July 12, 2010

The May Report: 7/12/2010: Escape from Alcatraz: Part II

Publihser [sic: publisher] and editor: Ron May, ron@themayreport.com and
ronaldmay@aol.com

773-525-3944

[Editor's note: May here again. This is painstalomg work and I can probably
only include four or five emails in a report.

Here is something interesting. Of all the firms internationally, if I read this
correctly, those with the best return post IPO after the first half of 2010
include one Chicago firm, so that is a siccess story we should note. That firm
is Accretive Health Inc., a Chicago-based provider of healthcare revenue cycle
management services, raised around $120 million in its May IPO. The company
priced at $12 per share (below range), and is now at $13.19 per share.

++++++++++++++++++++++++++++

Venture capitalists brought 26 companies to U.S. public markets in the first
half of 2010, raising billions of dollars. Unfortunately, the majority of
those companies are now trading below their offering price (16 of them, to
be exact), with average performance at a pathetic -9.14 percent.

So I figured it was time to take a quick look at the best performers, and
the worst. Particularly notable is that four of the five top performers are
based in China (but priced here).

The Best: China Lodging
China Lodging Group Ltd., a Chinese discount hotel chain, raised over $110
million in its March IPO. The company priced at $12.2 per share, before
rising as high as $15.50 in its first day of trading. Company shares opened
today at $14.51 a piece.

Aftermarket performance: 18.9%

Shareholders include Chengwei Ventures (4.93% post-IPO stake), IDG Venture
Capital (2.85%) and Northern Light Venture Capital (2.12%)

The 2nd Best: JinkoSolar

JinkoSolar Holding Co. Ltd., a Chinese developer of silicon wafers for use
in solar paneling, raised $64 million in its May IPO. It priced at $11 per
share (below range), and now trades at $12.54 per share.

Aftermarket performance: 14%

The company raised $35 million in 2008 from CIVC, Shenzhen Capital Group Co.
and Pitango Venture Capital.

The 3rd Best: AutoNavi
AutoNavi Holdings Ltd, a Chinese provider of digital map content and
navigation, raised $107.8 million via an IPO last week. It priced at $12.5
per share, and opened trading today at $14.19 per share.

Aftermarket performance: 13.52%

Shareholders include Sequoia Capital, Kleiner Perkins and Walden
International. www.autonavi.com

The 4th Best: Accretive Health

Accretive Health Inc., a Chicago-based provider of healthcare revenue cycle
management services, raised around $120 million in its May IPO. The company
priced at $12 per share (below range), and is now at $13.19 per share.

Aftermarket performance: 9.92%

Oak Hill Capital Partners held around a 21% pre-IPO ownership position.
www.accretivehealth.com

The 5th Best: HiSoft

HiSoft, an IT outsourcing company in the Chinese cities of Beijing and
Dalian, raised $75 million in its IPO last week. It priced at $10 per share,
and opened today at $10.94 per share.

Aftermarket performance: 9.4%

Shareholders include Granite Global Ventures (22.6% pre-IPO stake),
International Finance Corp. (11.9%), Jafco Asia Technology Fund (8.2%),
Draper Fisher Jurvetson (8.2%), Tian Hai International (7.8%), Intel Capital
(7.8%) and GE Capital (7.2%). www.hisoft.com

++++++++++++++++++++++++

More to come.]
___________________________

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______________________________
Note from Kevin Koy (thekoys@aol.com)

Ron,
As an author of a book considered a breakthrough in how derivatives can be
analyzed, the company I’m at, New Era Futures, is developing trading
applications and systems at the intersection of cutting edge theory and
technology. I seek (on a project basis) an experienced C++ programmer,
especially and ideally someone with financial market experience including CME
Globex APIs or a third party ISV such as Trading Technologies or CTS Gateway
software, and/or Ultra-Low Latency, High Frequency Trading and/or Grey-Box
Systems Development. However, a hard working clear thinker need not have any
financial market experience.

