Posts for Ticker ‘CBST’

Top Analyst Downgrades (AU, BP, CBST, GFI, SNN, STJ, TSM)

These are this Wednesday mornings top Wall Street analyst downgrades and cautious research calls we have seen early this morning:

Anglogold (AU) Cut to Neutral at Nomura.
BP plc (BP) Cut to Hold at RBS.
Cubist Pharmaceuticals (CBST) Cut to Neutral at RW Baird.
Gold Fields (GFI) Cut to Neutral at Nomura.
Smith & Nephew (SNN) Cut to Neutral at UBS.
St. Jude Medical (STJ) Cut to Hold at Canaccord.
Taiwan Semiconductor (TSM) Cut to Neutral at UBS.

You can join our open email distribution list which goes out several times per week for reminders of the top day trader alerts, analyst upgrades and downgrades, IPO’s, key secondary offerings, guru investor data on Buffett and others, mergers, and more.

JON C. OGG

Posted on: October 7, 2009 – 7:56 am in Analyst Calls, , , , , , ,

When Key Biotechs Have Low P/E’s & Value Screens (AMGN, BIIB, CEPH, CBST, GENZ, PDLI)

Biotech ImageIt usually takes an event or a series of events for biotech stocks to ever look cheap compared to the overall market or even to sub-sectors within health care.  They generally trade at higher multiples of revenues and with high P/E ratios, assuming they even have real sales-generated revenues and earnings.  But in today’s climate there are many of the large key biotech stocks that are now trading with market-discounts on the P/E ratios and on multiples of revenues as valuation metrics.  We ran a full screen for BioHealthInvestor.com and some of the key names that came up with low P/E and revenue multiples were Amgen Inc. (NASDAQ: AMGN), Biogen Idec Inc. (NASDAQ: BIIB), Cephalon Inc. (NASDAQ: CEPH), Cubist Pharmaceuticals Inc. (NASDAQ: CBST), Genzyme Corporation (NASDAQ: GENZ), and PDL BioPharma, Inc. (NASDAQ: PDLI).

There are generally some reasons that have gotten these to cheap screening levels, but some of these are showing significant value for a sector that usually commands a high-premium to most sectors.  Amgen has recovered substantially from its woes, and Biogen has as well.  Genzyme’s troubles allowed it to make the screen with some key caveats, and the valuation screens elsewhere showed that Cephalon, Cubist, and PDL are worth a look.  All of these companies were also well above our screening threshold of $400 million in market cap and average volume of 250,000 shares or more.  These all came in above $1 billion in market cap and most never see under 1 million shares per day in average volume.

The full story is available at BioHealthInvestor.com.

-The 24/7 Wall Street Team

Posted on: August 24, 2009 – 9:54 am in Biotech, Drug companies, Value Investing, , , , , ,

The Unusual Suspects (MS, GENZ, SPPI, CBST, DNDN, OPXA, BRK-A, FRED, GSIC, AMAT, WMT, LEAP, PCS)

We have some very unusual developments that came late in the week that we want you to keep on your watch lists for the coming week.  We also included the big events coming down the pipe for next week.  Morgan Stanley (NYSE: MS) is of ongoing interest.  Genzyme Corp. (NASDAQ: GENZ), Spectrum Pharmaceuticals, Inc. (NASDAQ: SPPI), Cubist Pharmaceuticals Inc. (NASDAQ: CBST), Dendreon Corp. (NASDAQ: DNDN), Opexa Therapeutics, Inc. (NASDAQ: OPXA) are all of special interest this next week.  Other key issues to watch will be Berkshire Hathaway Inc. (NYSE: BRK-A), Fred’s Inc. (NASDAQ: FRED), GSI Commerce Inc. (NASDAQ: GSIC), Applied Materials Inc. (NASDAQ: AMAT), Wal-Mart Stores Inc. (NYSE: WMT), Leap Wireless (NASDAQ: LEAP), and MetroPCS (NYSE: PCS).
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Posted on: August 8, 2009 – 11:47 am in Biotech, Calendar, Earnings, Economy, Rumors, Secondary Offering, Semiconductor, Technology Companies, Wireless, , , , , , , , , , , , ,

