Stock Market News & Stocks to Watch from StraightStocks » Pharmaceuticals

SNBP, 23 of Its Generic Drugs, in China’s National Essential Drugs List. SNBP, X-Treme Hot Stock Alert by DrStockPick.com

Dr. Stock Pick — Mon, 16 Nov 2009 19:21:32 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Monday November 16, 2009 DrStockPick.com Stock Report! ************************************************************** SNBP, Sinobiopharma Inc., SNBP.OB SNBP is a fully integrated and highly innovative specialty biopharmaceutical company engaged in the research and development, manufacture and marketing of biopharmaceutical products in China, the world’s fastest growing pharmaceutical market. Known [...]

Bristol Divests Nutritional Segment – Analyst Blog

Zacks Market Commentaries — Mon, 16 Nov 2009 15:46:13 +0000

Bristol-Myers Squibb Co. (BMY) intends to split its 83.1% holding in the Nutritional segment which operates under its subsidiary Mead Johnson and develops infant formulas such as Enfamil and other nutritional products. The move is aimed to enable the company to concentrate on its core biopharmaceutical business. The transaction is expected to be accretive to earnings beginning in 2010.

Under the terms of the deal, Bristol-Myers shareholders can exchange some, none or all of their shares of the company for shares of Mead Johnson common stock tax-free and at a discount. On completion, the exchange offer would enable Bristol-Myers to dispose of its entire holding interest in Mead Johnson.

For every $1 of Bristol-Myers stock exchanged, stockholders will get approximately $1.11 worth of Mead shares. The offer is set to expire on Dec 14, unless extended or terminated. Bristol-Myers owns 170 million shares of Mead Johnson. The completion of the offer requires at least 144.5 million shares of Mead Johnson common stock to be distributed.

As a reminder, Bristol-Myers divested 17% in Mead Johnson through an Initial Public Offering in Feb 2009 and raised $720 million.

The split-off would enable Bristol-Myers to function as a fully independent biopharma company focusing exclusively on its pharmaceuticals segment, which manufactures and sells branded pharmaceutical drugs such as Pravachol for cholesterol reduction, Plavix for hypertension and Erbitux for cancer.

Even though Plavix is the top growth driver, patent expirations loom large on the company starting 2011 when the Plavix patent expires. Furthermore, the antiplatelet blood thinner indicated to reduce the risk of heart attack in patients with atherosclerosis is facing competition from Eli Lilly’s (LLY) Effient, which was launched recently.

The company has lost patent protection on products worth about $4 billion in sales over the past four years. Drugs such as Cefzil, Paraplatin, Glucophage, Monopril and Taxol are also experiencing declining sales due to generic competition. However, the $1 billion addition in cost cuts in 2012−2013, the extension of the Abilify agreement with Otsuka, and the acquisition of Medarex indicate that management is taking meaningful steps to prepare for the loss of exclusivity of Plavix.

Currently, we are Neutral on Bristol-Myers.
Read the full analyst report on "BMY"
Read the full analyst report on "LLY"
Zacks Investment Research

Global Health Ventures Receives the First Shipment of Its Commercially Manufactured Male Enhancement Drug “X-Excite”

Stuart T. Smith — Mon, 09 Nov 2009 14:55:25 +0000

VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 11/09/09 — Global Health Ventures Inc. (OTCBB: GHLV), or the “Company” a Specialty Pharma is pleased to announce today that it has completed the prototype manufacturing of the drug “X-Excite” Global’s male enhancement drug. The manufacturing of the product was carried out under contract with Vida Pharma of Montreal, [...]

U.S. Healthcare Legislation Investment Impact

Richard Shaw — Sun, 08 Nov 2009 22:04:19 +0000

Last night the U.S. House of Representatives brought us one large step closer to a national healthcare system. Investors should be cognizant of the financial effects that would follow. In the extreme short-run, it would be reasonable to assume that the U.S. stock market would react negatively, although short-term price movements are often chaotic. [...]

Echo Therapeutics, Inc. (ECTE.OB) Announces Clinical Study for New Glucose Monitoring Product

QualityStocks — Thu, 05 Nov 2009 14:36:06 +0000

Echo Therapeutics, Inc., a diabetes management company developing a new needle-free Glocose Monitoring System, reports starting a new a clinical study of its Symphony(TM) Transdermal Continuous Glucose Monitoring product. The (tCGM System) study includes patients with Type 1 and Type 2 diabetes. The purpose of the study is to test the performance of its new [...]

DaVita Tops Zacks Estimate – Analyst Blog

Zacks Market Commentaries — Wed, 04 Nov 2009 15:02:00 +0000

DaVita Inc. (DVA) reported third quarter net income of $110.9 million or $1.06 per share, which was better than the Zacks Consensus Estimate of 99 cents. The company earned $93.9 million or 89 cents in the comparable quarter of 2008.

Revenues for the quarter came in at $1.57 billion, which reflected an 8.3% increase over the year-ago quarter. According to segments, revenues from the Dialysis and Related Lab Services segment for the quarter came in at $1.49 billion as against $1.38 billion in the prior-year quarter. Other - Ancillary Services and Strategic Initiatives segment generated revenues of $83 million as against $69 million in the year-ago quarter. Highlights of the strong display in the reported quarter included consistent volume growth, stable private pricing and strong cash flows.

Total treatments for the quarter came in at approximately 4.34 million, or 54,927 treatments per day, representing a per day increase of 6.1% over the year-ago quarter. Non-acquired treatment growth in the quarter was 5.2% over the prior-year period. The largest provider of dialysis services to patients suffering from End-Stage Renal Disease (ESRD) reported a $2.79 increase per treatment from the previous quarter. An increase in physician-prescribed pharmaceuticals coupled with a rise in drug reimbursement rates based on average sales price contributed to this increase.

By the end of the reported quarter, DaVita operated or provided administrative services at 1,513 outpatient dialysis centers, thereby serving approximately 117,000 patients. Furthermore, during the quarter, the company acquired four centers, opened 21 new centers, merged five centers, shut down one center and provided administrative and management services to an additional third-party owned center.

DaVita exited the quarter with operating cash flow of $167 million, while $125 million represented the free cash flow. The company's effective tax rate was 37.0% in the reported quarter, which was impacted by the amount of third party owners' income attributable to non-tax paying entities. However, the effective tax rate attributable to DaVita in the quarter was 40.0%.

DaVita raised its operating income guidance for 2009 to $930 million–$950 million from its prior guidance of $900 million–$930 million. Management expects to modestly exceed the operating cash flow guidance of $550 million−$600 million. The company expects 2010 operating income to lie between $950 million and $1.02 billion.

Currently, we are Neutral on DaVita.
Read the full analyst report on "DVA"
Zacks Investment Research

Procter & Gamble Reports In Line – Analyst Blog

Zacks Market Commentaries — Thu, 29 Oct 2009 14:01:04 +0000

 The Procter & Gamble Company (PG) reported results for the first quarter of fiscal 2010 with earnings of 97 cents per share, in line with the Zacks Consensus Estimate but down 5.8% year-over-year.

Net sales for the quarter declined 5.6% year-over-year to $19.8 billion, as a 3% benefit from pricing and 1% benefit from product mix was fully offset by a 3% decline in unit volume -- a 7% unfavorable impact of foreign currency and a 1% impact of divestitures. However, successful product launches, supported by marketing initiatives, contributed to the top line. Organic sales grew 2% during the quarter driven by pricing and product mix.

All three Global Business Units (GBU) witnessed revenue declines during the quarter. The Beauty segment declined 5%, with the low single-digit growth in retail hair care volumes offset by the double-digit decline in Professional salon volume and mid-single-digit decline in female beauty volume. In addition, high single-digit declines in blades & razors impacted the Grooming division. Strong growth of Gillette and Fusion brands were offset by declines in Braun.

The Household Care segment sales contracted 5%. It was impacted by a low single-digit decline in Fabric Care and Home Care segments. The decline in Fabric Care was due to global market share contractions and trade inventory reductions in North America.

In the Baby Care division, volume increased low single-digits, which was partially offset by mid single-digit declines in the Family Care division, primarily attributable to trade inventory reductions and market share losses due to a shift in timing of merchandising activity.

The Health and Well Being segment declined 4%. The segment was impacted by low single-digit volume decline in the Feminine Care business. However, Oral Care volume was in line with the prior-year quarter.

The Snacks division witnessed decline in double-digits due to lower merchandising activity in North America. The Pet Care segment declined low-single-digits as a result of contraction in the premium nutrition category. This was partially offset by the continued success of new product initiatives.

Gross margin for the quarter expanded 287 basis points (bps) to 52.6% versus 49.7% in the comparable prior-year quarter. The increase was primarily driven by benefits of price increases, lower commodity costs and manufacturing cost savings. The operating margin for the quarter also expanded 156 bps to 22.5% from 20.9% in the prior-year quarter.

Operating cash flow for the quarter increased 32% to $4.6 billion, due to reductions in working capital. The company has a debt to capitalization ratio of 25%. Capital expenditures for the quarter were $555 million (2.8% of net sales).

The company is on track to complete the sale of its global pharmaceuticals business to Warner Chilcott, as stated by management earlier. The estimated financial impacts of the transaction are unchanged versus prior guidance.

Based on the performance in the first quarter, management raised its guidance for full fiscal 2010. Organic sales are now expected to grow 2% to 4% compared to 15 to 3% stated earlier. Net sales are expected to grow in the range of 3% to 6%.

Foreign exchange is expected to positively contribute 1% to 2% to net sales growth. Previous guidance was an adverse impact of 0% to 1%. Annual earnings are now expected to be in the range of $4.02 to $4.12. Core earnings are now expected to be in the range of $3.47 to $3.59. Management increased the low end of the guidance range by $0.03 per share.

For the second quarter, management expects organic sales growth of 2% to 5%. Foreign exchange is expected to add 1% to 2% to sales in the quarter. Net sales are expected to increase 3% to 7% versus the prior year. Core earnings are expected in the range of $0.91 to $1.00 per share.
Read the full analyst report on "PG"
Zacks Investment Research

Bayer Disappoints – Analyst Blog

Zacks Market Commentaries — Wed, 28 Oct 2009 18:19:07 +0000

Bayer (BAYRY) announced its third quarter results yesterday. Revenues of the group recorded a 7% decline to €7.39 billion from €7.94 billion. The company’s earnings per share from continued operations were €0.78, compared to €0.85 in year-ago period.

Bayer operates through three major segments: Healthcare, accounting for 53.24% of total revenues in the third quarter of 2009; CropScience (15.4%), and Material Science (27.5%) with the remaining 4% coming from other items. While Healthcare segment revenues improved marginally by 3.5%, both cropscience and Material Science fell 8.6% and 20%, respectively.

The Healthcare segment recorded revenues of €3.9 billion compared to €3.8 billion in the corresponding period last year. Both the divisions of Healthcare – pharmaceuticals and consumer health contributed to the growth of the Healthcare segment. Bayer’s primary market, Europe – accounting for 39% of its Healthcare revenues – declined 3%, compared to the year-ago period. The other markets of North America, Asia Pacific and Latin America, Africa and Middle East grew 4.8%, 21.2% and 1.6%, respectively.

The 3% increase in pharmaceutical sales was driven primarily by general medicine, specialty medicine and diagnostic imaging partially offset by women’s healthcare. Other than Betaferon, Bayer’s other best selling drugs including Yasmin, Kogenate, Adalat and Nexavar recorded an improvement in sales.

Moreover, the consumer health subgroup grew 4.5% to €1.4 billion driven by increased sales of its three divisions – consumer care (3.2%), medical care (6.8%) and animal health (5.5%).

Although we are pleased to see the strong performance of the Healthcare segment, we remain concerned about the disappointing performance of CropScience and Material Science. Revenues from both the divisions of crop science – crop protection and environmental science and bio science declined 8.8% and 7.7% respectively due to lower prices of key crop commodities, adverse weather patterns and higher trade inventories of crop protection products.

Among the three segments of Bayer, Material Science was the worst performing segment during the quarter. Revenues from this segment recorded revenues of €2 billion, down 20% from €2.5 billion in the year-ago period due to a decline in selling price of the products as well as lower overall volume. All the four regions recorded a drop in sales.

Bayer had cash and cash equivalents of €2.6 billion at the end of third quarter, up from last year’s €2.3 billion. Gross cash flow was unchanged from the prior year period to €1.2 billion, while net cash flow rose 22.9 % to €1.5 billion because of improvements in working capital at Healthcare and crop science. The company reduced its net financial debt to €10.7 billion at the end of the reported quarter, from €11.7 billion at the end of June 2009.

Based on the third quarter results, Bayer still predicts a wide variation among the subgroups in terms of performance for 2009. For Healthcare the company continues to expect a positive trend in the current year, with growth in sales and EBITDA before special items. Despite the deterioration in the market environment for CropScience, the company expects this segment to increase compared with 2008. The company anticipates a decline in Material Science revenues in the fourth quarter.

In this backdrop, Bayer expects to post total sales in the range of €31–32 billion. We believe growth in the Healthcare business is particularly important for Bayer as the company has shifted its focus to this area, which accounts for more than 50% of total revenues. We expect Material Science business to pick up in 2010 when the world economy recovers from current recession.

Read the full analyst report on "BAYRY"
Zacks Investment Research

PWRM, BCRX, DrStockPick.com Stock Report! Power 3 Medical Products Inc. and BioCryst Pharmaceuticals, Inc.

Dr. Stock Pick — Mon, 26 Oct 2009 17:33:48 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Monday October 26, 2009 DrStockPick.com Stock Report! PWRM, BCRX ************************************************************** PWRM, Power 3 Medical Products Inc, PWRM.OB Power3 Medical Products, Inc. is a leading bio-medical company engaged in the commercialization of neurodegenerative disease and cancer biomarkers, pathways, and mechanisms of diseases through the development of diagnostic tests and drug [...]

BCRX, AEMD, CVAT, DrStockPick.com Watch List! for Monday October 26, 2009, BioCryst Pharmaceuticals, Inc., Aethlon Medical Inc. and Cavitation Technologies Inc.

Dr. Stock Pick — Mon, 26 Oct 2009 03:03:10 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ DrStockPick.com Watch List! My Picks for Monday October 26, 2009, are: ************************************************************** BCRX, BioCryst Pharmaceuticals, Inc. U.S. President Barack Obama has declared 2009 H1N1 swine flu a national emergency, the White House said on Saturday. BCRX designs, optimizes and develops novel small-molecule pharmaceuticals that block key enzymes involved in [...]

President Barack Obama Declares Swine Flu a National Emergency. Emergency Use Authorization Granted For BCRX’s Peramivir. BCRX, X-Treme Hot Stock Alert by DrStockPick.com

Dr. Stock Pick — Sat, 24 Oct 2009 21:25:06 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Saturday October 24, 2009 DrStockPick.com Stock Report! ************************************************************** U.S. President Barack Obama has declared 2009 H1N1 swine flu a national emergency, the White House said on Saturday. ________________________________________________ BCRX, BioCryst Pharmaceuticals, Inc. BCRX designs, optimizes and develops novel small-molecule pharmaceuticals that block key enzymes involved in infectious [...]

Oxygen Biotherapeutics, Inc. (OXBO.OB) Announces New Diversified Product Development Plan with Four Strategic Pillars

QualityStocks — Tue, 20 Oct 2009 20:33:39 +0000

Oxygen Biotherapeutics now has a clinical development pipeline which includes seven indications for Oxycyte(TM) emulsion. Oxycyte is the Company’s perfluorocarbon (PFC) therapeutic oxygen carrier. The new Oxycyte pipeline includes: Traumatic Brain Injury, Carbon Monoxide Poisoning, Surgical Iatrogenic Air Embolism, Spinal Cord Injury, Organ Preservation, Decompression Sickness, and Sickle Cell Crisis. The company has also reported that [...]

Par Pharmaceutical Companies, Inc. – Value – Zacks Rank Buy

Tracey Ryniec — Tue, 20 Oct 2009 05:00:00 +0000

Par Pharmaceutical Companies, Inc. (PRX) has surprised on the Zacks Consensus Estimate 3 out of the last 4 quarters by an average of 101.93%. With earnings estimates jumping, the company has a PEG ratio of just 0.2.

Company Description

Par Pharmaceutical manufactures generic drugs and branded pharmaceuticals for the specialty markets. The company ranks among the top ten in generic drug sales in the United States.

The branded division, Strativa Pharmaceuticals, was launched in 2005 and has licensed 4 proprietary drugs that are in development.

Third Quarter Zacks Consensus Estimate Rises

As the third quarter earnings report scheduled for Nov 5 approaches, analysts are becoming more bullish on Par.

In just the last week, 3 out of 8 covering analysts have raised estimates by 3 cents to 47 cents per share. That is a 74% increase in the estimate in the last 3 months.

The full year Zacks Consensus Estimate is also jumping. It rose by 7 cents to $2.00 per share in the last week as, again, 3 out of 8 analysts also raised during that period.

