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AVANIR Pharmaceuticals Reports Second Quarter Fiscal 2007
AVANIR Pharmaceuticals (NASDAQ:AVNR) today reported financial results for the quarter ended March 31, 2007.
For the second fiscal quarter of 2007, AVANIR reported a net loss of $7.9 million, or $0.20 per share (including a $2.6 million credit for adjustment of stock based compensation expense or $0.07 per share), compared with a net loss of $13.5 million, or $0.44 per share, for the comparable quarter in 2006. Revenues for the second quarter of fiscal 2007 were $5.9 million, compared with $2.5 million for the second quarter of fiscal 2006. Gross margins for the second quarter of fiscal 2007 were $3.6 million, compared to $576,000 in the same period a year ago. Revenues in the second quarter of fiscal 2007 included FazaClo® net revenues of $3.8 million. Total operating expenses were $11.6 million in the second quarter of fiscal 2007 (including a $2.6 million credit for adjustment of stock based compensation expense), compared with $14.7 million in the same period in fiscal 2006.
"Our focus is on the late-stage clinical development of our promising drug candidate Zenvia™ for the treatment of Involuntary Emotional Expression Disorder (IEED) and for diabetic peripheral neuropathic (DPN) pain – both with the potential to address significant unmet medical needs," said Keith Katkin, AVANIR's President and CEO. "We are working aggressively to solidify our financial position to fund our clinical development programs, which include cost cutting and restructuring measures announced in March. We are actively evaluating several strategic options simultaneously, with a goal to raise sufficient funds to finance operating expenses for the next two years, while minimizing shareholder dilution."
The Company is targeting an annual net cash burn of $20 million, or an average of $5 million per quarter, inclusive of the projected costs for our planned confirmatory Phase III trial of Zenvia for IEED but excluding any costs associated with a second Phase III Zenvia trial in DPN pain. Subsequent to the end of the second quarter of fiscal 2007 the Company completed the sale of 2.2 million shares of common stock with net proceeds of $7.2 million and has up to $36 million remaining available for sale under an effective shelf registration statement.
2007 Fiscal Second Quarter and Recent Highlights:
Clinical Programs and Pipeline
Reported positive top-line results of a Phase III study for Zenvia in diabetic peripheral neuropathic (DPN) pain where the primary endpoint was met. These data have been accepted for presentation at the International Congress on Neuropathic Pain in Berlin on June 8, 2007. The Company has requested a meeting with the U.S. Food and Drug Administration (FDA) to discuss the next study for Zenvia for the treatment of DPN pain.
Announced that based on a meeting with the FDA, the Company will conduct an additional Zenvia trial in patients with IEED to confirm that a proposed lower dose is safe and effective. Also announced agreement to initiate certain preclinical and clinical pharmacology studies involving Zenvia. The Company is currently working with the FDA on clinical trial design and expects to enroll the first patient by calendar year end.
Announced a successful conclusion to the research collaboration with Novartis for the Macrophage Migration Inhibitor Factor (MIF) program. Novartis has assumed all continuing research and development activities for the MIF program with plans to further develop the lead candidate, AVP-28225. The two companies have been involved in a two-year research collaboration to identify orally active, small molecule inhibitors of MIF for the treatment of inflammatory diseases. AVANIR will receive a milestone payment if the molecule reaches the next stage of development and is eligible to receive additional milestone payments through clinical development and royalty payments on worldwide sales if the technology is ultimately commercialized.
Announced that AVANIR and AstraZeneca mutually agreed to end their research collaboration and license agreement on the Reverse Cholesterol Transport (RCT) program. The collaboration will end in the third fiscal quarter and the Company will receive no additional research funding from this collaboration once it terminates. The Company is evaluating options for the RCT program.
Company Operations
Announced that Keith Katkin, formerly Senior Vice President of Sales and Marketing, was elected President and CEO, and appointed to the Board of Directors. The Company also announced that Randall Kaye, M.D., was promoted to Senior Vice President and Chief Medical Officer from his former position as Vice President, Clinical and Medical Affairs and announced the appointment of Martin J. Sturgeon as Vice President and Chief Accounting Officer.
Craig A. Wheeler was elected Chairman of the Board of Directors effective May 3, 2007.
Reported that the Company is in discussions with several parties that have expressed interest in potentially acquiring certain Company assets, including FazaClo and several investigational compounds. These discussions remain ongoing and no definitive terms have been reached at this time.
Announced a planned reduction in headcount and payroll-related expenses associated with the end of the research collaborations and plans to sub-lease the Company's San Diego facilities.
Product Performance
Performance for FazaClo® (clozapine, USP), the Company's antipsychotic for treatment-resistant schizophrenia and reduction of recurrent suicidal behavior in patients with schizophrenia or schizo-affective disorder, in the three months ended March 31, 2007 was as follows:
Net wholesaler shipments during the quarter of $4.2 million, compared to $2.7 million in the second quarter of fiscal 2007, a quarter over quarter increase of 56%.
FazaClo total prescription volume increased 52% over the same quarter last year and 15% over the previous fiscal quarter.
Balance Sheet Highlights
As of March 31, 2007, we had cash and investments in securities totaling $8.7 million, including cash and cash equivalents of $5.3 million, short and long-term investments in securities of $2.2 million and restricted investments in securities of $1.2 million. After the end of the quarter, the Company reported raising additional net proceeds of approximately $7.2 million from the sale of 2.2 million shares of common stock into the open market under the offering prospectus filed with the Securities and Exchange Commission (SEC).
Conference Call and Webcast
Management will host a conference call with a simultaneous webcast today beginning at 8:00 a.m. Pacific time/11:00 a.m. Eastern time to discuss business developments in the second quarter of fiscal 2007. The call/webcast will feature Keith Katkin, President and Chief Executive Officer; Michael Puntoriero, Senior Vice President and Chief Financial Officer; and Randall Kaye, M.D., Senior Vice President and Chief Medical Officer. Investors are invited to listen to the live webcast by visiting AVANIR's corporate website at www.avanir.com. To listen to the live call, please go to AVANIR's website prior to the start of the call to register, download and install the necessary audio software.
A webcast replay will be available on AVANIR's website for 30 days, and a telephone replay will be available through May 14, 2007, by dialing 800-642-1687 (domestic) or 706-645-9291 (international) and entering the conference ID number 5305269.
About AVANIR
AVANIR Pharmaceuticals is focused on developing, acquiring and commercializing novel therapeutic products for the treatment of chronic diseases. AVANIR's products and product candidates address therapeutic markets that include the central nervous system, cardiovascular disorders, inflammation and infectious diseases. AVANIR currently markets FazaClo, the only orally-disintegrating formulation of clozapine for the management of severely ill schizophrenic patients who fail to respond adequately to standard drug treatments for schizophrenia. FazaClo is also indicated for reducing the risk of suicidal behavior in patients with schizophrenia or schizoaffective disorder. For full prescribing information and important safety information regarding FazaClo, please visit www.fazaclo.com. AVANIR's lead product candidate for the treatment of involuntary emotional expression disorder (IEED), Zenvia, is the subject of an approvable letter from the FDA. Additionally, AVANIR recently completed a Phase III clinical trial with Zenvia in patients with diabetic peripheral neuropathic pain where the primary endpoint was met. AVANIR has an ongoing development program with Novartis International Pharmaceutical Ltd. for the treatment of inflammatory disease. The Company's first commercialized product, Abreva®, is marketed in North America by GlaxoSmithKline Consumer Healthcare and is the leading over-the-counter product for the treatment of cold sores. Further information about AVANIR can be found at www.avanir.com.
