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depends on a few factors. How many shares will be outstanding after the issuance, and what are their numbers and forecasts? None of this is known yet.
And it will You all are forgetting that 10's of millions of new shares are being issued. which will bring the market cap back up.
The question here is there were lots of people like Sporty and others who were hyping this thing all over this board and other places. Has anybody seen a comment from them? This COULD have been a big pump to unload hundreds of millions of shares prior to the reverse split. Also didn't somebody write that they spoke to somebody at the company and they assured them No reverse split? Where is that person?
Look, anybody in their right mind knew that a reverse would happen. Or they were just naive. People took advantage of that, got others to believe it, and they lost everything they put into it.
Basically all your shares will essentially be cancelled (as good as cancelled because you'll be diluted down to nothing) and new shares are issued to the shareholders of the new company. There is nothing wrong with this. It's done every day. What IS wrong however is that people pumped this shell up creating belief that a RS was NOT going to happen based on conversations with the company and people bought into it.
Since the symbol changed all your open orders should be cancelled.
<$1.00 for sure.
Really? Seriously? There is no money to be made here. The only way to possibly make money in this deal is to buy after the RS falls to almost these same levels % wise. And than hope the company does well.
The money is gone anybody who bought today has no idea what they're going. Should have been out each time the volume spiked. That's what people were doing. There were no MM Games, they were filling order. Whenever you were buying, you were buying from somebody who wanted out. For Obvious reasons.
LuckyTT711, You've got to be the luckiest person on the planet if "You don't loose $$$ on the reverse split". Or the dumbest.
LUCKYTT711 Thursday, 12/18/14 10:44:27 AM
Re: None
Post # of 26449
GLGT is Turbine Aviation ...You DON'T lose $$$ on the reverse split itself ...I'm buying today ... and as many as I can ... I wonder if David Price gets ratted out about INSIDER information to the authorities it can force cancellation of the reverse split? ...Just like gambling ...you gotta know when to hold 'em ... not folding my hand ...Doubling down /...GL
Somebody Can't do math!
SOME Dilution? 10,000 to 1, and than issue a boat load to dilute you all down to NOTHING! Ed has been saying why would they NOT reverse? The only thing that makes sense was TO reverse it.
LOL I remember reading ONE Poster Ed something months ago saying a Reverse split was the only way he'd seen reverse mergers done. Everybody said NO WAY. Good Call Ed!!!
Does anybody know which brokerage firms are trading GLGT?
For the first time in a long time, IMHO there actually looks like there is some demand on the bid side. Just a bit though. But... for what it's worth, it's there.
10mm all on dips below .002. Look, maybe it has better odds than roulette. Maybe not. Prob a good idea to bleed out at profit?
I agree with you... They can save money this way if they roll it back. (and assuming this co has no hidden liabilities) If they keep the structure as is, they'll be cutting off their own heads. They way they are doing this is a very high risk transaction for a company that is supposedly as big as the DD claims.
Which to me is another red flag. Why would the existing shareholders of a company that can seemingly have a $100 million market cap give up 1/2 of their company by putting it into this shell? Unless they planned to roll it back. That's the only way it makes sense to me. IF I had to guess, this is a cash and carry or blank check deal which makes this scenario the probably outcome.
Let me correct... The DD is solid. But weather this merger will go through or not remains to be seen. It seems far fetched that such a seeming large company would buy some grey sheet skull and crossbones shell to merge into. Why not IPO, SPAC, or at the least a reporting entity with a history of GAAP Audited financials?
NAME CHANGE... Yes and No because there is no confirm yet that GLGT is actually going to merge with turbine. There is rumors and speculation based on semi solid DD I'd say but no guarantee it will go through.
IMHO I think somebody with interest contacted a few key sites (reuters, ameritrade, google finance, etc) sent them name change docs and than promoted the hell out of the stock.
My best guess says next week they will be all changed back to the old name.
Last week it was the same on reuters but was changed back. It's like somebody is trying to pull a fast one.
NAME CHANGE!!!
I noticed last week that the name changed on Reuters to Turbine Aviation. I noticed today that the name changed back to Global General... http://www.reuters.com/finance/stocks/overview?symbol=GLGT.PK
I was curious as to why this ONLY happened on Reuters. I'm wondering if somebody pulled a fast one and got reuters to change it and that caused the stock to fly.
Any input?
Altria Group (NYSE: MO) Maintains Traction with Satisfied Investors
More on EmergingGrowth.com
The Altria Group (NYSE: MO) is the leading cigarette manufacturer in the United States, Despite a weak economy and stiff competition, the company has been doing fairly well with a 22 percent increase in revenue this past year. This is a significant number given that cigarette sales are down in the United States. In fact, consumption of tobacco in the American market has fallen to less than half that of Japan and Europe. But Altria has other tricks up its sleeve that more than compensate for tobacco products. Altria’s holdings also include wine and beer, financial services, cigars and smokeless products. Analysts attribute the company’s ability to maintain a steady growth and solid dividend production to its diverse holdings. In short, Altria has been able to compensate for lost tobacco revenue through diversification, something that nearest competitors Reynolds American (NYSE: RAI), and Lorillard (NYSE: LO) have been unable to do.
In March of 2007 Altria spun off its remaining stake in Kraft Foods to its shareholders. The spinoff strengthened the company by reducing debt and allowing Altria purchase as much as $40 billion worth of its shares. Then in March of 2008 Altria spun off Philip Morris International (NYSE: PM) giving PM shareholders shares of the now separate company as compensation for their lost revenues in Altria. The motive behind the spin offs was sound. Combined, the moves made Altria a smaller, more manageable and profitable company.
In addition, and shareholders love this, the company has increased its annual dividend 44 times in the last 46 years. In fact the company announced that the 2012 dividend ratio payout was 80 percent of adjusted earnings per share. 80 percent is a mighty nice reward to loyal investors and it still left Altria a nice chunk of cash to devote investments and projects, which should please Altria shareholders. In a market that has become known in the past few years for its inconsistency, investors find the solid performance of Altria a comfortable choice. The assurance of a return on their investments in the form very nice dividends has shareholders keeping their money right where it is for the long haul.
The company has a proven track record with investors and a sound business plan in place. So in spite of all of the issues confronting cigarette companies today, including tax hikes, health concerns, negative advertising, Altria has managed to maintain and even enhance a strong earnings platform by utilizing various business strategies in order to compensate for what might have been lost revenue. Analysts and investors like this stock and with good reason continue to stand behind it. Altria may not have the financial clout of a Google (NASDAQ: GOOG) or Apple (NASDAQ: AAPL) but it is a sound, reliable investment and is likely to stay so for the long-term.
