansion in the P/E ratio accorded RMCF shares.  Adding to the current investment appeal of RMCF shares is the fact that the Company’s annualized cash dividend of $0.40 provides a current yield of 4.2% to shareholders.  RMCF started paying cash dividends in September 2003, has increased its dividend payout ten times during the past six years, and recently paid its 27th consecutive quarterly cash dividend.  We believe RMCF shares can significantly outperform the overall stock market on an intermediate- to long-term basis, if our growth expectations prove realistic in coming years.


Studio One Media, Inc. (OTC BB: SOMD) We believe the common stock of Studio One Media, Inc. (“Studio One”, “the Company” or “SOMD”) offers speculative investors the potential to realize capital gains of several hundred percent if the Company can successfully finance and execute its strategy to install its MyStudio® self-contained, state-of-the-art, high-definition (“HD”) interactive audio/video recording studios in shopping malls and other consumer venues throughout the United States. MyStudio offers groundbreaking video and sound quality from a proprietary, patent-pending, stand-alone recording studio in a self-service format.  When combined with its accompanying website (www.MyStudio.net), the studios offer today’s Internet-savvy consumers a single entertainment venue that has the video-sharing convenience of YouTube, the social networking appeal of MySpace and Facebook, and the talent showcase of American Idol.  By developing a business model that “monetizes” user-generated content in a unique manner, SOMD has the potential to emerge as a highly profitable player in the rapidly growing “social networking” industry that could present an attractive acquisition candidate to one or more leaders in the media or entertainment industries. The Company’s MyStudio Masters sound-mixing technology also has the potential to generate significant revenue from the re-mastering and sound enhancement of previously recorded music “catalogs” owned by major record labels    The author of this report believes the investment opportunity available in Studio One Media, Inc. is similar to that which he envisioned when he recommended Blockbuster Video in the late 1980s, prior to its appreciation of more than 100X in price over the next several years.  We consider SOMD highly attractive for risk-oriented investors who are willing to invest in a revolutionary concept in one of the world’s fastest-growing markets (social networking) that is led by an experienced and talented management team and backed by an advisory board comprised of successful executives with significant business and entertainment industry experience.  After investing approximately $8 million in capital raised since April 2006 to develop and perfect the MyStudio technology, we believe the Company’s potential will become apparent to the investment community as studios are opened in 15 to 20 new markets during the upcoming 12-18 months.


The Beard Company (OTC BB: BRCO) The Beard Company (“Beard”, “BRCO” or “the Company”) is involved in a number of businesses related to natural resources that management believes have high growth or above-average profit potential and can enhance shareholder value.  The Company is primarily focused on oil and gas activities, precious minerals exploration and development, and coal reclamation activities.  We believe Beard’s combined interests in (1) the Dilworth Field enhanced oil recovery project in Oklahoma and (2) Geohedral LLC, which has discovered a potentially large precious and base metals deposit in southern Alaska, could be worth several times BRCO’s current stock price of $3.15 per share.  The Company also has the potential to deliver significant value to shareholders from its coal reclamation technology and is currently in negotiations regarding the prospective clean-up of slurry ponds for a  number of coal and/or utility companies.  While other corporate initiatives could favorably impact shareholder value in coming years, this report will focus upon (1) the Dilworth enhanced oil recovery project, (2) precious and base metals exploration and development, and (3) pond fines reclamation projects utilizing the Company’s coal reclamation technology, which we consider likely to have the most significant impact upon BRCO’s share price over the next 12-24 months.


ZIX Corporation (Nasdaq CM: ZIXI) (“ZIXI”, “ZixCorp” or “the Company”), headquartered in Dallas, Texas, is a leading provider of hosted email encryption and e-prescribing services. ZixCorp’s email encryption services provide an easy and cost-effective way to ensure customer privacy and regulatory compliance for corporate email, and its PocketScript® e-prescribing service reduces costs and improves patient core by automating the prescription process between payors, doctors and pharmacies. Although ZIXI shares have appreciated 140% in price since the publication of our previous Research Profile in February 2007, we believe the prospects for dramatic growth in revenues and earnings in coming years have been greatly enhanced by developments over the past twelve months. We expect ZixCorp’s revenue growth to accelerate as (1) federal government and insurance industry support for e-prescribing gains momentum and (2) regulations and prudent business practices require a growing number of industries to address the risks of email security. Once the Company achieves profitability, earnings should grow rapidly as the Company leverages its state-of-the-art ZixData Center™, and we expect ZIXI shares to outperform the overall stock market over the next 12-18 months.