Forward Looking Statement
Statements in this press release that are not historical facts, including statements that are preceded by, followed by, or that include such words as "estimate," "intend," "anticipate," "believe," "plan," "goal," "expect," or similar statements, are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from the future results expressed or implied by such statements. There can be no assurance that the Company will receive FDA regulatory approval for Zenvia or that the additional development work for Zenvia will be completed in the time periods that are anticipated. Final review decisions made by the FDA and other regulatory agencies concerning are often unpredictable and outside the influence and control of the Company. There can also be no assurance that the Company's cost-cutting measure will result in the anticipated savings or that the Company will be able to finance continued operations on attractive, or even acceptable, terms. Risks and uncertainties also include the risks set forth in AVANIR's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, and from time-to-time in other publicly available information regarding the Company. Copies of this information are available from AVANIR upon request. AVANIR disclaims any intent to update these forward-looking statements.
To be included on AVANIR's e-mail alert list; click on the link below or visit AVANIR's website: http://www.b2i.us/irpass.asp?BzID=958&to=ea&s=0
AVANIR PHARMACEUTICALS
CONSOLIDATED STATEMENTS OF OPERATIONS
March 31, 2007
(Unaudited)
Three Months ended
March 31
Six Months ended
March 31
2007 2006 2007 2006
REVENUES FROM PRODUCT SALES
Net revenues $ 3,829,111 $ - $ 10,099,815 $ -
Cost of revenues 1,308,256 - 2,655,440 -
Product gross margin 2,520,855 - 7,444,375 -
REVENUES AND COST OF RESEARCH SERVICES AND OTHER
Revenues from research services 920,448 1,956,565 2,190,692 4,434,583
Cost of research services (607,164) (1,795,634) (1,771,239) (3,811,719)
Revenues from government research grant services 266,728 75,862 353,076 160,687
Cost of government research grant services (369,261) (96,966) (464,988) (166,955)
Revenues from license agreements 56,019 9,342 113,284 5,009,342
Revenue from royalties and royalty rights
779,673 427,259 1,502,713 1,009,304
Research services and other gross margin 1,046,443 576,428 1,923,538 6,635,242
Total gross margin 3,567,298 576,428 9,367,913 6,635,242
OPERATING EXPENSES
Research and development 6,245,285 6,162,322 12,151,286 13,365,128
Selling, general and administrative 5,330,405 8,492,115 18,576,339 13,260,858
Loss from Operations $ (8,008,392) $ (14,078,009) $ (21,359,712) $ (19,990,744)
OTHER INCOME (EXPENSES)
Interest expense (315,510) (21,403) (918,538) (44,841)
Interest income 144,862 564,422 336,338 892,588
Other 284,934 (5,492) 430,279 5,020
Loss before income taxes $ (7,894,106) $ (13,540,482) $ (21,511,633) $ (19,137,977)
Provision for income taxes
(13,404) (4) (13,404) (2,421)
Net loss before cumulative effect of change in acctg principal (7,907,510) (13,540,486) (21,525,037) (19,140,398)
Cumulative effect of change in acctg principal - - - (3,616,058)
NET LOSS $ (7,907,510) $ (13,540,486) $ (21,525,037) $ (22,756,456)
BASIC AND DILUTED NET LOSS PER SHARE: (0.20) (0.44) (0.63) (0.76)
Weighted average shares outstanding 39,047,597 31,086,874 34,148,261 29,819,338
AVANIR PHARMACEUTICALS
SELECTED BALANCE SHEET DATA
March 31, 2007
(Unaudited)
March 31, September 30,
2007 2006
Cash and Cash Equivalents $ 5,286,799 $ 4,898,214
Investments and Restricted Cash $ 3,382,080 $ 19,851,859
Receivables, net $ 3,410,745 $ 3,042,468
Inventories $ 3,019,237 $ 2,835,203
Accounts Payable and Other Current Liabilities $ 13,427,231 $ 27,808,787
Deferred Revenues $ 19,666,433 $ 23,309,325
Total Debt $ 23,065,893 $ 25,788,310
Total Shareholders Equity $ (5,848,755) $ (5,674,535)
AVANIR PHARMACEUTICALS
SELECTED CASH FLOW DATA
March 31, 2007
(Unaudited)
Six Months Ended
March 31, 2007
Net Loss $ (21,525,037)
Depreciation and Amortization 2,787,297
Share-based compensation expense (income) (824,871)
Net Change in operating assets and liabilities (13,760,036)
Net cash used for operating activities (33,322,647)
Net cash provided by (used for investing activities) 16,459,260
Net cash provided by financing activities 17,251,972
Net increase in cash and cash equivalents 388,585
Cash and Cash Equivalents at beginning of period 4,898,214
Cash and Cash Equivalents at end of period $ 5,286,799
Investments and Restricted Cash 3,382,080
Total Cash and Investments at end of period $ 8,668,879 ---------------
Sorry the numbers didn't come out in the right form.
G' day Mates,
Aussie
Undecided on Encysive: Fool by Numbers
By Motley Fool Contributors
May 8, 2007
On May 7, Encysive Pharmaceuticals (Nasdaq: ENCY) released first-quarter earnings for the period ended March 31.
Thelin had just $1 million in sales in its first full quarter on the European market. This is not an encouraging sign for future prospects, and sales must pick up considerably in coming quarters.
The company achieved regulatory approval for Thelin100mg tablets in Australia and is now seeking reimbursement approval in that country.
Commercial availability of Thelin was recently announced for PAH in the Republic of Ireland and in The Netherlands.
Encysive re-initiated a Phase II dose ranging study of TBC3711, Encysive's next-generation, highly selective endothelin A antagonist.
The most important event for the company occurs next month when the FDA decides whether or not to approve Thelin in the U.S. The company has not had good luck with the FDA in prior attempts to obtain approval for Thelin.
(Figures in thousands, except per-share data.)
Income Statement Highlights
Q1 2007
Q1 2006
Change
Sales
$5,408
$3,561
51.9%
Net Profit
($29,908)
($29,970)
N/A
EPS
($0.49)
($0.51)
N/A
Diluted Shares
61,644
58,270
5.8%
Get back to basics with the income statement.
Margin Checkup
Q1 2007
Q1 2006
Change*
Gross Margin
98.8%
100.0%
(1.2)
Operating Margin
(529.9%)
(853.6%)
323.6
Net Margin
(553.0%)
(841.6%)
288.6
*Expressed in percentage points.
Margins are the earnings engine.
Balance Sheet Highlights
Assets
Q1 2007
Q1 2006
Change
Cash + ST Invest.*
$52,689
$100,529
(47.6%)
Accounts Rec.
No Data
No Data
No Data
Inventory
No Data
No Data
No Data
*Includes accrued interest
Liabilities
Q1 2007
Q1 2006
Change
Accounts Payable
No Data
No Data
No Data
Long-Term Debt
$186,532
$130,000
43.5%
The balance sheet reflects the company's health.
Cash Flow Highlights
A statement of cash flows was not provided.
Free cash flow is a Fool's best friend.
Related Foolishness:
Encysive is a Rule Breakers recommendation.
----------------------------
G' day Mates,
Aussie
AVANIR Pharmaceuticals to Present Zenvia Phase III Data in Diabetic Peripheral Neuropathic Pain at Second International Congress on Neuropathic Pain
Two Poster Presentations Scheduled for June 8 at 1:30 p.m. CET
AVANIR Pharmaceuticals (NASDAQ:AVNR) today announced Phase III data on the efficacy, safety and improvements in patient-centered outcomes in patients with diabetic peripheral neuropathic (DPN) pain treated with the investigational drug Zenvia™ (dextromethorphan / quinidine) will be presented in two scientific posters at the Second International Congress on Neuropathic Pain, being held in Berlin, Germany on June 7 to 10, 2007.