Altria Group (NYSE: MO) Maintains Traction with Satisfied Investors
More on EmergingGrowth.com
The Altria Group (NYSE: MO) is the leading cigarette manufacturer in the United States, Despite a weak economy and stiff competition, the company has been doing fairly well with a 22 percent increase in revenue this past year. This is a significant number given that cigarette sales are down in the United States. In fact, consumption of tobacco in the American market has fallen to less than half that of Japan and Europe. But Altria has other tricks up its sleeve that more than compensate for tobacco products. Altria’s holdings also include wine and beer, financial services, cigars and smokeless products. Analysts attribute the company’s ability to maintain a steady growth and solid dividend production to its diverse holdings. In short, Altria has been able to compensate for lost tobacco revenue through diversification, something that nearest competitors Reynolds American (NYSE: RAI), and Lorillard (NYSE: LO) have been unable to do.
In March of 2007 Altria spun off its remaining stake in Kraft Foods to its shareholders. The spinoff strengthened the company by reducing debt and allowing Altria purchase as much as $40 billion worth of its shares. Then in March of 2008 Altria spun off Philip Morris International (NYSE: PM) giving PM shareholders shares of the now separate company as compensation for their lost revenues in Altria. The motive behind the spin offs was sound. Combined, the moves made Altria a smaller, more manageable and profitable company.
In addition, and shareholders love this, the company has increased its annual dividend 44 times in the last 46 years. In fact the company announced that the 2012 dividend ratio payout was 80 percent of adjusted earnings per share. 80 percent is a mighty nice reward to loyal investors and it still left Altria a nice chunk of cash to devote investments and projects, which should please Altria shareholders. In a market that has become known in the past few years for its inconsistency, investors find the solid performance of Altria a comfortable choice. The assurance of a return on their investments in the form very nice dividends has shareholders keeping their money right where it is for the long haul.
The company has a proven track record with investors and a sound business plan in place. So in spite of all of the issues confronting cigarette companies today, including tax hikes, health concerns, negative advertising, Altria has managed to maintain and even enhance a strong earnings platform by utilizing various business strategies in order to compensate for what might have been lost revenue. Analysts and investors like this stock and with good reason continue to stand behind it. Altria may not have the financial clout of a Google (NASDAQ: GOOG) or Apple (NASDAQ: AAPL) but it is a sound, reliable investment and is likely to stay so for the long-term.
Great Story about NASDAQ: LHCG
More on http://EmergingGrowth.com
Baby Boomers are getting older, fatter and living longer. As a result just about any segment of the healthcare sector stands to benefit from just this paradigm, let alone the other factors that play into investor confidence in healthcare and that includes home healthcare. There has been an indisputable surge in demand for home healthcare products and services in the past few years and this translates into myriad companies that provide those needed services in the small-cap sector of the market.
Besides boasting an endearing name, Almost Family Inc. (NASDAQ: AFAM) is also a solid contender in the home healthcare industry. Trading at $20.00 per share the company has a market cap of $186.72 million. Over the past year, shares have traded in a range of $16.12 to $26.87 and now at $20.00, are a healthy 25 percent above that low. Looking at the charts, the company has been a strong mover throughout January 2013 which has prompted Zacks to issue a strong buy. The company paid a special dividend at the end of December to shareholders of interest of $2.00. Currently the dividend yield is more endearing than its name; 9.9 percent.
Competitors such as Gentiva Health Services Inc. (NASDAQ: GTIV) and LHC Group Inc. (NASADQ: LHCG) are also worthy of consideration in this segment. They both provide home healthcare and are on upward trends at the moment. The companies have market caps of $318.74 million and $386.94 million respectively. LHC is trading in the range of $21.94 while Gentiva is trading at half that number; $10.41. Gentiva also has the lowest price to earnings ratio in this segment of the healthcare market at 7.64. Shares have been fairly volatile over the past year for Gentiva with a high of $29.21 and a low of $2.81. Current price indicates a strong upward trend of over 240 percent from the 52 week low. In the past year, shares of LHC Group have traded between a low of $12.53 and a high of $22.21. At the current price $21.94, shares are trading at almost 70 percent above the low price.
As stated earlier, this segment is a fast growing, solid portion of the healthcare industry. It is gaining traction with investors and it is almost certain that companies that are small today with nice entry points will not be small or as affordable tomorrow.
Great Story on NASDAQ: GTIV
More on http://EmergingGrowth.com
Baby Boomers are getting older, fatter and living longer. As a result just about any segment of the healthcare sector stands to benefit from just this paradigm, let alone the other factors that play into investor confidence in healthcare and that includes home healthcare. There has been an indisputable surge in demand for home healthcare products and services in the past few years and this translates into myriad companies that provide those needed services in the small-cap sector of the market.
Besides boasting an endearing name, Almost Family Inc. (NASDAQ: AFAM) is also a solid contender in the home healthcare industry. Trading at $20.00 per share the company has a market cap of $186.72 million. Over the past year, shares have traded in a range of $16.12 to $26.87 and now at $20.00, are a healthy 25 percent above that low. Looking at the charts, the company has been a strong mover throughout January 2013 which has prompted Zacks to issue a strong buy. The company paid a special dividend at the end of December to shareholders of interest of $2.00. Currently the dividend yield is more endearing than its name; 9.9 percent.
Competitors such as Gentiva Health Services Inc. (NASDAQ: GTIV) and LHC Group Inc. (NASADQ: LHCG) are also worthy of consideration in this segment. They both provide home healthcare and are on upward trends at the moment. The companies have market caps of $318.74 million and $386.94 million respectively. LHC is trading in the range of $21.94 while Gentiva is trading at half that number; $10.41. Gentiva also has the lowest price to earnings ratio in this segment of the healthcare market at 7.64. Shares have been fairly volatile over the past year for Gentiva with a high of $29.21 and a low of $2.81. Current price indicates a strong upward trend of over 240 percent from the 52 week low. In the past year, shares of LHC Group have traded between a low of $12.53 and a high of $22.21. At the current price $21.94, shares are trading at almost 70 percent above the low price.
As stated earlier, this segment is a fast growing, solid portion of the healthcare industry. It is gaining traction with investors and it is almost certain that companies that are small today with nice entry points will not be small or as affordable tomorrow.
Almost Family Inc. (NASDAQ: AFAM) Strong Small-Cap Contender in Home Healthcare Industry on the Move
More on http://EmergingGrowth.com
Baby Boomers are getting older, fatter and living longer. As a result just about any segment of the healthcare sector stands to benefit from just this paradigm, let alone the other factors that play into investor confidence in healthcare and that includes home healthcare. There has been an indisputable surge in demand for home healthcare products and services in the past few years and this translates into myriad companies that provide those needed services in the small-cap sector of the market.
