Stocks and Sectors

By StreetAuthority:

By David Sterman

I’ve noted on a few occasions that investing in shares of biotech companies is quite challenging for the average investor. In this case, as I suggested a few weeks ago, a biotech fund may be the best choice for some, since it reduces the risk of a specific holding plunging as cash dwindles or as a promising drug fails key testing criteria.

Well, a pair of recent big gainers now tells me that a “swing for the fences” approach still has some merit for others. Here’s what’s going on…

Back in early in October, I recommended three oncology stocks as part of a three-pronged approach to biotech.

Shares of Celsion (Nasdaq: CLSN) are off 27% since then, while Medivation (Nasdaq: MDVN) has shot up a stunning 330% in the same period. Yet it’s the third pick, Threshold Pharma (Nasdaq: THLD), that has me the most intrigued. The

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Becton, Dickinson and (BDX)

Q1 2012 Earnings Call

February 07, 2012 8:00 am ET

Executives

Monique Dolecki –

Vincent A. Forlenza – Chief Executive Officer, President and Director

David V. Elkins – Chief Financial Officer and Executive Vice President

Gary M. Cohen – Executive Vice President

William A. Kozy – Executive Vice President

Tom Polen – President

Analysts

Lawrence S. Keusch – Morgan Keegan & Company, Inc., Research Division

Brian Weinstein – William Blair & Company L.L.C., Research Division

Jonathan P. Groberg – Macquarie Research

Kimberly Weeks Gailun – JP Morgan Chase & Co, Research Division

David R. Lewis – Morgan Stanley, Research Division

Kristen M. Stewart – Deutsche Bank AG, Research Division

David H. Roman – Goldman Sachs Group Inc., Research Division

Amit Bhalla – Citigroup Inc, Research Division

Jon Davis Wood – Jefferies & Company, Inc., Research Division

William R. Quirk – Piper Jaffray Companies, Research Division

Bill

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By Stephen Simpson:The graying of America has been a theme in healthcare for at least the last 15 years, and I’ve seen analysts and investors apply it to med-tech companies like Johnson & Johnson (JNJ), insurance companies like UnitedHealth (UNH), and a host of other facility operators and service providers. It may be a trite theme at this point, but there is still an element of truth to it and patient investors may be able to ride LHC Group (LHCG) to its fruition.

A Growth Play In A Bad Neighborhood

It would be an understatement to say that home healthcare providers like LHC Group, Amedisys (AMED), Gentiva (GTIV), and Almost Family (AFAM) have been beaten up since 2010. Not only has the industry had to absorb cuts in reimbursement, but the entire industry has been under a regulatory cloud caused by accusations that these companies have fraudulently and illegally billed for unnecessary

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GlaxoSmithKline plc (GSK)

Q4 2011 Earnings Call

February 07, 2012 9:00 am ET

Executives

Andrew Witty – Chief Executive Officer, Executive Director, Member of Corporate Administration & Transactions Committee and Member of Finance Committee

Simon Dingemans – Chief Financial Officer, Executive Director, Member of Corporate Administration & Transactions Committee and Member of Finance Committee

Deidre Connelly –

Moncef Slaoui – Chairman of Research & Development, Executive Director, Member of Corporate Administration & Transactions Committee and Member of Finance Committee

Darrell Baker –

Patrick Vallance – Senior Vice President of Medicines Discovery & Development

Analysts

Andrew S. Baum – Morgan Stanley, Research Division

Mark Beards – Goldman Sachs Group Inc., Research Division

Graham Parry – BofA Merrill Lynch, Research Division

Florent Cespedes – Exane BNP Paribas, Research Division

James D. Gordon – JP Morgan Chase & Co, Research Division

Jo Walton – Crédit Suisse AG, Research Division

Mark Purcell – Barclays

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By Kinetic Investments:

By Bert Wilkison

Below is a list of five strong biotechs with great future prospects that have delivered positive earnings surprises recently, and are certainly worth a look.

1. Biogen Idec, Inc. (BIIB)

EPS From Earnings Surprise: $1.50

Biogen Idec uses cutting edge science to discover, develop, manufacture and market biological products for the treatment of serious diseases with a focus on neurological disorders. It claims to be the world’s oldest independent biotechnology company, and is a Fortune 500 company, with more than $4 billion in revenues.

