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ICTY, LDSR, CMLS, ONT, DARA, August 6 Stocks to Watch from OTCPicks.com
[August 06, 2009]

ICTY, LDSR, CMLS, ONT, DARA, August 6 Stocks to Watch from OTCPicks.com


(M2 PressWIRE Via Acquire Media NewsEdge) Our Stocks to Watch tomorrow include EyeCity.com (OTC: ICTY), Land Star Inc. (OTC: LDSR), Cumulus Media Inc. (Nasdaq: CMLS), On2 Technologies Inc. (Amex: ONT) and DARA BioSciences Inc. (Nasdaq: DARA).



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EYECITY.COM INCORPORATED (OTC: ICTY) "Up 500.00% on Wednesday" Detailed Quote: http://www.otcpicks.com/quotes/ICTY.php EyeCity.com Inc., headquartered in Dallas, TX, is a publicly traded corporation designed to be a life style company orchestrated for the middle class with a millionaire attitude. The Vande Flash clothing brand will be a trend setter in style while bringing a variety of influences to the public market. While manufacturing some of the most sought after clothing and opening retail boutiques around the country, Vande Flash will engage in bringing other business models into a company that only the affluent life style demands.


ICTY News: August 6 - EyeCity.com Website and News to Keep You Informed on Business Anthony Baker, CEO of EyeCity.com (OTC: ICTY), has been working hard to make sure he brings the company to the level everyone is striving for. EyeCity has a website up (www.eyecityinc.com) to let you know what's going on and please read it. Rachel Day, secretary, has been working with vendors and personnel to make sure the company gets everything done for its shareholders. This is a longer process than the company thought.

Anthony Baker is quoted as saying, "I have been giving this company 100% to make sure we do what all shareholders are waiting on and am very excited about all the things we are working with. If you have any questions that I can answer I can be reached at 214-986-4321." LAND STAR INCORPORATED (OTC: LDSR) "Up 466.67% on Wednesday" Detailed Quote: http://www.otcpicks.com/quotes/LDSR.php Land Star, Inc. operates as a polymer redeployment and polymer reactivation company. Through its majority owned subsidiary, Rebound Rubber Corporation, the company develops certain technology rights for the recycling of rubber. It also, along with its subsidiary PolyTek Rubber & Recycling, Inc., produces crumb rubber using reduction technologies, including ambient grind, cryogenic, and wet grind systems. Land Star also maintains exclusive North American rights to a proven devulcanization technology, which fundamentally changes the way recycled rubber is used. This technology creates a new raw material, Activated Modified Rubber, which may be compounded with natural and synthetic rubber or used directly in new vulcanized products.

LDSR News: August 5 - LandStar Finalizes $8.3 Million Sale Land Star Inc. (OTC: LDSR) operating subsidiary, Hubei Chuguan Industry Co. Ltd., has signed an Agent Cooperation Agreement with Guangzhou North Condensation Energy Technology Co., Ltd. In accordance with the agreement, Guangzhou North Condensation Energy Technology Co., Ltd., located in Guangzhou, will sell 200 sets of oil and gas vapour recovery processing equipment manufactured by Hubei Chuguan Industrial Co., Ltd in oil and gas recovery comprehensive management project, together with related accessories. The total value of the transaction is valued at about 50 million RMB Chinese Yuan, or about $8.3 million USD over the term of the agreement.

For more information, visit http://bit.ly/149Akj.

CUMULUS MEDIA INCORPORATED (NASDAQ: CMLS) "Up 72.50% on Wednesday" Detailed Quote: http://www.otcpicks.com/quotes/CMLS.php Cumulus Media, Inc. engages in the acquisition, operation, and development of frequency modulation and amplitude modulation radio stations in mid-size radio markets in the United States. The company, through its investment in Cumulus Media Partners, LLC, also operates radio station clusters for large-sized markets. It also provides sales and marketing services for one radio station under a local marketing agreement. As of December 31, 2007, Cumulus Media owned and operated 303 stations in 56 mid-sized U.S. markets and operated 33 radio stations in 8 markets, including San Francisco, Dallas, Houston, and Atlanta that were owned by CMP under a local marketing agreement. The company was founded in 1997 and is based in Atlanta, Georgia.

