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Zacks Analyst Blog Highlights: Ness Technologies, American Capital Agency Corp, Biogen Idec, Sohu.com Inc and Cornerstone Therapeutics Inc. – Press Releases

Source: http://www.zacks.com/stock/news/18675/Zacks+Analyst+Blog+Highlights%3A+Ness+Technologies%2C+American+Capital+Agency+Corp%2C+Biogen+Idec%2C+Sohu.com+Inc+and+Cornerstone+Therapeutics+Inc.+-+Press+Releases
Posted on Tuesday, March 31st, 2009 | In Stocks to Watch
Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

For Immediate Release

Chicago, IL – March 31, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Ness Technologies (NSTC), American Capital Agency Corp (AGNC), Biogen Idec (BIIB), Sohu.com Inc (SOHU) and Cornerstone Therapeutics Inc (CRTX).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579.

Here are highlights from Monday’s Analyst Blog:

Ness Tech with More Downside

Ness Technologies (NSTC) is a small player in the IT services market. The company posted mixed 4Q08 results, with revenue below expectation but in line EPS.

The company’s Application Development and Software Product Engineering segment performed very well in 4Q08. However, Ness has forecasted lower-than-expected 2009 results, hurt by a slowdown at its U.S. financial services and NessPRO software distribution businesses.

Hold American Capital for Now

American Capital Agency Corp (AGNC) is a REIT that focuses on investments in mortgage pass-through securities and collateralized mortgage obligations (CMOs).

AGNC reported 4Q08 net income of $11.0 million or $0.73 per share on revenues of $17.1 million. The company reported a 16.5% annualized return on equity in 4Q08. Net interest spreads were 1.19% during the quarter, well below last quarter. Higher funding costs and lower mortgage rates are having a negative effect on spreads.

The Best Pipeline In Biotech

Last week, Biogen Idec (BIIB) held an R&D Day, highlighting the broad depth of the company’s pipeline. In total, Biogen Idec boasts 7 programs in phase III registration programs and 20 other programs in phase II “proof-of-concept” programs. Biogen’s development programs span oncology, neurology and cardiovascular disease, and include both small molecules and biologics. In our opinion, it’s the best pipeline in biotech.

Besides these late-stage candidates, Biogen has several interesting early-stage programs, including: GA101, a 3rd-generation anti-CD20 Mab with preclinical data suggesting superiority to Rituxan, CDP-323 and daclizumab, two Mabs with potential use in multiple sclerosis, and BIIB-014, an A2a antagonist for Parkinson’s Disease.

SOHU: Good Value, Great Growth

Sohu.com Inc (SOHU) is the second-largest Internet portal and one of the most well-known online brands in China. Sohu’s pipeline for its new online games remains strong and is expected to drive meaningful growth in late 2009 and 2010. We are encouraged by the company’s growing cash balance as well as its debt-free balance sheet.

We believe that the current stock price does not fully reflect the company’s intrinsic value. Concerns related to online ad spending and China’s macro economy in 2009 still remains. The company is going to spin-off part of its gaming division via an ADS offering.

Merged CRTX Much Improved

Cornerstone Therapeutics Inc (CRTX) is a specialty pharmaceutical company focused on acquiring, developing and commercializing prescription products for the respiratory market. Cornerstone Therapeutics is a newly created company following the merger of private Cornerstone BioPharma with public Critical Therapeutics completed on October 31, 2008. The merged company gets a new lease on life, finally.

We think the merger makes sense and is positive to both old companies. For Critical Therapeutics, the merger has greatly expanded its product portfolio, provided better resources for operations and sustainable growth. Critical Therapeutics was a tiny biotech company with only one product — Zyflo/Zyflo CR — on the market, with a very weak pipeline. Sales of Zyflo/Zyflo CR have been slow and the company had been under great pressure to expand its portfolio.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

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