Kindest regards,

Kevin Koy
___________________________________
Note from Tarkus Murphy

From: Tarkus [mailto:tarkus@ripco.com]
Sent: Tuesday, July 06, 2010 5:13 PM
To: ‘The May Report’; ‘The May Report’
Cc: ‘Tarkus’
Subject: Ron, this particular BTOP award has national significance

Applicant Name: UNIVERSITY CORPORATION FOR ADVANCED INTERNET DEVELOPMENT
Project Title: United States Unified Community Anchor Network (U.S. UCAN)
Project Type: Comprehensive Community Infrastructure
AWARDED $96,793,607 total project cost, of which $62,540,162 (64.61%) is
funded by BTOP
_______________________Executive Summary_______________________
Comprehensive communities must be connected not just locally, but nationally.
The U.S. Unified
Community Anchor Network (U.S. UCAN) proposal presents a great opportunity and
addresses a critical
problem. Without U.S. UCAN, community anchors connected by other BTOP projects
(as well as other
anchors) will only be able to use advanced broadband applications locally and
not nationwide. Anchors
will be unable to use advanced broadband applications with the vast majority of
other anchors in the
U.S, and will be limited to communications with just nearby anchors. Internet2
and NLR, working with
partners in 50 states, propose this national infrastructure project to tie
together all anchor networks
funded by BTOP, link them to 66,000 anchors already using Internet2′s and NLR’s
networks, and provide
a unique and cutting-edge national middle mile 100 gigabit interconnect
optimized for community
anchor use of advanced broadband applications. U.S. UCAN will benefit more than
100,000 community
anchors in all 50 states initially (and eventually all or virtually all
anchors), including schools, community
colleges, universities, libraries, health institutions, public safety entities,
local government, public media
and other community centers. It will provide much needed upgrades and
extensions to the non-profit
networks operated by Internet2 and NLR, which constitute the ‘interstate
highway’ for advanced
broadband applications for anchors, and which would be the foundation for U.S.
UCAN. U.S. UCAN will
ensure that community anchors can connect with each other nationwide, rather
than just locally, with
respect to advanced broadband applications, including telepresence, distance
education, telemedicine
and job training. For example, if this project is funded, (i) countless rural
hospitals with at-risk newborns
or persons needing an immediate diagnosis will not be limited to engaging in
advanced applications with
just nearby hospitals, but can do so with the nation’s top hospitals; (ii)
emergency 911 centers will be
able to exchange data nationwide; (iii) underprivileged youth can take a
course, or learn a life skill, from
the best instructors in the nation; and (iv) unemployed citizens can, via video
conferencing, interview for
jobs, or receive job training, from anywhere in the U.S., rather than just in
their local area. While
commercial backbones are sufficient for certain Internet uses, as to advanced
broadband applications
for community anchors, there is a market failure. Commercial networks are far
too congested to
support, and are not optimized for, advanced broadband applications for
community anchors like
telepresence and telemedicine. Commercial networks also do not provide the
necessary transparency
required to immediately trouble-shoot application-crippling problems across
networks. They also do not
generally offer next generation Internet technologies like IPv6 and IP
multicast, which are critical to
certain applications. Internet2 and NLR’s networks currently permit more than
66,000 U.S. community
anchors to connect to each other for advanced broadband applications. This BTOP
project is critical
because these networks urgently need significant upgrades and extensions (i) to
support the evergrowing
number of users and the increase in the bandwidth needed for
continually-evolving advanced
applications, and (ii) in light of the BTOP program itself, which will drive
even further network traffic to
these national networks, as the BTOP winners, who will collectively add tens of
thousands of anchors to
their networks, either already connect to these national networks (e.g., Merit,
MCNC, and I-Light) or
almost certainly will want to do so. This proposal will add 11,811 new, diverse
100 Gbps-capable route
miles, and upgrades over 10,000 existing network route miles to 100 Gbps. This
proposal expands the
model used today by Internet2 and NLR for 66,000 anchor institutions, of
ensuring national connectivity
for them for advanced broadband applications, to 45,000 to 65,000 more anchors
initially, and
eventually all or virtually all anchors (while also ensuring there are
sufficient upgrades to continue to
adequately serve the original 66,000 anchors). It is precisely this model of
Internet2, NLR and the R&E
community that the FCC stated in its National Broadband Plan ‘should be
expanded to other community
institutions’ and that doing so ‘would offer tremendous benefits.’ See
Supplementary Materials. If