CMLS News: August 5 - Cumulus Reports Second Quarter 2009 Results Cumulus Media Inc. (Nasdaq: CMLS) reported financial results for the three and six months ended June 30, 2009: Results of Operations Three Months Ended June 30, 2009 Compared to the Three Months Ended June 30, 2008 Net revenues for the second quarter decreased from $83.6 million to $66.0 million, a decrease of 21.1% versus the second quarter of 2008, primarily due to the impact the current economic recession has had across our entire station platform. Cash revenues for the second quarter decreased from $79.8 million to $62.8 million, a decrease of 21.2% and barter revenue decreased $0.7 million or 18.3% as we continue to deemphasize barter transactions.

Station operating expenses decreased from $53.0 million to $39.2 million, a decrease of 25.9% from the second quarter of 2008. This decrease was primarily due to continued efforts to contain operating costs, such as personnel reductions, a mandatory one-week furlough and continued scrutiny of all operating expenses across our entire station platform.

Station operating income decreased from $30.7 million to $26.7 million, a decrease of 12.8% from the second quarter of 2008, for the reasons discussed above.

Corporate expenses (excluding non-cash stock compensation and terminated transaction expense) for the three months ended June 30, 2009 increased $0.1 million over the comparative period in 2008, primarily due to deal fees associated with an asset exchange, partially offset by timing differences associated with various other corporate expenses.

Non-cash stock compensation expense was $0.6 million for the three months ended June 30, 2009, as compared with $0.8 million non-cash stock compensation expense in the prior year, three-month period due to certain option awards becoming fully amortized in 2008.

Interest expense, net of interest income, increased by $6.8 million to $6.2 million for the three months ended June 30, 2009 as compared with net interest income of $0.6 million in the prior year's period. Cash interest expense associated with outstanding debt decreased by $4.3 million to $3.8 million as compared to $8.1 million in the prior year's period. This decrease was due to a lower average cost of bank debt and decreased levels of bank debt outstanding during the current quarter. Cash interest expense associated with the yield on interest rate swap increased $3.3 million to $3.6 million from $0.3 million in the prior year's period. The remaining $7.8 million increase as primarily due to the change in the fair value of certain derivative instruments.

For the three months ended June 30, 2009, the Company recorded income tax expense of $6.1 million, as compared to expense of $8.1 million for the second quarter of 2008.

Six Months Ended June 30, 2009 Compared to the Six Months Ended June 30, 2008 Net revenues for the six months ended June 30, 2009 decreased from $156.5 million to $121.3 million, a decrease of 22.5% from the same period in 2008, due to the impact the current economic recession has had across our entire station platform. Cash revenues for the six months ended June 30, 2009 decreased from $149.4 million to $115.9 million, a decrease of 22.5% and barter revenues decreased 23.0% to $5.5 million from $7.1 million as we continue to deemphasize barter transactions.

Station operating expenses decreased from $104.1 million to $81.5 million, a decrease of 21.7% from the same period in 2008. This decrease was primarily due to continued efforts to contain operating costs, such as personnel reductions, a mandatory one-week furlough and continued scrutiny of all operating expenses across our entire station platform.

Station operating income decreased from $52.4 million to $39.8 million, a decrease of 24.1% from the six months ended June 30, 2008, for the reasons discussed above.

Corporate expenses (excluding non-cash stock compensation and terminated transaction expense) for the six months ended June 30, 2009 increased $2.2 million over the comparative period in 2008, due primarily to an increase in professional fees associated with our defense of certain lawsuits and deal fees associated with an asset exchange plus timing differences associated with the payment of various corporate expenses.

Non-cash stock compensation expense was $1.2 million for the six months ended June 30, 2009, as compared with $2.9 million non-cash stock compensation expense in the prior year, six-month period.