Besides boasting an endearing name, Almost Family Inc. (NASDAQ: AFAM) is also a solid contender in the home healthcare industry. Trading at $20.00 per share the company has a market cap of $186.72 million. Over the past year, shares have traded in a range of $16.12 to $26.87 and now at $20.00, are a healthy 25 percent above that low. Looking at the charts, the company has been a strong mover throughout January 2013 which has prompted Zacks to issue a strong buy. The company paid a special dividend at the end of December to shareholders of interest of $2.00. Currently the dividend yield is more endearing than its name; 9.9 percent.
Competitors such as Gentiva Health Services Inc. (NASDAQ: GTIV) and LHC Group Inc. (NASADQ: LHCG) are also worthy of consideration in this segment. They both provide home healthcare and are on upward trends at the moment. The companies have market caps of $318.74 million and $386.94 million respectively. LHC is trading in the range of $21.94 while Gentiva is trading at half that number; $10.41. Gentiva also has the lowest price to earnings ratio in this segment of the healthcare market at 7.64. Shares have been fairly volatile over the past year for Gentiva with a high of $29.21 and a low of $2.81. Current price indicates a strong upward trend of over 240 percent from the 52 week low. In the past year, shares of LHC Group have traded between a low of $12.53 and a high of $22.21. At the current price $21.94, shares are trading at almost 70 percent above the low price.
As stated earlier, this segment is a fast growing, solid portion of the healthcare industry. It is gaining traction with investors and it is almost certain that companies that are small today with nice entry points will not be small or as affordable tomorrow.
Alco Stores, Inc. (NASDAQ: ALCS), Gordman’s Stores Inc. (NASDAQ: GMAN) and Fred’s Inc. (NASDAQ: FRED)
Read more at http://EmergingGrowth.com
Small-cap retailers abound in today’s market and, if chosen wisely, can offer nice long-term options for the savvy investor. With the fiscal cliff averted and the jobless rate falling at a decent clip, discretionary spending is loosening and small-cap retailers are likely to reap the benefits. Of course investing in small-caps has its risky side. Stocks on the Russell 2000 index of small companies sell for about 20 times 2013 earnings forecasts. But this is where you, as an informed investor make good choices and get compensated for the high risk with higher returns. Following are a few options that may or may not be good choices in your quest for less volatile small-cap investing in the general retail sector.
ALCO Stores Inc. (NASDAQ: ALCS) is a general merchandising retailer operating in the Midwestern portion of the United States. The company operates 217 stores located in 23 states and its merchandise ranges from automotive items to toys and just about everything in-between. The company prides itself on being small town oriented and customer-centric. ALCO has a market cap of $27.59 million and is currently trading at $8.47 per share. Though the company reported a loss in Q3 2012, CEO Richard Wilson noted that it directly tied into on ongoing drought in rural areas across the region. Net sales were up and gross margins showed improvement.
Gordman’s Stores Inc. (NASDAQ: GMAN) is an Omaha based apparel and home décor retailer. The company has a market cap of $232.16 million and shares are currently trading up at $11.93. The company was downgraded today by TheStreet Ratings from hold to sell. GMAN has overwhelmingly underperformed when compared to that of the S&P 500 and also underperformed when compared to the Multiline Retail industry average on whole. Net income has slumped by 15.9 percent compared to the same quarter in 2011, dipping from $4.75 million to $4.00 million. In addition earnings per share were down 16 percent year-over- year. Clearly this is a company with issues that need to be sorted out.
Fred’s Inc. (NASDAQ: FRED) operates 680 discount general merchandise stores and pharmacies primarily in the South. Though sales were somewhat off in December, which was the norm for a number of retailers, analysts and investors are not overly concerned. Fred’s expects much improved sales in future months aided by increased promotional efforts in specialty drugs and clinical services. The company has launched discount tobacco programs a new Hometown Auto and Hardware program which should help store expansion and boost comparable store sales. The company has a market cap of $480.34 million and is trading at up at $13.14, a nice entry point in a very solid company.
Alco Stores, Inc. (NASDAQ: ALCS), Gordman’s Stores Inc. (NASDAQ: GMAN) and Fred’s Inc. (NASDAQ: FRED)
Read more at http://EmergingGrowth.com
Small-cap retailers abound in today’s market and, if chosen wisely, can offer nice long-term options for the savvy investor. With the fiscal cliff averted and the jobless rate falling at a decent clip, discretionary spending is loosening and small-cap retailers are likely to reap the benefits. Of course investing in small-caps has its risky side. Stocks on the Russell 2000 index of small companies sell for about 20 times 2013 earnings forecasts. But this is where you, as an informed investor make good choices and get compensated for the high risk with higher returns. Following are a few options that may or may not be good choices in your quest for less volatile small-cap investing in the general retail sector.
ALCO Stores Inc. (NASDAQ: ALCS) is a general merchandising retailer operating in the Midwestern portion of the United States. The company operates 217 stores located in 23 states and its merchandise ranges from automotive items to toys and just about everything in-between. The company prides itself on being small town oriented and customer-centric. ALCO has a market cap of $27.59 million and is currently trading at $8.47 per share. Though the company reported a loss in Q3 2012, CEO Richard Wilson noted that it directly tied into on ongoing drought in rural areas across the region. Net sales were up and gross margins showed improvement.
Gordman’s Stores Inc. (NASDAQ: GMAN) is an Omaha based apparel and home décor retailer. The company has a market cap of $232.16 million and shares are currently trading up at $11.93. The company was downgraded today by TheStreet Ratings from hold to sell. GMAN has overwhelmingly underperformed when compared to that of the S&P 500 and also underperformed when compared to the Multiline Retail industry average on whole. Net income has slumped by 15.9 percent compared to the same quarter in 2011, dipping from $4.75 million to $4.00 million. In addition earnings per share were down 16 percent year-over- year. Clearly this is a company with issues that need to be sorted out.
Fred’s Inc. (NASDAQ: FRED) operates 680 discount general merchandise stores and pharmacies primarily in the South. Though sales were somewhat off in December, which was the norm for a number of retailers, analysts and investors are not overly concerned. Fred’s expects much improved sales in future months aided by increased promotional efforts in specialty drugs and clinical services. The company has launched discount tobacco programs a new Hometown Auto and Hardware program which should help store expansion and boost comparable store sales. The company has a market cap of $480.34 million and is trading at up at $13.14, a nice entry point in a very solid company.