Both posters will be presented at Poster Session 1: Clinical – Pharmacotherapy on Friday, June 8, 2007, between 1:30 p.m. and 3:30 p.m. Central European time (CET).
"This scientific congress serves as a showcase for new developments in pain treatment. We are pleased that these data have been recognized as important by the congress organizers and accepted for presentation," said Randall Kaye, MD, Chief Medical Officer of AVANIR Pharmaceuticals.
The accepted posters are:
Poster number 1497: EFFICACY AND SAFETY OF DEXTROMETHORPHAN/QUINIDINE IN TREATING PAINFUL DIABETIC PERIPHERAL NEUROPATHY: RESULTS OF A PHASE III, DOUBLE-BLIND, RANDOMIZED, PLACEBO-CONTROLLED TRIAL
Poster number 1498: IMPROVED PATIENT-CENTERED OUTCOMES WITH DEXTROMETHORPHAN/QUINIDINE VS PLACEBO IN A PHASE III, DOUBLE-BLIND, RANDOMIZED, PLACEBO-CONTROLLED TRIAL INVESTIGATING PAINFUL DIABETIC PERIPHERAL NEUROPATHY
On April 18, 2007 AVANIR Pharmaceuticals announced positive top-line results from a Phase III study of Zenvia in patients with DPN pain. In the trial, two doses of Zenvia, 45/30 mg DMQ dosed twice daily (DMQ 45) and 30/30 mg DMQ dosed twice daily (DMQ 30), were compared to placebo based on daily patient diary entries for the Pain Rating Scale, which was the primary endpoint as defined in the Special Protocol Assessment (SPA) with the U.S. Food and Drug Administration (FDA). Both Zenvia treatment groups had lower pain ratings than placebo patients (p =0.0001 in both cases). In this study, Zenvia also demonstrated statistically significant improvements in a number of key secondary endpoints including the Pain Relief Ratings Scale and the Pain Intensity Ratings Scale. Although not statistically powered to detect differences in the secondary endpoint of Peripheral Neuropathy Quality of Life Scale Composite score, the DMQ 45 patients showed a greater improvement than placebo patients (p=0.05) and the DMQ 30 patients showed a greater improvement than placebo patients (p=0.08). Overall, the safety data from this study were consistent with data from previous studies. The most commonly reported adverse events were dizziness, nausea, diarrhea, fatigue and somnolence and were mild to moderate in nature. A higher number of patients in the DMQ 45 and DMQ 30 treatment groups (25.2% and 21.0%, respectively) discontinued due to an adverse event than compared to placebo (11.4%). There were no significant differences in serious adverse events with 7.6%, 4.8% and 4.1% reported in the DMQ 45, DMQ 30 and placebo groups, respectively and no deaths occurred during the study.
About Zenvia
Zenvia is a combination of two well-characterized compounds, the therapeutically active ingredient dextromethorphan, and the enzyme inhibitor quinidine, which serves to increase the bioavailability of dextromethorphan. This first-in-class drug candidate is believed to help regulate excitatory neurotransmission in two ways, through pre-synaptic inhibition of glutamate release via sigma-1 receptor agonist activity, and through postsynaptic glutamate response modulation via uncompetitive, low-affinity NMDA antagonist activity. Zenvia is currently in development for the treatment of Involuntary Emotional Expression Disorder (IEED) and DPN pain.
In October 2006, the Company received an approvable letter for the treatment of Zenvia in IEED. To address safety concerns raised in the FDA's approvable letter for Zenvia for the treatment of IEED, the company intends to initiate a confirmatory Phase III study with a new lower quinidine dose formulation of Zenvia. In April 2007 AVANIR completed the first of two planned Phase III studies in diabetic peripheral neuropathic pain where all primary endpoints were successfully met. The Company is considering whether it would be necessary or advisable to study a similar lower dose of quinidine in the second Phase III trial being planned for DPN pain.
About AVANIR
AVANIR Pharmaceuticals is focused on developing, acquiring and commercializing novel therapeutic products for the treatment of chronic diseases. AVANIR's products and product candidates address therapeutic markets that include the central nervous system, cardiovascular disorders, inflammation and infectious diseases. AVANIR currently markets FazaClo®, the only orally-disintegrating formulation of clozapine for the management of severely ill schizophrenic patients who fail to respond adequately to standard drug treatments for schizophrenia. FazaClo is also indicated for reducing the risk of suicidal behavior in patients with schizophrenia or schizoaffective disorder. For full prescribing information and important safety information regarding FazaClo, please visit www.fazaclo.com, AVANIR's lead product candidate for the treatment of involuntary emotional expression disorder (IEED), Zenvia, is the subject of an approvable letter from the FDA. Additionally, AVANIR recently completed a Phase III clinical trial with Zenvia in patients with diabetic peripheral neuropathic (DPN) pain where all primary endpoints were met. AVANIR has an ongoing development program with Novartis International Pharmaceutical Ltd. for the treatment of inflammatory disease. The Company's first commercialized product, Abreva®, is marketed in North America by GlaxoSmithKline Consumer Healthcare and is the leading over-the-counter product for the treatment of cold sores. Further information about AVANIR can be found at www.avanir.com.
Forward-Looking Statement
Statements in this press release that are not historical facts, including statements that are preceded by, followed by, or that include such words as "estimate," "intend," "anticipate," "believe," "plan," "goal," "expect," or similar statements, are forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from the future results expressed or implied by such statements. There can be no assurance that the Company will receive FDA regulatory approval for Zenvia or that the additional development work for Zenvia will be completed in the time periods that are anticipated. Final review decisions made by the FDA and other regulatory agencies concerning are often unpredictable and outside the influence and control of the Company. Risks and uncertainties also include the risks set forth in AVANIR's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, and from time-to-time in other publicly available information regarding the Company. Copies of this information are available from AVANIR upon request. AVANIR disclaims any intent to update these forward-looking statements.
To be included on AVANIR's e-mail alert list; click on the link below or visit AVANIR's website: http://www.b2i.us/irpass.asp?BzID=958&to=ea&s=0
Contact:
Lippert/Heilshorn & Associates, Inc.
Jody Cain, jcain@lhai.com
Bruce Voss, bvoss@lhai.com
310-691-7100
------------------------
G' day Mates,
Aussie
Encysive Pharma misses by $0.03
Reports Q1 (Mar) loss of $0.49 per share, $0.03 worse than the Reuters Estimates consensus of ($0.46); revenues rose 50.0% year/year to $5.4 mln vs the $6 mln consensus.
--------------------
G' day Mates,
Aussie
Starbucks Execs on Growth Plans and Efforts to Avoid Becoming a Fad in China
James L. Donald - President, Chief Executive Officer
I’d like to turn to the International business, starting with some observations from my trip to China last week. During my trip, I attended the Boao Forum for Asia. This annual conference provides an opportunity for more than 1,300 official delegates from government leaders to top corporate executives to industry experts to discuss the economic growth and the development of Asia.
I’m happy to say that today, I am even more excited about our opportunities in China than I was in the past. I also participated in the opening celebrations for our first regional support center in Guangzhou and the opening of our 500th store in the Greater China Region.
The most striking observation to me was how well our stores in China are executing on the Starbucks experience. Our partners are doing a wonderful job delivering high quality beverages and providing legendary service. I was also impressed by the level of commitment our partners had to their local communities, really helping to make Starbucks not only a destination in the communities but an integral part of those communities.