Par Pharmaceutical Beat by 35.42% in the Second Quarter

On June 27, Par Pharmaceutical reported second quarter results that easily beat the Zacks Consensus Estimate by 17 cent per share. Earnings per share were 65 cents compared to a loss of 61 cents in the year ago period.

Revenues rose to $404 million from $112.9 million in the year ago period. The company saw strong sales of Metroprol, the authorized generic for all strengths of AstraZeneca's Toprol XL, which rose 173% from the first quarter due to market exclusivity and additional product supply which boosted volume and price.

As of the end of June, the company had approximately 37 New Drug Applications pending with the FDA, 14 of which Par believed to be first-to-file and/or first-to-market opportunities with a brand value of about $5.9 billion.

Value Fundamentals

Par Pharmaceutical is a Zacks #1 Rank (strong buy) stock. It has attractive value characteristics with a forward P/E of 11.9 and a price-to-book of 1.81. The company also has a solid 1-year return on equity (ROE) of 12.66%.

Zacks Investment Research

CBS Re-affirms Operating Guidance – Analyst Blog

Zacks Market Commentaries — Fri, 16 Oct 2009 17:15:37 +0000

CBS Corporation (CBS), the media conglomerate, recently asserted that it still expects its full year 2009 operating income before depreciation and amortization (OIBDA) in the range of $1.725 billion to $1.925 billion.

The uptrend seen in the second-quarter 2009 revenue has made management optimistic and forecasted better results in the third and fourth quarters compared to the earlier quarters in 2009. The company also indicated some signs of revival in advertising demand in core categories like retail, telecom, pharmaceuticals and quick service restaurants.

Although the sluggish advertising market continues to hurt total revenue, which declined 11% to $3,006.3 million in the second-quarter 2009, but CBS saw a 3% improvement in quarterly revenue compared with a 14% drop in the first-quarter 2009.

In a separate story, National Amusement Inc., the holding company of media tycoon Sumner Redstone plans to sell its stake in CBS Corporation and Viacom Inc. (VIA), and also 35 movie theaters to pay back its debts.

The privately held theater chain has a controlling stake in both CBS and Viacom, and plans to raise $343.7 million and $602.3 million, respectively by offloading part of its stake. Even after the sale, National Amusements will have more than 79% interest in both CBS and Viacom.

National Amusement will sell nearly 26 million shares of CBS Class B common shares at $12 each, with an underwriting option of 2.6 million more shares, and about 19.4 million shares of Viacom Class B common shares at $28.25 with an underwriting option of 1.9 million more shares.
Read the full analyst report on "CBS"
Zacks Investment Research

Top Performer for Thurs: Par Pharmaceutical (PRX) – Zacks #1 Rank Top Performers

James Giaquinto — Thu, 15 Oct 2009 05:00:00 +0000

Par Pharmaceutical Companies, Inc. (PRX) received a brokerage firm upgrade today, which is helping it to gain during a rather muted morning session.

In addition, PRX has been enjoying rising earnings estimates that have pushed the 2009 and 2010 Zacks Consensus Estimates higher in just the past 7 days.

The company made the Zacks #1 Rank Top Performers List for Thursday with shares that are up approximately 4.4%. Volume is at 716,000 shares; above the daily average of 301,000.

Par Pharmaceutical develops, manufactures and markets generic drugs and innovative branded pharmaceuticals for specialty markets.

It is part of the Medical-Generic Drugs industry. There are 3 other names from this space on today's Zacks #1 Rank List: Dr. Reddy's Laboratories Ltd. (RDY), Hi-Tech Pharmacal Company, Inc. (HITK) and Impax Laboratories, Inc. (IPXL).

Earnings Estimates

For this year, the Zacks Consensus Estimate is at $1.93 per share, which is up 2.7% from $1.88 in 7 days and up 9.7% from $1.76 in 2 months.

Looking toward next year, the Zacks Consensus Estimate is pegged at $1.25, marking a 3.3% gain in the past week from $1.21. Furthermore, the guidance has advanced more than 20% in the past 60 days.

Recent Events

Par Pharmaceutical reported its second-quarter results on Aug 4. Since that time, some noteworthy events include:

PRX receiving, on Sep 10, final approval from the FDA for nateglinide tablets; a generic version of Novartis' Starlix. The tablets are to improve glycemic control in adults with Type II diabetes mellitus.
PRX gaining approval, on Aug 18, from the FDA for a clonidine transdermal system, a generic version of the Catapres TTS high blood pressure patch. This is the first generic 7-day patch for the treatment of hypertension.
On Aug 17, PRX announced that it won a patent dispute over the pain drug Ultram ER.

Second-Quarter Results

In early August, Par Pharmaceutical reported adjusted earnings per share of 65 cents on total revenues of $404 million for its second quarter.

The earnings result reversed a year-ago loss and also topped the Zacks Consensus Estimate by more than 35%. Meanwhile, revenue soared year over year from $112.9 million.

The big star of the quarter was Metoprolol, as net sales reached $306 million, up 173%. Metoprolol is the authorized generic version of AstraZeneca's Toprol XL, a treatment for angina, high blood pressure and heart failure.

Zacks Investment Research

Zacks Bull and Bear of the Day Highlights: VimpelCom, Rite Aid Corporation, Johnson & Johnson, Elan Pharmaceuticals and Gilead Sciences, Inc. – Press Releases

Zacks Market Commentaries — Wed, 14 Oct 2009 12:49:09 +0000

For Immediate Release

Chicago, IL – October 14, 2009 – Zacks Equity Research highlights VimpelCom (VIP) as the Bull of the Day and Rite Aid Corporation (RAD) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Johnson & Johnson (JNJ), Elan Pharmaceuticals (ELN) and Gilead Sciences, Inc. (GILD).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

We reaffirm our Outperform recommendation for VimpelCom (VIP), Russia's second largest cellular carrier with over 25% market share. Reported earnings in the last quarter outpaced the Zacks Consensus Estimate, driven by foreign exchange gains.

We continue to be intrigued by VimpelCom's successful sales growth trend and its ability to retain subscribers on a recurring basis, even as overall economic factors remain weak. The company is also progressing well in expanding its 3G wireless and residential broadband network deployments, as reflected by healthy subscriber accretion in the last quarter.

Additionally, the ongoing expansion initiatives into emerging Asian markets (including Cambodia and Vietnam) are expected to boost opportunity in wireless, given the lower mobile penetration levels in these regions.

Bear of the Day:

Management at Rite Aid Corporation (RAD) was executing a turnaround strategy centered on increasing the profitability of the existing store base.

However, the acquisition of Brooks Eckerd prior to a convincing turnaround in profitability has increased the debt burden and interest expense.

Moreover, Wal-Mart's foray into the retail generic drug market has pressured the company's pharmacy margin. Given the weakness of front-end sales and management's continual lowering of EPS guidance (for larger net losses), the stock's rating remains Underperform.

Pharmaceutical Industry Consolidation

QualityStocks — Tue, 13 Oct 2009 19:03:11 +0000

Abbott Laboratories (NYSE: ABT) recently announced that the company will purchase the pharmaceutical arm of Belgium’s Solvay Group for $6.5 billion. This deal expands both the company’s product range and the company’s presence in fast-growing emerging countries, helping defer the effect of patent expiries and compensate for sluggish growth in its traditional markets, such as [...]

J&J Beats & Raises Guidance – Analyst Blog

Zacks Market Commentaries — Tue, 13 Oct 2009 15:55:15 +0000

Johnson & Johnson’s (JNJ) third quarter earnings of $1.20 surpassed the Zacks Consensus Estimate by 7 cents and by 3 cents from the year-ago period.

However, the company reported revenues of $15.1 billion, a decline of 5.3% compared to the third quarter of 2008. While 2.8% of the decline in revenue was due to operational factors, foreign exchange movement was responsible for the remaining 2.5% decline. Sales in both domestic and international markets recorded declines of 8.1% and 2.5%, respectively.

Johnson & Johnson’s diversified business model is helping the company pave its way through tough situations. For the second quarter in a row, the company’s medical devices segment posted higher revenues than the pharmaceuticals. While medical devices recorded an increase of 2.3% compared to the year-ago period, consumer products and pharmaceuticals recorded a year-over-year decline of 2.7% and 14.1%, respectively.

While generic competition was primarily responsible for the decline in prescription drug business, unfavorable currency movements hampered sales of consumer products and medical devices.

For the pharmaceuticals segment, domestic and international sales declined 19.2% and 7.1%, respectively reflecting an operational decrease of 1.9% and a negative currency impact of 5.2%. Drugs such as Topamax (76% decline), an antiepileptic and a treatment for migraine, and Risperdal (40% decline), an antipsychotic medication, were negatively impacted by generic competition.

The company recently acquired an 18.4% stake in Elan Pharmaceuticals (ELN) for $885 million and an additional $500 million for its Alzheimer's disease pipeline. Additionally, J&J entered into a licensing and collaboration agreement with Gilead Sciences, Inc (GILD) for the development and commercialization of a new fixed dose combination of investigational compound TMC278 (rilpivirine hydrochloride 25 mg) and Gilead's Truvada (emtricitabine 200 mg/tenofovir disoproxil fumarate 300 mg) for treatment-naive adult patients with HIV-1. We believe J&J will look for such opportunities in the near future to boost its pharmaceuticals revenues.

While revenue from medical devices recorded a year-over-year increase of 2.3%, revenue would have been higher but for the negative currency impact of 1.8%. Primary contributors to growth include Ethicon's surgical care and aesthetics products; Ethicon Endo-Surgery's minimally invasive products; DePuy's orthopaedic joint reconstruction, spine and sports medicine businesses; and Ortho-Clinical Diagnostics' professional products. Increased competition in the US affected drug-coated stent sales.

Johnson & Johnson has been trying to offset the declining sales of some of its important products by bringing in new products through in-licensing deals and acquisitions. In addition, the company has been implementing several cost-cutting initiatives and consolidating its management structure to boost its earnings.

J&J raised its full year 2009 earnings guidance to $4.54 – $4.59 from the earlier guidance of $4.45 – $4.55. We have a Neutral recommendation on the stock.
Read the full analyst report on "JNJ"
Read the full analyst report on "ELN"
Read the full analyst report on "GILD"
Zacks Investment Research

Lubrizol Corporation – Value – Zacks Rank Buy

Tracey Ryniec — Tue, 13 Oct 2009 05:00:00 +0000

The Lubrizol Corporation (LZ) has seen its stock hitting 52-week highs in recent sessions, but it's still an attractive value stock as earnings have been rising. LZ has a forward P/E of just 11.33.

Company Description

Lubrizol manufactures specialty chemcials including lubricant additives for engine oils and fuel additives for gaoline and diesel fuel. It also makes ingredients and additives for personal care products and pharmaceuticals, plastics technology and performance coatings.

Raised 2009 Guidance on Sep 14

Lubrizol raised full-year guidance well-ahead of its Oct 29 third-quarter earnings report to the range of $6.10 to $6.40 from a prior range of $5.70 to $6.00 per share it issued on July 30.

Analysts are bullish and have been raising estimates as the earnings date approaches.

All 7 covering analysts raised 2009 estimates to $6.35 from $5.96 in the last 30 days. For the third quarter, the Zacks Consensus Estimate has jumped 7 cents in the last week as 2 out of 7 analysts have raised in that time period.

The surprise history for Lubrizol is somewhat misleading as it shows them meeting estimates in the second quarter when, in fact, the company pre-announced far better than expected earnings for the quarter which gave the analysts time to raise their estimates to meet the number.

In the second quarter results, the company still saw year over year volume declines but quarter over quarter both revenues and volumes increased. Analysts are betting that that trend continues into the third quarter.

Value Fundamentals

Lubrizol is a Zacks #1 Rank (strong buy) stock. It has a price-to-book ratio of 2.74. The company has a stellar 5-year average return on equity (ROE) of 18.88%. As an added bonus, Lubrizol also pays a dividend with a yield of 2.00%.

The 1-Year Chart:

Zacks Investment Research

Today in Russian Business – October 12, 2009

Robert Amsterdam — Mon, 12 Oct 2009 09:23:42 +0000

President Medvedev has reportedly said that the damage caused by the financial crisis was far worse than expected and the economy may contract by 7.5% this year. In an interview with state television, Medvedev designated priorities for economic modernization: 'energy...

Top Health Equity Funds – Mutual Fund Commentary

Alex Kolb — Tue, 06 Oct 2009 06:40:38 +0000

Today we are featuring top-performing “Health" equity mutual funds, which primarily invest in equity securities of healthcare and related companies.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Health Equity Funds.

2 Excellent Samples

Franklin Strategic Biotechnology A (FBDIX) seeks capital appreciation. The fund was incepted in September 1997 and is managed by Franklin Advisers.

The fund invests at least 80% of its net assets in equity securities of biotechnology companies and discovery-research firms worldwide, including therapeutics, drug delivery, gene therapy and other select medical companies.

The fund invests a substantial portion of its assets in equity securities of smaller capitalization companies and invests a small portion of its assets in private or illiquid securities. The fund offers dividends and capital gains annually.

Evan McCulloch is lead manager of the fund since September 15, 1997. He specializes in research and analysis of the health care industry including pharmaceuticals, health care information systems / Internet and health care providers. Evan received his Bachelor's degree in Economics from the University of California at Berkeley and is a designated Chartered Financial Analyst (CFA). Evan joined Franklin in 1992.

Alger Health Sciences C (AHSCX) seeks long-term capital appreciation by investing primarily in equity securities that are engaged in the health sciences sector. The fund was incepted in May 2002 and is managed by Fred Alger Management.

The fund has a portfolio turnover of 214% and an expense ratio of 2.23% as February 10, 2009. The fund offers dividends and capital gains annually.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Zacks Investment Research

BioCryst clarifies government declaration (NASDAQ:BCRX)

Jyotsna Ramani — Mon, 05 Oct 2009 12:30:39 +0000

BioCryst Pharmaceuticals have clarified today that the Government Declaration about their antiviral Peramivir requires a step before they can issue an Emergency Use Authorization or EUA. The company announced that the Office ...

Baxter International – Growth And Income – Zacks Rank Buy

Alex Kolb — Fri, 02 Oct 2009 05:00:00 +0000

Baxter International (BAX) is seeing bullish earnings projections. The current full-year Zacks Consensus Estimate of $3.79 per share was increased from $3.77 over the past 3 months. For 2010, the forecast jumped from $4.24 to $4.28 over the same time frame.

Company Description

Baxter International develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, cancer, infectious diseases, kidney disease, trauma and other chronic and acute medical conditions.

As a global diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide. The company's products are used by hospitals, kidney dialysis centers, nursing homes, rehabilitation centers, doctors' offices, clinical and medical research laboratories, and by patients at home under physician supervision. Baxter manufactures products in 26 countries and sells them in more than 100 countries.

Higher Forecasts

The company is seeing bullish earnings projections. The current full-year Zacks Consensus Estimate of $3.79 per share was increased from $3.77 over the past 3 months. For 2010, the forecast jumped from $4.24 to $4.28 over the same time frame.

Baxter's 2009 earnings guidance ranges between $3.76 and $3.80 per share.

Recent Events

The company recently discussed its long-term financial objectives, growth opportunities and various research and development (R&D) programs at its recently concluded Investor Conference in Chicago. For the full story, read the Analyst Blog titled Baxter's Long-Term Goals.

Rewarding Shareholders

In late July, Baxter declared a quarterly dividend of 26 cents per share, which was paid out on October 1. Baxter rewards shareholders with an industry-leading dividend yield of 2%.

A Solid Quarter

In mid-July, the company posted second-quarter earnings of 96 cents per share, topping the consensus estimate by 2% and surpassing the previous year's 85 cents.

Worldwide sales of $3.1 billion slipped by 2%. Excluding the impact of foreign currency, worldwide sales were up 8%. U.S. sales climbed 7% to $1.3 billion. International sales dipped by 8% to $1.8 billion. Excluding the impact of foreign currency, international sales increased 9%. Zacks Investment Research

DrStockPick.com Stock Report! 9/30/09, CDOM, BEZ, MDAS, SPNGE, BTEL, CGMS

Dr. Stock Pick — Wed, 30 Sep 2009 18:44:59 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Wednesday September 30, 2009 DrStockPick.com Stock Report! ************************************************************** Cardo Medical (OTCBB:CDOM), a company engaged in the development of orthopedic medical devices, announces the introduction and first successful implantation of the Align 360(TM) Total Knee system. The initial release will follow with a commercial [...]

PFE, PWRM, TXN, CSRH, AA, CVAT, DOW, DrStockPick.com Stock Report!

Dr. Stock Pick — Tue, 29 Sep 2009 19:11:55 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Tuesday September 29, 2009 DrStockPick.com Stock Report! PFE, PWRM, TXN, CSRH, AA, CVAT, DOW ************************************************************** PFE, Pfizer Inc. PFE is the world’s premier biopharmaceutical company taking new approaches to better health. We discover, develop, manufacture and deliver quality, safe and effective prescription medicines to treat and help prevent disease [...]