Top Analyst Upgrades & Downgrades (ADPT, CBST, FLIR, MA, TEX, LXK, MCXH, V, XRX, ZRAN)

These are the top pre-market analyst upgrades and downgrades we have seen from Wall Street this Friday morning:

  • Adaptec (ADPT) Raised to Outperform at Morgan Keegan.
  • Cubist Pharamceuticals (CBST) Started as Accumulate at ThinkEquity.
  • FLIR Systems (FLIR) Raised to Overweight at JPMorgan.
  • MasterCard (MA) Started as Outperform at Baird.
  • Terex (TEX) Raised to Outperform at Wachovia.
  • Lexmark (LXK) Cut to Underweight at Barclays.
  • Marchex (MCHX) downgraded at Thomas Weisel and at JMP Securities.
  • Visa (V) Started as Neutral at Baird.
  • Xeros (XRX) Cut to Equal Weight at Barclays.
  • Zoran (ZRAN) Cut to Underweight at JPMorgan.

JON C. OGG
February 20, 2009

Posted on: February 20, 2009 – 8:18 am in Analyst Calls, , , , , , , , , ,

Top Pre-Market Analyst Upgrades & Downgrades (DVN, ECA, STR, RSG, APC, AIN, AVB, BRE, CBST, DLTR, MEOH, SOA, SU, UDR)

These are some of the top pre-market upgrades and downgrades we have seen from Wall Street analysts this Monday morning:

  • Devon Energy (DVN) Raised to Buy at Jefferies.
  • EnCana (ECA) Raised to Neutral at Goldman Sachs.
  • Questar (STR) Raised to Buy at Goldman Sachs.
  • Republic Services (RSG) Raised to Outperform at FBR.
  • Anadarko Petroleum (APC) Cut to Sell from Buy at Goldman Sachs.
  • Apartment Investment (AIV) Cut to Market Perform at KBW.
  • AvalonBay (AVB) Cut to Underperform at KBW.
  • BRE Properties (BRE) Cut to Underperform at KBW.
  • Cubist (CBST) Cut to Underperform at Leerink Swann.
  • Dollar Tree (DLTR) Cut to Market Perform at FBR.
  • Methanex (MEOH) Cut to Sector Perform at CIBC.
  • Solution (SOA) Cut to Neutral at Goldman Sachs.
  • Suncor Energy (SU) Cut to Sell at Goldman Sachs.
  • UDR (UDR) Cut to Market Perform at KBW.

Jon C. Ogg
December 8, 2008

Posted on: December 8, 2008 – 7:51 am in Analyst Calls, , , , , , , , , , , , , ,

Top Pre-Market Analyst Downgrades (BRY, BBG, BG, CBST, GSX, KNL, WFR, SIRO, TXCO)

These are the top pre-market downgrades from Wall Street analysts this Friday morning:

  • Berry Petroleum (BRY) Cut to Market Perform at Morgan Keegan.
  • Bill Barrett (BBG) Cut to Market Perform at Morgan Keegan.
  • Bunge (BG) Cut to Underperform at Merrill Lynch.
  • Cubist Pharma (CBST) Cut to Perform at Oppenheimer.
  • Gasco Energy (GSX) Cut to Market Perform at Morgan Keegan.
  • Knoll (KNL) Cut to Sell at Goldman Sachs.
  • MEMC (WFR) Started as Underweight at Morgan Stanley.
  • Sirona Dental (SIRO) Cut to Neutral at Baird.
  • TXCO Resources (TXCO) Cut to Market Perform at Morgan Keegan.