Alco Stores, Inc. (NASDAQ: ALCS)
Read more at http://EmergingGrowth.com
Small-cap retailers abound in today’s market and, if chosen wisely, can offer nice long-term options for the savvy investor. With the fiscal cliff averted and the jobless rate falling at a decent clip, discretionary spending is loosening and small-cap retailers are likely to reap the benefits. Of course investing in small-caps has its risky side. Stocks on the Russell 2000 index of small companies sell for about 20 times 2013 earnings forecasts. But this is where you, as an informed investor make good choices and get compensated for the high risk with higher returns. Following are a few options that may or may not be good choices in your quest for less volatile small-cap investing in the general retail sector.
ALCO Stores Inc. (NASDAQ: ALCS) is a general merchandising retailer operating in the Midwestern portion of the United States. The company operates 217 stores located in 23 states and its merchandise ranges from automotive items to toys and just about everything in-between. The company prides itself on being small town oriented and customer-centric. ALCO has a market cap of $27.59 million and is currently trading at $8.47 per share. Though the company reported a loss in Q3 2012, CEO Richard Wilson noted that it directly tied into on ongoing drought in rural areas across the region. Net sales were up and gross margins showed improvement.
Gordman’s Stores Inc. (NASDAQ: GMAN) is an Omaha based apparel and home décor retailer. The company has a market cap of $232.16 million and shares are currently trading up at $11.93. The company was downgraded today by TheStreet Ratings from hold to sell. GMAN has overwhelmingly underperformed when compared to that of the S&P 500 and also underperformed when compared to the Multiline Retail industry average on whole. Net income has slumped by 15.9 percent compared to the same quarter in 2011, dipping from $4.75 million to $4.00 million. In addition earnings per share were down 16 percent year-over- year. Clearly this is a company with issues that need to be sorted out.
Fred’s Inc. (NASDAQ: FRED) operates 680 discount general merchandise stores and pharmacies primarily in the South. Though sales were somewhat off in December, which was the norm for a number of retailers, analysts and investors are not overly concerned. Fred’s expects much improved sales in future months aided by increased promotional efforts in specialty drugs and clinical services. The company has launched discount tobacco programs a new Hometown Auto and Hardware program which should help store expansion and boost comparable store sales. The company has a market cap of $480.34 million and is trading at up at $13.14, a nice entry point in a very solid company.
Good One on http://EmergingGrowth.com
The press sometimes provides opportunities that would normally not occur in the equity markets, as they tend to exaggerate facts and news about publicly traded companies. Today’s media has the amazing ability to reach so many investors, as TV and internet have come a tremendously long way in the past decade. Potential investors are informed through multiple communication channels, as the speed of information is faster now than ever before. Investors looking to take advantage of the media and its ability to push stock prices both higher and lower can achieve great points of entry as well as good exit levels. Recent news developments regarding multi-level marketing firms and a public showdown between two billionaire hedge fund managers may provide a good opportunity in NATR.
Nature’s Sunshine Products (NASDAQ: NATR) operates in the personal products industry, a subset of the Consumer Staples sector. The company manufactures and distributes nutritional and personal care items, which include herbal products, vitamins, homeopathic products, oils and lotions, aloe vera gel, herbal shampoo, toothpaste, and skin cleanser. Nature’s Sunshine has a market capitalization of $240.51 million, and offers a dividend yield of 1.31%. In the company’s last earnings report that was announced on November 2nd of last year, net sales were $33.7 million, compared with $33.5 million in the same quarter a year ago, an increase of 0.5 percent. Operating income was $2.7 million, compared with $2.3 million in the same quarter a year ago, an increase of 15.0 percent. Overall the earnings report was slightly better than expectations, showing steady growth from the previous year. The stock reacted favorably post-earnings report until the worries about multi-level marketing firms in December began to ramp-up.
NATR is a smaller player in the MLM space, and uses this technique to sell health and wellness products. The stock got hammered as a by-blow of the Herbalife (NYSE: HLF) fight in December. On Dec. 18th the company’s stock price was at $15.44, and by Dec. 26th it was down more than 10% to $13.02. It’s since recovered but is going to be volatile as MLM firms get more media interest and bad press. The negative media exposure is expected to increase over the next few weeks as billionaire hedge fund manager Bill Ackerman publicly announced his short position on Herbalife. This investment was highlighted this past Friday on CNBC when Ackerman got into a heated exchange with hedge fund manager Carl Icahn.
Whether Icahn has a position in the stock is still unknown, but the two investors went toe-to-toe in one of the most entertaining moments in financial TV history. Ackerman has accused Herbalife of basically running a pyramid scheme, publicly stating that it will eventually be revealed and the company will go bankrupt. Whether this will occur is anyone’s guess, but the fight between the two hedge fund managers is expected to get a ton of press this week. This is expected to cause Herbalife and many of its similar users of MLM to drop, as folks will reconsider their investment in these companies. Some are expected to sell, as hedge fund titans such as Ackerman have the ability to move the stock. NATR is closely correlated with Herbalife, so the potential selloff may provide a good buying opportunity and a nice entry point in NATR.
The stock currently trades at $14.46, in between its 52-week range of $13.02 and $17.73. The company does not have any huge competitors in the industry; however, there are other similar companies. The company’s main competitors in the sector include Xenoport (NASDAQ: XNPT), market cap $365m, Depomed (NASDAQ: DEPO), market cap $348m, GTX Inc (NASDAQ: GTXI), market cap $305m, and Raptor Pharmaceutical (NASDAQ: RPTP), market cap $282m. NATR is well positioned in the sector and is expected to exceed growth expectations in 2013. That said, a buying opportunity might be available within the next few weeks.
Good Entry point into the stock... More on http://www.EmergingGrowth.com The American housing sector seems to have bottomed out. Many experts are convinced it is picking up again. And this is why Headwaters Inc. (NYSE: HW), a leading manufacturer in the sector, is finding a fertile niche.
Headwaters produces building products for new residential, residential remodeling, and commercial construction. Headquartered in South Jordan, Utah, it is one of America’s greatest recycling success stories. It eliminated 75 percent of paper waste at its corporate headquarters, and its pallets are repaired for re-usability. Its online documents and instructional video allow it to consume less paper, ink and energy.
But that is not what is most interesting about this company. Its Siding Accessories products control approximately 75% of their niche market, while its manufactured stone products take roughly 25% market share. Apart from this, the company’s concrete block business dominates the Texas block market with roughly 65% of the market. Headwaters Resources / Heavy Construction Materials segment controls almost half of all fly ash sales in the U.S. today.
Headwaters recently announced that it has entered into an agreement to acquire the assets of Kleer Lumber, Inc., a manufacturer of high quality and Eco-friendly cellular PVC trim board and molding products. If successful, the acquisition of Kleer Lumber will add such products as trim boards, millwork, sheet stock, and paneling to Headwaters’ Light Building Products offerings.
