Related BZSUM Market Wrap For March 11: Markets End Slightly In The Red As Ukraine Worries Persist And Continued Chinese Conerns Mid-Afternoon Market Update: Fuel Cell Companies Reverse Sharply on Citron Research Report
Investors remained focused on the state of the Chinese economy on Wednesday morning after the nation released much weaker than expected export data at the beginning of the week.
Asian shares tumbled as investors worried that the world’s second largest economy was stuck in a rut.
On top of disappointing economic data, Chinese companies have been reporting dismal figures as well. Power equipment manufacturer Baoding Tianwei Baobian Electric Co. reported a net loss for the second year in a row, causing the company’s shares to fall 5.1 percent on Wednesday and its corporate bond to be suspended for the second consecutive day.
Top Managed Healthcare Companies For 2015: Novavax Inc.(NVAX)
Novavax, Inc., a clinical-stage biopharmaceutical company, focuses on developing recombinant vaccines for infectious diseases using its virus-like particle platform (VLP) technology. It develops vaccine product candidates that target pandemic influenza, including H1N1 and H5N1 strains; seasonal influenza; and respiratory syncytial virus (RSV). Novavax has a joint venture with Cadila Pharmaceuticals Ltd. to develop and manufacture the company?s pandemic and seasonal influenza vaccine candidates, Cadila?s biogeneric products, and other diagnostic products for the territory of India; and a licensing agreement with LG Life Sciences, Ltd. to use the company?s VLP technology to develop and sell the company?s influenza vaccines in South Korea and other countries. It also has a co-marketing agreement with GE Healthcare for a pandemic influenza vaccine solution. The company was founded in 1987 and is headquartered in Rockville, Maryland.
- [By Rich Bieglmeier]
[Related -Novavax, Inc. (NVAX): Insider Buying News You Can Use]
Novavax is a clinical-stage biopharmaceutical company focused on developing recombinant protein nanoparticle vaccines to address a range of infectious diseases. The company’s technology platform is based on proprietary recombinant vaccine technology that includes virus-like particles (VLPs) and recombinant protein micelle vaccines. Its vaccine candidates target seasonal influenza, pandemic (H5N1) influenza, and respiratory syncytial virus (RSV).
- [By Susan J. Aluise]
Given the sheer profit potential of this sector, all investors should have some exposure to biotech stocks, but your investment horizon and risk tolerance is almost certainly going to differ from the next guy. So, if you’re looking for ideas of biotech stocks to buy, here are a few suggestions — some for conservative investors, and some for the truly adventurous:
Biotech Stocks: Novavax (NVAX)
Type: Small-cap stock
Market Cap: $972 million
Top Managed Healthcare Companies For 2015: Diamondback Energy Inc (FANG)
Diamondback Energy, Inc., incorporated on December 30, 2011, is an independent oil and natural gas company. The Company is focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. The Company is the operator of Janey 16H in Upton County with a 3,842 foot lateral in the Wolfcamp B interval. During the year ended December 31, 2012, the Janey 16H had produced a total of 48 thousand barrels of oil and 62 million cubic feet of natural gas. As of December 31, 2012, the Company had drilled 193 gross (176 net) wells, and participated in an additional 18 gross (eight net) non-operated wells, in the Permian Basin. Of these 211 gross wells, 191 were completed as producing wells and 20 were in various stages of completion. In the aggregate, as of December 31, 2012, it held interests in 225 gross (201 net) producing well in the Permian Basin.
The Company’s activities are primarily focused on the Clearfork, Spraberry, Wolfcamp, Cline, Strawn and Atoka formations, which it refers to collectively as the Wolfberry play. The Wolfberry play is characterized by high oil and liquids rich natural gas, multiple vertical and horizontal target horizons, extensive production history, long-lived reserves and high drilling success rates. The Wolfberry play is a modification and extension of the Spraberry play, the majority of which is designated in the Spraberry Trend area field. As of December 31, 2012, its estimated proved oil and natural gas reserves were 40,210 million barrels of oil equivalent based on a reserve report prepared by Ryder Scott Company L.P. (Ryder Scott), its independent reserve engineers. Of these reserves, approximately 29.5% are classified as proved developed producing, (PDP). Proved undeveloped (PUD), reserves included in this estimate are from 306 vertical gross well locations on 40-acre spacing and four gross horizontal well l ocations. As of December 31, 2012, these proved reserves wer! e approximately 65% oil, 21% natural gas liquids and 14% natural gas.