Rio Tinto Reduces Debt – Analyst Blog

Zacks Market Commentaries — Fri, 25 Sep 2009 19:18:01 +0000

Rio Tinto PLC (RTP), the heavily indebted miner, has now cashed in over $7 billion in total by selling its non-core assets after its merger with Canadian aluminum group Alcan.

Last week, Rio agreed to sell its Alcan composites business to Switzerland's Schweiter Technologies for $349 million. The deal is expected to close by the end of the year.

The company targets to sell $15 billion in assets to lighten its debt burden it piled up from the $38 billion acquisition of Alcan in 2007. At the end of June 2009, Rio's total net debt was $39.1 billion. However, after the rights issue scheme in July, it managed to cut down its debt to $24.3 billion. It completed the $15.2 billion of rights issue in July.

The biggest check the company has received so far from its clearance sales was for divesting its business in Alcan's pharmaceuticals, global tobacco and food packaging divisions for $2.0 billion to Amcor Ltd in August 2009. This deal is the latest in Rio’s ongoing divestment program aimed at reducing its debt.

The company has $8.9 billion of debt maturing in 2009, $9.1 billion maturing in 2010, and another $10.0 billion in 2012.

Looking forward, we believe it is very important for the company to realize attractive prices for its assets in order to pay down debt. But if the company ends up selling non-core assets at distressed prices, meeting its debt reduction targets might be difficult.

Given the tough market conditions, we believe it could prove difficult for the company to dispose its assets at attractive prices, which in turn could have a negative impact on the shares.
Read the full analyst report on "RTP"
Zacks Investment Research

PWRM, PFE, NVS, DrStockPick.com Stock Report! Power 3 Medical, Pfizer, Novartis

Dr. Stock Pick — Fri, 25 Sep 2009 13:32:55 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Friday September 25, 2009 DrStockPick.com Stock Report! PWRM, PFE, NVS ************************************************************** PWRM, Power 3 Medical Products Inc, PWRM.OB Power3 Medical Products, Inc. is a leading bio-medical company engaged in the commercialization of neurodegenerative disease and cancer biomarkers, pathways, and mechanisms of diseases through the development of diagnostic tests and [...]

T, PWRM, ABT, CVAT, VZ, CSRH, TSPG, FLIR, DrStockPick.com Stock Report!

Dr. Stock Pick — Wed, 23 Sep 2009 18:48:54 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Wednesday September 23, 2009 DrStockPick.com Stock Report! T, PWRM, ABT, CVAT, VZ, CSRH, TSPG, FLIR ************************************************************** T, AT&T, Inc. T is a premier communications holding company. Its subsidiaries and affiliates - AT&T operating companies - are the providers of AT&T services in the United States and around the world. T [...]

CSCO, PWRM, CVAT, CSRH, PER, ABT, DrStockPick.com Stock Report!

Dr. Stock Pick — Mon, 21 Sep 2009 20:04:21 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Monday September 21, 2009 DrStockPick.com Stock Report! CSCO, PWRM, CVAT, CSRH, PER, ABT ************************************************************** CSCO, Cisco Systems, Inc. CSCO designs, manufactures, and sells Internet Protocol (IP)-based networking and other products to the communications and IT industry worldwide. Pelco by Schneider Electric, and CSCO today announced a strategic technology [...]

IBM, PWRM, NWMT, CVAT, CSRH, F, AQNM, NVS, DrStockPick.com Stock Report!

Dr. Stock Pick — Fri, 18 Sep 2009 20:18:10 +0000

Dr Stock Pick HOT News & Alerts! _________________________________________ FREE Daily Stock Alerts From DrStockPick.com _________________________________________ Friday September 18, 2009 DrStockPick.com Stock Report! PWRM, IBM, NWMT, CVAT, CSRH, F, AQNM, NVS ************************************************************** PWRM, Power 3 Medical Products Inc, PWRM.OB Power3 Medical Products, Inc. is a leading bio-medical company engaged in the commercialization of neurodegenerative disease and cancer biomarkers, pathways, and mechanisms of diseases through the [...]

PWRM, NVS, DrStockPick.com Stock Report! Power 3 Medical Products Inc., PWRM.OB

Dr. Stock Pick — Fri, 18 Sep 2009 18:57:01 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ Friday September 18, 2009 DrStockPick.com Stock Report! PWRM, Power 3 Medical Products Inc, PWRM.OB NVS, Novartis AG ************************************************************** Power3 Medical Products, Inc. Headlines Session at International Molecular Diagnostic Meeting in China - Power3 Medical Products, Inc. a Leader in Neurodegenerative Disease and Cancer Diagnostic Biomarkers Announces its Chief Scientific Officer [...]

PPI Rises on Energy – Analyst Blog

Dirk Van Dijk — Tue, 15 Sep 2009 18:00:00 +0000

The producer price index for August came in at a much higher-than-expected 1.7% increase for the month, following a 0.9% decline in July and a 1.8% increase in June. The consensus expectation was for a rise of just 0.8%.

However, it was almost all because of higher energy costs. Core (ex food and energy) inflation was just 0.2% (just a notch higher than the 0.1% expected), following a 0.1% decline in July and a 0.5% increase in June. Energy prices rose 8.0% following a 2.4% decline in July and a 6.6% increase in June.

On a year-over-year basis, producer prices were 4.3% lower, but in July they were 6.8% lower. Core producer prices are up 2.8% on a year-over-year basis. The year-over-year numbers are going to start looking much hotter in the future, as most of the really big declines were in the fall of last year, especially in the fourth quarter.

Looking further up the pipeline at the earlier stages of production, the monthly numbers are starting to have a distinctly warm feeling to them. Intermediate goods saw a 1.8% increase in August, following a 0.2% decline in July and a 1.9% rise in June. On a year-over-year basis, they are still ice cold, with a decline of 12.3% in August vs. a 15.1% decline in July. However, that is a reflection of massive declines in the fourth quarter of last year, when each month saw a decline of more than 4%, for a cumulated quarterly decline of 12.5%. As those numbers roll off, the year-over-year numbers are going to start looking much hotter.

Things are even more extreme at the crude stage. Crude goods are essentially commodities, and thus tend to have much larger price swings than do intermediate or finished goods. Crude goods prices have been seesawing, with a 3.8% monthly gain in August after a 4.5% decline in July and a 4.6% increase in June. On a year-over-year basis, prices on crude goods are still down 35.2%, but just last month they were down 44.8%. The collapse in crude goods prices last fall was absolutely spectacular. In October of last year, crude goods prices crashed by 16.1% and then in November the carnage continued with a 13.1% decline. As those roll off the year-over-year numbers, it could start to look on the hot side.

Looking with a finer-toothed comb at where finished goods prices are rising and falling the most on a year-over-year basis, we see that pharmaceuticals are once again rising in price far in excess of other prices, up 7.2%. Those numbers include both prescription and over-the-counter medications.

Firms like Johnson & Johnson (JNJ) and Bristol Myers (BMY) are going to have an easier time maintaining their margins than are most companies.

Prices for many other non-durable items have also been increasing. For example, the cost of detergents is up 6.0% year over year while sanitary paper products (toilet paper, paper towels) is up 3.7% year over year. That is good news for the likes of Proctor and Gamble (PG) and Colgate Palmolive (CL).

On the downside, the biggest declines by far come from the energy area. This will be very helpful to consumers this winter, as the cost of heating your home is going to be much lower than last year. The price of residential natural gas is down 27.5% from a year ago. If you heat your house with oil instead of gas, you are even luckier; the price of home heating oil is down 47.6%. That should free up some cash for people to either restore their personal balance sheets or purchase other stuff.

Read the full analyst report on "JNJ"
Read the full analyst report on "BMY"
Read the full analyst report on "PG"
Read the full analyst report on "CL"
Zacks Investment Research

September 14th CEOcast Weekly Newsletter

QualityStocks — Mon, 14 Sep 2009 21:16:48 +0000

Companies featured in this edition of the newsletter: CUR, CVM, ENZ, IMUC, MBCI, ONEZ, PHC, SVUL Markets finished in positive territory yet again during this holiday shortened week despite the lack of any significant developments on either the corporate or economic fronts. All told, the Dow gained 164 points to close at 9605, up 1.7% [...]

ImmunoCellular Therapeutics, Ltd. (IMUC.OB) Enters into Research and License Option Agreement with Roche Group

QualityStocks — Thu, 10 Sep 2009 12:56:02 +0000

ImmunoCellular Therapeutics, Ltd., a Los Angeles-based clinical-stage company that is developing immune based therapies for the treatment of brain and other cancers, recently announced that the company has entered into a research and license option agreement regarding its ICT-69 antibody with Roche Group (SWX: ROG.VX; RO.S, OTCQX: RHHBY). As one of the world’s leading research-focused [...]

Foster Wheeler Wins Polish Contract – Analyst Blog

Zacks Market Commentaries — Wed, 09 Sep 2009 17:20:29 +0000

Foster Wheeler AG (FWLT) said a unit of its Global Power Group recently won a contract from ZE PAK S.A. for the design, supply and erection of a 55 MWe biomass-fired circulating fluidized-bed (CFB) boiler island for the Konin Power Station in Poland.

Foster Wheeler has received a notice to begin work on this contract. The terms of the agreement were not disclosed and the contract value will be included in the company’s orders for the third quarter of 2009. Commercial operation of the new steam generator is scheduled for the first quarter of 2012.

Foster Wheeler will design and supply the steam generator and auxiliary equipment. It will carry out the erection and commissioning of the boiler island. The steam generator will be equipped adequately to burn wood biomass and up to 20% agro biomass. When combined with the CFB’s demonstrated ability to reduce emissions, the fuel flexibility enables the unit to operate with minimal environmental impact compared with conventional boilers.

Foster Wheeler is a global engineering and construction contractor and power equipment supplier, with a reputation for delivering high quality, technically advanced, reliable facilities and equipment on time, on budget and with a world-class safety record. Its Global Power Group offers advanced, cost-effective and environment-friendly energy solutions to customers around the world.

As one of the world's most prestigious engineering and construction companies, Foster Wheeler has over 100 years of experience and dedicated highly skilled personnel providing services worldwide. It designs, engineers and constructs leading-edge processing facilities and related infrastructure for the upstream oil & gas, LNG and gas-to-liquids, refining, chemicals & petrochemicals, pharmaceuticals, biotechnology & healthcare, environmental and power industries. The company's major competitors include Fluor Corp. (FLR) and Jacob’s Engineering Group Inc. (JEC). We currently have a Neutral recommendation on Foster Wheeler.

Read the full analyst report on "FWLT"
Read the full analyst report on "JEC"
Read the full analyst report on "FLR"
Zacks Investment Research

Three Blockbuster Drugs Seeking NDA (AMEX:AEN)

Michael Vlaicu — Fri, 04 Sep 2009 06:15:47 +0000

Adeona Pharmaceuticals, Inc. (Public, AMEX:AEN) StocksHaven Investments takes a look at Adeona Pharmaceuticals, Inc. which currently has three blockbuster drugs in phase III, and are coming close to NDA status. The first being Trimesta, which tackles Multiple Sclerosis (MS) and Post-partum Depression. Secondly, Zinthionein, a product seeking treatment for Age Related Macular Degeneration (AMD). Lastly, Oral [...]

Lubrizol Corp. – Growth And Income – Zacks Rank Buy

Alex Kolb — Thu, 03 Sep 2009 05:00:00 +0000

Lubrizol Corp. (LZ) continues to see higher Zacks Consensus Estimates and stellar share price momentum after delivering a strong second quarter. Shares have been hitting fresh 52-week highs and are currently trading slightly below that level.

Company Description

Lubrizol Corporation makes chemical that are used for improving the quality and performance of products used in the global transportation, industrial and consumer markets.

This involves production of lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. Lubrizol also makes ingredients and additives for personal care products and pharmaceuticals.

The company describes its products as ones that enhance the quality, performance and value of its customers' products while reducing their environmental impact.

Lubrizol is headquartered in Wickliffe, Ohio. The company owns and operates manufacturing facilities in 19 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 6,800 employees worldwide. Revenues for 2008 were $5.0 billion.

Bullish Forecasts

The company continues to see higher Zacks Consensus Estimates and stellar share price momentum. Shares have been hitting fresh 52-week highs and are currently trading slightly below that level.

The full-year Zacks Consensus Estimate stands at $5.88 per share, which was increased from $4.25 over the past 2 months. For the following year, the Zacks Consensus Estimate of $6.17 per share jumped from $5.78 in just the past month.

Shares of LZ have been soaring past the market. During the past 3 months, shares surged more than 30% ahead of the major averages.

A Strong Quarter

The company saw second-quarter earnings of $2.02 per share, eclipsing the previous year's $1.26 and the Zacks Consensus Estimate of $1.86. Revenues of $1.11 billion were down 17.7% year-over-year.

Management said the company benefited from ongoing margin management initiatives and decisive cost reduction actions, adding that the company's strong results highlight the cumulative impact of Lubrizol's efforts to build and sustain market leadership positions while providing the innovative technology that is valued by customers.

Favorable Comparisons

Lubrizol's return on equity (ROE) of 19% tops the industry average of 9%. The Growth and Income pick also offers an industry-leading dividend yield of 2%.

Zacks Investment Research

Weikang Bio-Technology Group Co., Inc. (WKBT.OB) is “One to Watch”

QualityStocks — Fri, 28 Aug 2009 18:25:59 +0000

Weikang Bio-Technology Group Co., Inc. is a Chinese producer of Over-the-Counter (OTC) pharmaceuticals and traditional Chinese medicine (TCM) products. Trading on NASDAQ’s OTCBB, the Company currently has 420 employees. Their headquarters is in Harbin, China. In addition, they have two production facilities, in Harbin and Guiyang. Weikang Bio-Technology Company, Inc. received incorporation in Florida on May [...]

Emerging Market for Pharma

QualityStocks — Wed, 26 Aug 2009 19:00:34 +0000

The shape of the global market for pharmaceuticals is undergoing a rapid change. As recently as 2006, more than half of the market growth was in the United States. This data comes from IMS Health, a consultancy which is a leading provider of pharmaceutical trends. However, the necessity for the pharmaceutical industry to develop new markets [...]

Emerging Market for Pharma

Investment U — Tue, 25 Aug 2009 18:42:19 +0000

Emerging Market for Pharma Tony Daltorio, The Investment U Research Team The shape of the global market for pharmaceuticals is undergoing a rapid change. As recently as 2006, more than half of the market growth was in the United States. This data comes from IMS Health, a consultancy that is a leading provider of [...]

DrStockPick.com Stock Report! 8/18/09, PMOZ, CDIV, NIV, CW, DISCA, FFH

Dr. Stock Pick — Tue, 18 Aug 2009 13:46:12 +0000

DrStockPick.com Stock Report! Tuesday August 18, 2009 ************************************************************** PrismOne (OTCBB:PMOZ) is happy to announce the opening of our new 3600 sq.ft. Corporate headquarters in downtown Winter Garden. The new offices occupy the north side of the third floor of the newly built Garden Building that is LEED certified and also incorporates a state-of-the-art [...]

Safe(r) ways to play biotech

Daniel Hung — Tue, 18 Aug 2009 04:25:33 +0000

I recently highlighted a small biotech firm, ISIS Pharmaceuticals, as a potential “value” growth play. ISIS took a tumble after earnings despite being just a penny off of estimates. Despite slightly lower than expected earnings, the Company showed a strong cash position, moderate cash burn, and a likelihood that it would be able to at [...]

Overvalued Timber REITs: Why Timber Investing Isn’t What It Used To Be

Investment U — Mon, 17 Aug 2009 17:33:23 +0000

Overvalued Timber REITs: Why Timber Investing Isn’t What It Used To Be by David Fessler, Advisory Panelist Ten years ago, it would be hard to imagine a more stable investment than timber, or those Real Estate Investment Trusts (REITs) that bought millions of acres of harvestable trees. The 1990s were an ideal period to have timber as an [...]

Lotus Pharmaceuticals, Inc. (LTUS.OB) Doubles Net Income in Second Quarter

QualityStocks — Fri, 14 Aug 2009 18:04:10 +0000

Lotus Pharmaceuticals, Inc. reported Q2 2009 net income of $4.8 million, or $0.10 per share. The company earned $ 2.2 million, or $0.05 per share, in the second quarter of 2008. Revenues totaled $13.6 million, down sharply from the $19.4 million reported in the second quarter of 2008. Lotus Pharmaceuticals, Inc. was able to [...]

Why Most Investment Systems Simply Won’t Work

Investment U — Fri, 14 Aug 2009 13:58:16 +0000

Why Most Investment Systems Simply Won’t Work by Alexander Green, Advisory Panelist Wednesday, August 12, 2009: Issue #1064 Early in my 16-year career on Wall Street, I made an astonishing discovery: The overwhelming majority of my colleagues – bright, educated, experienced, and articulate – didn’t have the foggiest idea what they were talking about. This [...]