In its 2012 fourth quarter report, Headwaters’ revenue increased 8% to $633 million, while its gross profit margin improved by 230 basis points to 29.8%. Also operating income increased 120% to $15.9 million, while the company repaid $3.5 million of subordinated debt in the quarter. Gross profit increased by 16% to $56.7 million in the fourth quarter of 2012, compared to $49.0 million in the fourth quarter of 2011.
“We continued to see revenue growth in the fourth quarter, driven primarily by improvements in new residential construction and market share gains,” said Kirk A. Benson, Chairman and Chief Executive Officer of Headwaters. “We maintained exceptional operating leverage with contribution margins in excess of 47%, greatly expanding operating income in an up market. For the quarter, operating income grew by 120% to $15.9 million.”
Due to the rebound of the housing industry, the numbers will become even stronger in the future. Meanwhile, Headwaters sports a conservative business model, having a market capitalization of $599 million and trading around $9.79 per share. Its 52-week range is between $2.26 and $9.79. Though it seems to be have peaked, it trades at a cheap rate compared to bigger rivals such as Cemex , SAB (NYSE: CX), CRH PLC (NYSE: CRH), and Weyerhaeuser Co (NYSE: WY). This puts it in a good position to reap profit when growth accelerates in the housing sector.
Housing Recovery, Vacation Stocks,... Full story on EmergingGrowth.com When you get to Boca Raton, Florida, you’ll find a company that delivers hundreds of thousands of unique vacation experience and millions of smiles and memories to its guests each year. It does this specifically through its vast collection of beautiful vacation ownership resorts. It also offers a full suite of hotel and resort management and financial services, along with field sites and marketing initiatives. Welcome to the world of vacation ownership, one of the fastest-growing segments of the travel and tourism industry.
Bluegreen Corporation (NYSE: BXG) was founded in 1966 in Massachusetts, and its core business was acquiring and financing residential land. However, it developed its first timeshare resort in the Great Smoky Mountains in 1994. Three years later, Bluegreen acquired RDI Group, a privately held vacation ownership developer in Florida and Wisconsin. With this acquisition, Bluegreen became one of the largest property managers of vacation ownership resorts in the U.S. This gave birth to the Bluegreen Vacation Club.
Today, it offers a portfolio of resort management, financial services, customer generation, and sales solutions to third-party developers and lenders. It was named on both Forbes’ list of the “200 Best Small Companies” (for the second time), and Fortune’s “List of the 100 Fastest-Growing Companies.” Over the past few years, the company has grown its resort destination list to include Las Vegas, Williamsburg, Atlantic City, and New Orleans.
It reported net income of $11.7 million in its 2012 third quarter report, compared with a net income of $7.1 million in third quarter 2011. Income from continuing operations attributable to Bluegreen shareholders rose 24.1% to $12.0 million, compared with $9.7 million third quarter 2011. Its system-wide sales of vacation ownership interests increased 19.9% to $109.1 million, compared with $91.0 million in third quarter of 2011.
“We performed well in the third quarter of 2012, as evidenced by growth in both our traditional VOI and fee-based services businesses, as well as increases in sales tours and sale-to-tour conversion ratios, “ said John M. Maloney Jr., President and Chief Executive Officer of Bluegreen.
Bluegreen Corporation appears to represent a good way to take advantage of growth in the vacation industry. Management has positioned itself to profit on growing opportunities as the global economy strengthens. Just like its bigger competitors such as Caesars Entertainment Corporation (NYSE: CZR), MGM Resorts International (NYSE: MGM), and Las Vegas Sands Corp. (NYSE: LVS), Bluegreen Corporation also wants a piece of the action. However, it is different because it has more room for growth. With financial figures steadily edging upward, and a 52 week price range of $ 2.54 – 9.84 (the stock is currently trading close to its high at around $9), it would be accurate to say that Bluegreen Corporation will gain tremendous value when the vacation business witnesses an upswing.
Strong housing Trends... See the article on BLDR and others here... http://emerginggrowth.com/emerging_growth_stock_picks/builders-firstsource-nasdaq-bldr-more-strong-housing-trends/01/30/2013
In the 1990's, homebuilders began to grow by acquisition, creating large national competitors. It was inevitable that manufacturers and homebuilders also consolidated and experienced the same trend. Builders FirstSource (NASDAQ: BLDR) was born from this industry evolution. Its driving force was the desire to provide professional class building services to the country’s homebuilders and remodelers.
It made its first acquisition in March 1998. Since then, Builders First Source has acquired and integrated twenty-six companies. Completing its initial public offering of its common stock in June 2005, JLL Partners continued to own a majority of the company.
The company offers a broad range of products to help customers with their building effort. It creates wall panels, FSC lumber, engineered lumber, and Energy Star qualified windows and doors. It also manufactures prefabricated structural components such as roof trusses, floor trusses, as well as interior and exterior doors and windows. The company has developed the expertise to tailor its manufactured products to the needs of its market.
In its 2012 third quarter report, sales were $291.8 million, an increase of 34.3 percent when compared to the third quarter of 2011. For the second consecutive quarter, it reported positive Adjusted EBITDA, finishing with $3.0 million for the quarter as compared to an Adjusted EBITDA loss of $0.7 million in the third quarter of 2011. On a year-to-date basis, its Adjusted EBITDA improved from a loss of $11.7 million in 2011 to positive $3.0 million in 2012. Gross margin percentage was 19.8 percent, down from 20.5 percent, a 0.7 percentage point decrease. Specifically, its gross margin decreased 1.5 percentage points largely due to commodity lumber inflation during the quarter relative to fixed customer pricing commitments and was offset by a 0.8 percentage point gross margin improvement due to increased sales volume.
“We are seeing stronger sales trends as the housing market continues to recover, and our recent market share gains have also certainly contributed to our improving sales. Our sales growth and increased operating efficiencies drove the improvement in our financial results for the quarter,” said Builders FirstSource Chief Executive Officer Floyd Sherman.
Its year-over-year sales growth exceeded 30% in each of the past four quarters, and the company currently sees no signs of its sales pace slowing. Consequently, it was prompted to proactively seek additional liquidity to support its higher working capital requirements. It sought for $93 million of incremental liquidity to be provided to enable it continue growing market share and take further advantage of improving demand for housing.
With a market cap of $553 million, Builders FirstSource trades around $6.40 per share. In other words, with plenty of room for growth, increasing revenues, and a low share price compared to its competitors, Builders FirstSource is a great stock pick for investors expecting the economy and the housing industry to continue their upward trend.
