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Update: Insider Selling Drives Hanger To New 52-Week Low
- Hanger formed a new 52-week low following insider selling activity.
- CFO George E. Mchenry, Jr. unloaded 2,300 shares of the stock on the open market.
- In my original article I discussed the company’s solid potential in the orthotic and prosthetic space, and no insider selling was anticipated.
- However, with the company continuing to drive the prices of its products lower coupled with the insider selling activity, I’m no longer bullish on the stock.
Update: Exact Sciences' Cologuard Has Been Approved By FDA
- FDA approved Exact Sciences’ Cologuard, its new stool-based DNA screening test for colorectal cancer.
- In my original article I anticipated that FDA will approve Cologuard sometimes in 2014 or early 2015.
- The news confirms my bull thesis on Exact Sciences.
Update: Dean Foods Earnings
- Dean Foods' net sales for the second quarter of 2014 came in at $2.4 billion, compared to $2.2 billion of net sales in the prior year period.
- The company reported a loss from continuing operations amounting to $0.01 per diluted share, compared to second quarter 2013 diluted loss of $0.61 per share.
- In my original article I said that increasing money-offs on private label milk distribution and weak sales volumes caused significant reduction in profitability for Dean Foods.
- Currently increasing cost of raw milk is negatively impacting the company’s profitability, which is expected to ease off later this year.
- The stock has corrected almost 20% in the past one year, which I believe offers a decent entry point to long-term investors.
Update: BioSpecifics Technologies Earnings
- BioSpecifics reported second quarter 2014 total revenue of $2.7 million, a decrease of 19% year-over-year.
- Net income came in at $0.6 million or $0.09 per basic share, compared to net income of $1.0 million or $0.16 per basic share in the year-ago period.
- In my original analysis I said that XIAFLEX could boost BioSpecifics' revenue and earnings significantly.
- The company saw significant growth in revenues from XIAFLEX in the United States in the second quarter, most notably in Peyronie's disease, which confirms my view.
Update: Hanger Earnings
- Hanger’s net sales in the second quarter of 2014 increased 3% to $275.9 million from $267.8 million in the prior year period.
- Adjusted diluted EPS came in at $0.40 in the second quarter, compared to $0.52 in the year-ago period, a 23% decrease.
- In my original article I mentioned that Hanger operates in an extremely fragmented industry, and therefore might have to face fierce competition.
- Continuing pressure on authorizations, collections and patient flow significantly impacted Hanger’s top and bottom line in the second quarter, which may continue to remain a headwind.
Update: Synutra International Earnings
- Synutra reported net revenue of $86 million for the first quarter of fiscal 2015, an increase of 4.6% from $82.2 million in the prior year period.
- Net income was $17.9 million or $0.31 per basic share, a 275.7% increase from $4.8 million or $0.08 per basic share in the prior year period.
- In my original article I mentioned that Synutra’s top and bottom line in 2014 could rise meaningfully as a result of China's booming baby food demand.
- The company achieved 21% year-over-year increase in revenue in its core powdered formula segment, which confirms my view.
Update: Auxilium Pharmaceuticals Earnings
- Auxilium’s total revenues in the second quarter of 2014 were $83 million, a 17% year-over-year decrease.
- The company reported a loss of $0.54 per share that was much wider than analysts’ estimate of a loss around $0.45 per share.
- Auxilium reported lower Testim sales in the second quarter, offset by an increase in XIAFLEX sales.
- In my original article I said that XIAFLEX could replace Testim as Auxilium's lead growth driver in the near future.
- The company’s second quarter financial result confirms my view.
Update: Osiris Therapeutics Earnings
- Osiris reported second quarter product revenues of $13.3 million, compared to $5.3 million during the prior year period, an increase of 151%.
- Gross profit was $10.4 million compared to $3.8 million during the same period of 2013.
- In my original analysis I mentioned that Osiris' Biosurgery segment including Grafix remained well-positioned.
- Osiris said that it added several new sizes to the Grafix product line, allowing healthcare providers to optimally match Grafix to the wound size, which confirms my view.
Update: Oncolytics Biotech Earnings
- Oncolytics reported a net loss of $0.05 per share in the second quarter of 2014, beating the analysts’ consensus estimate of a loss per share of $0.07 by $0.02.
- The company reported the completion of enrollment in a Phase II study using REOLYSIN in combination with carboplatin and paclitaxel in pancreatic cancer patients.
- In my original article I said that REOLYSIN is expected to work on some of the most prevalent forms of cancer including lung, colorectal, prostate, ovarian, breast and pancreatic cancers.
- I’m still bullish on the stock, but my investment thesis will take time to play out until the company actually has revenues and sales.
Update: Thoratec Corporation Earnings
- Thoratec reported revenues of $118.1 million, a 10% decrease compared to revenues of $130.5 million in the same period a year ago.
- GAAP net income plunged to $0.30 per diluted share, from $0.40 per diluted share in the same period last year.