Top John Hancock Funds – Mutual Fund Education

Zacks Market Commentaries — Wed, 12 Aug 2009 06:26:09 +0000

J Hancock Health Sciences A (JHGRX) seeks long-term growth of capital by normally investing at least 80% of its assets in stocks of US and foreign health sciences companies.

The fund may invest in pharmaceuticals and biotechnology companies, medical devices and analytical equipment firms, and healthcare services firms. It may invest more than 5% of assets in securities of individual companies.

The fund’s key holdings include Medco Health Solutions Inc. (MHS), Aetna Inc. (AET) and Abbott Laboratories (ABT).

J Hancock Strategic Income A (JHFIX) seeks a high level of current income. The fund primarily invests in foreign debt securities of developed and emerging markets, U.S. government and agency securities and U.S. high yield bonds.

The fund may also invest in preferred stock and other types of debt securities. At the end of February 2009, its portfolio turnover was 52%.

Daniel S. Janis has been lead manager at the fund since October 1999. The fund has topped total returns of its benchmark index in the last 1-, 3- and 5-year periods.

J Hancock Bond A (JHNBX) was incepted in November 1973. The investment seeks to generate a high level of current income consistent with prudent investment risk.

The fund normally invests in diversified bonds that may include, but are not limited to, corporate bonds and debentures, as well as U.S. government and agency securities. It looks at bonds of all quality levels and maturities from many different issuers.

Unit holders have to make a minimum initial investment of $1,000 to enter this Zacks#1 Rank (“Strong Buy") fund. It has an expense ratio of 1.05%.

Zacks Investment Research

ISIS makes antisense

Daniel Hung — Tue, 11 Aug 2009 04:37:24 +0000

Since bottoming near the end of 2008, ISIS Pharmaceuticals has been one of the hottest stocks in the first half of 2009. In fact, in just a few short months, the stock has exhibited all the tell tale signs of a powerful, interim trend reversal. More importantly, a look at ISIS’s 3-year weekly chart shows [...]

Lubrizol Corp. – Growth And Income – Zacks Rank Buy

Alex Kolb — Fri, 07 Aug 2009 05:00:00 +0000

Lubrizol Corp. (LZ) has been hitting 52-week highs lately. The company recently posted a strong second quarter and hiked its 2009 earnings guidance.

Company Description

Lubrizol Corporation makes chemical that are used for improving the quality and performance of products used in the global transportation, industrial and consumer markets.

The company describes its products as ones that enhance the quality, performance and value of its customers' products while reducing their environmental impact.

A Strong Quarter

The company saw second-quarter earnings of $2.02 per share, eclipsing the previous year's $1.26 and the Zacks Consensus Estimate of $1.86. Revenues of $1.11 billion were down 17.7% year-over-year.

The full-year Zacks Consensus Estimate for the current stands at $5.85 per share, which was increased from $4.25 in just the past month.

Shares of LZ have been soaring past the market. During the past 3 months, shares surged by more than 15% ahead of the major averages.

Favorable Comparisons

Lubrizol's return on equity (ROE) of 19% tops the industry average of 11%. The Growth and Income pick also offers an industry-leading dividend yield of 2%. Zacks Investment Research

Beacon Equity Research Featured Company: AlphaRx, Inc. (ALRX.OB)

QualityStocks — Thu, 06 Aug 2009 12:41:01 +0000

AlphaRx, Inc. is a specialty pharmaceutical company that applies proprietary drug delivery technologies to reformulate FDA approved drugs to achieve improved efficacy and patient compliance. AlphaRx’s main goal is to become prominent in the development of effective medicines and drug delivery. By having an acceptable delivery method, they can in turn improve the effectiveness of [...]

DaVita Beats Zacks Estimate – Analyst Blog

Zacks Market Commentaries — Wed, 05 Aug 2009 14:55:58 +0000

After market close yesterday, DaVita Inc. (DVA) reported second quarter net income of $105.8 million or $1.02 per share, which was better than the Zacks Consensus Estimate of 95 cents. The company reported a net income of $95.0 million or 90 cents per share in the comparable quarter of 2008.

Net operating revenues for the quarter were $1.52 billion, which reflected an 8% increase over the year-ago quarter. Highlights of the strong display in the reported quarter included consistent volume growth, stable private pricing and strong cash flows.

Total treatments for the quarter were 4,228,179, or 54,207 treatments per day, representing a per day increase of 5.2% over the year-ago quarter. Non-acquired treatment growth in the quarter was 4.5% over the prior year's second quarter. The company expects non-acquired growth to be around 4% for the year.

The largest provider of dialysis services to patients suffering from End-Stage Renal Disease (ESRD) reported a $3.62 increase per treatment from the first quarter of 2009. An increase in physician-prescribed pharmaceuticals coupled with a rise in drug reimbursement rates based on average sales price contributed to this increase.

There was an increase of about $3 per treatment in dialysis operating costs year-over-year. This is a reflection of solid cost controls being offset by annual wage inflation and higher pharma costs.

DaVita is in sound financial health. It exited the quarter with operating cash flow of $212 million, out of which $173.5 million represented free cash flow. DaVita narrowed its operating income guidance to $900 million – $930 million from its prior guidance of $870 million – $930 million. It expects operating cash flow to lie between $550 million and $600 million.

The narrower operating income guidance reflects the risk of a significant decline in the number of private patients due to high unemployment rates coupled with the risk of cuts from government programs, who are themselves on the lookout for budget relief.

We expect DaVita to continue delivering solid results in the coming quarters, generating steady growth and consistent cash flows. The better-than-expected results caused a 2% rise in DaVita shares in after-hours trading.
Read the full analyst report on "DVA"
Zacks Investment Research

SectorWatch.biz Issues MarketStats on Agricultural Remediation and Water Resource Companies SINX, COIN, PLL, TRA, AGU and PHO

Stuart T. Smith — Tue, 04 Aug 2009 13:47:06 +0000

IRVINE, Calif., Aug. 4 /PRNewswire/ — SectorWatch.biz announces the availability of MarketStats for leading Water Resource equities in the news and driving markets today. MarketStats offers a perspective on the aforementioned equities and the opportunity for investors to respond with articles, blogs and opinions. Investors can view MarketStats by visiting: www.SectorWatch.biz -a division of FiSpace.net, a [...]

The Swine Flu Play

Contrarian Profits — Thu, 30 Jul 2009 22:00:17 +0000

pIn June, the World Health Organization (WHO) alerted the public that a worldwide pandemic of swine flu (H1N1) was sweeping the globe. Health officials at the Centers for Disease Control and Prevention (CDC) have stated that the swine flu virus could infect up to 40% of Americans over the next couple of years. At last count, the CDC said there are 43,771 swine flu cases that have been reported in America, and 302 deaths have been associated with the disease./p pMany medical experts say that washing your hands with soap and water or an alcohol–based hand sanitizer are the most effective means of minimizing the spread of the swine flu./p pI have been researching a small company focused on the development of pharmaceuticals#8230;/p

Baxter Incentivizes Shareholders – Analyst Blog

Zacks Market Commentaries — Thu, 30 Jul 2009 19:59:40 +0000

Baxter International Inc. (BAX) recently declared a quarterly dividend of $0.26 per share of Baxter common stock. The dividend is payable on Oct 1, 2009 to shareholders of record on Sept 10, 2009. This is in continuation of the company’s current dividend payout of approximately 27%. Furthermore, the Board of Directors authorized the company to repurchase an additional $2 billion of common stock upon completion of the remaining $300 million authorization.

The company declared dividend on the back of its strong second quarter results. We think that the dividend payout is safe considering the company’s strong cash balance of $1.8 billion at the end of the second quarter. Investors also benefit by getting a recurring stream of income in the form of dividend.

The company has a tradition of share repurchases that adds to its ever-increasing EPS. During the first six months of 2009, the company repurchased roughly 16.2 million shares, approximately 2.5% of outstanding shares at the end of last year, for a total of $866 million. A part of the 13% year over year increase in EPS in the second quarter can be attributed to the company’s share repurchase activities.

Baxter is a global medical products and services company with expertise in medical devices, pharmaceuticals and biotechnology. The company’s main competitors include Becton, Dickinson and Co. (BDX) and Johnson & Johnson (JNJ). Baxter’s products are primarily life-sustaining, an insulation against the current economic turmoil. We believe that investors will benefit by adding this stock to his portfolio. As such, we continue to rate Baxter a ‘Buy’.

Read the full analyst report on "BAX"
Read the full analyst report on "BDX"
Read the full analyst report on "JNJ"
Zacks Investment Research

A New Audio Interview with Chairman of the Board, John Pavia, of SIONIX Corporation is now at SmallCapVoice.com

Stuart T. Smith — Thu, 30 Jul 2009 13:56:43 +0000

SmallCapVoice.com, Inc. announced today that a new audio interview featuring SIONIX Corporation (OTC Bulletin Board: SINX) is now available. The interview can be heard at http://smallcapvoice.com/blog/7-29-09-audio-interview-with-sionix-corporation-otcbb-sinx/. SmallCapVoice.com is a recognized corporate investor relations firm, with clients nationwide, known for its ability to help emerging growth companies build a following among retail and institutional investors. SmallCapVoice.com [...]

Beige Book: Bad, Not Worse – Analyst Blog

Dirk Van Dijk — Wed, 29 Jul 2009 21:13:58 +0000

Below are some of the key sections of the Summary of the Fed Beige Book and my reaction to it interspersed. I have also bolded what I consider to be remarks worthy of emphasis in the report.

"Reports from the 12 Federal Reserve Districts suggest that economic activity continued to be weak going into the summer, but most Districts indicated that the pace of decline has moderated since the last report or that activity has begun to stabilize, albeit at a low level..."

In other words, the economy is no longer falling off a cliff, but it has not started to climb back either. This is consistent with most of the other economic data we have been getting recently.

"Most Districts reported sluggish retail activity...Manufacturing activity showed some improvement in the Richmond, Chicago and Kansas City Districts; while St. Louis and Dallas reported some moderation of declines, Philadelphia and Minneapolis saw activity decrease and most other Districts indicated that manufacturing activity continued at low levels.

"Boston, Richmond, St. Louis, Minneapolis and San Francisco reported contractions in services industries. Banking sectors in the New York, Cleveland, Richmond, St. Louis, Kansas City and San Francisco Districts experienced weaker demand for some categories of loans. Residential real estate markets stayed soft in most Districts, although many noted some signs of improvement. By contrast, commercial real estate markets weakened further in recent months in two-thirds of the Districts and remained slow in the others."

A very mixed picture, but that mixed picture represents a substantial improvement over the extremely dire presentation in previous months. Again, sort of what you would expect when we are bumping along the bottom.

"Districts reported varied -- but generally modest -- price changes across sectors and products, with competitive pressures damping increases; however, Boston, Cleveland, Chicago, Minneapolis and Dallas noted that some metals prices have increased in recent months. Most Districts indicated that labor markets were extremely soft, with minimal wage pressures, and cited the use of various methods of reducing compensation in addition to, or instead of, freezing or cutting wages."

Inflation is not a problem at this time (but could become a more serious one in the future). The increase in metals prices is interesting, but most metals are easily traded goods, and the pick up in prices could be due to stronger demand abroad, particularly in China.

This is good news for the big mining firms like Freeport McMoran (FCX) and BHP Billiton (BHP). It will be hard to get an old fashioned wage-price spiral going with the wage side having no traction whatsoever.

To the extent inflation does show up, it will be on the food and energy side, not core inflation. The end result will be a reduction in the real standard of living of the average American, not a runway inflationary cycle like in the 1970’s.

"Consumer Spending and Tourism

"Consumer spending in the early summer remained below previous-year levels in most Districts, as households continued to be price conscious. Boston, Kansas City and San Francisco experienced either modest sales increases or less negative sales results than in recent reporting periods. Philadelphia, Atlanta, St. Louis, New York and Dallas cited flat or mixed sales, while sales in the remaining Districts remained soft.

"Several Districts noted that consumers focused on purchasing less expensive necessities, while sales of big-ticket items languished. Retailers in Boston, Philadelphia and Dallas characterized their outlook as 'cautious.'

"Auto sales were mixed across the country. Chicago, Minneapolis and Kansas City saw modest increases in car sales, while New York, Philadelphia, Cleveland and Atlanta continued to experience subdued sales. The exception was sales of used vehicles, which continued to be strong or were strengthening, according to Philadelphia, Cleveland, Atlanta, Kansas City and San Francisco.

"Travel and tourism declined in the majority of Districts. The San Francisco District observed a sharp drop in luxury and business travel, while tourism activity in New York City was weak but stable since the last Beige Book report. Tourism contacts along the Atlantic coast reported that with the exception of July 4th holiday bookings, business was generally weaker than a year ago. Hotel room rates have declined in several Districts."

People are reacting to substantially reduced wealth from both housing and the stock market, as well as slowing incomes due to layoffs and reduced hours or wages. They need to rebuild their balance sheets by increasing savings or paying down debts. As a result, they are keeping their wallets shut as much as they can.

Discretionary spending is, well, discretionary -- at least in the short term. As such it is the hardest hit. Tourism is sort of the ultimate in discretionary spending, so it is among the hardest hit areas. I would expect the major hotel companies like Starwood (HOT) and Marriott (MAR) face a tough intermediate-term future.

Auto sales got down to an unsustainably low level, well below the normal rate at which cars go to the scrap heap. Thus it not surprising to see some rebound, but it is doubtful we will see the over 15 million a year rate that was the norm earlier this decade and in the 1990’s for quite awhile.

"Nonfinancial Services

"District reports regarding nonfinancial services industries were largely negative, although they included a few bright spots. The Minneapolis, St. Louis, and Dallas Districts indicated that demand for professional services such as business support, architecture and legal services continued to decline or remained soft. By contrast, reports from the health care sector were largely positive, with the San Francisco, Minneapolis and Richmond Districts citing steady-to-increased demand for medical services, and the Atlanta, Cleveland, Chicago and Dallas Districts reporting hiring activity in health care.

"Technology-related firms in the Kansas City District also reported heightened activity, especially in the clean technology and defense-driven aerospace markets. Richmond and Minneapolis noted increased demand for information technology workers, and Atlanta saw hiring activity in the defense and aerospace industry.

"Staffing industry contacts in numerous Districts suggested a higher demand for temporary or part-time workers over permanent hires, and Atlanta noted that employers were taking advantage of a higher supply of skilled labor to improve the quality of their workforces.

"Nearly all Districts reporting on transportation services observed continued weakness. Freight transport respondents from the Atlanta, Dallas and Cleveland Districts noted that cargo volumes remain below year-earlier levels. While Cleveland contacts reported that competitive shipping rates are being maintained, trucking contacts from the Atlanta District noted that an oversupply of trucks relative to demand has exerted downward pressure on rates. A few Districts also reported reduced airline traffic, especially amongst business travelers."

Well there is a surprise -- health care is still growing while the rest of the economy is shrinking. This has been a pretty consistent pattern for...oh, the last 30 years or so...as health care becomes an ever larger part of the economy.

It would be nice if there were some evidence that such spending were making us healthier, but there isn’t that much, especially relative to other countries that spend far less on health care and where the spending is growing more slowly. The weakness in freight traffic is a pretty key metric of how the overall economy is doing, and it is worthwhile to note that while they say it is below year-ago levels, they do not mention further deterioration in volumes, just that the oversupply of trucks is putting downward pressure on prices.

One more factor on the side of deflation currently -- the pick up in temp hires might be a positive straw in the wind. It shows some more demand, but businesses are not sure if it is permanent yet.

"Manufacturing

"Reports on the manufacturing sector remained subdued but were slightly more positive than in the previous Beige Book. Many Districts characterized manufacturing activity as remaining depressed but with selected signs of modest improvement...albeit chiefly in nondurables industries. Districts attributed some of the recent increases in production to replenishment of finished-goods or customer inventories.

"Chicago indicated that the quick resolutions of the Chrysler and GM bankruptcies have boosted business confidence, and that automakers were scheduling a pickup in production for July...Steel production remained depressed but has leveled off or increased somewhat...Refineries increased their capacity utilization slightly over the past six weeks, but overall industry conditions remain weak because of low demand for fuels.

"Various District reports noted cancellations of orders for commercial aircraft and continued weak demand for most types of equipment and machinery. Among the positive developments in manufacturing, several Districts mentioned pickups in technology sectors, or cited strong or rising sales of military products or pharmaceuticals.

"Comments on the near-term outlook varied across Districts, but on the whole they appear consistent with a forecast of modest and uneven recovery in manufacturing output beginning during roughly the coming six to twelve months. New York, Philadelphia and Atlanta indicated that manufacturers have a generally positive or improved near-term outlook. Dallas reported that high-tech manufacturers 'are seeing some upside potential in their forecasts instead of just down-side risks,' but that construction-related manufacturers 'expect no improvement in the near term.'

"Boston indicated that many respondents expect continued sub-par revenue numbers for the remainder of the year, but 'look forward to slowly improving business in 2010,' while Cleveland and Kansas City reported that manufacturing contacts expect little or no change in demand through the end of 2009."

