If you thought the fireworks ended after the Fourth of July celebrations last week, think again. Plenty of pops and bangs were heard in the world of health-care stocks this week. Here are three of the biggest and brightest.
Successful launch
You couldn't even buy stock in Prosensa (NASDAQ: RNA ) just a few weeks ago. The biotech launched its IPO on June 28. To say that launch has gone successfully is an understatement. Shares are now more than double the IPO price and climbed 41% this week.
This rapid rise stems from investor excitement that Prosensa's drisapersen received breakthrough therapy designation from the Food and Drug Administration. The FDA's move could allow Prosensa and its partner GlaxoSmithKline (NYSE: GSK ) to beat Sarepta Therapeutics (NASDAQ: SRPT ) in the race to bring a Duchenne muscular dystrophy drug to market first.
So far, Prosensa's gains haven't been at Sarepta's expense -- just as I suspected would be the case. For Sarepta, winning accelerated approval for eteplirsen is the most important factor, regardless of what happens with drisapersen. For Prosensa, gaining an early-bird advantage could make some of the other drugs in its pipeline attractive to Glaxo, which has options on several drugs in the small biotech's portfolio.
Best India Companies To Own In Right Now: BioMarin Pharmaceutical Inc.(BMRN)
BioMarin Pharmaceutical Inc. develops and commercializes biopharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and rest of the world. The company?s commercial products include Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase enzyme used for the treatment of mucopolysaccharidosis (MPS) VI; Kuvan, a proprietary synthetic oral form of 6R-BH4 used to treat patients with phenylketonuria (PKU), a metabolic disease; Aldurazyme used for the treatment of mucopolysaccharidosis I, a genetic disease; and Firdapse used to treat Lambert Eaton Myasthenic Syndrome, an autoimmune disease. It develops GALNS, an enzyme replacement therapy for the treatment of MPS IVA, a lysosomal storage disorder; PEG-PAL, an enzyme substitution therapy that is under Phase II clinical trial to treat PKU; BMN-673, a Phase I/II clinical trial product for the treatment of cancer; BMN-701, an enzyme replacement therapy, which is under Phase I/II clinical trials for Pompe disease, a glycogen storage disorder; and BMN-111, a peptide therapeutic that is under Phase I clinical trial for the treatment of achondroplasia. The company sells its Naglazyme, Kuvan, and Firdapse products to specialty pharmacies and end-users, such as hospitals and foreign government agencies, which act as retailers; and Naglazyme products to distributors and pharmaceutical wholesalers. It has a collaboration agreement with Genzyme Corporation for the manufacture of Aldurazyme; and an agreement with Merck Serono S.A. for the further development and commercialization of Kuvan and other products containing 6R-BH4 and PEG-PAL for PKU. BioMarin Pharmaceutical Inc. was founded in 1996 and is headquartered in Novato, California.
Advisors' Opinion:- [By MONEYMORNING.COM]
There is no crystal ball that's 100% accurate when experimental drugs are concerned, but here are some telling questions that can narrow your search.
Questions to Answer Before You Buy In Does the drug fulfill an unmet need?
Alexion Pharmaceuticals Inc.'s (Nasdaq: ALXN) Soliris (eculizumab) is the only drug approved to treat paroxysmal nocturnal hemoglobinuria (PNH), an extremely rare, lethal blood disorder. It is also the only therapy approved to treat atypical hemolytic uremic syndrome (aHUS), a genetic condition that can result in sudden and progressive damage to vital organs, leading to stroke, heart attack, and kidney failure. Five years ago, ALXN shares were selling for about $18.50. They recently hit a high of $180.51 - thanks to Soliris, and Soliris alone. Is it a "breakthrough" drug?
A "Breakthrough Therapy" (BT) is actually a designation awarded by the FDA for a drug that "...is intended alone or in combination with one or more other drugs to treat a serious or life-threatening disease or condition and [has] preliminary clinical evidence [that] indicates the drug may demonstrate substantial improvement over existing therapies on one or more clinically significant endpoints, such as substantial treatment effects observed early in clinical development." In 2012, the FDA granted Roche/Genetech's Gasyva a BT designation and then approved it for marketing in 2013. It treats chronic lymphocytic leukemia (CLL) and is expected to be a big blockbuster - as are the other three breakthrough therapies that were approved last year. Can its market produce blockbuster income?