Interest expense, net of interest income, decreased by $6.0 million to $13.9 million for the six months ended June 30, 2009 as compared with $19.9 million in the prior year's period. Cash interest expense associated with outstanding debt decreased by $10.4 million to $7.9 million as compared to $18.3 million in the prior year's period. This decrease was due to a lower average cost of bank debt and decreased levels of bank debt outstanding during the current period. Cash interest expense associated with the yield on the interest rate swap increased $6.6 million to $6.0 million from income of $0.6 million in the prior year's period. The remaining $2.2 million decrease as primarily due to the change in the fair value of certain derivative instruments.

For the six months ended June 30, 2009, the Company recorded income tax expense of $5.3 million, as compared to expense of $4.4 million for the same period during 2008.

Cumulus Media Partners For the three and six months ended June 30, 2009, the Company recorded as net revenues approximately $1.0 million and $2.0 million, respectively, in management fees from CMP.

Leverage and Financial Position Net leverage was 8.05 times at June 30, 2009.

Capital expenditures for the three and six months ended June 30, 2009 totaled $0.4 million and $1.2 million, respectively. Capital expenditures during the quarter were comprised of $0.3 million of expenditures related to leasehold improvements and the purchase of equipment related to studio facilities and tower structures, and $0.1 million of maintenance capital expenditures.

Non-GAAP Financial Measures The Company utilizes certain financial measures that are not calculated in accordance with GAAP to assess financial performance and profitability. The non-GAAP financial measures used in this release are station operating income, adjusted EBITDA and free cash flow. Station operating income consists of operating income before LMA fees, depreciation and amortization, non-cash stock compensation, impairment charge, gain on exchange of radio stations, terminated transaction expense and corporate general and administrative expenses. Adjusted EBITDA is defined as operating income before LMA fees, depreciation and amortization, non-cash stock compensation, impairment charge, gain on exchange of radio stations and terminated transaction expense.

Free cash flow is defined as operating income before non-cash stock compensation, impairment charge, depreciation and amortization, gain on exchange of radio stations, terminated transaction expense, less net interest expense (excluding non-cash charge/credit for change in value and amortization of swap arrangements and amortization of debt issuance costs), and maintenance capital expenditures.

Station Operating Income Station operating income isolates the amount of income generated solely by the Company's stations and assists management in evaluating the earnings potential of the Company's station portfolio. In deriving this measure, management excludes LMA fees, even though it requires a cash commitment, due to the insignificance and temporary nature of such fees. Management excludes depreciation and amortization due to the insignificant investment in tangible assets required to operate the stations and the relatively insignificant amount of intangible assets subject to amortization. Management excludes non-cash stock compensation and impairment charges from the measure as they do not represent cash payments for activities related to the operation of the stations. Management excludes gain on the exchange of radio stations as it does not represent a cash transaction. Management excludes terminated transaction expense as it is unrelated to the operation of the stations. Corporate expenses, despite representing an additional significant cash commitment, are excluded in an effort to present the operating performance of the Company's stations exclusive of the corporate resources employed. Management believes this is important to its investors because it highlights the gross margin generated by its station portfolio. Management believes that station operating income is the most frequently used financial measure in determining the market value of a radio station or group of stations. Management has observed that station operating income is commonly employed by firms that provide appraisal services to the broadcasting industry in valuing radio stations. Further, in each of the more than 140 radio station acquisitions the Company has completed since its inception, it has used station operating income as the primary metric to evaluate and negotiate the purchase price to be paid. Given its relevance to the estimated value of a radio station, management believes, and its experience indicates that investors consider the measure to be extremely useful in order to determine the value of its portfolio of stations. Management believes that station operating income is the most commonly used financial measure employed by the investment community to compare the performance of radio station operators. Finally, station operating income is one of the measures that management uses to evaluate the performance and results of its stations. Management uses the measure to assess the performance of the Company's station managers and the Company's Board of Directors uses it as part if its assessment of the relative performance of the Company's executive management. As a result, in disclosing station operating income, the Company is providing its investors with an analysis of its performance that is consistent with that which is utilized by its management and its Board.

