Friday, May 31, 2013

"Boldly going where no man has gone before, Biotech Stocks. ( At least us fundamental guys don't go there.)"

Dow Jones Industrial Average 15,303.10  (Down) Week Ending 05-24-2013


Once upon a time, there were three Biotech Stocks. One was big, one was medium and one was small. So, I decided to tell you about them on the blog, (which is actually last week's blog), but I will give you the 5-31 prices on these stocks.  

Since time is at a premium , I will give you just some brief snapshots.

And here they are.......


Jazz Pharmaceuticals (Symbol JAZZ, $67.97).

This one is a brute with the muscular numbers. Return on Equity of 31.82% and PEG ratio of 0.51. This Dublin, Ireland company with a US HQ in Palo Alto, CA. is projecting 2013 earnings per of $6.15 and 2014 projected earnings of $7.55 per share. 14 Strong buy recommendations. You can buy this one "at will," especially if we get a little correction here. This stock could trade up into the $90-100 area. 








Santarus Inc. (Symbol SNTS, $22.27) 

This one is a smaller version of the beast above. I believe both companies are good long term investments. 

Return on Equity of 47.71% and PEG ratio of 1.02.   4 strong buy recommendations and 1 hold.

$218 Million in Revenues this past year.  2013 earnings per share projected at $0.91 and 2014  earnings of $1.35 per share. I can see this stock moving to the $28.00 to $33.00 area by next year.


The third Biotech stock, my "baby bear," is a speculative name and investment that is only for designated money that could increase or decrease by 50%, in other words speculative, but could also be a very good long term hold, buy it and forget about seed money stock. 

They are developing an oral diabetes treatment that has looked "pretty encouraging;" it is "in late stage clinical investigation".  That's a nice way of saying that the company has much higher expenses at start-up than whatever sales it might have. This is normal for this kind of company. The company is followed by eight investment firms.

MannKind Corp. (Symbol MNKD, $6.66). No gaudy stats here, just faith in a great idea that you hope can come to fruition. Here is what Mannkind's website says:  "Our lead investigational product candidate, AFREZZA® (pronounced uh-FREZZ-uh) ,

is a novel, ultra rapid-acting mealtime insulin therapy being studied for the treatment of adult patients with Type 1 and Type 2 diabetes mellitus for the control of hyperglycemia." 

The company does have a nice chart:  Mannkind Stock Chart

That's all I got on the biotechs, (unless you want to take a flyer on DNDN, Dendreon at $3.99 per share), for some more speculation, but not with the kid's college money.

Freewilly



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