A Chartist's Dream... http://emerginggrowth.com/emerging_growth_stock_picks/matador-resources-company-nasdaq-mdtr-a-chartists-dream/01/30/2013
On December 28th 2012 the S&P 500 stood at 1402, with many folks around the world worried that US politicians had the gall to let the country go over the fiscal cliff. The negotiations resulted in a temporary band-aid that put the market at ease, despite no long-term agreement. Slightly under a month and the S&P has rocketed to 1,502.00, as there is profound optimism that companies will outperform this year. With the VIX index around a 5-year low, there is little volatility and a lot of complacency in the market. Also, for the second week in a row jobless claims have come in under 350k. The trend is consistent with modest hiring growth but still with ample slack in labor market due to limit wage pressures. The most recent Fed Beige Book called wage pressures as stable, subdued or contained.
In the equity markets many stocks are at multi-year highs. Most traders have seen the rally being led by companies in the energy sector, as this group along with the financials has been powering the indexes higher. Staying with what is outperforming generally works in the near term, but are some companies that have been overlooked and are at cheap valuations.
Matador Resources Company (NYSE: MTDR) is an independent energy company based in Dallas, Texas. On January 7th the company announced that is its average rate of production for December 2012 was about 5,800 barrels of oil per day and 34.6mm cubic feet of gas a day. The daily oil rate is up almost 75% from the company Q3 2012 average daily production of about 3,300 barrels, with an increase of almost 13-fold when compared to its 2011 4th quarter daily oil output of 450 barrels.
On December 6th 2012, the company announced that it intends to shut-in 15-20% of its production capacity during the year, as it tries to drill and complete certain wells that have been under development. Most of the interference in production will be scheduled for the first half of the year. Despite some minor bumps in the company’s operations over the next few months, there are no changes in the company’s earnings expectations for 2013. The company does intend to borrow additional funds to expand its oil and gas reserves, which is expected to occur the second half of 2013.
MTDR has a 52-week range of $7.70 and $12.33, and is currently trading at $8.02. When viewing a 6-month chart the trend in the stock appears horrendous, as time again the price fails and makes new lows. Technically there is a definitive move to the downside, and fundamentally the stock has been hit with some negative news. But when taking a closer look at the chart there was a pattern of a clear triple bottom in the stock. The chart pattern is used in technical analysis to predict the reversal of a prolonged downtrend. It is one of the strongest buy signals when charting, and occurs when the price of an asset creates three troughs at nearly the same price. In MTDR there were three bottoms in the stock all seen between $7.85 and $7.90. With strong growth expected in production output and the current chart, MTDR could be a nice buy around $8.00 a share.
At EmergingGrowth.com... Competition could be tough in the corporate world. There are occasions when a new business model disrupts the current ecosystem. Suddenly, the industry leader is caught unprepared leading to its demise. However, there are businesses that have constantly adapted to the ever-changing competitive landscape. That’s what Rocky Brands (NASDAQ: RCKY) did.
Based in Nelsonville Ohio, Rocky Brands designs, manufactures and markets footwear and apparel under a portfolio of brand names such as Rocky, Georgia Boot, Durango, Lehigh and other licensed brands Michelin and Mossy Oak. The company has been around since 1932, although it was called William Brooks Shoe at that time and was named after its founder.
At present, it has 10,000 retail store locations in the United States and Canada. It also does business through its website, rockybrands.com. Its largest clients include Tractor Supply Co. (NASDAQ: TSCO), Bass Pro, Dick’s Sporting Goods (NYSE: DKS) and AAFES.
Over the last 4 years, its net income has grown from $1.17 million to $8.31 million. In the recent quarter, it reported sales of $62.9 million, an increase of 4.5% compared to the same period last year. Operating income amounted to $7.9 million, or operating margin of 10.9%. This is slightly higher than the previous year’s operating income of $7.6 million and margin of 10.7%. Overall, net income reached $5.4 million, an increase of 4% compared to the prior year.
For the fiscal year 2013, analysts expect Rocky Brand to post earnings per share of $1.63. This translates to per share earnings growth of 19%, higher than the forecasted 5-year average growth rate of 10%. In contrast, K-Swiss (NASDAQ: KSWS) is forecasted to post per loss of $0.07 for the same period. For the next 5 years, analysts are more bullish over the latter’s prospects with an estimated net income growth of 19%. Another peer, Skechers (NYSE: SKX)is estimated to register earnings per share of $0.85 for the current fiscal year. This is double than the prior year’s results. Skechers is expected to post 15% growth for the next 5 years.
Negative Sentiment Drives Share Price Down Despite Favorable Economic Climate And Thickening Growth Prospects
See the full story on EmergingGrowth.com... http://emerginggrowth.com/emerging_growth_stock_picks/gordmans-stores-nasdaq-gman-current-position-presents-good-entry-point-for-investors/01/29/2013
Emerging growth retailer Gordmans Stores (NASDAQ: GMAN) has, in recent days, been on the receiving end of negative commentary. As of this writing, its share price of $11.74 is intimately close to its 52-week low of $11.55. This bearish situation precipitated in mid-January after the company lowered its 4Q estimate, highlighting a 4.6 percent dip in same-store sales. At the wake of this slashed outlook, its shares slumped more than 15 percent.
Some of the takeaways from its foreshortened 4Q outlook include a reduced 4Q revenue forecast. The company expects 4Q revenue to come in at $203 million, reducing the forecast from previous estimates of $213-$215 million. Analysts on Thompson Reuters on the other hand pegged a revenue estimate of $214 million. Gordmans also reduced its EPS estimate, reducing it from 37 cents to 35 cents. The Street however has an estimate of 60 cents.
Going by this snapshot alone, the bearish outlook on Gordmans is justified. Nevertheless, under the shroud of bearishness, lies a very good opportunity. The current cheap price and low demand for the stock presents a good entry point to a company that is not only poised for future growth but that is also certain to gain value in coming years.
Emphasis on projects that enhance longevity
Gordmans current inclination toward projects that enhance longevity suggests that growth will be on an upward trajectory in the coming years. The company’s continued growth initiatives are candidly displayed by its current plans to construct and equip a 545000 square foot distribution centre in Hendricks County, Indiana. The Omaha, Neb-based company intends to invest capital of $37.5 million in the project. This facility will be Gordmans second distribution center in the Midwest.
In addition to this project brightening growth prospects, it also creates a lot of alternate opportunities for Goldman. The retail company will receive a lot of positive social recognition because of the probable 250 jobs that the Hendricks, Indiana project will yield. In light of these job creation plans, the Indiana Economic Development Corporation presented up to $1.1 million in conditional tax credits to the retail company.
Just as a demonstration of how much the company has grown in the past years, CEO Jeff Gordman shared insights on store base growth over the past three years. While talking about the Indiana project, Jeff Gordman noted that if he includes the ten stores that the company plans to open this year, the company’s store base will have expanded by almost 40 percent since 2010.