It looks like we might be on the cusp of an improvement in manufacturing, but just to replenish inventories that have gotten down to very low levels. That would be welcome, but is not sustainable unless final demand also picks up, and with incomes under pressure and a desire to save a bigger proportion of that income, demand is likely to remain soft for the foreseeable future. The improvement in Tech is consistent with what we have been seeing in the estimate revisions data, where analysts have been generally raising their sights lately for Tech firms earnings.

"Real Estate and Construction

"Commercial real estate leasing markets were described as either 'weak' or 'slow' in all 12 Districts, although the severity of the downturn varied somewhat across Districts...resulting in sizable leasing concessions and/or declines in asking rents. Significant weakness in the retail leasing sector was reported for the Boston, Minneapolis and New York Districts, and industrial vacancy increased in the Atlanta, Dallas, Minneapolis and St. Louis Districts.

"Commercial real estate sales volume remained low, even 'non-existent' in some Districts, reportedly due to a combination of tight credit and weak demand. Construction activity was limited and/or declining in most Districts, although exceptions were noted for health and institutional construction in the St. Louis District, public sector construction in the Chicago District, and the reconstruction of the World Trade Center in Manhattan. Tight credit was cited as an ongoing factor in the dearth of new construction activity.

"The commercial real estate outlook was mixed, both within and across Districts. Some contacts expect commercial real estate markets to improve within two quarters, and others predict further market deterioration for the remainder of 2009 and possibly through late 2010."

Commercial Real Estate is proving to be to late 2009 and 2010 what residential real estate was to 2008 and early 2009. It is going to be the major source of new headaches for the banks. With rents falling and vacancies rising, declining construction activity is a good thing, although I am sure that construction workers do not agree with me on that.

Most of the non-residential construction activity that is going on appears to be tied to the stimulus package or related to health care. Given the weakness for architects services noted above, commercial construction activity is likely to remain depressed for awhile.

"Residential real estate markets in most Districts remained weak, but many reported signs of improvement. The Minneapolis and San Francisco Districts cited large increases in home sales compared with 2008 levels, and other Districts reported rising sales in some submarkets.

"Of the areas that continued to experience year-over-year sales declines, all except St Louis -- where sales were down steeply -- also reported that the pace of decline was moderating. In general, the low end of the market, especially entry-level homes, continued to perform relatively well; contacts in the New York, Kansas City and Dallas Districts attributed this relative strength, at least in part, to the first--time homebuyer tax credit. Condo sales were still far below year-before levels according to the Boston and New York reports.

"In general, home prices continued to decline in most markets, although a number of Districts saw possible signs of stabilization. The Boston, Atlanta and Chicago Districts mentioned that the increasing number of foreclosure sales was exerting downward pressure on home prices. Residential construction reportedly remains quite slow, with the Chicago, Cleveland and Kansas City Districts noting that financing is difficult."

The housing market is awful, but has stopped getting worse. Sales are starting to pick up, but it is going to be awhile before prices start to recover. Foreclosures will continue to weigh on the market for at least the next few quarters. The first-time homebuyer tax credit program appears to be a success, and inventories are coming down to more manageable levels.

"Banking and Financial Services

"In most reporting Districts, overall lending activity was stable or weakened further for most loan categories. In contrast, Philadelphia reported a slight increase in business, consumer and residential real estate lending. As businesses remained pessimistic and reluctant to borrow, demand for commercial and industrial loans continued to fall or stay weak in the New York, Richmond, St. Louis, Kansas City, Dallas and San Francisco Districts. Consumer loan demand decreased in New York, St. Louis, Kansas City and San Francisco, stabilized at a low level in Chicago and Dallas, and was steady to up in Cleveland.

"Residential real estate lending decreased in New York, Richmond, and St. Louis. Dallas reported steady but low outstanding mortgage volumes, while Kansas City noted that the rise in mortgage loans slowed. Refinancing activity fell dramatically in Richmond, decreased in New York and Cleveland, and maintained its pace in Dallas. Bankers in the New York District indicated no change in delinquency rates in all loan categories except residential mortgages, while Cleveland, Atlanta and San Francisco reported rising delinquencies on loans linked to real estate.

"Banks continued to tighten credit standards in the New York, Philadelphia, Richmond, Chicago, Kansas City, Dallas and San Francisco Districts, and some have stepped up the requirements for the commercial real estate category, in particular, due to concern over declining loan quality. Meanwhile, Cleveland and Atlanta reported that higher credit standards remained in place, with no change expected in the near term. Credit quality deteriorated in Philadelphia, Cleveland, Kansas City and San Francisco, while loan quality exceeded expectations in Chicago and remained steady in Richmond."

In an overleveraged country, I am not sure that the decline in lending activity is such a bad thing from a long-term point of view, however it does slow down economic growth. Given how fast public debt is growing, if loan demand were also strong in the private sector it is likely that interest rates would rise, perhaps rather sharply.

We saw the same pattern in terms of lending activity with residential mortgages that is now happening on the commercial side. As prices fall, the bankers are not as sure about the value of the collateral and become more reluctant to lend. Then again, those falling prices are evidence of a glut of available resources, so adding to the inventory of unused offices and strip malls is probably not a good thing to do in any case.

The decline in residential mortgage activity is probably a reflection of the recent rise in mortgage rates (relative to April and May). It does call into question the sustainability of the recent pick-up we saw in home sales (both new and used).

"Employment, Wages and Prices

"All Districts indicated that labor markets remain slack, with most sectors either reducing jobs or holding steady, and aggregate employment continuing to decline, on net. However, Boston, Cleveland, Richmond, Atlanta, Chicago, St. Louis and Minneapolis noted selective hiring, including attempts by some firms to take advantage of layoffs elsewhere to pick up experienced talent.

"Richmond, Chicago, St. Louis and Dallas cited moderation in the pace of manufacturing employment decline since the last report, and New York noted some signs of labor market stabilization. But Atlanta reported further deterioration in labor market conditions and additional job cuts already planned for coming months.

"The weakness of labor markets has virtually eliminated upward wage pressure, and wages and compensation are steady or falling in most Districts; however, Boston cited some manufacturing and business services firms raising pay selectively, and Minneapolis said wage increases were moderate. Boston, Cleveland, Richmond, Chicago, Dallas and San Francisco cited a range of methods firms are using to limit compensation, including cutting or freezing wages or benefit contributions, deferral of future salary increases, trimming bonuses and travel allowances, reducing hours, temporary shutdowns, periodic furloughs and unpaid vacations.

"Most Districts reported that upward price pressures were minimal. Manufacturers in the Boston, Philadelphia, Atlanta, Minneapolis, Kansas City and Dallas Districts indicated that most materials costs were flat or down; however, several Districts mentioned price increases for some metals, petrochemicals and building materials.

"While the Boston, New York and Kansas City reports say a few firms are making modest price increases stick, selling prices of most manufacturers and retailers were reportedly held down by competitive pressures. Services firms have increased discounting and/or cut fees, according to contacts in Boston, Philadelphia, Atlanta, Dallas and San Francisco, while Richmond indicated price increases for services were mild."

The current economic environment is by its nature deflationary, which tends to raise real interest rates and further slow economic activity. The private sector is attempting to deleverage and repair balance sheets. The policy responses to this have been explicitly inflationary to counteract the natural deflation.

For the time being, it looks like the forces of deflation continue to have the upper hand. I don’t see where the increasing prices for building materials are coming from given the weak construction markets, unless they are being exported. I suspect the strength in metals prices is also mostly coming from China.

Core inflation is likely to remain subdued, and businesses will have trouble making any attempted price increase stick. If inflation shows up, it is likely to first show up on the food and energy side, and will cause headline inflation to outpace the rate of compensation growth. Given the cutting or freezing of wages, etc. it will not take much in the way of headline inflation to reduce the real standard of living of most people.

Overall, this was a downbeat report, but not as downbeat as we have seen in recent months. The picture is one of an economy stuck in the mud, not one falling off a cliff. For now, deflation remains a more significant threat than inflation, but given the increase in the size of the Fed balance sheet, it is not time to forget about potential inflation down the road.

Unemployment is going to be a very big problem for quite awhile. That slack in the economy will make it hard for inflation to gain traction. People are not going to be seeing their incomes go up, and will want to save more of what they do earn.

This will be a double-whammy on consumption. Over the long term, this is not a bad thing, since at over 70% consumption is a far bigger share of our economy than it is for most of our competitors. But at 70% of the economy, if consumption is weak, there is no way for the economy as a whole to avoid being weak.
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Eight Ways to Profit From Japan’s Game-Changing Election

Martin Hutchinson — Thu, 23 Jul 2009 15:27:58 +0000

[Editor's Note: When it comes to global investing, longtime market guru Martin Hutchinson is one of the very best – because he knows the markets firsthand. After years of advising government finance ministers, crafting deals with global investment banks, and analyzing the world's financial markets, Hutchinson has used his creative insights to create a trading [...]

Kraig Biocraft Laboratories, Inc. (KBLB.OB) Assembles Strong Advisory Board

QualityStocks — Mon, 20 Jul 2009 16:04:05 +0000

Kraig Biocraft Laboratories, Inc., the biotech company known for its pioneering work in genetic engineering for the production of spider silk and other polymers, is constantly breaking new ground in the field of genetics. As such, it is not surprising that they have assembled a remarkable team of scientific advisors to play a major role [...]

Baxter Demonstrates Q2 Strength – Analyst Blog

Zacks Market Commentaries — Thu, 16 Jul 2009 18:28:41 +0000

Baxter International Inc. (BAX) reported strong second quarter of 2009 results and raised its outlook for the full year 2009.

Net income in the quarter was $587 million, an increase of 8% y/y. EPS was $0.96, an increase of 13% y/y and higher than the company’s guidance of $0.93-$0.95. Growth in EPS can be attributed to higher gross margin and share repurchases. Gross margin increased 1.4% y/y to 52.4% in the quarter. The diluted number of outstanding shares declined roughly 4% y/y to 612 million.

Total revenue in the quarter was $3,123 million, a decline of 2% y/y. The decline was primarily due to an unfavorable foreign exchange (FX). Excluding FX, total revenue increased 8% y/y.

In terms of business segments: Bioscience revenue increased 2% y/y to $1,418 million. Growth was driven by higher sales of antibody and other specialty plasma therapies, ADVATE and Plasma/Albumin Free Method (rAHF-PFM), and increased demand for biosurgery products. Excluding FX, sales increased 13% y/y in this category.

Both Medication Delivery and Renal businesses declined due to an unfavorable foreign exchange. Medication Delivery sales declined 3% y/y to $1,134 million. Excluding FX, sales increased 8% y/y in this category. Renal sales declined 8% y/y to $550 million. Excluding FX, sales increased 4% y/y in this segment.

Baxter also provided guidance for the third quarter. The company expects total revenue to be roughly flat with that in the year-ago quarter. Excluding FX, it expects total revenue to increase roughly 7% to 8% y/y. EPS is expected to be in the range of $0.95 to $0.97 excluding extraordinary items.

In light of the company’s strong performance, management has also raised EPS guidance for full year 2009. It now expects EPS, excluding any extraordinary items, to be in the range of $3.76 to $3.80, compared to its prior guidance of $3.72 to $3.78. However, the company has kept its total revenue guidance unchanged which is roughly flat with that in 2008. Total revenue is expected to increase approximately 7% to 8% over that in the last year, excluding FX. Operating cash flow is expected to be in excess of $2.6 billion.

Baxter is a global medical products and services company with expertise in medical devices, pharmaceuticals and biotechnology. The company’s main competitors include Becton, Dickinson and Co. (BDX) and Johnson & Johnson (JNJ).

Baxter’s products are primarily life-sustaining, an insulation against the current economic turmoil. We believe that investors will benefit by adding this stock to their portfolios. As such, we continue to rate Baxter a Buy.
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Kraig Biocraft Laboratories, Inc. (KBLB.OB) Establishes Value Beyond Spider Silk

QualityStocks — Thu, 16 Jul 2009 12:43:17 +0000

Kraig Biocraft Laboratories, Inc., the biotech company currently using genetic modification of silkworms in an effort to produce spider silk, is playing a leading edge role in one of today’s major scientific endeavors. The use of genetic engineering to modify life forms for the production of unique proteins promises to change the world of materials [...]

Will ASEAN stocks welcome the Singapore Sling?

Jason G. Wulterkens — Wed, 15 Jul 2009 20:48:09 +0000

Credit Suisse’s recommendation for clients to shift Taiwanese holdings into Southeast Asia is predicated on the fact that the latter trades at a discount of 138%, near its record low of 159% in March, in a comparison of the two markets’ relative price-to-book ratios against their returns on equity. Specifically, its analysts added, banks in [...]

Glaxo Targets Emerging Markets – Analyst Blog

Zacks Market Commentaries — Mon, 13 Jul 2009 17:25:27 +0000

Sales for the pharma majors in most developed markets have flattened or are growing at a slower pace. Now, emerging markets are playing a crucial role as a market survey predicts this region would contribute 50% growth in 2009.

With this backdrop, we are happy to find GlaxoSmithKline (GSK) acquiring the branded generics business of Bristol Myers Squibb (BMY) in the countries of Lebanon, Jordan, Syria, Libya and Yemen for a cash consideration of $23.2m (£14.2m). This transaction consists of a portfolio of 13 branded pharmaceuticals with annual sales of $11.8 million in 2008.

GSK is the world’s second largest pharmaceutical company, with operations primarily based in the U.K. and the U.S. This move is seen as the company’s strategy to expand its presence in branded products in emerging markets. Emerging markets have witnessed robust demand for branded products driven by a large population and middle class prosperity.

GSK is trying to expand its footprint into emerging markets for quite some time. In 2008, the company acquired businesses in Pakistan and Egypt from BMS (BMS), including a manufacturing plant in Giza, Greater Cairo. BMS will continue to supply the acquired products till 2011, after which the manufacturing will shift to the Giza plant of GSK.

GSK has entered a number of collaborations in the last few months. In June, it entered into a partnership deal with Dr. Reddy's Laboratories (RDY) involving a pipeline of more than 100 branded pharmaceuticals (some of these are still in developmental stage) covering wide segments such as cardiovascular, diabetes, oncology, gastroenterology as well as pain management. The products would be manufactured by RDY and would be licensed and supplied to GSK in various emerging markets such as Africa, the Middle East, Latin America and Asia Pacific excluding India.

Earlier in January 2009, Glaxo signed an agreement with UCB S.A for its marketed product portfolio in Africa, Middle East, Asia Pacific and Latin America, for a cash consideration of €515 million. In May, GSK acquired a 16% stake in Aspen Pharmacare Holdings Ltd, a South Africa-based generic drug maker in exchange for transfer of specialist products and a manufacturing facility in Bad Oldesloe, Germany.

Glaxo has to deal with the generic erosion of a number of drugs including Coreg IR, Flonase, Wellbutrin XR, Paxil, Lamictal, Requip, Valtrex and Imitrex. In order to recoup some of the losses caused by the patent expiry of these products, Glaxo has chosen the inorganic route to growth through acquisitions and partnerships.

Management has made it clear during the last quarter of 2008 conference call that while they will be looking for strategic acquisitions, they are not interested in doing a large deal. While the company faces a number of challenges, we continue to like the fundamentals at GSK. We have a Hold recommendation on the stock.

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Baxter: Safe Haven in Troubled Times – Analyst Blog

Zacks Market Commentaries — Wed, 01 Jul 2009 15:56:28 +0000

Baxter International Inc. (BAX) recently announced its intention of acquiring the Continuous Renal Replacement Therapy (CRRT) business from Edwards Lifesciences Corp. (EW). The deal involves an initial cash payment of roughly $56 million and an additional payment of up to $9 million over the next two years based on achievement of certain milestones revenue. The acquisition is expected to close in Q309 and will have no impact on Baxter's financial results for fiscal 2009.

CRRT, also known as hemofiltration, is a process of continuous and adjustable removal of excess fluid and waste products resulting from malfunction of the kidney. CRRT duplicates the function of a kidney for 24 hours. Baxter is presently supplying solutions that are used in CRRT treatment globally and is the lone distributor of Edwards' product in the U.S., Latin America and China.

Baxter is a global medical products and services company with expertise in medical devices, pharmaceuticals and biotechnology. The CRRT acquisition adds a new leaf to the company's existing renal business. Baxter's main competitors include names like Becton, Dickinson and Co. (BDX) and Johnson & Johnson (JNJ).

Edwards Lifesciences, an Irvine, California-based company, specializes in heart valves and hemodynamic monitoring with particular focus on developing life-saving innovations.

Baxter reported its Q109 results with lower sales primarily due to an unfavorable currency translation. Excluding currency translation, net sales increased 6% year-over-year. Manufacturing efficiencies drove margins higher. We believe that Baxter's product portfolio will remain relatively insulated from the current economic turmoil and provide investors with handsome returns on a risk-adjusted basis. As such, our recent report has a `Buy' rating for the company's stock.