Because of these factors, Starbucks is continuing to see strong acceptance from our customers in China....
John Ivankoe - Analyst, J.P. Morgan
Okay, and the final question, Howard, maybe this will take more than a couple of seconds to answer, is on China. Certainly we look at the overall consolidated results and they do speak for themselves in terms of what your revenue growth is and what have you, but what can you provide us with, either qualitatively or quantitatively, in terms of how the China market is going for you and how rapidly perhaps you can grow it in the future and how meaningful you might think it could be to the global business in the next -- pick the number of years, three to five years.
Howard Schultz - Chairman of the Board
I’ll start and Jim can pick up because he just returned last week from China. We have said almost very consistently throughout the last year or so that as we look around the world, like many other western companies and consumer brands, that China ultimately could potentially be the second-largest market in the world for Starbucks.
I think perhaps the main point that we can provide today is, which we couldn’t do three or four years ago, and maybe even 18 months ago for that matter, is just the level of acceptance and perhaps the right word would be the relevancy of the Starbucks experience in China.
Depending on what number you believe, there is north of 200 million Chinese people and that number’s growing, who we believe are the core customer today for Starbucks. I think what we’ve been able to do is make sure that as we enter China and continue to do business there that we do not become a fad that becomes hot and then all of a sudden is out of favor, but most importantly that we integrate our company, the experience, and Starbucks’ values into the lifestyle of the Chinese consumer and the behavior of how our customers are using the place.
I think what’s probably most important is that not only have we achieved relevancy and success in the two most important major cities in Beijing and China, but now in I think 17 provinces, we have demonstrated throughout China and South China that Starbucks is going to be successful throughout greater China, and that includes Hong Kong and Taiwan.
And so the foundation we are building in terms of infrastructure, the investments we’ve made, both in a Chinese-centric team based on China, as well as people with five and 10 and 15 years tenure from Starbucks U.S. that have moved to China, that we believe that this is going to be a big pay-off for the company at some point, and we are positioned as well as or perhaps better than most U.S. and western consumer brands that will be accepted and build a major business in China.
I can’t give you the numbers because I think over time, not unlike the mistake we made early on in America, we underestimated the size of the market. We are trying not to do that. We are dreaming very big in China. We are investing heavily ahead of the growth curve.
I think from a shareholder perspective, this is really going to pay off because this is a very, very big prize and we think we are going to achieve it.
John Ivankoe - Analyst, J.P. Morgan
How many stores are you opening a year now in China?
Howard Schultz - Chairman of the Board
I’m looking to Michael to see if he’s going to let me tell you the number. I think that the number that we have internally is about 100. If you look at the history of Starbucks, I think the one thing that you can really look at is that we have really under-promised and over-delivered when it’s come to store count.
James L. Donald - President, Chief Executive Officer
To that point, as I sat and talked to the Mayor of Guangzhou, and this is in southern China, and looked at that whole quarter of Shenzhen, Guangdong, and Guangzhou, I told the mayor that there is the potential of doubling those stores over the next 18 months to two years, and he said that’s not fast enough, and he told me areas that quite frankly surprised me, and we look at it.
And the only reason I bring that up from a shareholder perspective is that when we go to these countries, when the government is asking us to become more of a part of the communities, when the customers at this conference that I was at talk about the Starbucks experience and talk about the ability to customize a beverage, it’s the place to go. It tells me that we are well on our way.
But its’ the combination of, as Howard said, investing ahead of the curve not only in infrastructure and people, but also in the communities that we are in because now we’ve become “please come in and help us and we’ll in turn give back to you”, so it’s really a great formula and it’s a combination that’s working.
Michael Casey - Chief Financial Officer, Executive Vice President
Just one more point to make on that, in the last six months or so, we’ve gained operational control of the Beijing market, which will allow us to have greater influence over the growth rate in that market. And in the last 12 months, we’ve gained operational control in southern China and we have geared up both of those markets for more rapid growth than they’ve experienced just six or 12 months ago.
Howard Schultz - Chairman of the Board
Martin Coles, the President of Starbucks International, is in the room and I think he wanted to just add something to your question about China.
Martin Coles - President, Starbucks International
Just for perspective on the new store growth, in China currently we are opening for every, for all of our international store count, roughly 20% of that count is actually new stores being opened in China. We expect there to be around 200 stores open in China during fiscal 2008 and I think again, looking forward, roughly 20% of our new store count will be in China.
http://seekingalpha.com/by/symbol/sbux
-----------------
G' day Mates,
Aussie
Can Starbucks Maintain Its Growth? International Plans Just Beginning
Posted on May 8th, 2007 with stocks: SBUX
Investor Trip submits: On May 4th, Starbucks (SBUX) 2nd quarter profits rose 18%, and same-store sales rose a niche 4% over the same period from last year. Starbucks continues to churn profits, and looks like a good long-term play because of its robust international growth initiatives.
International revenue grew 30% to $387 million from last quarter, but what’s most impressive is the announcement of Starbucks Coffee stores future openings in Russia and India by the end of 2007. Last fiscal quarter, Starbucks (SBUX) opened stores in Brazil, Egypt, and Romania to add more density to their international revenue pool.
Long on SBUX
I was going to buy SBUX back in late November 2006, but the bulls got hold of the stock before I had a chance. Now, shares are hovering near the 52-week low of $28.72.
Looking at the balance sheet, SBUX long-term debt is well-under control, and the company has a wide-moat. I would compare the Starbucks name to companies like Google (GOOG), Wal-mart (WMT), and McDonalds (MCD), all forerunners in each of their industries.
When you think of coffee, which corporation comes to mind?
Analysts project earnings to grow at 21% annually. Do you think Starbucks can maintain this type of growth? Keep in mind that Starbucks has yet to fully monetize the rest of the non-western world.
http://seekingalpha.com/by/symbol/sbux
--------------------------
G' day Mates,
Aussie
SEATTLE; May 7, 2007
Starbucks Ends the Use of Artificial Trans Fats
SEATTLE; May 7, 2007 – Starbucks Coffee Company (Nasdaq: SBUX) today announces that by the end of 2007, Starbucks will eliminate the use of artificial trans fats in food and beverages in all stores in the continental U.S., Alaska and Canada.
“No longer using artificial trans fats in products sold in our stores allows us to take out ingredients like partially hydrogenated oils that have no health benefit, while retaining high quality and great tasting natural ingredients,” said Denny Marie Post, svp of Global Food and Beverage for Starbucks. “Customers will always have a wide variety of choices at Starbucks to fit their needs and what they desire. While some products will have small amounts of naturally occurring trans fats from quality ingredients like butter, every choice will be free of artificial trans fat ingredients.”
As part of our work on trans fats, Starbucks reached out to several recognized health and nutrition experts to get their opinions and thoughts on the best approach to take toward this important health issue.
"This is a great idea because the scientific evidence indicates that industrial trans fats are more harmful than any other type of fat and can be removed from foods - it's a win-win situation," said Dr. Dariush Mozaffarian, MD, DrPH, Assistant Professor of Medicine and Epidemiology at Harvard Medical School and Harvard School of Public Health.
By the end of this year, Starbucks plans to stop using artificial trans fats in food and beverages in all company-operated and licensed stores in the continental U.S., Alaska and Canada. Once we’ve completed this work, every item in these stores – whether it’s a new product introduction or an old favorite – will be made without any artificial trans fat. Work is also underway to begin the removal of artificial trans fats from products in markets outside North America.