More importantly, current economic conditions and positive retail sales reports suggest that retailers will rake in handsomely in coming years. Jobless claims have been reducing steadily and as reported recently, they once again reduced in the month of December. This decline has been accompanied by a similar increase in retail sales.
The chart below gives a clearer insight on the degree to which jobless claims have reduced over the years.
As shown, claims for unemployment benefits have reduced consistently post-2008. Decrease in jobless claims is typically accompanied by improved economic conditions and better retail sales. As such, The current economic climate presents a good playing ground for Gordmans.
Great Story on EmergingGrowth.com... President Obama signed the Affordable Care Act or Obamacare bill into law on March 23, 2010. However, most of the changes do not go into effect until 2014. One of the requirements in the law is if a company employs over 50 full time workers, then the company is required to provide health care coverage to its workers or face hefty penalties. Obviously, businesses are looking for ways around this law as providing costly health care will cut into earnings, along with the penalty fines. That is why we are seeing a rise in the temporary employment industry.
Businesses are able to hire temps for up to four months at a time. This means the company can still have as many workers and skate around the new Obamacare mandate. One temporary staffing company that will benefit is Kelly Services, Inc. (NASDAQ: KELYA).
Kelly Services has a market cap of $606 Million and currently holds a “buy” rating from analysts. The temp staffing company has a price to earnings of 9.5 and a forward price to earnings of 11.35. The company shows it is undervalued at current levels when you look at the PEG of 0.64, price to sales of 0.11 and price to book of 0.83. On top of that, Kelly Services has essentially no debt and pays out a 1.22% dividend. Earnings growth is predicted to be strong at 141% estimated for this year.
Fundamentally, Kelly Services is a very strong stock and even undervalued. However, the stock recently broke out of its trend at the beginning of December and has had quite a ride. While the stock is not necessarily overbought at current levels, it is definitely on the threshold. I would wait for a pullback before establishing a position.
As far as risks are involved, Kelly Services’ international business has been slow over the past year. Internationally, the economic crisis is still a problem and some countries are still cutting jobs rather than hiring. The good news for Kelly Services is the company exited out of some unprofitable contracts, rose prices and so far we are seeing these reconstruction efforts pay off. Additionally, temp employment is highly cyclical. This means temps are usually hired before regular employment as a recovery gains steam. Similarly, temps are the first to go in a downturn. As the recovery picks up steam in the US and worldwide, Kelly Services stands to profit nicely after positioning itself favorably.
The bottom line here is the recovery is good for temp jobs and with most of Obamacare going to full effect next year, businesses will be hiring temps to replace full time regular jobs to get around the health care coverage requirement. This alone will offset the sluggish international recovery, which is still in the early stages, particularly in Europe. Ultimately, Kelly Services looks very enticing on a pullback as a long term Obamacare play.
Full story here: http://emerginggrowth.com/emerging_growth_stock_picks/the-recovery-obamacare-and-the-rise-of-temp-employment-leading-to-the-benefit-of-kelly-services-inc-nasdaq-kelya/01/29/2013
SolarCity (NASDAQ: SCTY) and the Rise of Affordable Solar Energy
Great Story on EmergingGrowth.com... http://emerginggrowth.com/emerging_growth_stock_picks/solarcity-nasdaq-scty-and-the-rise-of-affordable-solar-energy/01/29/2013
Solar companies have gotten a bad rep over the past few years. With high costs and no earnings in sight, how could you love them? First Solar, Inc. (NASDAQ: FSLR) is widely considered to be the leader of the industry, but even the leader has seen its share price fall from $300 in 2008 to its current $30. However, there is a new contender in the mix, SolarCity Corp (NASDAQ: SCTY). SolarCity recently went public on December 12, 2012 at $8 a share, raising $125 million. In a little over a month since the stock started trading, it is up 37%.
Unlike its competitors, SolarCity does not just come by and install solar panels. Instead, they evaluate the energy usage of the residence, business, etc and provide solar solutions based on energy consumption. This makes the solar process more efficient and effective. However, the company does not just sell solar solutions. The company also has customers who buy electricity directly from SolarCity. In fact, Tesla Motors (NASDAQ: TSLA) lists SolarCity as the preferred electric charging station installer. SolarCity’s other high profile customers include Wal-Mart Stores, Inc. (NYSE:WMT), Intel Corporation (NASDAQ: INTC) and the US Government.
Another aspect that makes them so unique is that they require no upfront cost to the customer. Instead, there is a 20-year contract that is paid monthly. No wonder the solar company registered 31,641 customers at the end of June 2012. Additionally, SolarCity has protected its unique business model with 6 patents as of August 31, 2012 and 17 other patents are currently under review.
Moving on the financials, SolarCity is currently valued at $1.16 Billion and currently has no price to earnings. Price to sales comes in high at 9.3 and price to book is a little overvalued at 1.51. The main issue I see with SolarCity right now is its total debt to equity of 2.52, while only having .67 cash per share. On the bright side, earnings per share are expected to rise 112.6% this year and 12% next year. These are nice growth numbers that will help SolarCity gain a more attractive fundamental picture. Keep in mind that some of these fundamental metrics are overvalued due to the newly traded stock’s upward explosion. In other words, do not chase SolarCity here, wait for a pullback before considering opening a position.
The bottom line here is that SolarCity is lined up to be a great long-term investment. The company adds a fresh twist to ailing industry that has been stuck in neutral for years. The company offers great incentives to new customers such as a $500 gift card and no upfront cost on solar panel installation. Additionally, the company diversifies by offering to sell electricity that is cultivated from solar panels. SolarCity has taught bears a lesson, their unique business model is a winner over the long term.
Great Story on EmergingGrowth.com...
The pharmaceutical sector is a very lucrative and competitive industry. And for emerging growth companies, it is difficult to make a meaningful impact in this cutthroat industry.
Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS) has built a highly experienced cancer drug development organization committed to advancing its lead product candidate, Vosaroxin, to improve the lives of people with cancer.
Sunesis Pharmaceuticals’ work translates to a rosy top line as demonstrated by the $25 million it earned from a previously announced royalty purchase agreement with Royalty Pharma. It took possession of $15 million from the second tranche of a 2011 venture loan facility. It raised $17.3 million from the sale of 3.6 million shares of common stock and $1.4 million from the gross exercise of 0.6 million warrants to purchase common stock. This not only shows that Sunesis is able to raise capital for research purposes, but it also represents the company’s keen interest in creating shareholder value.
The company is in the follow-up stage of trials of Vosaroxin, having completed a Phase 2 trial in ovarian cancer patients in 2010. However, broader market tailwinds will propel the company through the next decade. Vosaroxin is a first-in-class anticancer quinolone derivative, a class of compounds that has not been used previously for the treatment of cancer. As of now, notable breakthroughs are being made with the drug, particularly as complete remissions have been observed in patients treated with Vosaroxin in combination with Cytarabine.