Jon C. Ogg
December 5, 2008

Posted on: December 5, 2008 – 7:32 am in Analyst Calls, , , , , , , , ,

As Institutions Sell Millennium On Buyout News, Which Biotech Stocks Will See Inflows? (ALXN, CEPH, CBST, IMCL, ONXX, SEPR, UTHR)

The $8.8 Billion cash buyout of Millennium Pharmaceuticals, Inc. (NASDAQ: MLNM) has created a situation worth monitoring today.  It isn’t just that this buyout could create a cascade of other biotech deals.  The easier call is actually in just figuring out which emerging drug and biotech stocks will actually see new biotech investor inflows of cash from institutions that have to invest in these companies. More than 94% of MLNM was also listed as "held by institutions" according to data from Capital IQ.

Institutions have been selling the stock today from $24.30 to $24.50 rather than waiting for the $25.00 and this had traded more than 180 million shares late in the day (more than $4.3 Billion worth of stock).  As the institutions take this money out, that theoretically ends up in other similar criteria companies.  Of course this is only a very partial list, and we wouldn’t want to believe that those funds will only go into ‘identical criteria" emerging pharma and biotech stocks in the U.S. alone.  But here is a partial list of stocks that have somewhat similar characteristics that could be some of the beneficiaries in this scenario:

Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) with a $2.5 Billion market cap is now in its second transitionary year where revenues went from partnership and interest revenues into product revenues as analysts expect more than $213 million in 2008 revenues and more than $360 million for 2009.  Currently markets Soliris for blood disorders.

Cephalon, Inc. (NASDAQ: CEPH) has a $4.4 Billion market cap and established revenues of $1.77 Billion last year.  Analysts expect revenues to be $1.88 Billion this year and more than $2.1 Billion next year.  It already has drugs in place or in development for central nervous system disorders, pain, oncology, and addiction.

Cubist Pharmaceuticals Inc. (NASDAQ: CBST) may be a tad small with a $1.1 Billion market cap and with fresh contamination problems, but its name wasn’t left off.  2007 saw $294+ million in revenues, and analysts are looking for revenues of $391 million this year and $479 million next year.  Company’s Cubicin is on market as the first antibiotic in a new class of anti-infectives called lipopeptides for strep, staph, and other infections.

Imclone Systems (NASDAQ: IMCL) would have matched with a $3.8 Billion market cap and Erbitux as a current cancer drug, although this has been between $30 and $45.00 per share since its huge drop in 2004 and activists haven’t been able to make it budge.

Onyx Pharmaceuticals Inc. (ONXX) has a $1.9 Billion market cap and it has also transitioned to a revenue generator with analysts expecting revenues of $80 million this year and $161 million next year.  Nexavar is its kidney cancer and tumor drug, plus other partner studies in place.

Sepracor Inc. (NASDAQ: SEPR) has a $2.4 Billion market cap and is also in the revenue generation stage, although it has been a painful stock for many investors over the last 12 to 18 months.  Revenues are already established and analysts expect revenues to be $1.35 Billion this year and $1.53 Billion next year.  LUNESTA is major product, has key partners in place. 

United Therapeutics Corp. (NASDAQ: UTHR) has a market cap of $1.9 Billion and generated almost $211 million in 2007 revenues.  Analysts expect revenues to hit $261+ million this year and $346+ million next year.  Drugs treat cardiovascular, cancer, and infectious diseases.

You can join our open email distribution list to hear about special financings, secondary offerings, IPO’s, M&A, and more previews for other special situations in various stages.

Jon C. Ogg
April 10, 2008

Jon Ogg produces the Special Situation Investing Newsletter.  He can be reached at jonogg@247wallst.com and he does not own securities in the companies he covers.