The Company had have 881 identified potential vertical drilling locations on 40-acre spacing based on its evaluation of applicable geologic and engineering data as of December 31, 2012, and had an additional 1,118 identified potential vertical drilling locations based on 20-acre downspacing. It also has identified 731 potential horizontal drilling locations in multiple horizons on its acreage. The Company’s second horizontal well, Kemmer 4209H in Midland County is a non-operated well in which the Company owns a 47% working interest. In 2012, the Kemmer 4209H produced a total of 41 thousand barrels of oil and 45 million cubic feet of natural gas. In addition to the Janey and Kemmer wells, as of February 28, 2013, the Company had three additional horizontal wells in Midland County and four horizontal wells in Upton County in various stages of development. In Midland County, it drilled the ST25 -1H well (83% working interest) with a lateral length of 4,617 feet.
In Upton County, the Company drilled three additional wells, the Neal 8-1H (100% working interest) with a lateral length of 7,652 feet, the Neal 8-2H (100% working interest) with a lateral length of 6,658 feet and the Janey 3H (100% working interest) with a lateral length of 4,629 feet. It completed a 32 stage frac on the Neal 8-1H well in January 2013. As of February 26, 2013, flowback operations were underway and for the last seven days the well averaged 806 barrel of oil equivalent per day with a peak rate of 871 barrel of oil equivalent per day with an 85% oil component.
- [By Jake L’Ecuyer]
Diamondback Energy (NASDAQ: FANG) shares were also up, gaining 5.73 percent to $69.39 after the company reported a 30% growth in Q1 production.
Equities Trading DOWN
Shares of The Gap (NYSE: GPS) were down 2.53 percent to $38.29 after the company reported a 6% decline in its same-store sales in March, versus analysts’ expectations for a 4.7% fall.
- [By Jake L’Ecuyer]
Diamondback Energy (NASDAQ: FANG) shares were also up, gaining 4.65 percent to $68.68 after the company reported a 30% growth in Q1 production.
Equities Trading DOWN
Shares of The Gap (NYSE: GPS) were down 3.78 percent to $37.81 after the company reported a 6% decline in its same-store sales in March, versus analysts’ expectations for a 4.7% fall.
Top Managed Healthcare Companies For 2015: Dollar Tree Inc.(DLTR)
Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise primarily at the fixed price of $1.00. The company operates its stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant, and Dollar Bills. Its stores offer consumable merchandise, including candy and food, and health and beauty care, as well as household consumables, such as paper, plastics, household chemicals, in select stores, and frozen and refrigerated food; variety merchandise, which includes toys, durable housewares, gifts, party goods, greeting cards, softlines, and other items; and seasonal goods, such as Easter, Halloween, and Christmas merchandise. As of April 30, 2011, it operated 4,089 stores in 48 states and the District of Columbia, as well as 88 stores in Canada. The company was founded in 1986 and is based in Chesapeake, Virginia.
- [By Richard Stavros]
For example, Dollar General (NYSE: DG), the nation’s largest dollar-store chain with 11,100 locations, offered a weak profit outlook in the early part of the year after reporting weak fourth-quarter sales. And Dollar Tree (Nasdaq: DLTR), which operates about 5,000 locations, missed profit expectations for the holiday quarter in February. What has happened to the American consumer? Even McDonald’s sales were flat in April.
- [By Lawrence Meyers]
This isn’t some growing new industry set to take the world further into the 21st century. It’s an old concept that hasn’t innovated, won’t innovate, and will slowly but surely die out over this century. When I walk into a Walgreens, I see a miniature Target (TGT), a more expensive Dollar Tree (DLTR), and a provider of prescriptions in a world where everything is becoming mail order.
- [By Paul Ausick]
The other stock the firm likes is Dollar Tree Inc. (NASDAQ: DLTR). The company’s shares have lost about 4.6% since reporting an earnings per share (EPS) miss for the third quarter and the Sterne Agee analysts see the lower price as a “great entry point” for buying the stock. Dollar Tree raised fiscal year 2013 EPS guidance from a range of $2.66 to $2.77 to a new range of $2.72 to $2.78, effectively raising the mid-point by $0.04. Sterne Agee reiterated its Buy rating on the stock with a price target of $63. Dollar Tree’s shares are trading down nearly 0.4% at $55.99 in a 52-week range of $37.47 to $60.19.
- [By Ben Eisen]
Perpetually struggling department store J.C. Penney Co. (JCP) said it expects a sales boost this holiday season as it returns to a promotional strategy. But for the most part, retailers including Dollar Tree Inc. (DLTR) , GameStop Corp. (GME) and Abercrombie & Fitch Co. (ANF) gave dour outlooks in their earnings reports.