- In my original analysis I noted that the stock remained relatively undervalued, due to Thoratec's small size and limited ability to raise resources.
- Now, after the second quarter results, I’d recommend investors to wait on the sidelines and see how things pan out before investing fresh money in the stock.
Update: Syneron Medical Earnings
- Syneron Medical reported second quarter revenue of $64.6 million, up 6.1% year-over-year and 13.7% sequentially.
- In my original article I opined that Syneron could be an ideal vehicle to cash in on the booming medical aesthetics market.
- The company posted impressive second quarter results, which I feel confirms my opinion, and I'd recommend buying the stock for the long term.
Update: Forestar Group Earnings
- Forestar Group reported second quarter earnings per share of $0.34, on revenues of $83.01 million.
- In my original article I noted that Forestar remained well-positioned in terms of acreage for benefiting from a rebound in builder demand for finished residential lots.
- During second quarter, residential lot sales were up almost 50% compared to the year-ago period, with gross profit up 11% over that same period, which confirms my view.
Update: Horsehead Holding Earnings
- Horsehead Holding reported second quarter 2014 revenue of $126.27 million, compared to the consensus estimate of $110.79 million.
- The company’s consolidated net loss came in at $5.1 million, or $0.10 per diluted share.
- In my original analysis I predicted a 35% upside for the stock from $12.38, based on bullish outlook for zinc prices.
- The stock is currently trading near $20, which confirms my bull thesis, and I believe that it's heading towards $25.
Update: LHC Group Earnings
- LHC Group reported net service revenue of $188.9 million for the second quarter of 2014, compared to $166.3 million for the year-ago period, an increase of 13.6%.
- Diluted EPS of $0.35 increased slightly from $0.34 for the year-ago period.
- In my original analysis I mentioned that the company's long-term growth rate for the next five years would be around 13.67%.
- The company’s second quarter revenue growth figure was exactly in line with my expectation, which confirms my view that the company is undergoing a secular bull phase.
Update: Insmed Earnings
- Insmed posted its second-quarter 2014 net loss of $23.2 million, or $0.59 per share, compared to a net loss of $8.9 million, or $0.28 per share, in the year-ago period.
- R&D expenses in the second quarter of 2014 increased to $14.9 million from $12.2 million in the second quarter of 2013.
- In my original article, I said that Insmed's rising R&D expense was indicative of the fact that the company might be successfully developing ARIKAYCE, its lead drug.
- Insmed just announced that it has priced an offering of 8.9 million shares of its common stock at $11.25 per share.
Update: Integra LifeSciences Earnings
- Total revenues of Integra LifeSciences for the second quarter were $231.4 million, an increase of $25.8 million, or 12.6%, year-over-year.
- Adjusted net income for the quarter was $0.68 per diluted share, up 20% from the year-ago period.
- In my original article, I mentioned that the company's revenues are expected to grow at a CAGR of 7.1% for the next four years.
- The company's second-quarter revenue growth of 12.6% confirms my view.
Update: Alere Earnings
- Alere’s net revenue came in at $737.9 million in the second quarter of 2014, and net loss per share remained at $0.67.
- In my original article I said that Alere is futuristic and the stock could be a multi-bagger in the long-run.
- I continue to hold my opinion despite the company’s soft second quarter earnings.
Update: Protective Life Earnings
- Protective Life’s net income rose 5% over the prior year to $1.33 per share in the second quarter of 2014.
- After-tax operating income came in at $106.4 million or $1.31 per average diluted share, up 36% from the year-ago period.
- Earlier I said that the company's earnings will see a CAGR of 10% for the next three to five years, due to stable growth of the company's annuity policies.
- Although the company’s second quarter earnings confirms my view, I believe the stock is ripe for profit booking.
Update: Masimo Corporation Earnings
- Masimo’s total revenue, including royalties, rose 2.5% to $140.9 million in the second quarter of 2014.
- However, the company posted a 10% decline in adjusted net earnings per share to 27 cents in the quarter.
- Earlier I mentioned that the global pulse oximetry market is expected to grow at a CAGR of 5.55% over the period 2011-2015 and Masimo has enormous opportunity in this market.
- The company expects that its installed pulse oximetry base might have grown 10% in the past one year, which confirms my view.
Update: NxStage Medical Earnings
- NxStage Medical’s second quarter revenue increased 13% year-over-year to a record $74.1 million.
- However, the company failed to post a profit and reported a net loss of $7.1 million, or $0.12 per share.
- In my original article, I said that the company’s long-term growth depends on the number of patients who adopt home-based hemodialysis and how quickly they adopt it.
- The company’s second quarter revenue growth was driven by strong adoption of its home-based hemodialysis machine both in the US and international markets, which confirms my view.
Update: URS Corporation Earnings
- URS Corp.'s revenues for the second quarter of 2014 were $2.6 billion, compared to $2.8 billion in the second quarter of 2013.
- GAAP EPS for the second quarter came in at $1.27, a 40% increase from $0.91 in the same period last year.