funded, these networks will jump start the goal of connecting all 200,000+ U.S.
community anchors to a
high-performance network. Thus, this project glues the winning BTOP projects
together as a whole.
Simply put, this project does not compete with other BTOP projects; it
completes them. It will also be a
building block that attracts more local investment even for non-funded BTOP
projects, as such projects
will be more valuable if they are connected to non-profit networks that can
support national
connections for the advanced broadband applications anchors need (Internet2′s
and NLR’s prior, more
limited, upgrades motivated tremendous investment by others in local networks).
This project makes
BTOP a winner for Americans everywhere, while catalyzing the adoption of
transformational broadband
applications that can fundamentally improve education, health care, public
safety, and job-creating
economic innovation. This project compliments other sustainable broadband
adoption proposals, as
more people will want to use broadband if its benefits are greater. When used
by research universities,
this project will support the growing demands of data-intensive e-science,
thereby helping to uncover
new energy sources, reduce cardiovascular disease, and help with cancer
research. It can also serve as a
test bed for advanced network technologies like dynamic circuit provisioning,
which will spur economic
growth and the creation of new applications, businesses and jobs. Internet2,
NLR, and their over 30
regional and state networking collaborators (RONs) have a strong history of
providing advanced
networking to anchors. Individuals associated with these organizations played
key roles in developing
NSFNet in the 1980′s, and transforming NSFNet into the commercial Internet in
the 1990′s. For nearly 15
years, Internet2 and NLR networks have been the solution for RONs connecting to
community anchors
seeking advanced broadband capabilities. Today, they provide cutting-edge
networking for the research
community, and have expanded their reach to K12 schools, community colleges,
libraries, museums,
science centers, performing arts centers, hospitals, and other health clinics.
They know the needs of
anchors, the technology and applications, and how to ensure sustainable
business models. This proposal
commits to the open Internet recommendations of BTOP and the FCC and also
commits to making these
networks completely transparent. U.S. UCAN will have measurement and trouble
shooting tools that
allow all operational aspects of the network to be published on the web in near
real-time. The proposed
services include a point-to-point, nationwide optical and routed IP network to
last mile providers for
community anchors. The minimum peak load network bandwidth capacity is 100,000
Mbps. We expect
(i) connections to this infrastructure from regional middle-mile providers in
the range of 1,000 to
100,000 Mbps, and (ii) pricing in the range of $21 per Mbps/month to $2 per
Mbps/month for such
connections. The proposed network is Wireline ‘ Fiber-optic Cable. To ensure
access to next-generation
Internet protocols, the infrastructure will be built as both IPv6 and IPv4
native. U.S.UCAN will provide
service to the entire U.S. and will reach community anchors through RONs and
extensions serving all 50
states. This project acquires 11,811 miles of newly lit fiber. At the outset,
it will reach over 100,000
anchors, serving over 35,000,000 Americans (students, doctors, patients,
library visitors, public safety
officers, etc.). The infrastructure will be capable of serving the remaining
U.S. anchors. This project is
expected to cost a total of $96,793,607, of which $62,540,162 (64.61%) is
funded by BTOP and
$34,253,445 (35.39%) is cost matching. This project is expected to create or
save 1,052 job years in
advanced manufacturing and technical engineering. The named partners include
Internet2, NLR (private
not for profit), the Northern Tier Networking Consortium (public partners),
Indiana University
Information Technology Services (IU) (public partner), Ciena, Cisco, Infinera,
and Juniper (private forprofit),
and other collaborators include over 30 RONs, who will all provide technology,
equipment and
connections to the anchors. The American Association of Community Colleges, the
National Emergency
Number Association, and many other groups support this proposal.
___________________________________
Note from Mary Spaeth

From: Mary Spaeth mary.spaeth@indek.kth.se
Subject: Up and atom
Date: Mon, 12 Jul 2010 18:38:53 +0000
To: The May Report ron@themayreport.com

Dear Energizer Bunny,

You are totally nuts, but I am always glad to see the report—come hell or
high water. And the candid message from Melanie sent via your hospital room was
delightful and well worth the read! Gogo is pretty cool too! Saw this in the
spring while discussing in-flight wifi with students:
meetings.waea.org/members_only/pub_resource/WIN/2010/WIN_3_15_10.pdf
Hard to say how quickly these companies will have to reinvent themselves over
the next few years though. Interesting times ahead.