Top Managed Healthcare Companies For 2015: Seadrill Limited(SDRL)
Seadrill Limited, an offshore drilling contractor, provides offshore drilling services to the oil and gas industries worldwide. It also offers platform drilling, well intervention, and engineering services. As of March 31, 2011 the company owned and operated 54 offshore drilling units, which consist of drillships, jack-up rigs, semisubmersible rigs, and tender rigs for operations in shallow and deepwater areas, as well as in benign and harsh environments. Seadrill Limited was founded in 1972 and is based in Hamilton, Bermuda.
- [By Ben Levisohn]
The beatings that Seadrill (SDRL), Transocean (RIG), Diamond Offshore Drilling (DO), Atwood Oceanics (ATW) and Rowan (RDC) have taken this year has left them looking attractive to some value investors. Barclays, however, doesn’t think the stocks are as cheap as they look.
Shares of Transocean have dropped 16% this year, while Seadrill and Rowan has declined 15% and Diamond Offshore and Atwood Oceanics have fallen 13%, leaving them with valuations as low as 6.1 times 2015 earnings forecasts for Atwood Oceanics to 9.8 times for Diamond Offshore.
Barclays’ James West and Zachary Sadow explain why the drillers aren’t as enticing as they might appear.
Despite a series of negative data-points recently for the offshore drillers, including lower-than-expected dayrates for floating rig fixtures, further signs that the jackup market is slowing, and the inability of uncontracted newbuilds to find long-term commitments, interest is beginning to be piqued by value investors. While we continue to remain constructive on the long-term outlook for the drillers, we believe the seemingly compelling valuations for the offshore driller srepresent a value trap as we see more near-term earnings risk. Based on current market dayrates for various asset classes, we estimate there is over 30% downside to our current EPS estimates on an adjusted fully-delivered basis.
The offshore drillers look relatively cheap on our forward-year P/E and EV/EBITDA estimates, at 7.6x and 6.2x (below the ten-year averages of 12.0x and 6.9x, respectively). However, based on various recent data points which include lower market dayrates, we think there is substantial scope for further downside earnings revisions to consensus numbers…we estimate that on an adjusted fully delivered basis, the group is trading at nearly 12.0x and 7.5x P/E and EV/EBITDA, respectively…
How does this analysis impact the valuation of individual stocks?
- [By Ben Levisohn]
The North Sea has been one of the few bright spots, if we can call it that, for offshore drillers this year, as dayrates have been dropping around the world as rigs come off contract. But Credit Suisse expects the region to get hit come 2015–and expose Rowan (RDC), Seadrill (SDRL), Transocean (RIG) and Diamond Offshore (DO) to more pain.
Top Managed Healthcare Companies For 2015: Unilife Corporation(UNIS)
Unilife Corporation, together with its subsidiaries, engages in the development and manufacture of advanced drug delivery systems in the United States and internationally. The company offers Unifill Syringe, a prefilled syringe designed for safe, simple, and convenient use by either healthcare workers or patients who self-administer prescription medication; and Unitract 1mL Syringes that are primarily designed for the subcutaneous injection of drugs within healthcare facilities and by patients who self-administer prescription medication, such as insulin. Its pipeline products include Unifill Select syringes, which facilitate the use of injectable drugs and vaccines between 0.2 and 1.5mL in volume that are supplied in either a liquid stable form or lyophilized for reconstitution; Unifill EZMix for the unmet needs of pharmaceutical companies seeking a delivery system for the reconstitution and administration of lyophilized drugs and vaccines; Unifill Auto-Injectors for the a ccurate, intuitive, and convenient administration of injectable drugs by patients outside of healthcare facilities; and Auto-Infusors, a range of single-use and disposable subcutaneous infusion systems for the patient self-injection of drugs between 3mL and 10mL in volume; and a novel device for the administration of a drug to a target organ. Unilife?s target customers include pharmaceutical and biotechnology companies seeking to optimize drug lifecycles and generate differentiation for their brand in competitive therapeutic markets through the use of innovative devices that can improve patient care, protect healthcare workers, and prevent disease; and suppliers of medical equipment to healthcare facilities and distributors to patients who self-administer prescription medication. The company is headquartered in York, Pennsylvania.
- [By Paul Ausick]
Stocks on the Move: Voxeljet AG (NYSE: VJET) is down 32.5% at $39.15 on both a momentum move and a scathing report from a short-seller. Unilife Corp. (NASDAQ: UNIS) is up 43.9% at $4.03 after signing a long-term contract for its syringes.