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Zacks Analyst Blog Highlights: J.P. Morgan, Bank of America, Citigroup, Wells Fargo and Omnicell Inc. – Press Releases

Zacks Market Commentaries — Tue, 30 Jun 2009 13:00:22 +0000

For Immediate Release

Chicago, IL - June 30, 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: J.P. Morgan (JPM), Bank of America (BAC), Citigroup (C), Wells Fargo (WFC) and Omnicell Inc. (OMCL).

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Here are highlights from Monday's Analyst Blog:

Supreme Court Rules Against Banks

In a surprising 5-4 vote, the Supreme Court ruled that national banks are still subject to the laws of the states they operate in. What made the ruling unusual is that Justice Scalia wrote the opinion and the other four conservative judges were in dissent (Roberts, Thomas, Alito and the normal swing vote Kennedy).

The ruling overturned an appeals court ruling that said that state attorney generals cannot investigate banks if they operate in more than one state.

The case in question involved the enforcement of fair lending laws in N.Y. State, specifically allegations that some banks were charging minorities higher interest rates. Instead, even though these are state laws, the appeals court had said that only the Office of the Comptroller of the Currency (OCC) had the power to investigate. In practice, this means that the laws were null and void, since the OCC has a lousy track record on such issues.

Enforcing state laws is simply not a priority for a division of the Treasury Department. While clearly there can be a problem if multiple agencies have jurisdiction in regulation, allowing things to slip through the cracks, there can also be problems when there is only one regulator and that regulator is in the pocket of the regulated. It is harder to capture all 50 state attorney generals and the OCC, than it is just the OCC alone. Make no mistake, the head of the OCC, John Dugan, a holdover from the last administration, is very much a creature of the big banks he is supposed to be overseeing. The OCC ranks just behind the OTS in being an ineffectual regulator during the bubble.

While the state attorney generals will not be able to issue subpoenas on their own authority (they need approval from a state judge), it does mean that they do not have to sit on their hands if they think the banks are breaking the law. It also will mean a more fair application of the law.

If the appeals court ruling had been allowed to stand, then the state attorney generals would have been free to go after a little community bank that only operated in their state, but unable to go after the big banks like J.P. Morgan (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC) that dominate the banking business. Sort of like telling them, yeah, it's okay for the state to go after the street level drug traffickers, but not allowed to go after the kingpins.

This is a major win for consumer protection, and a loss for the banks. It is also a big win for states in the ongoing struggle between state and federal jurisdiction. I guess the Supreme Court is not as susceptible to campaign contribution influence as the Congress is.

Omnicell Stays on Hold

Headquartered in Mountain View, CA, Omnicell Inc. (OMCL) founded in 1992, develops and markets end-to-end automation solutions for the medication-use process.

These automation solutions contain medication and supply dispensing systems, central pharmacy storage, retrieval and packaging solutions, a bedside automation solution, a physician order management solution, a decision support application, and a Web-based procurement application. These solutions enable healthcare facilities to acquire, manage, dispense and deliver pharmaceuticals and medical supplies, as well as enhance patient safety, reduce medication errors, improve workflow, and increase operational efficiency.

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Omnicell Stays on Hold – Analyst Blog

Zacks Market Commentaries — Mon, 29 Jun 2009 22:11:48 +0000

Headquartered in Mountain View, CA, Omnicell Inc. (OMCL) founded in 1992, develops and markets end-to-end automation solutions for the medication-use process.

The rise in information technology (IT) investment by healthcare providers, coupled with a gradual modernization of the healthcare system, has created a demand for automated healthcare management systems. Moreover, due to the nature of the untapped markets in which OMCL operates, the company has a tremendous growth opportunity from these markets in the coming years.

The $10 billion automated systems market, which the company caters to through its Omnicell PharmacyCentral and SafetyPak products, is only one-fourth penetrated. We believe the company is well-poised to expand its presence in these under penetrated markets. Furthermore, the automated systems market has historically shown a growth rate between 10% and 15%, with OMCL exceeding the industry.

The company's first-quarter results were poor with lower revenue and EPS. The present economic turbulence has negatively affected the company's revenue. However, the U.S. government's recent moves to approve more than $20 billion in spending on healthcare IT can boost OMCL.

The company is presently trading at a P/S multiple of 1.7x for 2009, higher than the industry mean of 1.1x. We are comfortable applying a P/S multiple of 1.8x for OMCL and arriving at a target price of approximately $11.50. We reiterate `Hold' rating for this stock.

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Will MannKind Bounce Back? – Analyst Blog

Zacks Market Commentaries — Fri, 26 Jun 2009 17:39:29 +0000

Will inhaled insulin be a reality, this time for MannKind?

MannKind Pharma (MNKD) witnessed its share price rise by a whopping 141% since the beginning of the year with positive outlook for its inhalable insulin Afresa.

MNKD has already invested about $1 billion into developing Afresa, which if approved will be much more convenient to use than the frequent injections diabetic patients have to take. In May, the FDA accepted the NDA [new drug application] for Afresa, though its approval is not expected before early 2010.

The inhaled insulin market has witnessed major changes during last year with Pfizer (PFE, marketed product Exubera), Lilly (LLY) and Novo Nordisk (NVO) withdrawing their late-stage candidates. While Pfizer blamed the pullout on poor sales of the drug (only $12 million in the first three quarters of 2007), others cited the lack of confidence in the regulatory environment and market prospect for an inhaled insulin product.

Time will prove whether MNKD will succeed in its venture, when so many big players failed.

The diabetes market is perhaps one of the largest opportunities in pharmaceuticals. This is a $174 billion market, with nearly 210 million people affected worldwide.

The elimination of competition in the inhaled insulin market seems favorable for Afresa. If MannKind can convince doctors about Afresa's advantages over Exubera or traditional insulin therapy, the initial sales ramp of Afresa may be better than that for Exubera.

In the 1Q09 conference call, MannKind confirmed that it is holding serious discussions with many companies for potential partnership talks related to Afresa, and expects to finalize a deal by September 2009. However, with many big players like Pfizer and Lilly out of the market, we doubt the possibility of a potential partner in MannKind's favor.

We upgraded the stock recently to Hold from Sell based on the positive developments and expectation of near-term FDA approval.
Read the full analyst report on "MNKD"
Read the full analyst report on "PFE"
Read the full analyst report on "LLY"
Read the full analyst report on "NVO"
Zacks Investment Research

Lubrizol Corporation – Growth And Income – Zacks Rank Buy

Alex Kolb — Fri, 26 Jun 2009 05:00:00 +0000

Lubrizol Corporation (LZ) recently declared a dividend of 31 cents per share, noting that it is payable September 10 to shareholders of record at the close of business on August 10. The company boasts an industry-leading yield of 3%.

Company Description

Lubrizol Corporation makes chemical that are used for improving the quality and performance of products used in the global transportation, industrial and consumer markets.

The company describes its products as ones that enhance the quality, performance and value of its customers' products while reducing their environmental impact.

Rewarding Shareholders with Industry-leading Income

The company recently declared a dividend of 31 cents per share, noting that it is payable September 10 to shareholders of record at the close of business on August 10. The company boasts a dividend yield of 3%, which is well ahead of the industry average.

First Quarter Results

Lubrizol announced first-quarter earnings of $1.06 per share in late April. The result was slightly below the previous year's $1.10 but in line with the consensus estimate.

The company upped its earnings guidance and analysts followed suit. Brokerage analysts increased full-year earnings forecasts from $4.25 to $4.27 per share in just the past week. Estimates stood at $3.77 per share 3 months ago. The most accurate 2009 estimate is much higher at $4.38.

For 2010, Wall Street is projection earnings of $4.70 per share, above last week's $4.69 and the 3 months-ago level of $4.28.

Lubrizol offers strong fundamentals, including a return on equity (ROE) of 15%, which nearly doubles the industry average of 8%. Zacks Investment Research

Hot FDA Trade: BioDelivery Sciences International

Michael Vlaicu — Sat, 13 Jun 2009 18:49:07 +0000

BioDelivery Sciences International (NASDAQ:BDSI) Continuing with the trend of pre-FDA decision BioPharma companies, StocksHaven Investments takes a closer look at BDSI which hopes it#8217;s product Onsolis will strive past approval and make its way onto shelves world-wide. About BDSI: BioDelivery Sciences International, Inc. is a specialty pharmaceutical company that is utilizing licensed and owned drug delivery technologies to [...]

J&J Remains Undervalued – Analyst Blog

Zacks Market Commentaries — Fri, 12 Jun 2009 14:50:25 +0000

Johnson & Johnson, Inc. (JNJ) currently trades at 12.5x our 2009 EPS estimate of $4.51. We believe J&J's diverse and deep product mix, lack of cyclicality, strong financial position and consistent record of earnings growth will insulate it from a prolonged economic downturn.

We believe J&J offers investors long-term value with low risk in the form of stable earnings and a diverse product portfolio. While management's 2009 EPS guidance implies a slight contraction from 2008, results through the first quarter were ahead of ours and consensus estimates. We also note that actual results can be highly influenced by the movement in foreign exchange rates.

In the near-term, the company's "AAA" credit rating, large cash balance and product and geographic diversity should provide some downside protection in the event that economic conditions deteriorate further. We believe the stock remains attractively priced at these levels, and reiterate our Buy recommendation with a $70 price target. The dividend currently yields 3.5%.

Delving deeper: Pharmaceuticals Division

J&J continues to contend with generic competition, which is keeping a lid on growth of its Pharmaceutical division. Patent expirations of Risperdal (expired) and Topamax (March 2009) are key losses at the division. Remicade will also come under pressure as additional competition comes online.

Plus, the safety issues surrounding ESA's has had a substantially negative affect on Procrit sales. While the company has a number of late-stage candidates that are expected to be commercialized in the near-term, they will not begin to make a material impact until 2010 or 2011.

Yet, despite these issues, the company continues to forge ahead with commercializing its late-stage pipeline, which should help soften the impact of recent generic competition beginning in 2010. The list of drugs recently gaining initial approval or expanded indications over the last 18 months includes Ustekinumab, Risperdal, Invega, carisbamate, Yondelis, Prezista, Intelence, Zevtera and Tapentadol.

We expect the Pharmaceutical division to post flat sales growth from 2008 through 2012. We think a significant portion of earnings growth will likely come from cost savings, and thus earnings growth should outpace revenue growth for several years ahead.

While first quarter 2009 revenue was below estimates, EPS surprised on the upside due to management's ability in quickly and effectively trimming costs. We expect cost-control to be a significant contributor to EPS growth going forward.

Other Divisions

The Consumer division has historically been a strong catalyst of revenue growth for J&J, and while it's more sensitive to a softening economy, we believe it can grow sales at a 4-year CAGR of almost 4% from 2008 to 2012. The Medical Devices should also continue to be a significant contributor to J&J's top-line and is expected to grow substantially faster than pharmaceuticals despite the recent influx of competition to the Cordis division's products. We look for Medical Devices sales to grow at a CAGR of 5% through 2012.

The shares currently trade at 12.5x our 2009 EPS estimate of $4.51. We model EPS to grow at a 4-year CAGR of 5% through 2012. We believe the shares remain undervalued given J&J's strong financial position and ability to post solid growth even in times of severe macroeconomic stress.

We reiterate our Buy recommendation and have established a price target of $70, yielding 24% before dividend (currently yielding 3.5%). Our price target implies a P/E multiple of 15.5x our 2009 EPS estimate of $4.51.

Read the full analyst report on "JNJ"
Zacks Investment Research

Zacks Analyst Blog Highlights: MannKind, Pfizer, Inc., Novo Nordisk, Eli Lilly and Alkermes Pharmaceuticals. – Press Releases

Zacks Market Commentaries — Mon, 08 Jun 2009 13:16:59 +0000

For Immediate Release

Chicago, IL - June 8, 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: MannKind (MNKD), Pfizer, Inc. (PFE), Novo Nordisk (NVO), Eli Lilly (LLY) and Alkermes Pharmaceuticals (ALKS).

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 Friday's Analyst Blog:

Raising MannKind to Hold

We believe that MannKind's (MNKD) Afresa offers distinct advantages over traditional needle-based insulin therapy. The key advantage is the convenience of an inhaled delivery. Diabetes patients using Afresa will no longer have to worry about a needle injection. Along with convenience, Afresa offers rapid uptake into the bloodstream. MannKind has developed Afresa to produce a profile of insulin levels in the bloodstream that approximates the first-phase insulin spike normally seen in healthy individuals following the beginning of a meal.

Elimination of competition may help Afresa's sales ramp

The diabetes market is perhaps one of the largest opportunities in pharmaceuticals. At present, traditional needle-based insulin therapy dominates the market.

Competition in the inhaled insulin field, which was crowded with late-stage drugs under development at large-cap pharmaceutical companies one year ago, is virtually nil now.

The change in the competitive landscape began with the withdrawal of Exubera from the market by Pfizer, Inc. (PFE) in October 2007. This was followed by the discontinuation of the AER-X program by Novo Nordisk (NVO) in January 2008 and then the announcement by Eli Lilly (LLY) in March 2008 to discontinue the development of the AIR Insulin (co-developed with Alkermes Pharmaceuticals [ALKS]). While Pfizer blamed the pullout on poor sales of the drug (only $12 million in the first three quarters of 2007), others cited the lack of confidence in the regulatory environment and market prospect for an inhaled insulin product.

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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.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=2677

About Zacks

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Zacks Investment Research

Raising MannKind to Hold – Analyst Blog

Zacks Market Commentaries — Fri, 05 Jun 2009 16:35:39 +0000

MNKD: Upgraded to Hold from Sell

We upgrade MannKind Corp. (MNKD) to Hold from Sell based on some positive developments during the last few months and potential catalysts in the coming months.

Afresa is finally under the FDA review now

After several years of extensive pre-clinical and clinical trials and spending millions of dollars, MannKind finally submitted its new drug application (NDA) for its lead drug candidate Afresa in March 2009. The FDA officially accepted the NDA filing in May 2009.

This is positive news to the company. Although still facing rigorous review by the FDA, especially after the report of lung cancer in patients treated with Pfizer's (PFE) Exubera, Afresa will finally get a nod from the FDA, in our view.

As a background, Afresa is inhaled insulin for the treatment of diabetes. It is dry-powder inhaled deep into the lungs via the company's MedTone inhaler. MedTone is a small, easy-to-use pulmonary delivery system. Once inside the lungs, the insulin is absorbed into the bloodstream in rapid fashion.

We believe that Afresa offers distinct advantages over traditional needle-based insulin therapy. The key advantage is the convenience of an inhaled delivery. Diabetes patients using Afresa will no longer have to worry about a needle injection. Along with convenience, Afresa offers rapid uptake into the bloodstream. MannKind has developed Afresa to produce a profile of insulin levels in the bloodstream that approximates the first-phase insulin spike normally seen in healthy individuals following the beginning of a meal.

Elimination of competition may help Afresa's sales ramp

The diabetes market is perhaps one of the largest opportunities in pharmaceuticals. At present, traditional needle-based insulin therapy dominates the market.

Competition in the inhaled insulin field, which was crowded with late-stage drugs under development at large-cap pharmaceutical companies one year ago, is virtually nil now.

The change in the competitive landscape began with the withdrawal of Exubera from the market by Pfizer in October 2007. This was followed by the discontinuation of the AER-X program by Novo Nordisk (NVO) in January 2008 and then the announcement by Eli Lilly (LLY) in March 2008 to discontinue the development of the AIR Insulin (co-developed with Alkermes Pharmaceuticals [ALKS]). While Pfizer blamed the pullout on poor sales of the drug (only $12 million in the first three quarters of 2007), others cited the lack of confidence in the regulatory environment and market prospect for an inhaled insulin product.

The elimination of competition in the inhaled insulin market is positive for Afresa, in our view. If MannKind can convince doctors about Afresa's advantages over Exubera or traditional insulin therapy, initial sales ramp of Afresa may be better than that for Exubera.

MannKind shares may get boosted by near-term catalysts which include announcement of a partnership for Afresa in 3Q09 and potential approval of Afresa in 1H10.

We are still concerned of weak pipeline and cash position

Afresa is MannKind's only late-stage drug candidate under development. Besides Afresa, the company has only two early stage candidates in phase I trials.

As of March 31, 2009, MannKind had $30.2 million in cash, cash equivalents and marketable securities. Also, the company entered into a new loan agreement with Al Mann, which provides the company with a credit facility of $350 million out of which $260 million was unused at the end of the first quarter. Current cash reserve can only last for one quarter.

In order to solve its liquidity issue, MannKind is actively seeking partners for Afresa. However, we are still not convinced of the market prospect for Afresa at this point regardless of the successful approval of or partnership. Actually, with many big players like Pfizer and Eli Lilly having abandoned their own inhaled insulin programs, we doubt if MannKind can find a potential partner with a favorable terms.

Even with a potential partner, we don't think Afresa can do better than Exubera. Afresa is not going to make much of a market penetration and end-sales potential will be small, in our view.