Product nutrition information is available online at www.starbucks.com.
About Starbucks
Starbucks Coffee Company provides an uplifting experience that enriches people’s lives one moment, one human being, one extraordinary cup of coffee at a time. To share in the experience, visit www.starbucks.com.
Contact Information:
Brandon Borrman
Starbucks Coffee Company
(206) 318-7100
press@starbucks.com
------------------------
G' day Mates,
Aussie
Starbucks drops to new session low of 30.31 to test the bottom of its seven wk range/April low at 30.30
Briefing.com
The 62% retrace of the March rally is at 30.23 with the top of the Mid-March gap at 30.05.
05/07/2007 13:13 EST
Briefing.com is a leading Internet provider of live market analysis for U.S. Stock Market participants.
-------------------------------
G' day mates,
Aussie
Ovation...I know how she feels as I once had my heart set on a trip to Japan, only to have it changed for me a month and a half before the date. My wife was extremely disappointed. Almost two years later we did get a similar chance and enjoyed Tokyo immensely. Hopefully some day things will change and she'll get the company trip to Australia.
G' day Mate,
Aussie
Ovation...I like doing the DD and appreciate the thanks; but, I'd also appreciate the member marks for doing the DD. Just a thought.
G' day Mate,
Aussie
Business News Bulletin
Merger Talk Swirls
Jennifer Lee, 05.04.07, 10:20 AM ET
...
And America may run on Dunkin Donuts, but it appears the world is still reaching for a Starbucks (nasdaq: SBUX - news - people ). The coffee chain's second-quarter profits jumped more than 18%--mostly due to global expansion. Keep an eye on that stock today to see if investors are convinced the green-and-white cup will keep its place in the market
...
Early trades show SBUX down by $.71.
G' day Mates,
Aussie
Starbucks
Briefing.com
A $24 billion dollar high-growth stock is something of an aberration. This is exactly why there's an undercurrent of pessimism when it comes to Starbucks' long-term growth rates.
There is little doubt that this purveyor of handcrafted coffees can spew out double-digit top line growth. It's been generating 20% plus revenue growth for over a decade. The first quarter was no different, as revenues rose to $2.3 billion, with the company reiterating its forecasts to maintain this pace for the full year as well.
Starbucks is one of the leading brands in the world, selling its beans and beverages across multiple distribution channels. This is a testament to the strength of the company and the management team.
Market participants seem to be caught up in trying to call "the top" to Starbucks' reign. We have argued that while the growth rates remain healthy, the question is, is all this growth producing higher profits and returns for shareholders? Higher operating, and general and administrative expenses and raw material costs continue to weigh on profitability.
A sales mix shift, increased distribution expenses, and higher rent expenses have resulted in a 160 basis point contraction in gross margins over the last year to 58.1%. In the latest quarter, however, lower store operating costs and general and administrative expense margin helped to alleviate gross margin erosion with operating margins holding flat at 10.7%.
The caveat this quarter was the fact that the company was going up against very difficult comparisons. But overall it still produced a solid quarter.
Net earnings were $151 million, rising 18% over the prior year. Per share profits grew 19% to $0.19, inline with the street's expectations. This is fourth consecutive quarter SBUX reported inline with expectations, which could cause shares to continue to languish here, as the market continues to hope for more. This easing of comps throughout the year will likely be the catalyst for an upside surprise. The stock has declined 20% over the last six months.
Comp store sales increased 4% vs. the Briefing.com Benchmark consensus of 4.36%. Comps were comprised of 1% transaction and 3% higher ticket sales. US sales grew 19%, while international sales grew at an impressive 30% clip.
Starbucks maintained its robust store opening pace, adding another 560 stores to its base. It's on target to open 2,400 stores worldwide this year including 1,700 here in the US and 700 abroad. This equates to roughly 6-7 new stores per day. Starbucks estimates that China will likely be one of its largest markets outside the US, where it currently has 400 stores in the greater region.
Starbucks' entry into the food service business makes us uneasy. This is a costly and competitive business and moving away from core competencies is always a risky endeavor for any company. It's too early to really judge Starbucks' performance just yet, but we'll be keeping a close eye on these figures throughout the year.
The warm breakfasts are now in over 1,700 stores, up from 500 a year ago. The platform is expected to add approximately $35,000 in annual sales per store. Lunch options are now offered in more than 4,400 locations, up 250 from the prior year, and are expected to add $30,000 in annual sales per store.
Management retained its earnings projections of $0.87-$0.89 per share and comps in a range of 3-7%. We continue to think the company will likely meet this range, but not exceed it.
We downgraded our position on the stock to neutral back in February due to the ongoing margin pressure, arguing the risk/reward scenario leaned out of its favor. Today, we still have these same reservations, but given the stock's decline the valuations are becoming more attractive. We do believe the company has considerable growth opportunities ahead. The stock is trading at 29.2x forward earnings and a PEG ratio of 1.5. We would be buyers around the thirty dollar range.
--Kimberly DuBord, Briefing.com
-------------------------------
G' day Mates,
Aussie
Crocs Shares to Split 2-For-1
AP
NIWOT, Colo. (AP) - Crocs Inc., which makes popular plastic slip-on shoes, on Thursday declared a 2-for-1 stock split as a stock dividend.
Shareholders of record May 31 will get an additional share for each they hold on June 14.
Crocs shares rose $8.59, or 15 percent, to $66 during aftermarket electronic trading.
-------------------------
And, it has options to play.
G' day Mates,
Aussie
Thursday's Late Winners & Losers
By Sarina Penn
TheStreet.com Staff Reporter
5/3/2007 7:22 PM EDT
Seattle coffee giant Starbucks (SBUX - Cramer's Take - Stockpickr - Rating) said fiscal second-quarter income gained 3 cents per share on last year to 19 cents, which squares with analysts' expectations, per Thomson Financial. Shares lately rose 0.9% to $31.90 in heavy trading.
http://www.thestreet.com/_aol/newsanalysis/winners/10354783.html?cm_ven=AOL&cm_cat=FREE&cm_i...
-----------------------
G' day Mates,
Aussie
Starbucks earnings rise sharply
http://today.reuters.com/news/articlehybrid.aspx?type=comktNews&rpc=33&storyid=2007-05-03T21....
-------------
G' day Mates,
Aussie
Verylong & mugur
RPRX came into existence in May '06 and is way over valued (PPS $12.15)for a start up company with no product and continuing to increase their losses due to R & D. It only two products in its pipeline and not one of them is in Phase III. A good play for options players would be to buy in the money puts on it as it will go down.
What do you guys think?
G' day Mate,
Aussie
wisardd1...Why do you ask such questions? What do you know about Avanir? Have you done as much DD on Avanir as you have on Repros Therapeutics(RPRX)? Maybe that's the company you should be asking those questions about. After all, it only has two products in its pipeline and not one of them is in Phase III. Avanir has been there twice and the FDA has been very harsh in Phase III. Avanir also has a much better pipeline than does Repros.
RPRX came into existence in May '06 and is way over valued for a start up company with no product and one continuing to increase their losses due to R & D. A good play for options players would be to buy puts on it as it will go down. Of course, in my opinion.
To answer your questions, you should go back to post #887 as it addresses those concerns.
G' day Mate,
Aussie
Starbucks May
Become Tastier
As Time Passes
May 3, 2007; Page C1
Investors in Starbucks stock have gotten ground down.
While the Dow Jones Industrial Average is up 6% this year, Starbucks shares are down 12%. But the outlook might not be all that bad for the ubiquitous coffee retailer.