Posted on: April 10, 2008 – 2:56 pm in Biotech, , , , , , ,

Pre-Market Stock News (January 24, 2008)

We are full blown into earnings season now.  These are not all of the stocks in the news, but this is a good portion of the news in individual stocks for traders to review this morning:

  • Annaly Capital Management, Inc. (NLY) priced its secondary of 51,000,000 shares of common stock at $19.25 per share.
  • AT&T (T) $0.71 EPS vs. $0.71 estimate; new share buyback plan of up to 400 million shares.
  • Becton Dickinson (BDX) $1.07 EPS vs $1.04 estimate; raised guidance before charges.
  • Cabot Micro (CCMP) $0.51 EPS vs $0.47 estimate.
  • Cubist Pharmaceuticals (CBST) shares rose another 7% to $21.72 after beating earnings and raising guidance.
  • Danaher (DHR) $1.12 EPS vs. $1.12 estimate.
  • DuPont (DD) noted as strong value without earnings risk according to Cramer on CNBC’s Mad Money.
  • eBay (EBAY) shares fell over 5% after beating earnings but lowering guidance; Meg Whitman retires as CEO but stays on board.
  • F5 Networks (FFIV) shares rose almost 20% after beating earnings.
  • Ford (F) -$0.20 EPS vs. -$0.19 estimates; CEO will be on CNBC at 12:15 PM EST.
  • IBM (IBM) noted as strong value without earnings risk according to Cramer on CNBC’s Mad Money.
  • Lennar (LEN) -$0.42 EPS vs, -$1.61 est.; but losses were before -$7.50 per shares in charges; sees 2008 continuing weakness.
  • Lockheed Martin (LMT) $1.89 EPS vs. $1.69 estimate; sees 2008 EPS $7.05 to $7.25 vs. prior guidance $6.19 to $7.15 and vs. $7.29 estimate.
  • Microsoft (MSFT) reports earnings after the close today with estimates at $0.46 EPS on revenues of $15.94 Billion.
  • Napster (NAPS) msic rental service is now available to NTT DoCoMo subscribers.
  • Netflix (NFLX) earnings were above plan and guidance was too; shares indicated up slightly.
  • Nokia (NOK) announced its market share rose to 40% and posted a 57% gain in earnings overseas.
  • Plexus Corp. (PLXS) raised guidance to $0.46 to $0.51 EPS on revenues of $440 million to $460 million, compared to estimates of $0.42 & almost $430 million;shares rose 8.3% to $21.50 in after-hours trading.
  • Polycom (PLCM) posted $0.42 EPS on revenues of $263.3 million vs. estimates of $0.39 & $252.5 million; shares rose some 7.7% to $24.00.
  • Potash (POT) announced it would repurchase up to 5% of its outstanding shares.
  • Qualcomm (QCOM) posted $0.46 EPS and non-GAAP EPS at $0.52 EPS on $2.44 Billion in revenues.  Estimates were $0.53 EPS on revenues of $2.41 Billion, 6% to $38.90 after-hours.
  • Symantec (SYMC) beat earnings; raised guidance; shares rose 8.5% at $16.55.
  • THQ (THQI) traded down 8% after disclosing net profit drops on charges from discontinued titles.
  • Trimble Navigation (TRMB) shares rose 15% at $27.45 after raising current guidance and reaffirming 2008 revenues.
  • Western Digital (WDC)  $1.35 EPS vs. $1.04 estimate; sees next quarter $0.85 to $0.91 EPS  & $2 Billion revenues vs. estimates of $0.80 & $1.9 Billion; shares rose by almost 7%.
  • World Acceptance (WRLD) $0.54 EPS vs. $0.46 estimates.
  • Xerox (XRX) $0.41 EPS vs $0.41 estimate; sees next quarter $0.25 to $0.28 vs. $0.28 estimate; sees 2008 $1.31 to $1.35 EPS versus $1.31 estimates.