Its stock currently trades around $121.50 with 238.73M shares out, giving it a market cap of $29.15B. Institutional ownership stands at 87%, and the total reported short interest as of 01/13/12 was 2.32M shares. The consensus analyst 12-month price target is $129.50, with the highest estimate being $137.

(Click to enlarge images)

Amgen Inc. (AMGN)

2. EPS From Earnings Surprise: $1.16

Amgen discovers,

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By Yale Bock:

CardioNet (BEAT) is a cash-rich health care provider of a cash-flow-positive business. Is there an opportunity in the common shares to outperform the broader market over the next few years? Let’s look at the current status of the business to find out.

Existing State of the CardioNet Business

CardioNet services patients by diagnosing and monitoring heart rhythm disorders. According to a press release by competitor CardioComm Solutions, there are currently over 4 million people in the U.S. currently receiving care for recurring arrhythmia, and between 2000 and 2030 the number of people over age 65 will double, greatly expanding the number of those who will need heart diagnostics and monitoring services.

The vast majority of the CardioNet business comes from the MCOT device (Mobile Cardiac Outpatient Telemetry). Over the last three years ended 2010, revenues of BEAT have ranged from $120 million – $140 million per year. According to the

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By Stephen Simpson:

In a market that has offered up plenty of values in med-tech, investors may do well to draw lines between quality and value. There is no question that Becton Dickinson (BDX) is a very good (and very stable) company with substantial market share in a host of profitable sectors. The problem, though, is that there is no shortage of love for this name and no pressing need to buy the stock at current prices.

First Quarter Results Point To One Big Challenge

Perhaps the biggest issue for BD today is producing the sort of growth that it takes to get institutional investors excited and eager to push up the valuation. Reported growth in the fiscal first quarter was just 2.5%, which was at the high end of expectations, but not all that scintillating.

Growth was relatively well-balanced. The smallest division, Biosciences, was also the weakest, as growth was just about

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By Smith On Stocks:

Investment Thesis

I initiated coverage of Antares (AIS) on December 8, 2011 with a buy rating. Important factors driving my recommendation were its broad based relationship with Teva for developing injectable pharmaceuticals and the recently approved Anturol, a gel based product for urinary incontinence. I also felt that LibiGel could be a meaningful, but not critical contributor to the investment thesis. The subsequent failure of LibiGel in its phase III trial was a disappointment, but did not meaningfully affect my rating.

I would be a buyer of Antares based just on these factors, but there is another element of the story that has the potential to dominate the investment thesis. The company is developing Vibex MTX for its own account; this is a sub-cutaneous formulation of methotrexate or MTX for rheumatoid arthritis and other auto-immune diseases. Antares has the lead in developing this type of product in the US and

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By Helix Investment Management:

Biotechnology is both one of the most lucrative sectors in the market and the riskiest. The results of a single drug trial, or a single FDA decision, can dramatically alter the fortunes of a company and its stock. Investing in biotechnology stocks carries some unique risks not present in other sectors. While the sector can be seen as a defensive one, given the ever-present need for new medicines, a biotechnology company’s fundamentals matter to a degree not seen in any other sector.

We think the biotechnology sector is a great sector to invest in, for a number of reasons. First, the sector has a fair amount of defensive characteristics. Secondly, there is enormous growth potential. And lastly, large pharmaceutical companies starved for growth are constantly looking to this sector to replenish their pipelines and avoid the ravages of the patent cliff. However, the risk of drug failures is ever-present. As

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By Scott Matusow:

Here is a list of some stocks with high short interest. When stocks have heavy short interest, any positive catalyst for these stocks can trigger a short squeeze. Let’s take a look at some of these stocks for potential

MannKind Corporation (MNKD) 2/3/11 pps: $2.17.

In a prior article, I remark that Mannkind has over 28 million shares short, so Mannkind easily makes this list. The short interest is over 35 percent of the entire float. Needless to say, this is high short interest here.

Mannkind has had to date, multiple setbacks to its drug Afrezza, with controversy surrounding the last FDA rejection of the drug.

CREW (Citizens for Responsibility and Ethics in Washington) claims Martin Shkreli,

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