Analysts polled by Reuters Estimates look for the company today to report earnings of 19 cents a share for the fiscal quarter ended April 1, up from 16 cents a share a year ago.
First the downside. Starbucks isn't like the many multinationals whose international results have put smiles on investors' faces. It remains a domestically focused company that gets more than 80% of its revenue from the U.S. So it gets little benefit from the weak dollar and economic strength overseas, as other multinationals have, and it's heavily exposed to a soft U.S. economy. Consumer spending ended the first quarter on a flat note, and to judge from car sales and mall traffic, the environment didn't improve much in April.
Meantime, the price of milk -- Starbucks's second most important commodity -- has been rising. As Friedman Billings Ramsey analyst Ashley Woodruff points out, because Starbucks has little ability to hedge against changes in milk prices as it does with coffee, higher prices can hurt earnings.
But it's worth remembering that Starbucks has already persuaded Americans to spend a couple of bucks on a cup of coffee. While consumers do appear cautious, the truly worried ones are most likely to cut back on bigger-ticket, pricier purchases. Not coffee. They might even turn to a cup of latte for consolation over the other stuff they couldn't buy.
The upshot may be that while plenty of companies could see U.S. sales slow in the months ahead, the one that sells the addictive product might not be the one for investors to punish.
Is Morningstar the Breath of Fresh Air It Seems?
Investors would have made more money in shares of Morningstar the past few years than they would have made in most of the mutual funds the research company rates.
The company -- which offers research on mutual funds, stocks and more recently, hedge funds -- reports first-quarter earnings today. Since going public two years ago, the company has seen its shares more than double to $53. This quarter, analysts expect a 24% increase in earnings per share from a year ago, excluding one-time items, and strong revenue growth.
The company is firing on all cylinders -- with sales in its critical individual, adviser and institutional segments growing at strong double-digit rates last year.
It's also been on an acquisitions binge, picking up the funds-data business of Standard & Poor's this year and Ibbotson Associates last year, among others. Independent research has also become a hot commodity since Wall Street firms were forced to clean up their own research after the tech bubble burst.
But as its shares climb higher, Morningstar's own oft-repeated advice to investors might be applicable: Don't chase performance. The firm trades at 47 times last year's earnings, more than highfliers like Google and Apple. Since listing, its share price has outperformed Google, and measured up to Apple. The air is pretty thin up there.
----------------------------
The above article was abstracted from the Yahooo board.
G' day Mates,
Aussie
Starbucks to Sign Pact With Ethiopia
AP
SEATTLE (AP) - Starbucks Coffee Co. said Thursday it will sign a licensing, distribution and marketing agreement with the Ethiopian government this month in hopes of settling a dispute over the trademarking the names of three coffees produced in the country.
http://money.aol.com/news/articles/_a/starbucks-to-sign-pact-with-ethiopia/n20070503070209990004
-------------------------
G' day mates,
Aussie
Potash (POT) split 3-for-1 and doubled its dividend.
The Saskatoon, Saskatchewan-based fertilizer giant said the split is payable May 29 to May 22. The dividend will boost the postsplit payout to 10 cents from 5 cents and is payable Aug. 10 to shareholders of record July 20.
As an added bonus, you can play their options.
G' day Mates,
Aussie
Allergan also announced a 2-for-1 stock split & it has OPTIONS.
Allergan reports higher earnings
(9:30 AM ET) BOSTON (MarketWatch) -- Eye care conglomerate Allergan Inc. (AGN) on Wednesday reported a first-quarter profit of $43.8 million, or 28 cents a share. This compares to a loss of $444.8 million, or $3.29 a share, for the same quarter last year. The 2006 quarter included hefty charges related to the acquisition of Inamed. Excluding various items, Allergan would have posted adjusted earnings of 92 cents a share, compared with 82 cents in 2006. Revenue rose to $886.5 million, which includes $165.2 million in sales from Inamed. Allergan also announced a 2-for-1 stock split for stockholders of record as of the end of June 11. The new shares will be distributed on June 22. Upon distribution, Allergan's float will increase from about 152.2 million shares to 304.4 million shares. Looking forward, Allergan sees 2007 product sales of $3.51 billion and $3.67 billion, with adjusted earnings per share of $4.28 and $4.32. Second quarter sales should be $910 million to $930 million, with adjusted earnings per share of 99 cents to $1.01. The company's forecast excludes the impact of the stock split.
------------------
G' day Mates,
Aussie
By all means have fun. You certainly came closer than I. So far the news hasn't affected the PPS -- rats!
G' day Mate,
Aussie
Whitewolf...???I guess we'll let you have that one. I don't know if I'd call a PR about a presentation a surprise announcement though. I would think a surprise announcement is kind of like the one before that gave the PPS a helping hand.Lets see if this one has the same affect.
G' day Mate,
Aussie
Avanir Pharmaceuticals Presents IEED Prevalence and Updated Zenvia Long-Term Safety Data at AAN Annual Meeting
*Study Reveals More Than 1.8 Million US Patients Afflicted with IEED*
*Data Indicates Zenvia Treatment Appears Safe and Well Tolerated in Patients Treated for More Than One Year*
Avanir Pharmaceuticals (NASDAQ:AVNR) today announced that data on the long-term safety of the investigational drug Zenvia™ (dextromethorphan / quinidine) and the prevalence of Involuntary Emotional Expression Disorder (IEED) were presented today during a poster session at the American Academy of Neurology (AAN) 59th Annual Meeting in Boston. The information was presented in the following posters:
Walter Bradley, DM, FRCP, Professor and Chairman Emeritus, Department of
Neurology at the University of Miami School of Medicine presented poster
P01.090 "Involuntary Emotional Expression
Disorder (IEED) Prevalence and Treatment."
In this study a representative sample of 2318 patients in the U.S. with
neurologic diseases or injuries known to cause IEED, or their
caregivers, were surveyed to determine the prevalence of IEED symptoms.
The results indicate that at least 1.8 million neurologic patients in
the U.S. suffer from frequent and intense episodes of uncontrollable
crying or laughing. In addition, the data indicate that up to 7 million
neurologic patients suffer some degree of impairment caused by
uncontrollable laughing or crying. Fifty nine percent of patients with
IEED symptoms had discussed their symptoms with their physician and less
than half received any diagnosis or treatment. The authors concluded
that the prevalence of IEED in the U.S. appears to be greater than
previously estimated in the medical literature and that education is
needed to improve diagnosis and treatment. These data were deemed
especially noteworthy by the meeting organizers and selected for
presentation at the AAN Scientific Topics Highlights session on
Thursday, May 3, 2007.
Zenvia investigator Daniel Wynn, MD, ABSM, Co-Director of the Clinical
Research Consultants in Neurology MS Center in Northbrook, IL, presented
poster P01.015 "Long-Term Safety of AVP-923
(Dextromethorphan/Quinidine) in the Treatment of Involuntary Emotional
Expression Disorder (IEED)." Data were
presented from patients with IEED, secondary to various neurologic
diseases or injuries, treated with Zenvia for 52 weeks or longer.
Results indicated that adverse events were generally mild to moderate in
nature with decreasing frequency after the first week of therapy; no
differences in adverse event profile based on age, sex, race or
underlying neurologic disease; no treatment-related serious adverse
events; and no clinically meaningful effects on cardiac repolarization
or any electrocardiogram variables.