Therefore, our opinion is neutral for MannKind and our price target is $8 per share.
Read the full analyst report on "MNKD"
Zacks Investment Research

Par Pharmaceutical Companies, Inc. – Value – Zacks Rank Buy

Tracey Ryniec — Tue, 02 Jun 2009 05:00:00 +0000

Par Pharmaceutical Companies, Inc. (PRX), the generic drug manufacturer, saw revenue grow 32% as sales popped for Metroprolol, the generic version of angina drug Toprol. The company's surprise of 81.48% had analysts scrambling to raise estimates. PRX is trading with a PEG ratio of just 0.79.

Company Description

Par Pharmaceutical manufactures generic drugs and branded pharmaceuticals for the specialty markets. The company ranks among the top ten in generic drug sales in the United States.

The branded division, Strativa Pharmaceuticals, was launched in 2005 and has licensed 4 proprietary drugs that are in development.

Revenue Surged 32% in the First Quarter

On May 6, Par reported first quarter results which easily surprised on Wall Street estimates by 81.48%. Adjusted earnings per share were 49 cents compared to 17 cents in the year ago period. Analysts were expecting just 27 cents.

Revenue grew 32% to $204 million from $154.9 million in the year ago period. Growth was fueled by a 127% increase in sales of Metroprolol, a generic version of Toprol XL, which treats angina.

Par became the authorized generic distributor for Toprol, which was developed by AstraZeneca, in the first quarter. Gains in three other generic drugs offset declines in fluticasone and Megace ES.

Consensus Estimates Jump

Given the far better-than-expected second quarter results, covering analysts have been raising estimates for the second quarter and the full-year.

Second-quarter consensus estimates rose 65% to 43 cents from 26 cents in the last 30 days with 7 out of 8 covering analysts raising during that time.

Full-year consensus estimates jumped 44% to $1.31 from 91 cents in the last month, also with 7 out of 8 analysts raising estimates.

Value Fundamentals

Par Pharmaceuticals is a Zacks #1 Rank (strong buy) stock. It has attractive value characteristics. Its forward P/E is 11.9 while its price-to-book is 1.09. Analysts expect 5-year earnings growth of 13%.

Zacks Investment Research

Costs Up, Sales Down – A Formula for Retail Disaster

Contrarian Profits — Mon, 18 May 2009 16:30:07 +0000

pFor those of us who predict stuff for a living, this is one of those lovely moments in economics when we know for a fact that only one of two things will happen in the near future. We now know one thing for a fact#8230; that in the first third of the second quarter of 2009, American retailers paid more and sold less, both by price and by unit. Simple arithmetic tells you that this means lower profits./p pem#8220;How to earn 367% off American Retail#8217;s #8220;Seven-Ten Split.#8221;/em/p pem#8220;Biggest jump in wholesale food prices in more than a year!#8221;/em/p p– Associated Press, commenting on the Labor Department#8217;s latest wholesale prices report/p pI know that Justice and I have gone on for some length now on#8230;/p

Acadia Pharmaceuticals’ Cash Infusion May Help Parkinson’s Patients

Michael Vlaicu — Thu, 14 May 2009 14:08:29 +0000

Acadia Pharmaceuticals, Inc. (Public, NASDAQ:ACAD) A San Diego drug maker is hoping an infusion of research capital will allow it to continue its work in searching for Parkinson#8217;s disease treatments. Acadia Pharmaceuticals (NASDAQ:ACAD)‎, which hopes its drug, pimavanserin, will treat Parkinson#8217;s-related psychosis, recently received $30 million from Canadian pharmaceuticals company Biovail Corp. (NYSE: BVF) in a deal that [...]

Drug Companies: A Powerhouse of Profits

Investment U — Fri, 08 May 2009 14:22:13 +0000

Drug Companies: A Powerhouse of Profits by The Investment U Research Team A couple of interesting news items came out in the past few days. One, a research report showing how expensive treatment is for childhood mental issues. It also showed that in 2006 over 13 million children were treated for asthma at a [...]

MWI Veterinary Supply Inc – Aggressive Growth – Zacks Rank Buy

Zacks Market Commentaries — Tue, 05 May 2009 05:00:00 +0000

MWI Veterinary Supply, Inc. (MWIV) continues to climb following its most recent earnings release.

Company Description

MWI Veterinary Supply is a leading distributor of animal health products to veterinarians across the United States of America. Products MWI sells include pharmaceuticals, vaccines, parasiticides, diagnostics, capital equipment, supplies, veterinary pet food and nutritional products. The company markets these products to veterinarians in both the companion animal and production animal markets.

32% Increase in Net Income

MWI announced second-quarter results on Apr 30 that included net income of $5.8 million, 32% higher than the same quarter last year. Revenues jumped 10% to $215 million.

Internet sales continue to grow, 36% this quarter, and are now 31% of total sales, up from 27% one year ago. Earnings per share were 47 cents, up from 36 cents last year and beat the consensus estimate by 10 cents.

The company has beat expectations in 4 of the past 5 quarters, with the remaining quarter meeting estimates.

Updated Guidance

Management updated revenue guidance to between $910 million and $925 million, a 9% to 11% year-over-year increase. Earnings per share are expected to be $1.80 to $1.85, after raising the bottom of the range by 5 cents.

Full-year estimates for 2010 are currently averaging $2.02. If the midpoint of the companies guidance is reached, as well as the 2010 consensus, year-over-year growth will be 13% in 2009 and 10% in 2010.

The Chart

Shares of MWIV have surged since the April earnings release. The stock is has been gaining steadily since early February. Take a look at the chart below.

Zacks Investment Research

Covidien Limited – Value – Zacks Rank Buy

Tracey Ryniec — Thu, 23 Apr 2009 05:00:00 +0000

Covidien Limited (COV), the medical device manufacturer, has surprised on estimates 7 quarters in a row. Will it do it again on Apr 30? Second quarter estimates have risen by nearly 17% in the last 3 months. COV has a forward P/E of 11.35.

Company Description

Covidien manufactures medical devices, pharmaceutical products and medical supplies. The company has offices in 59 countries and customers in more than 140 countries.

First Quarter Produces Earnings Surprise

On Jan 26, Covidien reported first-quarter 2009 results that beat Wall Street estimates by 8.57%. The company reported 76 cents compared to analysts' estimates of 70 cents per share.

During a difficult economic period, sales still rose 6% to $2.5 billion from $2.3 billion in the year ago period.

Pharmaceutical products were especially strong in the quarter, rising 50% over the prior year's sales to $331 million from $221 million on the back of higher sales of Dosage pharmaceuticals, especially $100 million in sales of oxycodone hydrochloride extended-release tablets.

Medical device sales climbed 3% and Medical Supplies jumped 8%. Only Imaging Solutions fell, declining 9%.

In January, the company was optimistic about 2009.

"We are off to a good start in fiscal 2009, as operational growth of 10% was in line with our expectations," said Richard J. Meelia, President and CEO.

"We benefited from the September, 2008, launch of oxycodone extended-release, as well as several other new products. Despite unfavorable foreign exchange, we reported strong growth in our first-quarter operating earnings," he said.

2009 Guidance Confirmed

In January, the company reconfirmed its prior 2009 guidance. It estimated net sales for the year would be flat to 3% higher. Sales of oxycodone hydrochloride were expected to contribute about 40 cents to 2009 earnings.

Consensus Estimates Rise

Analysts are optimistic about 2009 going into the second-quarter earnings results which are scheduled to be released on Apr 30. Second quarter estimates rose 16.7% to 84 cents from 72 cents in the last 90 days.

Full-year 2009 consensus estimates are up 8 cents in that same period to $2.96.

Value Fundamentals

Covidien is a Zacks #1 Rank (strong buy) stock. It has a forward P/E of 11.35 and a price-to-book of 2.13. The company has an outstanding 1-year return on equity (ROE) of 18.98%.

COV has surprised on estimates the last 4 quarters by an average of 9.70%. As an added bonus, Covidien pays a dividend with a current yield of 1.92%.

Zacks Investment Research

DuPont Lowers 2009 Outlook – Analyst Blog

Zacks Market Commentaries — Tue, 21 Apr 2009 17:35:34 +0000

We feature E.I. du Pont de Nemours & Company (DD).

Du Pont Hits Guidance but Lowers 2009 Outlook

DuPont's (DD) first quarter 2009 earnings were $.54 per share, in-line with guidance. Results reflect earnings from Agriculture & Nutrition and pharmaceuticals, strong companywide pricing and cost discipline, partly offset by the impact of a severe decline in global industrial demand.

The Agriculture & Nutrition segment performance was strong, with sales growth of 6 percent and earnings growth of 8 percent despite significant currency headwinds. Performance was driven by higher North American volumes and significant seed pricing gains.

Consolidated net sales in the first quarter of $6.9 billion were 20 percent lower than prior year, reflecting 19 percent lower volume and a net 1 percent reduction due to portfolio changes. Five percent higher local prices were offset by a 5 percent negative impact from currency. Lower sales volume principally reflects global declines in construction, motor vehicle production and consumer spending, which was magnified by inventory de-stocking across most supply chains.

Company Announced Additional Business Improvement Actions

The company is increasing its 2009 fixed cost reduction goal from $730 million to $1 billion. The company has now identified an additional $200 million in cost reduction actions, including reducing additional contractor positions and work schedule reductions.

DuPont is also developing plans for additional restructuring actions, expected to be finalized and approved in the second quarter 2009, with a targeted $70 million pre-tax savings and positive cash flow benefit in 2009.

The company is reducing 2009 capital expenditures from $1.6 billion to $1.4 billion, 30 percent below 2008 expenditures of $2.0 billion. Working capital reduction projects are fully underway and expected to deliver a $1 billion improvement over 2008, as previously announced.

The company's 2009 earnings outlook has been revised downward to a range of $1.70 to $2.10 per share, excluding any significant items. The revision anticipates that weak demand across key markets will continue throughout 2009.
Read the full analyst report on "DD"
Zacks Investment Research

Emerging Markets: 180,000 New Investment Opportunities… A Day

Investment U — Mon, 13 Apr 2009 13:21:52 +0000

Emerging Markets: 180,000 New Investment Opportunities… A Day by Alexander Green, Oxford Club Investment Director Investors in the West have a poor track record when it comes to the world’s emerging markets. In particular, they have a bad tendency to leave them just when they should love them. This is particularly true today. Like equity markets everywhere, foreign [...]

Omnicare, Inc. – Aggressive Growth – Zacks Rank Buy

Alex Kolb — Fri, 03 Apr 2009 05:00:00 +0000

Omnicare (OCR) is staging a nice rebound after seeing to recent lows. Analysts are upbeat on the company, boosting full-year forecasts from $2.41 per share to $2.56 over the past 3 months.

Company Description

Omnicare, Inc. provides pharmaceutical care for the elderly. Omnicare serves residents in long-term care facilities and other chronic care settings comprising beds in fourteen states, the District of Columbia and Canada.

Omnicare is the largest U.S. provider of professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other institutional healthcare providers as well as for hospice patients in homecare and other settings.

Omnicare's pharmacy services also include distribution and patient assistance services for specialty pharmaceuticals. Omnicare offers clinical research services for the pharmaceutical and biotechnology industries in thirty countries worldwide

Robust Results

The company recently announced fourth-quarter adjusted earnings of 66 cents per share, exceeding the consensus estimate by 5% and outpacing the year-prior result. Sales increased by 3% on a year-over-year basis.

Management said OCR's results reflect significant progress made in returning growth to the business, reducing costs and increasing productivity and enhancing shareholder value.

Management also stated that this was the third consecutive quarter of sequential adjusted earnings growth, adding that the fourth quarter saw strong performance in the institutional pharmacy and specialty pharmacy businesses, progress in productivity improvement and cost reduction initiatives, including the Omnicare Full Potential Plan, as well as a sequential increase in the number of beds served.

An Upbeat Outlook Spurred a Share Price Spike

Noting that it is positioned for continued growth, OCR is forecasting earnings of $2.50 to $2.70 per share for 2009.

The company saw analysts boost full-year 2009 forecasts from $2.41 per share to $2.56 during the past 3 months. For the following year, estimates increased from $2.67 per share to $2.81 over the same timeframe.

The Chart

The strong quarter and upbeat guidance from OCR translated into a nice share price bounce off recent lows.

Zacks Investment Research

Gamma Pharmaceuticals, Inc.’s (GMPM.OB) Jugular(R) Receives Purchase Orders from Texas Distributor

QualityStocks — Fri, 27 Mar 2009 13:43:27 +0000

Gamma Pharmaceuticals Inc. announced today that it has received purchase orders for its Jugular® brand Energy Products from Texas Liquid Energy Distributing Co. (TLED). The Texan distributor delivers to convenience stores (C-stores) and supermarket chain outlets with a significant presence in the San Antonio region. Gamma believes the brand promotion program with TLED will lead [...]

Baxter International – Growth And Income – Zacks Rank Buy

Alex Kolb — Tue, 24 Mar 2009 05:00:00 +0000

Baxter International Inc. (BAX) has seen upbeat forecasts from brokerage analysts. Earnings for the 2009 year are estimated to grow 11%. For the following year, earnings growth is pegged at 13%.

Company Description

Rewarding Shareholders with Higher Income

The company recently declared a quarterly dividend of 26 cents per share, noting that it is payable on April 1 to shareholders of record as of the close of business on March 10. The dividend represents a 20% increase that took place in the prior quarter.

Baxter's yield of 2% tops the industry average as many of the company's industry peers pay no income.

Quarterly Report Shows Record Growth

Baxter recently reported record results for 2008, surpassing its guidance. The company also sees double-digit earnings growth in 2009.

Fourth-quarter earnings per share of 91 cents topped the consensus estimate by 2% and came in above the year-prior 76 cents. The earnings result also eclipsed the company's forecast of fourth-quarter earnings of 88 to 90 cents.

Worldwide sales of $3.1 billion in the fourth quarter, jumping 4% year-over-year. Excluding the impact of foreign currency, worldwide sales was 9% higher than last year and topped BAX's guidance of about 7% growth.

Baxter had another very successful year in 2008, said Robert L. Parkinson, Jr., chairman and chief executive officer . We exceeded expectations on all key financial metrics throughout the year, which illustrates the solid fundamentals underpinning our portfolio and expanded geographic reach. Despite a challenging, global macro-environment, we're very well-positioned to continue to meet our commitments, leverage the benefits of our diversified healthcare model, and continue with our strategic priority of accelerating investment in research and development.

Analyst Estimates are in Line with BAX's Guidance

Baxter's earnings outlook for 2009 ranges between $3.70 and $3.78 per share. The average analyst earnings projection calls for earnings of $3.75 per share. Earnings for the 2009 year are estimated to show growth of 11%. For the following year, earnings growth is pegged at 13%.

BAX outpaced Wall Street estimates by an average of 4% over the past 4 consecutive quarters.

Solid Fundamentals Include a Competitive Dividend

The company's return on equity (ROE) of 31% more than doubles the industry average of 4%.

BAX's net profit margin of 16% is ahead of the industry average of 1%. Zacks Investment Research

CNS Response, Inc. (CNSO.OB) Awarded Third U.S. Patent Targeting the Development of New Indications for Existing Drugs

QualityStocks — Mon, 23 Mar 2009 14:51:32 +0000

CNS Response, Inc. announced that it has received a patent from the U.S. Patent and Trademark Office. The patent, numbered 7,489,964 and titled “Electroencephalography Based Systems and Methods for Selecting Therapies and Predicting Outcomes”, extends application of rEEG® technology to novel methods that can expand indications for CNS pharmaceuticals. “One of the most compelling opportunities [...]

Matches Made in Heaven

Bullish Bankers — Sun, 22 Mar 2009 11:00:28 +0000

As M&A activity peppers the Healthcare industry, prudent investors are searching for the next big acquisitions. 2008 left I-banks hanging their heads as weak market conditions and restricted lending created a stale environment for M&A activity. However, the dire need for drug companies to protect their future sales brings out the big players in the [...]

The Golden Bough

Investment Education Staff — Thu, 19 Mar 2009 08:00:30 +0000

Virgil referred to it as the “Wand of Destiny.” It got Aeneas through the Underworld, so there must be something to it. If things are now about go to hell in a handbasket, as seems destined, you just may need one of your own. And after going through my scans tonight –well, let’s [...]

Toron: Deflation, Economy’s worst fear

Jim Musselwhite — Thu, 19 Mar 2009 05:50:13 +0000

Author: toron
Added: Wed, 18 Mar 2009 21:50:13 -0800
Duration: 238

Toron Managing partner arthur Heinmaa examines the growing concerns of deflation in the Canadian economy and what the risks might be for 2009.

Dell getting desperate

Daniel Hung — Thu, 19 Mar 2009 04:55:49 +0000

Dell unveiled their new ultraslim, the Adamo, a few days ago. The new laptop is a 13.4 inch “luxury” portable featuring no optical drive, a long life sealed-in battery, edge-to-edge glass screen, and a solid state hard drive comes at the very affordable starting price of $1999. Does this sound familiar? A MacBook Air, perhaps? [...]