Take care of yourself,
Mary

Mary Shepard Spaeth
Board of Directors
Swedish Fulbright Commission
___________
Forskningsingenjör
Institutionen för industriell ekonomi och organisation-INDEK
Kungliga Tekniska högskolan
Lindstedtsvägen 30, Rum 346
SE-100 44 Stockholm
___________

Research Engineer
Department of Industrial Management – INDEK
Royal Institute of Technology
Lindstedtsvägen 30, Room 346
SE-100 44 Stockholm

___________

Tel: +46 (0)8 790 60 55
Mob: +46 (0)70 341 53 59
__________________________________
Note from Brendan Tripp

From: Brendan Tripp
Subject: Hey….
Date: Mon, 12 Jul 2010 13:38:08 -0500

Ron …

Good luck on the hospital stuff! I’ve had a couple of times through the E.R.
over the past several years, and they’re never any fun, and I well know how
disconnecting they can be.

Hope the docs find the right combination of meds to get you back in action soon!

best,

– Brendan Tripp
_______________________________________
Note from Sam S. Sinha

From: Sam s Sinha sams0777@gmail.com
Subject: Ref: – Report: IPA – International Profit Associates; Beware IPA Scam,
June 6th
Date: Mon, 12 Jul 2010 14:04:18 -0500
To: ron@themayreport.com

Are SMS (the new company in Tribune ads) and IPA in your report are the same
company.

Did you miss the Company, Just Energy, doing roaring Business in Chicago Metro
area!!!

Hi Ron:

Hope you are getting better now.

I was reading your report about IPA. I thing it was a great. one…. I know
their activities for many years.

I noticed that IPA’s ad are not appearing in Chicago Tribune. Instead, in
Chicago Tribune, a new company, SMS, is placing ads, that are almost same as
the ads that IPA used to place in Chicago Tribune before SMS’s ads started
appearing. .

See the ref..
www.careerbuilder.com/JobSeeker/Jobs/JobDetails.aspx?ipath=EXIND&siteid=c
bindeed&Job_DID=J8E53D75C5NY4RFSK3T

The ads by SMS are very similar to what IPA used to publish in Chicago
tribune…. Address etc for SMS and IPA appear to be same.

I am wondering if IPA is renamed as SMS….. May be your report have something
to do with this name change?? .

…

Another company I want you to be aware…. Just Energy (present) name.
www.justenergy.com/

Many people have complaints about this company. They also place their ads for
Job Opening in Chicago Tribune.

Learn more about Just Energy here::

www.keyframe5.com/just-energy-why-you-should-not-do-business-with-this-co
mpany/
www.youtube.com/watch?v=TK6RollB2sQ
cbs2chicago.com/investigations/just.energy.ruling.2.1641927.html
www.bbb.org/chicago/business-reviews/natural-gas-companies/just-energy-in
-chicago-il-86002251
consumerist.com/2010/03/deceptive-just-energy-salespeople-cruising-brookl
yn.html

One more thing I noticed…. these Company did not place ads in Craiglist….
Ads in Capitalists are cheaper and have more wider market.

I wonder what make them to place ads in Chicago Tribune/Tribunes and not in
Craigslist.

I did try to find how Just Energy spends extra revenue, taken from customers,
to promote green energy. There is no report about this in any reports in Just
Energy company. This aspect of the Just Energy have yet not been examined by
authorities. May be you can look at this.

Good luck in recovering soon

Sam
________________________________________
END OF REPORT