This can mean a huge market, such as patients with high cholesterol - think Pfizer Inc.'s (NYSE: PFE) Lipitor (atorvastatin calcium), the bestselling drug of all time - or a small market that will pay for highly priced orphan drugs for rare diseases. BioMarin Pharmaceutical Inc. (Nasdaq: BMRN), a company that specializes in the
Top 10 Consumer Service Companies To Buy For 2014: Franco-Nevada Corp (FNV)
Franco-Nevada Corporation (Franco-Nevada) is a gold-focused royalty and stream company with interests in platinum group metals (PGMs), oil and gas and other resource assets. The majority of revenues are generated from a diversified portfolio of properties in the United States, Canada, Mexico, Australia and Africa. The portfolio includes over 340 assets covering properties at various stages from production to early stage exploration. Franco-Nevada considers its stream/royalty interest in the Palmarejo and Goldstrike projects to be its only material mineral projects. The oil and gas assets are located primarily in the Western Canadian sedimentary basin with a larger amount of revenue generated from conventional oil than from natural gas properties. The oil and gas assets also include mineral rights to approximately 100,000 gross acres of unproved land in Canada primarily related to oil and natural gas rights, as well as working interests in Arctic gas resources. Advisors' Opinion:- [By Adrian Day]
The names, yeah, I'll give some names, and, of course, everything depends, I mean, all the qualifications, it depends on the person and depends on the price when you go to buy, but you know, I love a company like Franco-Nevada (FNV) which is a royalty company; it's the largest of the royalty companies.
Top 10 Consumer Service Companies To Buy For 2014: Idera Pharmaceuticals Inc.(IDRA)
Idera Pharmaceuticals, Inc., a biotechnology company, discovers and develops DNA- and RNA-based drug candidates for the treatment of infectious diseases, autoimmune and inflammatory diseases, cancer, and asthma and allergies, and for use as vaccine adjuvants. The company designs and creates proprietary Toll-Like Receptors (TLR) to modulate immune responses, including TLR agonist, a compound that stimulates an immune response through the targeted TLR; and TLR antagonist, a compound that blocks activation of an immune response through the targeted TLR. Its drug candidates include IMO-2125, a TLR9 agonist, which is in Phase 1 clinical trial for hepatitis C virus infection; and TLR7, 8, and 9 agonists that are in research stage for viral diseases. The company also develops IMO-3100, a dual TLR7/TLR9 antagonist, which is in preclinical development stage for autoimmune and inflammatory diseases, such as lupus, rheumatoid arthritis, multiple sclerosis, psoriasis, and colitis. In addition, its drug candidates also comprise TLR7 and TLR8 agonists that are in research stage for solid tumor cancers. The company has a licensing and collaboration agreement with Merck KGaA to research, develop, and commercialize TLR9 agonists for the treatment of cancer, excluding cancer vaccines; a license and research collaboration agreement with Merck & Co., Inc. to research, develop, and commercialize therapeutic and prophylactic vaccine products containing its TLR7, 8, and 9 agonists in the fields of cancer, infectious diseases, and Alzheimer?s disease; and a research collaboration and option agreement, and a license, development, and commercialization agreement with Novartis International Pharmaceutical, Ltd. to discover, develop, and commercialize TLR9 agonists for the treatment of asthma and allergies. The company was founded in 1989 and is based in Cambridge, Massachusetts.
