February 22, 2007

Walter Industries

Walter Industries has been singled out as a Motley Fool Hidden Gem

February 16, 2007

Zymogenetics- $24 Price Target

From Zack's:

Zymogenetics (ZGEN) shares are attractively priced and poised to outperform in the second half of 2007. Why is Nadine Wong bullish? Zymogenetics filed a BLA for rhThrombin in December 2006 and an FDA approval is expected with market launch occurring in the fourth quarter of 2007. rhThrombin will be an attractive alternative to currently marketed plasma-derived products and will quickly become a major player in the thrombin surgical hemostasis market. The key benefit of rhThrombin over bovine thrombin is the vastly superior immunogenicity profile (22% vs. 1.5%) and likely lack of a black box warning label. As a result, rhThrombin will rapidly convert and ultimately grow the current $250 million bovine thrombin market. Key advantages of the human plasma product include consistent manufacturing capacity, no risk of blood-borne pathogens, longer shelf life and more convenient use in the surgical suite. Wong and her team think rhThrombin will be the dominant thrombin product with potential sales of $308 million in 2010.

However, it is likely the primary competitor will be Omrix's OMRI, a pooled human plasma thrombin, which will be marketed by J&J Ethicon. It’s likely Omrix’s drug may get approval ahead of Zymogenetics’ this year, pressuring Zymogenetics’ shares. Target price is $24.

February 15, 2007

TINY and Quantum Computing

The Fool has an article about the new nan0-technology at Harris and Harris.

$17.65 Target on Raydene

Zacks has a quick blurb on Raydene:


After falling over 10% today, Radyne Corporation (RADN) is now trading at a very attractive valuation, or so says Zacks senior analyst Debra Fiakas, CFA, who covers Radyne and currently gives it a Buy recommendation:

“Radyne landed contracts that slipped from the third quarter 2006, producing year-end sales and earnings within management’s guided range. The Company provides equipment used in the ground segment of satellite systems for the transmission of voice, data, audio and video communications. The Company has a fairly fresh product line with several new products that surpass performance of competitors products.

“Operating expenses appear to be well under control, totaling $10.1 million in the fourth quarter. This compares well to $10.4 million spent in the previous quarter and $9.9 million in the year-ago quarter. For the year operating expenses grew by 29.4% to $39.6 million versus $30.6 million in the prior year. This compares to sales growth of 30.0% year-over-year. Net income was $3.6 million or $0.19 per share in the quarter, bringing EPS for the year to $0.63. Cash flow generated by operations totaled $8.7 million for the year, bringing cash to $27.5 million at the end of December 2006. Equity increased to $101.9 million from $77.6 million, driven by retained earnings and the addition of the Xicom operation.

“We have adjusted our price target to $17.75 based on the reduction in our 2007 EPS [earnings per share] estimate from $0.86 to $0.71. This assumes RADN is fairly valued at a P/E [price-to-earnings]-to-growth (PEG) ration of about 1.0, based on our projected five-year growth rate of 25%.”

February 13, 2007

Bullish on CV Therapeutics

From Zack's:

Last Friday afternoon, a new research report came out on CV Therapeutics (CVTX) with a Buy recommendation on it. Excerpted from the report, written by Zacks senior pharmaceuticals analyst Jason Napodano, CFA, are some reasons behind the bullish viewpoint:

”Headquartered in Palo Alto, CA, CVTX is a biopharmaceutical company focused on applying molecular cardiology to the discovery, development and commercialization of novel, small molecule drugs for the treatment of cardiovascular diseases. Fourth quarter sales of Ranexa, launched in March 2006 for chronic angina, continue to move forward slowly. However, uptake will probably remain low until the MERLIN data becomes available at the American College of Cardiology [ACC] in March 2007.

“We continue to rate the shares a Buy based on our belief that MERLIN will be positive, and use in the first-line indication and acute coronary syndrome (ACS) will drive significant profitably in 2010. Our price target remains $17.

“Costs are high, but phase III trials on Ranexa and Regadenoson are complete. We expect R&D [research and development] expenses to decline by $30 million in 2007. Management estimates that 50% of the R&D spent in 2007 will still be on the Ranexa and Regadenoson programs to prepare the filings. We estimate that R&D expense will decline significantly in 2008, leading to sizable operating leverage as Ranexa ramps. CVT recorded a loss of $5.49 per share in 2006. We believe the company can be profitable in 2009.”

The Fool also has a write-up here
since it is a "Rule Breaker." They note that the outcome of the clinical trials are difficult to predict.

February 5, 2007

Helix Energy

Helix Energy has been mentioned as a solid growth stock at the Fool and at Zacks.

3M Undervalued

A nice write up on the 3M company at Value Discipline

February 2, 2007

Headwatrers

Headwaters is a Fool Rule Breakers recommendation

Options Express Back on Track

Since late October, optionsXpress' stock price has been under pressure, falling from $31 to around $23.41. But the company certainly has a big market opportunity, which it estimates at 3 to 4 million customers. There is even more upside because of its move into futures.

In other words, the company has a lot of room for growth. And now it can focus on getting new customers.