Station operating income is not a recognized term under GAAP and does not purport to be an alternative to operating income from continuing operations as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, station operating income is not intended to be a measure of free cash flow available for dividends, reinvestment in the Company's business or other management's discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Station operating income should be viewed as a supplement to, and not a substitute for, results of operations presented on the basis of GAAP. Management compensates for the limitations of using station operating income by using it only to supplement the Company's GAAP results to provide a more complete understanding of the factors and trends affecting the Company's business than GAAP results alone. Station operating income has its limitations as an analytical tool, and investors should not consider it in isolation or as a substitute for analysis of the Company's results as reported under GAAP.

Adjusted EBITDA Adjusted EBITDA is also utilized by management to analyze the cash flow generated by the Company's business. This measure isolates the amount of income generated by its stations after the incurrence of corporate general and administrative expenses (exclusive of terminated transaction expense which is non-recurring and unrelated to the operation of the stations). Management uses this measure to determine the contribution of the Company's station portfolio, including the corporate resources employed to manage the portfolio, to the funding of its other operating expenses and to the funding of debt service and acquisitions.

In deriving this measure, management excludes LMA fees, even though it requires a cash commitment, due to the insignificance and temporary nature of such fees. Management also excludes depreciation and amortization due to the insignificant investment in tangible assets required to operate its stations and corporate office and the relatively insignificant amount of intangible assets subject to amortization. Management excludes non-cash stock compensation and impairment charges from the measure as they do not represent cash payments for activities related to the operation of the stations. Management excludes gain on the exchange of radio stations as it does not represent a cash transaction. Finally, management excludes terminated transaction expense as it is unrelated to the operation of the stations.

Management believes that adjusted EBITDA, although not a measure that is calculated in accordance with GAAP, nevertheless is commonly employed by the investment community as a measure for determining the market value of a radio company. Management has also observed that adjusted EBITDA is routinely employed to evaluate and negotiate the potential purchase price for radio broadcasting companies. Given the relevance to the overall value of the Company, management believes that investors consider the metric to be extremely useful.

Adjusted EBITDA should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating activities or any other measure for determining the Company's operating performance or liquidity that is calculated in accordance with GAAP.

Free Cash Flow Free cash flow is also utilized by management to analyze the cash generated by our business. Free cash flow measures the amount of income generated each period that could be used to fund acquisitions or repay debt, after funding station and corporate expenses (excluding transaction costs), maintenance capital expenditures, payment of LMA fees and debt service.

Management believes that free cash flow, although not a measure that is calculated in accordance with GAAP is commonly employed by the investment community to evaluate a company's ability to pay down debt, pay dividends, repurchase stock and/or facilitate the further growth of a company through acquisition or internal development. Management further believes that free cash flow is also utilized by investors as a measure in determining the market value of a radio company. Free cash flow should not be considered in isolation or as a substitute for net income, operating income, cash flows from operating activities or any other measure for determining the Company's operating performance or liquidity that is calculated in accordance with GAAP.

As station operating income, adjusted EBITDA and free cash flow are measures that are not calculated in accordance with GAAP, they may not be comparable to similarly titled measures employed by other companies. See the quantitative reconciliation of these measures to their most directly comparable financial measure calculated and presented in accordance with GAAP that follows below.

ON2 TECHNOLOGIES INCORPORATED (AMEX: ONT) "Up 48.94% on Wednesday" Detailed Quote: http://www.otcpicks.com/quotes/ONT.php On2 creates advanced video compression technologies that power the video in today's leading desktop and mobile applications and devices. On2 customers include Adobe, Skype, Nokia, Infineon, Sun Microsystems, Mediatek, Sony, Brightcove, and Move Networks. On2 Technologies is headquartered in Clifton Park, NY USA.

ONT News: August 5 - Google to Acquire On2 Technologies On2 Technologies, Inc. (Amex: ONT) and Google Inc. (Nasdaq: GOOG) jointly announced that they have entered into a definitive agreement under which Google will acquire On2, a leading developer of video compression technology. Under the terms of the agreement, each outstanding share of On2 common stock will be converted into $0.60 worth of Google class A common stock in a stock-for-stock transaction. The transaction is valued at approximately $106.5 million.