In this open-label, multi-center study, 506 IEED patients with multiple
sclerosis (MS), amyotrophic lateral sclerosis (ALS), Alzheimer's
dementia, Parkinson's disease, or injuries
such as stroke and traumatic brain injury, were enrolled to evaluate
long-term safety and tolerability with 321 patients completing more than
six months of treatment. Eighty-six percent of the 234 patients who
completed one year of therapy chose to continue in the optional
extension phase of the study. The median compliance rate with Zenvia
therapy was 97.1%.
Linda Werling, Ph.D., Director, Institute for Biomedical Sciences,
George Washington University Medical Center, presented poster P01.016 "Competitive
Binding of Dextromethorphan to Selective Brain Receptor Sites."
This study evaluated radioligand competitive binding for memantine,
amitriptyline, fluoxetine, dextrorphan and dextromethorphan, the
therapeutically active ingredient in Zenvia, to determine the binding
affinities for each drug to 26 different target receptor binding sites
in the brain. Of the 26 potential target sites screened,
dextromethorphan bound to the fewest suggesting a lower risk for side
effects than the other drugs tested. The authors concluded that
treatment effects with dextromethorphan in Involuntary Emotional
Expression Disorder (IEED) may be related to the selectivity and
affinity of dextromethorphan at Sigma1 receptor
sites concentrated in the brainstem and cerebellum.
All three studies were sponsored by the Company.
About Zenvia
Zenvia is a combination of two well-characterized compounds, the
therapeutically active ingredient dextromethorphan, and the enzyme
inhibitor quinidine, which serves to increase the bioavailability of
dextromethorphan. The first-in-class drug candidate is believed to help
regulate excitatory neurotransmission in two ways, through pre-synaptic
inhibition of glutamate release via sigma-1 receptor agonist activity,
and through postsynaptic glutamate response modulation via
uncompetitive, low-affinity NMDA antagonist activity. Zenvia is
currently in development for the treatment of Involuntary Emotional
Expression Disorder (IEED) and diabetic peripheral neuropathic pain.
In October 2006, the Company received an approvable letter for the
treatment of Zenvia in IEED. To address safety concerns raised in the
FDA's approvable letter for Zenvia for the treatment of IEED, the
company intends to initiate a confirmatory phase III study with a new
lower quinidine dose formulation of Zenvia. In April 2007 Avanir
completed the first of two planned phase III studies in diabetic
peripheral neuropathic pain where all primary endpoints were
successfully met. The Company is considering whether it would be
necessary or advisable to study a similar lower dose of quinidine in the
second phase III trial being planned for diabetic peripheral neuropathic
pain.
About Avanir
Avanir Pharmaceuticals is focused on developing, acquiring and
commercializing novel therapeutic products for the treatment of chronic
diseases. Avanir's products and product
candidates address therapeutic markets that include the central nervous
system, cardiovascular disorders, inflammation and infectious diseases.
Avanir currently markets FazaClo®,
the only orally-disintegrating formulation of clozapine for the
management of severely ill schizophrenic patients who fail to respond
adequately to standard schizophrenic drug treatments. FazaClo is also
indicated for reducing the risk of suicidal behavior in patients with
schizophrenic or schizoaffective disorder. For full prescribing
information and important safety information regarding FazaClo, please
visit www.fazaclo.com. Avanir's
lead product candidate for the treatment of involuntary emotional
expression disorder (IEED), Zenvia™, is the
subject of an approvable letter from the FDA. Additionally, Avanir
recently completed a Phase III clinical trial with Zenvia in patients
with diabetic peripheral neuropathic pain where all primary endpoints
were met. Avanir has an ongoing development program with Novartis
International Pharmaceutical Ltd. for the treatment of inflammatory
disease. The Company's first commercialized product, Abreva®,
is marketed in North America by GlaxoSmithKline Consumer Healthcare and
is the leading over-the-counter product for the treatment of cold sores.
Further information about Avanir can be found at www.avanir.com.
Forward Looking Statement
Statements in this press release that are not historical facts,
including statements that are preceded by, followed by, or that include
such words as "estimate," "intend," "anticipate," "believe," "plan,"
"goal," "expect," or similar statements, are forward-looking statements
that are subject to certain risks and uncertainties that could cause
actual results to differ materially from the future results expressed or
implied by such statements. There can be no assurance that the Company
will receive FDA regulatory approval for Zenvia or that the additional
development work for Zenvia will be completed in the time periods that
are anticipated. Final review decisions made by the FDA and other
regulatory agencies concerning are often unpredictable and outside the
influence and control of the Company. Risks and uncertainties also
include the risks set forth in Avanir's most recent Annual Report on
Form 10-K and subsequent Quarterly Reports on Form 10-Q, and from
time-to-time in other publicly available information regarding the
Company. Copies of this information are available from Avanir upon
request. Avanir disclaims any intent to update these forward-looking
statements.
http://www.b2i.us/irpass.asp?BzID=958&to=ea&s=0
---------------------------------------
G' day mates,
Aussie
SUPER CHEAP OPTION PLAY.
GTW Jan 08 2.50 calls.
With this in mind:
Updated:2007-05-01 08:14:58
Gateway Strengthens Its Retail Presence, Bringing the First Quad-Core Desktop to Retail Stores From a Top Tier Manufacturer
PR NEWSWIRE
http://money.aol.com/news/articles/_a/gateway-strengthens-its-retail-presence/n20070501081409990024
---------------------------------
G' day Mates,
Aussie
Whitewolf...They say never let hope enter the equation when dealing with the stock market. However, it always sneaks in there. Keep on hoping.
G' day Mate,
Aussie
Encysive Pharmaceuticals Previews European Union Activities for 2007
http://money.aol.com/news/articles/_a/encysive-pharmaceuticals-previews/n20070501022109990007
-------------------------
G' day Mates,
Aussie
I trust you first ran that by Andrei, your financial advisor. LOL.
G' day Mate,
Aussie
Avanir never lets the cat out of the bag. Any thing you hear is purely hearsay. They've always have been that way much to the chagrin of their shareholders.
G' day Mate,
Aussie
For you option players:
Apple iPhone Rocks the Cell Phone Industry
A look at the biggest winners and losers as the release draws near.
By Paul Carton and Jim Woods
It's not often that we say "it rocks" when analyzing a consumer device trend. But the findings of our latest ChangeWave Alliance cell phone survey invite extremes when describing the startling impact we see the Apple iPhone having on the cellular industry.
Our survey of 3,489 Alliance members -- conducted in April -- revealed exceptionally high levels of excitement surrounding the iPhone's upcoming release. Nearly 1-in-10 respondents (9%) said they are likely to buy the new iPhone once it becomes available in June.
Another 7% said they are likely to buy the iPhone as a gift for someone else.
These are big numbers, especially when you consider the worldwide market for cell phones is around 1 billion and Apple's goal is to get to 1% of that market in year one -- which would mean selling about 10 million phones.
Clearly the current results, which are similar to our January survey findings, provide strong evidence that Apple should exceed its iPhone sales goals for 2008 -- providing that the device lives up to consumer expectations.
The iPhone's overall integration of phone, iPod, camera and e-mail/Internet capabilities remains the top selling point among likely buyers. The survey also uncovered an additional surge in demand if the iPhone's proposed price point is lowered.
To find out how far the price has to drop to attract additional customers, we asked our respondents who aren't yet considering the iPhone the following question:
For those not considering buying an Apple iPhone, at what price point would you consider buying one?
Ten percent said they'd consider buying a 4GB iPhone if the price falls to the $200-$299 range, while a 20% said they'd consider the 8GB model in this price range.
Apple to Take a Bigger Bite of the Market
To gain a full sense of the iPhone's looming impact on manufacturers, we compared their current market share in our survey with planned consumer purchases for the next six months.