Advisors' Opinion:- [By Jake L'Ecuyer]
Leading and Lagging Sectors
In trading on Tuesday, healthcare shares were relative leaders, up on the day by about 1.50 percent. Meanwhile, top gainers in the sector included Allergan (NYSE: AGN), up 15.7 percent, and Idera Pharmaceuticals (NASDAQ: IDRA), up 16.5 percent. Non-cyclical consumer goods & services shares dropped around 0.05 percent in today's trading. - [By John Udovich] Follow-on Stock Offerings From Small Cap Biotech Stocks. Thanks to the boom in biotech IPOs along with the sector�� overall performance, already listed biotechs have the option to ask investors for more cash in the form of a follow-on offering. Recently, FierceBiotech.com noted how four small cap biotechs raised $276 million from follow-on offerings in just one day last week. These small caps�included Epizyme Inc (NASDAQ: EPZM) which raised $88 million, Halozyme Therapeutics, Inc (NASDAQ: HALO) which raised $100 million, Agenus Inc (NASDAQ: AGEN) which raised $52 million and Idera Pharmaceuticals Inc (NASDAQ: IDRA) which raised $36 million. FierceBiotech.com noted that the�steady flow of about $4.5 billion a year in venture cash�along with�more than $3.5 billion from IPOs last year plus all of the�follow-ons are helping to foster both company growth and�accelerate drug�development programs. Mixed Bag for Biotech IPOs. Last Wednesday also saw two small cap biotech IPOs fizzle in one day�with small cap T cell vaccine developer�Genocea Biosciences Inc (NASDAQ: GNCA) raising $60 million but then ending the day down 8.3% to close at $11 while Dutch drug developer uniQure NV (QURE) raised $81.9 million but fell more than 14% to $14.61. However, orphan drug stock Auspex Pharmaceuticals Inc (NASDAQ: ASPX), which is developing�drugs to treat orphan diseases like Tourette syndrome, saw a 30.5% gain to close at $15.66 and raise $84 million. The Boston Globe quoted Michael Ringel, a partner and managing director at Boston Consulting Group who focuses on health care business, as saying:
��he mood is incredibly positive. Capital is flowing. [The biotech IPOs]��have been burning hot. I think it�� too early to suggest that is changing. I can�� predict the overall economy any better than anyone else, but I would expect a pretty good year for IPOs.��/p>
Top 10 Consumer Service Companies To Buy For 2014: Global Digital Creations Holdings Ltd (GDC)
Global Digital Creations Holdings Limited is an investment holding company. Through its subsidiaries, the Company operates in three segments: computer graphics (CG) and production segment, which includes CG creation, production and exhibition of motion pictures and production of television series and movies, as well as property rental income; CG training courses segment, engaged in the provision of CG and animation training, and cultural park segment, engaged in the media entertainment and related commercial property development. The Company�� subsidiaries include GDC Holdings Limited, GDC Asset Management Limited, GDC China Limited, GDC Digital Cinema Network Limited, GDC Digital Cinema Network Limited, GDC International Limited and GDC Management Services Limited, among others. On September 6, 2011, it completed the disposal of interests in GDC Technology Limited and GDC Digital Cinema Network Limited. Advisors' Opinion:- [By Barel Karsan]
If you follow Genesis Land (GDC), your head may be spinning by now. It's almost every day now that the current board and the activists trying to take it over are claiming some sort of injustice permeated by the other side. (To watch this battle in real-time, sign up for filing notifications for GDC here.) But surely, behind all the "Our directors are superior to yours" puffery, there are some differences in how each group would run the company differently.
Top 10 Consumer Service Companies To Buy For 2014: Capstead Mortgage Corporation (CMO)
Capstead Mortgage Corporation operates as a self-managed real estate investment trust. It invests in leveraged portfolio of residential mortgage pass-through securities consisting of adjustable-rate mortgage securities issued and guaranteed by government-sponsored enterprises or by an agency of the federal government. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1985 and is headquartered in Dallas, Texas.
Advisors' Opinion:- [By Amanda Alix]
Everyone got stung
The huge drop in share price, along with the unusually heavy trading volume, smacked of investor panic. Adjustable-rate mortgage investors like Capstead (NYSE: CMO ) , which reported earnings on Thursday, also took a dive. Even players in the 30-year mortgage market, such as American Capital Agency (NASDAQ: AGNC ) and Annaly (NYSE: NLY ) got dinged, right along with the ARM crowd. - [By Zain Zafar]
This is bad by any standard, but what makes it even worse is that Hatteras is known to have a relatively defensive portfolio when compared to its fixed-rate focused peers; at the end of the second quarter, ARMs comprised almost 89% of Hatteras' MBS portfolio. Capstead Mortgage (NYSE: CMO ) , a mortgage REIT that follows a similar strategy of investing in ARMs, reported that its book value per share declined by just 3.8% because of market price movements.
- [By Alyssa Oursler]
Of course, we have to start with a real estate investment trust (REIT). One of the best REITs right now looks to be�Capstead Mortgage Corp.�(CMO); it’s gained 9% so far this year as its similarly sized peers all sit in the red.