Consumer Confidence Makes Up Huge Ground

Eldon Mast — Thu, 19 Mar 2009 03:17:00 +0000

pa href="http://feedads.googleadservices.com/~a/-Gb4DZlL6YZX8HuZFSHh8L-dwjU/a"img src="http://feedads.googleadservices.com/~a/-Gb4DZlL6YZX8HuZFSHh8L-dwjU/i" border="0" ismap="true"/img/a/pLast week you noted that consumer and a style="color: rgb(51, 51, 255);" href="http://mast-economy.blogspot.com/2009/03/consumer-pessimism-receding-investors.html"investor confidence were up significantly/a. But taking a closer look at the data reveals just how significant the confidence bounce was.br /br /In fact according to the archive of a href="http://www.rasmussenreports.com/public_content/business/indexes/rasmussen_consumer_index"Rasmussen Confidence Index data/a, it only took five days last week for a href="http://legacy.rasmussenreports.com/rasmussen_index.htm"the daily index/a to make up almost all of the ground it had slowly lost over the past five months. (Click to enlarge chart)br /br /a href="http://3.bp.blogspot.com/_jlRX6zR7UgM/ScG_xpHp-aI/AAAAAAAAAUU/MAYFqHcJ4Oo/s1600-h/5days.jpg"img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 400px; height: 398px;" src="http://3.bp.blogspot.com/_jlRX6zR7UgM/ScG_xpHp-aI/AAAAAAAAAUU/MAYFqHcJ4Oo/s400/5days.jpg" alt="" id="BLOGGER_PHOTO_ID_5314739894846355874" border="0" //abr /You've seen how a style="color: rgb(51, 51, 255);" href="http://mast-economy.blogspot.com/2009/03/retail-growth-is-indeed-leading-us-to.html"consumer spending drives recovery/a. Here's just one more data point leading us out of the winter doldrums into a much a style="color: rgb(51, 51, 255);" href="http://mast-economy.blogspot.com/2009/02/evidence-points-to-recessions-end-by.html"cheerier spring and summer./adiv class="blogger-post-footer"div/div No Gloom here. Only Good News. div/div a href="http://www.amazon.com/gp/product/1416560610?ie=UTF8tag=thegooneweco-20linkCode=as2camp=1789creative=9325creativeASIN=1416560610"The Power of Positive Thinking/a div/div a href="http://www.amazon.com/gp/product/0743243153?ie=UTF8tag=thegooneweco-20linkCode=as2camp=1789creative=390957creativeASIN=0743243153"The Road Less Traveled/a div/divimg width='1' height='1' src='http://res1.blogblog.com/tracker/1227919517269937208-6860231871861680532?l=mast-economy.blogspot.com'//divdiv class="feedflare" a href="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?a=koQ5tVpMLvM:gkCJC9bnFUE:yIl2AUoC8zA"img src="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?d=yIl2AUoC8zA" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?a=koQ5tVpMLvM:gkCJC9bnFUE:63t7Ie-LG7Y"img src="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?d=63t7Ie-LG7Y" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?a=koQ5tVpMLvM:gkCJC9bnFUE:dnMXMwOfBR0"img src="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?d=dnMXMwOfBR0" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?a=koQ5tVpMLvM:gkCJC9bnFUE:F7zBnMyn0Lo"img src="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?i=koQ5tVpMLvM:gkCJC9bnFUE:F7zBnMyn0Lo" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?a=koQ5tVpMLvM:gkCJC9bnFUE:7Q72WNTAKBA"img src="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?d=7Q72WNTAKBA" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?a=koQ5tVpMLvM:gkCJC9bnFUE:V_sGLiPBpWU"img src="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?i=koQ5tVpMLvM:gkCJC9bnFUE:V_sGLiPBpWU" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?a=koQ5tVpMLvM:gkCJC9bnFUE:qj6IDK7rITs"img src="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?d=qj6IDK7rITs" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?a=koQ5tVpMLvM:gkCJC9bnFUE:KwTdNBX3Jqk"img src="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?i=koQ5tVpMLvM:gkCJC9bnFUE:KwTdNBX3Jqk" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?a=koQ5tVpMLvM:gkCJC9bnFUE:l6gmwiTKsz0"img src="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?d=l6gmwiTKsz0" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?a=koQ5tVpMLvM:gkCJC9bnFUE:gIN9vFwOqvQ"img src="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?i=koQ5tVpMLvM:gkCJC9bnFUE:gIN9vFwOqvQ" border="0"/img/a a href="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?a=koQ5tVpMLvM:gkCJC9bnFUE:TzevzKxY174"img src="http://feeds2.feedburner.com/~ff/TheGoodNewsEconomist?d=TzevzKxY174" border="0"/img/a /divimg src="http://feeds2.feedburner.com/~r/TheGoodNewsEconomist/~4/koQ5tVpMLvM" height="1" width="1"/

Wednesday’s Market Recap (03/18/09)

Bullish Bankers — Thu, 19 Mar 2009 02:47:46 +0000

The markets continued to rally as the Dow Jones ended up 1.23% at 7486.58 while the S&P and NASDAQ closed up 2.09% and 1.99% respectively. The 10 year saw yields shrink as news that the Fed will increase its open market purchase pushed prices up. Yields closed around 2.55%. Gold and oil settled up at [...]

Five Dividends to Count On

Bullish Bankers — Thu, 19 Mar 2009 01:04:30 +0000

As the fallout in the financial markets continues to unwind, a number of companies have bolted down balance sheets and insured some cash flows by cutting their once attractive dividends. In the past month we have seen the likes of General Electric [GE: 10.32, +0.32 (+3.20%)], JP Morgan Chase [JPM: 27.11, +1.97 (+7.84%)], Bank [...]

This Could Be the One of the Greatest Shorts of Our Time

Contrarian Profits — Wed, 18 Mar 2009 22:19:07 +0000

tr strongNotes from the pInvestment Underground/p/strong /tr tr Wednesday, March 18, 2008br / Recoleta, Buenos Aires, Argentinabr / p /p pstrongPlastic Paddies#8230; The now and future inflation#8230; Spendaholics Anonymous#8230; Waiting for the Treasuries bubble to pop#8230; The perversity of ‘self-stimulation’#8230; Paul Volcker’s two-tier financial system#8230; emNotes/em in “Fantasyland”#8230; Going to ground in Ireland#8230; And more! /strong/p p*** Paddy’s Day celebrations are over. Yesterday, the streets of Buenos Aires filled up with lots of Latin “plastic paddies.” All very strange indeed. More on this below./p p*** This morning, the a href="http://www.ft.com/cms/s/0/40d54f36-1335-11de-a170-0000779fd2ac.html" target="_blank"emFinancial Times/em/a reports that Mr. Market is waiting to see whether the Fed will start buying long-term U.S. Treasuries to further ‘stimulate’ the economy. /p pAnd with rates at near zero levels, it’s running out of ammo. Talking to a href="http://www.cnbc.com/id/29720589" target="_blank"CNBC/a yesterday, Dr. Marc Faber, editor of the em Gloom, Boom#8230;/em/p/tr

BWAY Holding Co. – Aggressive Growth – Zacks Rank Buy

Zacks Market Commentaries — Tue, 17 Mar 2009 05:00:00 +0000

BWAY Holding Co. (BWY) recently announced its third consecutive earnings surprise and should be growing steadily for the next few years.

Company Description

BWAY Holding Company is a leading North American manufacturer of general line rigid metal and plastic containers. The company operates in two segments, Metal Packaging and Plastic Packaging.

The Metal segment makes rigid metal containers made of steel that include aerosol cans, ammunition boxes, and many other various products from household items to automotive products. The Plastic segment makes injection-molded sealable containers for paint, petroleum, pharmaceuticals and many other products.

Solid Quarter

On Feb 4 BWAY announced first-quarter results for fiscal 2009 and reiterated full-year guidance. The company had a net loss of 10 cents per share, beating Wall Street estimates which were forecasting a loss of 14 cents. In the same quarter last year BWAY lost 18 cents.

Given the cyclical nature of the business the company typically posts its lowest results during this time of year.

"While we now anticipate 10%-12% lower overall volume for fiscal 2009 due to the prolonged economic downturn, we expect the cost reduction measures we implemented in fiscal 2008 and during our first fiscal quarter of 2009 to more than offset the effect of lower volume," stated Ken Roessler, President and CEO.

Earnings Growth

Full-year earnings estimates have been climbing all year. The consensus for 2009 is now 87 cents, up from 83 cents in January. Estimates for 2010 are averaging $1.06, up from 85 cents in the same time frame.

These forecasts are projecting growth rates of 23% and 22% for 2009 and 2010, respectively.

The Chart

Shares of BWY are rising sharply and approaching a level of resistance. The stock has been responsive to this level with significant moves when breaking through, both on the way up and the way down. Take a look at the chart below.

Zacks Investment Research

Mylan, Inc. – Momentum – Zacks Rank Buy

Michael Vodicka — Thu, 05 Mar 2009 05:00:00 +0000

Mylan, Inc.'s (MYL) share price continues to head higher after the company's solid fourth-quarter and full-year results. The analyst community is bullish on this stock, projecting 44% earnings growth in the next-year period.

Company Description

Mylan, Inc. and its subsidiaries engage in the development, manufacturing and distribution of generic, brand and branded pharmaceuticals and pharmaceutical ingredients. The company was founded in 1961 and has a market cap of $3.66 billion.

Fourth-Quarter Results

Mylan's share price received a nice boost on Feb 20 when the company reported solid fourth-quarter results that were ahead of analyst estimates when removing special, one-time items. Revenue was up 4% from last year to $1.2 billion. Income sky rocketed, jumping to a loss of $40 million from a loss of $1.38 billion last year.

One-Time Items

Mylan's income looks even better when stripping out one-time items, including an $82 million amortization expense and a non-cash impairment of $70.4 million. Excluding these items, earnings came in at 26 cents per share, ahead of the consensus estimate by 12 cents.

This was the fourth time in four quarters that Mylan has surprised and beat the Street, having done so by an average of 8 cents, or 62%.

Full-Year Results

Mylan's full year revenue came in at $5.14 billion, up from $2.67 billion last year, with income showing a loss of $320 million compared to a loss of $1.23 billion in the previous year period.

Estimates Move Higher

Analysts lifted their earnings projections after the solid quarter, with the current-year estimate tacking on 3 cents and advancing to $1.02 per share. The next-year estimate stands at $1.47, a bullish earnings growth projection of 44%.

The Chart

Shares of MYL have been on a very solid rally for most of the last 4 months, advancing from a low point just below $6 in late October to a recent high above $13, where some short-term resistance has developed. If Mylan can deliver on its and the analysts bullish forecast, it should be well positioned for more share appreciation. Take a look at the chart below.

Zacks Investment Research

Omnicare Inc. – Aggressive Growth – Zacks Rank Buy

Zacks Market Commentaries — Wed, 04 Mar 2009 05:00:00 +0000

Omnicare, Inc. (OCR) recently announced its full-year results and forecasts for next year are on the rise.

Company Description

Omnicare, Inc., is a leading provider of pharmaceutical care for the elderly. The company serves residents in long-term care facilities and other chronic care settings comprising beds in fourteen states, the District of Columbia and Canada. Omnicare is the largest U.S. provider of professional pharmacy, related consulting and data management services for skilled nursing, assisted living and other institutional healthcare providers as well as for hospice patients in homecare and other settings.

Five Consecutive Surprises

On Feb 26 Omnicare released fourth-quarter and full-year results that included earnings per share of 66 cents. The number was 3 cents higher than Wall Street expected making it the fifth consecutive earnings surprise.

While full-year sales increased marginally, to $6,311 million from $6,220 million, net income grew by 37%. Income for 2008 was $156 million, up from $114 million.

Analysts are Bullish

Following the most recent earnings announcement, a vast majority of analysts have been upwardly revising their estimates. 8 of 9 covering analysts upped their forecast for 2009, which now average $2.55 per share up from $2.39 one month ago.

The 2009 consensus is calling for just over 20% earnings growth and another 10% in 2010.

Shares Trading at a Discount

A share of OCR is only going to cost an investor 8 times forward earnings and the PEG ratio is just 0.6.

The Chart

Full-year estimates are turning around. As you can see in the price and consensus chart below, forecasts had declined steadily, but are now back on the rise.

Zacks Investment Research

Gamma Pharmaceuticals Inc. (GMPM.OB) is “One to Watch”

QualityStocks — Fri, 27 Feb 2009 21:01:12 +0000

Gamma Pharmaceuticals Inc. is a marketing and product formulation company. They have created, registered, and branded innovative product lines including Nutritional Supplements, Personal Care Products, and Over the-Counter (OTC) pharmaceuticals. The company has their headquarters in Las Vegas, Nevada and they manufacture in North America, with initial distribution in the United States and Greater China. [...]

Baxter International, Inc. – Growth And Income – Zacks Rank Buy

Alex Kolb — Fri, 27 Feb 2009 05:00:00 +0000

Baxter International Inc. (BAX) recently declared a quarterly dividend of 26 cents per share, noting that it is payable on April 1 to shareholders of record as of the close of business on March 10.

Company Description

Rewarding Shareholders with Higher Income

Baxter's yield of 2% tops the industry average as many of the company's industry peers pay no income.

Quarterly Report Shows Record Growth

Baxter recently reported record results for 2008, surpassing its guidance. The company also sees double-digit earnings growth in 2009.

Analyst Estimates are in Line with BAX's Guidance

Baxter's earnings outlook for 2009 ranges between $3.70 and $3.78 per share. The average analyst earnings projection calls for earnings of $3.75 per share.

BAX outpaced Wall Street estimates by an average of 4% over the past 4 consecutive quarters.

Solid Fundamentals Include a Competitive Dividend

The company's return on equity (ROE) of 31% more than doubles the industry average of 8%.

BAX's net profit margin of 16% is ahead of the industry average of 5%. Zacks Investment Research

More Stimulus Winners From Clifton

Jeffrey Miller — Wed, 18 Feb 2009 22:58:25 +0000

Dan Clifton, head of policy research at Strategas Partners, was on Kudlow #038; Company the other night with a solid list of stimulus winners and lowers. You can view the video here (the one titled Stimulus Winners and Losers). Right off the bat, Clifton said wind and solar were safe calls because of the new grant [...]img src="http://feeds.feedburner.com/~r/ElectionStocks/~4/542794594" height="1" width="1"/

Baxter International (BAX) – Bull of the Day

Zacks Market Commentaries — Tue, 17 Feb 2009 05:00:00 +0000

Baxter International, Inc. (BAX) is a global medical products and services company with expertise in medical devices, pharmaceuticals, and biotechnology. The company is comprised of three operating segments: BioScience, Medication Delivery and Renal.

We believe these markets will remain relatively insulated from the current economic turmoil and provide investors with good quality returns on a risk-adjusted basis. Baxter's strong market position is demonstrated in its recent quarterly and annual performance that exceeded their prior estimates.

We remain bullish on this stock and believe it provides a less risky vehicle during the current economic turbulence. We believe BAX should trade at a 15% premium to the group P/E/G average of 1.2. The resulting P/E is 18.6x 2009, producing a target price of $64.65 per share.
"BAX" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Cubist Pharmaceutical’s (CBST): Stock of the Day

Investment U — Wed, 11 Feb 2009 14:31:29 +0000

Cubist Pharmaceutical’s (CBST): Stock of the Day by Matt Weinschenk, Senior Analyst, The White Cap Report Cubist Proves Saving Lives Isn’t Good Enough With the recent surge in cases of MSRA (methicillin-resistant staphyloccus aureus), or at least a surge in reporting, one would think it was good news for Cubist Pharmaceutical’s (Nasdaq: CBST). It may have been, had [...]

Baxter International Inc. – Growth And Income – Zacks Rank Buy

Alex Kolb — Fri, 06 Feb 2009 00:00:00 +0000

Baxter International Inc. (BAX) recently reported record results for 2008, surpassing its guidance. The company also sees double-digit earnings growth in 2009.

Company Description

Quarterly Report Shows Record Growth

Baxter recently reported record results for 2008, surpassing its guidance. The company also sees double-digit earnings growth in 2009.

Analyst Estimates are in Line with BAX's Guidance

Baxter's earnings outlook for 2009 ranges between $3.70 and $3.78 per share. The average analyst earnings projection calls for earnings of $3.75 per share.

BAX outpaced Wall Street estimates by an average of 4% over the past 4 consecutive quarters.

Solid Fundamentals Include a Competitive Dividend

The company's return on equity (ROE) of 31% more than doubles the industry average of 12%.

BAX's net profit margin of 16% is ahead of the industry average of 12%.

The company rewards shareholders with a dividend yield of 1.8%, which is well above the industry average since most companies within Baxter's industry pay no income.
"BAX" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

China Overtakes Germany – Economically

Investment U — Fri, 16 Jan 2009 20:18:49 +0000

China Overtakes Germany – Economically By Don Miller, Contributing Writer, Money Morning Editor’s Note: Our colleagues have been tracking the Chinese “dragon” for a while. As part of a balanced asset allocation strategy we recommend 30% in foreign stocks – and as the third largest economy, China certainly fits that bill. There has been a lot of [...]