- [By Laura Brodbeck]
Next week investors will be waiting for several key earnings reports includingSotheby’s (NYSE: BID), Unilife Corporation (NASDAQ: UNIS), DISH Network Corporation (NASDAQ: DISH), Macy’s Inc. (NYSE: M), Wal-Mart Stores, Inc. (NYSE: WMT)
Top Managed Healthcare Companies For 2015: Radian Group Inc.(RDN)
Radian Group Inc., through its subsidiaries, operates as a credit enhancement company in the United States. The company offers credit-related insurance coverage, primarily through private mortgage insurance, and risk management services to mortgage lending institutions. Its private mortgage insurance protects the holders of the company?s insurance from default-related losses on residential mortgage loans made generally to home buyers, as well as facilitates the sale of these mortgage loans in the secondary mortgage market. The company primarily serves mortgage originators, such as mortgage bankers, mortgage brokers, commercial banks, savings institutions, credit unions, and community banks. Radian Group Inc. was founded in 1977 and is headquartered in Philadelphia, Pennsylvania.
- [By Holly LaFon]
During the year we made a number of portfolio changes. In addition to Forest Oil Corp., positions in Carters, Inc., John Wiley & Sons, Inc., Class A shares, and General Communication, Inc., Class A shares were eliminated and Saks, Inc. (SKS) was sold due to the company’s acquisition by Hudson’s Bay Company (TSX:HBC) (the $16 takeover price compared to our cost of approximately $4 .25 per share). One new position, Radian Group, Inc. (RDN), was established. One of the largest private mortgage insurance companies, Radian Group, Inc. should benefit from a recovery in the housing industry and from the Federal Housing Administration’s gradual pull-back from the mortgage insurance market.
- [By James Brumley]
While it’s still not clear if the turnaround effort will take hold before JCPenney runs short of cash again, the market looks willing to at least give JCP the benefit of the doubt long enough to let the stock make progress — if that’s what’s indeed in the cards.
Radian Group (RDN)
12/2 Price: $14.37
Top Managed Healthcare Companies For 2015: Silver Wheaton Corp(SLW)
Silver Wheaton Corp., together with its subsidiaries, operates as a silver streaming company worldwide. The company has 14 long-term silver purchase agreements and 2 long-term precious metal purchase agreements whereby it acquires silver and gold production from the counterparties located in Mexico, the United States, Canada, Greece, Sweden, Peru, Chile, Argentina, and Portugal. Silver Wheaton Corp. is headquartered in Vancouver, Canada.
- [By Rich Duprey]
The suspension necessitated that it renegotiate the contract it has with Silver Wheaton (NYSE: SLW ) , which was anticipating taking 25% of the silver streams from Pascua-Lama. Because Barrick was contractually required to have 75% of the construction completed by the end of 2015, something that obviously wasn’t going to happen, the silver streamer could have demanded back the upfront payments it gave the miner, minus credits for silver already received from three South American mines where it had been getting 100% of their streams and which was scheduled to end this year. As of the end of September, the payback figure stood at $371 million.
- [By Doug Ehrman]
As gold prices tumbled during Friday’s trading session, precious metals companies were dragged down too, including Goldcorp (NYSE: GG ) and the gold ETF, the SPDR Gold Trust (NYSEMKT: GLD ) . Given its recent increase in exposure to gold, Silver Wheaton’s (NYSE: SLW ) inability to escape the slide is not a big surprise. Despite increased signs of global economic instability, gold fell below $1500 for the first time since July 2011.
- [By Travis Hoium]
What: Gold and silver miners are taking it on the chin today. Royal Gold (NASDAQ: RGLD ) fell as much as 10.4%, Allied Nevada Gold (NYSEMKT: ANV ) fell up to 11.5%, and Silver Wheaton (NYSE: SLW ) dropped as much as 11.2%.
- [By Sean Williams]
In August, silver royalty interests company Silver Wheaton (NYSE: SLW ) and HudBay agreed on a long-term contract that will supply Silver Wheaton 100% of HudBay’s Constancia and 777 mine silver at a discounted price of $5.90 an ounce, as well as 100% of the gold production at its 777 mine at a discounted price of $400 an ounce until at least 2016. In return, Silver Wheaton injected HudBay with $500 million immediately to complete its Constancia buildout, with two additional $125 million payments to follow if certain measures are met by HudBay. The end result should be a win-win for both companies, with Silver Wheaton securing another long-term royalty stream and HudBay remaining healthfully net cash positive and profitable.