Currently, Motorola (33%) remains the leading manufacturer among Alliance cell phone owners, with LG (15%) second and Nokia (14%) third. But when you look at planned purchases, the iPhone's impact becomes clear.
For the second consecutive survey, Motorola's future share among consumers saw a dramatic decline -- falling from 33% in October to just 17% currently.
Nokia's future market share also fell -- from 11% in October to 9% currently.
"As more and more consumers switch to the iPhone, we are going to see a huge migration from cell phone manufacturers like Motorola to the hipper, cooler iPhone," said Tobin Smith, founder of ChangeWave Research and editor of ChangeWave Investing.
We see the same pattern among service providers. Currently, Verizon (30%) holds the market share lead among our respondents, while AT&T's Cingular (27%) -- which is Apple's exclusive service provider for the United States -- is in second place. And third-place Sprint/Nextel (12%) fell one point in April's survey to a new low.
But going forward we find a dramatic turn of events. Cingular (28%; up six points) has now surged ahead of Verizon in terms of future planned buying among consumers, and has become the top choice among those respondents likely to switch service providers.
Verizon (22%; down three points) has continued to trend downward among this critically important group -- falling to second place for the first time since we began asking this question in a ChangeWave survey.
Thanks to our ChangeWave Alliance early adopters, we are able to see with stark clarity how the Apple iPhone is set to rock the cell phone industry.
Ultimately, the real issue for Apple isn't meeting its first-year iPhone sales goal -- the survey shows that is very doable. The real issue is whether the company can keep up with consumer demand -- including having enough parts to fulfill orders -- while maintaining product integrity.
Its competitors had better hope the iPhone can't get a dial tone, because if it does, the rest of the industry is in for a big shakeup.
------------------------------
G' day Mates,
Aussie
PENN & CI have moved up nicely. CI is the one to watch as it will split 3-for-1 and be distributed June 4 to shareholders of record as of May 21. Good companies that have forward splits usually go up right after the announcement for a while. Then they level off right before the split. After the split, the again go up as the shares are much cheaper. They they level off and after a month or two start going up again.
PENN I purchased in October and knew it would be a long range hold. Solid company with good fundamentals and the charts show an up trend since October. Their recent earnings report was good -- 49 cents per share, 9 cents higher than the forecasts of analysts surveyed by Thomson Financial. Plus, Penn National Gaming Inc. said Thursday it is raising its full-year earnings outlook on strong first-quarter results, an earlier-than-anticipated closing on an acquisition and expansion of two properties.
Both companies have options.
g' day Mates,
Aussie
This could answer some of the questions concerning the figures from Europe.
Encysive Pharmaceuticals Announces Conference Call to Discuss First Quarter 2007 Results
HOUSTON, April 18, 2007 (PRIME NEWSWIRE) -- Encysive Pharmaceuticals Inc. (Nasdaq:ENCY) will hold an investor conference call on Monday, May 7, 2007 at 8:00 a.m. ET to discuss its first quarter 2007 financial results.
You may access the call either through the call-in number below or through the audio webcast. The access number for the call is:
Number: (612) 332-0107
Passcode: Encysive Pharmaceuticals
This call is being webcast and can be accessed via Encysive's web site at www.encysive.com.
A replay of the webcast will be available on the Company's web site through June 7, 2007. Additionally, a replay of the call will be available until Friday, May 11, 2007 at 11:59 p.m. ET. The call replay can be accessed by calling:
Number: (320) 365-3844
Access Code: 871348
-------------------------------
G' day Mate,
Aussie
WEDNESDAY, May 2 SEATTLE - Starbucks Corp. releases second-quarter earnings.
G' day Mates and have a great week end.
Aussie
Then he bought back in late '97 or early '98 whem it was at that price and has gone through three forward splits. He has done extremely well.
G' day Mate,
Aussie
coloradotransplant...At $5 per share? Was that his original cost? As I have over and when I first purchased them before their last 2-for-1 split, they were around $45. They are now at $31.62.
SBUX has done well. And, when the figures start rolling in from overseas, I expect it will climb again.
G' day Mate,
Aussie
Starbucks: It's your turn to shine
Posted Apr 27th 2007 10:50AM by Georges Yared
Filed under: Forecasts, Microsoft (MSFT), Starbucks (SBUX), Amazon.com (AMZN), McDonald's (MCD)
Earnings season has been quite successful so far. Some of the larger, bellwether names have come through with flying colors. It's almost like we are tasting the 1999-2000 era: beat the numbers and raise the bar. From Amazon.com (NASDAQ: AMZN) to Microsoft (NASDAQ: MSFT), business trends are looking and feeling healthy. So, if we are returning to the era of growth investing being fashionable again and no longer hiding in the closet, Starbucks ( NASDAQ: SBUX)- you are on deck!!
Starbucks is scheduled to report its first-quarter numbers after the close on Thursday May 3rd. Consensus estimates calls for revenues of $2.3 billion and earnings per share of $0.19. If Starbucks reports better-than-expected results, the stock could receive that boost it has been lacking these past few months.
Starbucks has been a great growth story that seems to be a bit stalled. During the quarter, the company had to defend an internal memo written to the management team by founder and Chairman Howard Schultz about avoiding and resisting complacency. It was a memo that a good leader should indeed put out to his teammates, but the press pounced on it questioning the "direction of Starbucks." It was nothing but pure noise and certainly not news worthy, but it captured some headlines.
As of December 31, 2006, Starbucks had 13,168 stores in place around the world. The company has upped its long term projections to 40,000 units worldwide, thus leaving the company with massive room for sustainable growth. The economics of the "box" have room for growth as well as new menu items and ancillary products continue to evolve.
I have written before that I believe Starbucks will be bigger than McDonald's (NYSE: MCD) in the years to come. The opportunity in front of Starbucks is evergreen and long-lasting.
Hopefully on May 3rd, Starbucks will give investors a reason to start elevating the share value...
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G' day Mates,
Aussie
Mugur...I guess this might have something to do with your decision to sell.
Updated:2007-04-26 11:07:44
Palomar Medical 1Q Income Slips
AP
BURLINGTON, Mass. (AP) - Palomar Medical Technologies Inc., a developer of light-based cosmetic treatments, on Thursday said its fiscal first-quarter profit fell 6 percent due to higher operating costs and taxes.
For the three-month period ended March 31, the company posted net income of $5.9 million, or 30 cents per share, compared with $6.2 million, or 31 cents per share, in the prior-year period.
Revenue grew to $31.5 million from $22.5 million, an increase of 40 percent.
Analysts polled by Thomson Financial forecast a profit of 27 cents per share for the quarter.
Palomar Medical recorded total operating expenses of $23.4 million, up 41 percent from $16.6 million, a year earlier. The company reported higher product and royalty costs and research and development, marketing and administrative expenses.
The company also paid a total of $3.6 million in taxes compared with $210,000 paid in the prior-year period.
Shares of Palomar Medical added $1.07 to $41.19 in morning trading on the Nasdaq Stock Market.
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G' day Mate,
Aussie
Verylong...Thanks. You guys had me going back forever and I couldn't figure out what stock it was. Being you had PMTI in your alias, I thought it might have been that but, wasn't really sure.
G' day mate,
Aussie
Mugur & Verylong...Do us afavor. When you post about your option plays please give the stock you're talking about also, as it's a pain in the rear tying to go back through your posts to see which one you guys are talking about. Okay? Thanks.
G' day Mate,
Aussie
Verylong...That was excellent. I made a copy and put it in my options book for reference. Thanks.
G' day Mate,
Aussie