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OTC Hot Spots - HERO, SOMX, BIEL

|Includes: AGIX, BioElectronics Corp. (BIEL), SOMX

Hercules Offshore, Inc. (NASDAQ:HERO), Somaxon Pharmaceuticals, Inc. (NASDAQ:SOMX), and pink sheet stock BioElectronics Corporation (OTCPK:BIEL) are today's stock hot spots.

Hercules Offshore, Inc. (HERO.OB 4.06 +13.0%) may have taken a loss in the second quarter, but art least it was smaller this time around. This year's second quarter loss of $12 million (-14 cents per share) is a diametrical opposite of last year's Q2 earnings of $16.2 million (18 cents per share). The loss this past quarter would have only been 9 cents had it not been for a one-time charge.

The reason cited for the loss? Weaker demand. The company's CEO John Rynd does not expect to see an improvement in demand anytime soon. However, international demand and the additional contract days that stem from it have remained relatively firm. A lender concession on two outstanding debts has also made the recession's effect easier to withstand; concerns had been raised about the company's liquidity.

Though analysts don't expect to Hercules to urn a profit this year or next year, the company has topped estimates in each of the last four quarters.

Somaxon Pharmaceuticals, Inc.
(SOMX.OB 3.90 +119.0%) shares are up more than 80% today despite there not being any news to prompt the buying. Most likely, traders are piling into SOMX shares anticipating that Silenor will be approved for the treatment of insomnia. The FDA committee that would be recommending  - or not - the drug's approval was scheduled to meet this week. However, what these same traders may not realize is that the anticipated PDUFA decision date relating to the resubmitted NDA for Silenor is December 4th, 2009. Right committee, wrong time.

Those dates can change, though there has been no official word from the FDA or the company that they have in this case. Clearly, however, the market has heard a rumor (that may well end up being true) regarding the company. Caution is advised, but SOMX may be worth monitoring.

BioElectronics Corporation (PINK:BIEL 0.066 +27.1%), a pink sheet company, announced the company would be hosting a conference call next Tuesday to discuss the results of a recent clinical study. BioElectronics also intends to provide am update on the status of the company's recent FDA filings. The call has been schedules for 11AM (EDT), Tuesday, July 28th.

BioElectronics' RecoveryRX(NYSE:TM) devices have already received FDA clearance for the treatment of edema following blepharoplasty. The company also recently filed with FDA for clearance to market its Allay(TM) Menstrual Pain Relief Patch product. BioElectronics is currently preparing an application for 510(k)/FDA premarket notification for its PEMF product to be used to treat postoperative edema and pain in superficial soft tissue.

The ActiPatch Therapy and the Allay(TM) Menstrual Pain Relief Patch have proven to a safe and effective alternative to acetaminophen.