Just like its bigger competitors, Amgen Inc. (NASDAQ: AMGN) and Gilead Sciences Inc. (NASDAQ: GILD), Sunesis also wants to make a big impact. To ensure this, it has entered into a collaboration agreement with Millennium Pharmaceuticals for the development of Sunesis’ inhibitor. It also announced the license of the company’s LFA-1 inhibitor program to SARcode Corporation, a privately held bio-pharmaceutical company. In addition, it has announced a collaboration agreement with Biogen Idec Inc. (NASDAQ: BIIB) to discover, develop, and commercialize inhibitors of Raf kinase and up to five additional oncology kinase targets.
All these developments will signal the market’s gravitation toward Sunesis products. Considering that ovarian cancer is the eighth most common cancer among women, it would be accurate to say that vosaroxin will be relevant in the market. In addition, the future promise of FDA approval brightens the long-term picture and promises longevity. With a market capitalization of $226 million and a 52-week range $1.29 – $6.85 (the stock is currently trading close to its high at around $4), it would be accurate to say that Sunesis Pharmaceuticals will gain tremendous value in the next few years.
See the full story here... http://emerginggrowth.com/emerging_growth_stock_picks/emerging-growth-pharmaceutical-company-sunesis-pharm-nasdaq-snss-creates-gravitational-pull-towards-their-products/01/29/2013
Great Story on EmergingGrowth.com...
The pharmaceutical sector is a very lucrative and competitive industry. And for emerging growth companies, it is difficult to make a meaningful impact in this cutthroat industry.
Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS) has built a highly experienced cancer drug development organization committed to advancing its lead product candidate, Vosaroxin, to improve the lives of people with cancer.
Sunesis Pharmaceuticals’ work translates to a rosy top line as demonstrated by the $25 million it earned from a previously announced royalty purchase agreement with Royalty Pharma. It took possession of $15 million from the second tranche of a 2011 venture loan facility. It raised $17.3 million from the sale of 3.6 million shares of common stock and $1.4 million from the gross exercise of 0.6 million warrants to purchase common stock. This not only shows that Sunesis is able to raise capital for research purposes, but it also represents the company’s keen interest in creating shareholder value.
The company is in the follow-up stage of trials of Vosaroxin, having completed a Phase 2 trial in ovarian cancer patients in 2010. However, broader market tailwinds will propel the company through the next decade. Vosaroxin is a first-in-class anticancer quinolone derivative, a class of compounds that has not been used previously for the treatment of cancer. As of now, notable breakthroughs are being made with the drug, particularly as complete remissions have been observed in patients treated with Vosaroxin in combination with Cytarabine.
Just like its bigger competitors, Amgen Inc. (NASDAQ: AMGN) and Gilead Sciences Inc. (NASDAQ: GILD), Sunesis also wants to make a big impact. To ensure this, it has entered into a collaboration agreement with Millennium Pharmaceuticals for the development of Sunesis’ inhibitor. It also announced the license of the company’s LFA-1 inhibitor program to SARcode Corporation, a privately held bio-pharmaceutical company. In addition, it has announced a collaboration agreement with Biogen Idec Inc. (NASDAQ: BIIB) to discover, develop, and commercialize inhibitors of Raf kinase and up to five additional oncology kinase targets.
All these developments will signal the market’s gravitation toward Sunesis products. Considering that ovarian cancer is the eighth most common cancer among women, it would be accurate to say that vosaroxin will be relevant in the market. In addition, the future promise of FDA approval brightens the long-term picture and promises longevity. With a market capitalization of $226 million and a 52-week range $1.29 – $6.85 (the stock is currently trading close to its high at around $4), it would be accurate to say that Sunesis Pharmaceuticals will gain tremendous value in the next few years.
See the full story here... http://emerginggrowth.com/emerging_growth_stock_picks/emerging-growth-pharmaceutical-company-sunesis-pharm-nasdaq-snss-creates-gravitational-pull-towards-their-products/01/29/2013
Great Story on EmergingGrowth.com...
The pharmaceutical sector is a very lucrative and competitive industry. And for emerging growth companies, it is difficult to make a meaningful impact in this cutthroat industry.
Sunesis Pharmaceuticals, Inc. (NASDAQ: SNSS) has built a highly experienced cancer drug development organization committed to advancing its lead product candidate, Vosaroxin, to improve the lives of people with cancer.
Sunesis Pharmaceuticals’ work translates to a rosy top line as demonstrated by the $25 million it earned from a previously announced royalty purchase agreement with Royalty Pharma. It took possession of $15 million from the second tranche of a 2011 venture loan facility. It raised $17.3 million from the sale of 3.6 million shares of common stock and $1.4 million from the gross exercise of 0.6 million warrants to purchase common stock. This not only shows that Sunesis is able to raise capital for research purposes, but it also represents the company’s keen interest in creating shareholder value.
The company is in the follow-up stage of trials of Vosaroxin, having completed a Phase 2 trial in ovarian cancer patients in 2010. However, broader market tailwinds will propel the company through the next decade. Vosaroxin is a first-in-class anticancer quinolone derivative, a class of compounds that has not been used previously for the treatment of cancer. As of now, notable breakthroughs are being made with the drug, particularly as complete remissions have been observed in patients treated with Vosaroxin in combination with Cytarabine.
Just like its bigger competitors, Amgen Inc. (NASDAQ: AMGN) and Gilead Sciences Inc. (NASDAQ: GILD), Sunesis also wants to make a big impact. To ensure this, it has entered into a collaboration agreement with Millennium Pharmaceuticals for the development of Sunesis’ inhibitor. It also announced the license of the company’s LFA-1 inhibitor program to SARcode Corporation, a privately held bio-pharmaceutical company. In addition, it has announced a collaboration agreement with Biogen Idec Inc. (NASDAQ: BIIB) to discover, develop, and commercialize inhibitors of Raf kinase and up to five additional oncology kinase targets.
All these developments will signal the market’s gravitation toward Sunesis products. Considering that ovarian cancer is the eighth most common cancer among women, it would be accurate to say that vosaroxin will be relevant in the market. In addition, the future promise of FDA approval brightens the long-term picture and promises longevity. With a market capitalization of $226 million and a 52-week range $1.29 – $6.85 (the stock is currently trading close to its high at around $4), it would be accurate to say that Sunesis Pharmaceuticals will gain tremendous value in the next few years.
See the full story here... http://emerginggrowth.com/emerging_growth_stock_picks/emerging-growth-pharmaceutical-company-sunesis-pharm-nasdaq-snss-creates-gravitational-pull-towards-their-products/01/29/2013