Jon C. Ogg
January 24, 2008

Posted on: January 24, 2008 – 7:50 am in Pre-Market Activity, , , , , , , , , , , , , , , , , , , , , , , , , , ,

After-Hours Stock Gappers (January 23, 2008) (FFIV, TRMB, SYMC, PLXS, PLCM, CBST, WDC)

We have covered some of the earnings movers in after-hours already, but with earnings season now running full-tilt there are many other stocks that are gapping up.  Here are some of the more active stocks gapping higher:

  • F5 Networks (NASDAQ: FFIV) posted a 21% drop in earnings but gave adjusted EPS guidance above street projections; announcing a $200 million share buyback plan probably didn’t hurt either.  This one is volatile as can be with a 52-week trading band of $18.11 to $46.94.  Shares closed down 1% at $20.18 on the day, but shares are up almost 20% at $24.20 after the bell.
  • Trimble Navigation (NASDAQ: TRMB) must have gotten tired of all the negative valuation calls on GPS systems.  The company raised its Q4 2007 earnings and revenue guidance and reiterated its 2008 revenue plan.  Its $250 million buyback plan for common stock didn’t do any disfavors.  Shares closed down over 2% at $23.85 today, but shares are up 15% at $27.45 after-hours; 52-week trading range is $22.51 to $43.15. 
  • Symantec (NASDAQ: SYMC) probably got tired of us calling them a turnaround that hasn’t turned and its CEO John Thompson must not like us calling him out.  We’re glad because we actually like the company and its strategy, even if Wall Street has disagreed with the plan for longer than holders care to recall.  We even recently noted that the company looks like it is changing some of its stripes.  The data security software and storage provider put next quarter guidance at $0.33 to $0.35 non-GAAP EPS on revenues of $1.5 to $1.54 Billion; First Call had targets at $0.30 & $1.48 Billion.  Shares rose 1.6% to $15.26 after touching a new 52-week low today and shares are now up about 8.5% at $16.55.
  • Plexus Corp. (NASDAQ: PLXS) rose 7% in normal trading to $19.84.  But the company raised guidance to $0.46 to $0.51 adjusted EPS on revenues of $440 million to $460 million, compared to estimates of $0.42 & almost $430 million.  That was enough to take shares up another 8.3% to $21.50 in after-hours trading.
  • Polycom (NASDAQ: PLCM) showed that video and IP phones are still selling well after a report of $0.42 EPS on a 41% gain in revenues to $263.3 million.  First Call had estimates at $0.39 & $252.5 million.  Shares were down 1.3% at $22.28 in regular trading but shares rose some 7.7% to $24.00 in the after-hours session; its 52-week trading range is $21.38 to $36.61.
  • Cubist Pharmaceuticals (NASDAQ: CBST) closed down 0.5% at $20.23 in normal trading, but then the company posted earnings on strong sales of Cubicin.  The company posted a non-GAAP EPS for all of 2007 at $1.20 on $194.7 million in revenues.  At year-end Cubist had $398.3 million in cash, cash equivalents and investments.  It now sees Cubicin sales in 2008 to reach $370 to $385 million, while analysts expect total revenues of just under $384 million.  Volume was a bit thin but its shares rose another 7% to $21.72 in after-hours trading; its 52-week range is $17.01 to $25.72.
  • Western Digital (NYSE: WDC) didn’t want to be left out of the fun.  The number two hard drive maker posted earnings of $1.35 EPS, well above the $1.04 consensus estimate; Revenues were $2.2 Billion versus a $2.05 Billion estimate.  This one had already raised guidance.   Now the company targets the coming quarter at $0.85 to $0.91 EPS with revenues up to $2 Billion, while estimates from First Call are $0.80 & $1.9 Billion.  This one traded up 3.7% to $24.94 today, but shares rose another 7% to $26.65 in after-hours trading .  Maybe companies that raise guidance can really be trusted to beat that guidance.  This was our top buyout candidate into 2007 when the private equity firms could have acquired it on the cheap, but that’s their loss.

Have a great night and get ready for Microsoft earnings Thursday after the close.

Jon C. Ogg
January 23, 2008

Posted on: January 23, 2008 – 7:31 pm in After-Hours Activity, , , , , , ,