"Today video is an essential part of the web experience, and we believe high-quality video compression technology should be a part of the web platform," said Sundar Pichai, Vice President, Product Management, Google. "We are committed to innovation in video quality on the web, and we believe that On2's team and technology will help us further that goal." "We're thrilled that On2 is joining one of the world's most innovative companies," said Matt Frost, interim CEO of On2. "After intensive review of On2 products, Google confirmed our long-held beliefs as to the quality of our video technologies. This transaction is a testament to the hard work of every On2 employee and the strongest possible endorsement of our products and people. On2 will continue to improve, support and sell our products throughout the transition. We believe that Google shares our ambitions and know that our products and expertise, combined with Google's globally recognized brand, ingenuity and resources, will create an incredible team." The number of shares of Google class A common stock to be received by On2 stockholders will be determined by dividing $0.60 per share by the volume weighted average trading price of a share of Google class A common stock based on the sales price of every share of Google class A common stock traded during the twenty trading-day period ending on and including the second trading day prior to the date of the meeting of On2's stockholders to consider and vote on the merger agreement.

$0.60 per share represents a premium of approximately 57% over the closing price of On2's common stock on the last trading day immediately prior to the announcement of the transaction, and a premium of approximately 62% over the average closing price of On2's common stock for the six month period immediately prior to the announcement of the transaction.

The transaction, which is subject to On2 stockholder approval, regulatory clearances and other closing conditions, is expected to close in the fourth quarter of 2009.

Wilson Sonsini Goodrich & Rosati and Potter Anderson & Corroon served as legal counsel to Google, and Credit Suisse provided M&A advisory services to Google. Covington Associates, LLC served as financial advisor to On2 and its board of directors and Duff & Phelps, LLC served as an independent financial advisor to On2's board of directors, and each of them provided an opinion as to the fairness, from a financial point of view, to the public stockholders of On2 of the exchange ratio in the proposed transaction. Hogan & Hartson LLP and Richards, Layton & Finger served as legal counsel to On2.

ABOUT GOOGLE INC.

Google's innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google's targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia.

DARA BIOSCIENCES INCORPORATED (NASDAQ: DARA) "Up 31.24% on Wednesday" Detailed Quote: http://www.otcpicks.com/quotes/DARA.php DARA BioSciences Inc. ("DARA") is a Raleigh, North Carolina based development-stage pharmaceutical company that acquires promising therapeutic small molecules and develops them through proof of concept in humans for subsequent sale or out-licensing to larger pharmaceutical companies. Presently DARA has two drug candidates with cleared IND's (Investigational New Drug) Applications from the US FDA. One of these drug candidates KRN5500 has successfully completed a Phase 2a clinical trial treating cancer patients for neuropathic pain. It has a portfolio of drug candidates for neuropathic pain, type 2 diabetes, and psoriasis.

DARA News: August 4 - DARA BioSciences, Inc. and America Stem Cell, Inc. Collaborate On Stem Cell Research DARA BioSciences, Inc. (Nasdaq: DARA) announced that the Company is collaborating with America Stem Cell ("ASC") to expand on observations from recent preclinical studies showing that dipeptidylpeptidase (DPPIV) inhibitors improve the efficiency of hematopoietic stem cell (HSC) transplants. HSC transplants are used as a therapeutic approach for many malignant and non-malignant hematological disorders.

ASC will expand on these previous observations with preclinical studies utilizing potent and selective DPPIV inhibitors obtained from DARA BioSciences. The goal of this collaboration is to accelerate the translation of this approach to the clinic for the benefit of many patients in need of a HSC transplant.

ABOUT AMERICA STEM CELL, INC.

America Stem Cell, Inc. ("ASC") is a privately held biotechnology company based in Carlsbad, CA, and is dedicated to the development and commercialization of enabling technologies to enhance and expand the therapeutic potential of stem cells. The Company possesses two key technology platforms - ASC-101 and ASC-201 - that are designed to improve the engraftment of stem cells to target organs and increase their therapeutic potential.

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