- [By Kingkarn Amjaroen]
American Capital Mortgage is no exception here: The mortgage REIT trades at a 12% discount to its net asset value, while peer firm MFA Financial (NYSE: MFA ) trades at a 6% book value discount and Capstead Mortgage (NYSE: CMO ) already manages to trade at book value.
Top 10 Consumer Service Companies To Buy For 2014: Capital City Bank Group(CCBG)
Capital City Bank Group, Inc. operates as the bank holding company for Capital City Bank that provides commercial and retail banking products and services. Its deposit products include negotiable order of withdrawal accounts, money market accounts, checking and savings accounts, and time deposits. The company offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as commercial leasing and letters of credit; commercial and residential real estate lending; retail credit products, including personal loans, automobile loans, boat/recreational vehicle loans, home equity loans, and credit card programs; and tax-exempt loans, lines of credit, and term loans. It also provides treasury management services, merchant credit card transaction processing services, automated teller machines (ATMs), debit/credit cards, night deposit services, safe deposit facilities, PC/Internet banking, and mobile banking services. In addition, the c ompany offers asset management, trust, mortgage banking, merchant services, and data processing services, as well as securities brokerage services, including U.S. government bonds, tax-free municipal bonds, stocks, mutual funds, unit investment trusts, annuities, life insurance, and long-term health care. It serves individuals, corporations, and other business clients, including commercial developers and investors, residential builders and developers, community developers, state and local governments, public schools and colleges, charities, and membership and not-for-profit associations. As of January 27, 2012, the company operated 70 banking offices and 79 ATMs in Florida, Georgia, and Alabama. Capital City Bank Group, Inc. was founded in 1895 and is headquartered in Tallahassee, Florida.
Advisors' Opinion:- [By Dividends4Life]
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
CTBI is trading at a premium to all four valuations above. The stock is trading at a 53.5% premium to its calculated fair value of $29.43. CTBI did not earn any Stars in this section.
Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
CTBI earned one Star in this section for 1.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The company has paid a cash dividend to shareholders every year since 1988 and has increased its dividend payments for 33 consecutive years.
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:
1. NPV MMA Diff.
2. Years to > MMA
The negative NPV MMA Diff. means that on a NPV basis the dividend earnings from an investment in CTBI would be less than a similar amount invested in MMA earning a 20-year average rate of 3.41%. If CTBI grows its dividend at 1.5% per year, it will never equal a MMA yielding an estimated 20-year average rate of 3.41%.
Memberships and Peers: CTBI is, a member of the Broad Dividend Achieve
Top 10 Consumer Service Companies To Buy For 2014: iShares 10-20 Year Treasury Bond ETF (TLH)
iShares Lehman 10-20 Year Treasury Bond Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the long-term sector of the United States Treasury market as defined by the Lehman Brothers 10-20 Year U.S. Treasury Index (the Index). The Index includes all publicly issued, the United States Treasury securities that have a remaining maturity of greater than or equal to 10 years and less than 20 years, and have $250 million or more of outstanding face value. In addition, the securities must be denominated in United States dollars, and must be fixed-rate and non-convertible securities. Excluded from the Index are certain special issues, such as flower bonds, targeted investor notes, and state and local government series bonds, and coupon issues that have been stripped from assets that are already included in the Index. The Fund generally will invest at least 95% of its assets in the United States Government bonds.
The Index is a market capitalization-weighted index. The Fund invests in a representative sample of the securities in the Index, which has a similar investment profile as the Index. The Fund�� investment advisor is Barclays Global Fund Advisor.
Advisors' Opinion:- [By Donald van Deventer]
Long-duration Treasury Exchange-Traded Funds: (TLH), , (IEF), (DTYL), (DLBL), (ILTB), (TENZ), (ITE), (TLO), (EDV), (VGIT), (VGLT), (TMF), (TYD), (LBND), (UBT), (UST), (TMV), (TYO), (DSTJ), (DSXJ), (SBND), (PST), (DTYS), (DLBS), (TBF), (TTT), (TYNS), (TYBS), (TBX).
- [By Mary Anne & Pamela Aden]
The ones we like best and recommend buying are the iShares 20+ year Treasury Bond (TLT), the iShares 10-20 year Treasury Bond (TLH), Proshares Ultra 20+ year Treasury (UBT) and Pimco Intermediate Muni Bond strategy ETF (MUNI).
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