- In my original article, I argued that the stock was undervalued at $47 and SOTP valuation of URS would be $5.21 billion or $72 per share.
- The company’s second quarter earnings remained impressive, and I hold my opinion that the stock is heading towards $72.
Update: Myriad Genetics Earnings
- Myriad Genetics registered fiscal fourth quarter revenue of $188.8 million, an 8.4% year-over-year increase while adjusted EPS for the quarter came in at $0.48, a 9.5% decline.
- In my original article I said that Myriad's diagnostic tools are expected to see steady demand worldwide due to increasing use of biologic therapeutics in cancer treatment.
- With rapid adoption of Myriad's myRisk Hereditary Cancer test, the company’s fourth quarter revenue from the test came in at $27.3 million, an increase of 89% quarter-over-quarter.
- As my expectation came true in the fiscal fourth quarter, I feel that the stock is heading towards $52.40, my ultimate target.
Update: Judge Cancels NuVasive's Trademark On The NeuroVision Name
- A California federal judge cancels NuVasive’s trademark on the NeuroVision name.
- NeuroVision first sued NuVasive in 2009, alleging infringement of its namesake trademark.
- In my original analysis I argued that NuVasive's innovative product launches will drive growth, but I didn't anticipate that NuVasive’s trademark will be cancelled on the NeuroVision name.
- However, since the company posted stellar second quarter results, any weakness in the counter as a result of the news should be utilized to buy the stock.
Update: Globus Medical Earnings
- Globus Medical’s second quarter revenue was $113.6 million, a 6.1% year-over-year increase and EPS was $0.22, compared to $0.08 in 2013.
- In my original article I said that I expect the company’s 2015 year-end revenue would be around $550 million.
- It seems that the company is heading towards right direction, and I believe the stock now offers an excellent investing opportunity after the recent dip.
Update: NII Holdings May File For Chapter 11 Bankruptcy
- NII Holdings said it may file for Chapter 11 bankruptcy protection because it can’t fulfill financial obligations.
- In an article a few months ago, I said that the stock could be a “risky value bet,” based on the company’s aggressive turnaround strategy, termed Project Accelerate.
- I didn't anticipate a Chapter 11 bankruptcy filing, but the company failed to turnaround and put itself back on the path to profit growth as it planned.
- Now with NII Holdings planning to file for Chapter 11 bankruptcy, I concede that my speculative “value bet” didn’t work.
Update: Cardiovascular Systems Earnings
- Cardiovascular Systems’ fourth quarter revenues grew to $39.6 million, a 37% year-over-year increase.
- Its fourth quarter net loss was $9.6 million, or $0.31 per common share.
- In my original analysis I predicted that the company’s Diamondback 360 device could be a game changer.
- I believe that the early adoption rate of the device confirms my view.
Update: Symmetry Medical Earnings
- Symmetry Medical reported second-quarter revenue of $101.3 million, up 2.3% year-over-year.
- Adjusted EPS from continuing operations came in at $0.17.
- In my original article, I said that Symmetry Surgical is expected to play a key role in improving the company's overall profitability.
- The company’s decision to sell its OEM business confirms my view.
Update: DexCom Earnings
- DexCom’s total revenue in the second quarter grew to $58.8 million, an increase of 64% from the same quarter in 2013.
- The company reported a net loss of $0.08 per share, compared to a net loss of $0.14 per share in the year ago period.
- I first recommended DexCom based on the expectation that CGM market will grow at a CAGR of 14.2% during 2010-2015.
- Now, after a year, the company is yet to make profit, which makes me believe the stock is fully valued.
Update: Qiagen Earnings
- Qiagen reported second-quarter 2014 net income of $32.8 million, or $0.14 per diluted share.
- Adjusted net sales came in at $331.2 million, up 4% at constant exchange rates or CER.
- In my original article I said that despite being able to grow revenue, Qiagen failed to convert that incremental revenue to profit over the last five years.
- The trend continues this quarter also, as the company’s EPS is still hovering around the five-year trend line.
- The company’s recently announced joint venture with AstraZeneca might be a positive development for investors.
Update: Fluidigm Earnings
- Fluidigm reported Q2 2014 earnings; total revenue increased 58% year-over-year and non-GAAP net loss remained flat.
- Fluidigm’s Q2 2014 earnings demonstrated strength across single-cell genomics and production genomics business lines.
- I said in my original article that single-cell genomics is expected to be its primary growth driver going forward.
- I believe that long-term growth oriented players should accumulate the stock on dips.
Update: Curtiss-Wright Earnings
- Curtiss-Wright reported strong second quarter 2014 earnings.
- Overall revenue increased 9%, commercial revenue increased 14% and energy sales climbed 13%.
- I said in my original article that if the company's energy segment performs well, its valuation could see upward revision.
- Since the company’s energy sales climbed 13%, I am now bullish on the stock.
Johnson & Johnson's Power Morcellator Recall Could Result In Further Pullback
- Johnson & Johnson recently withdrew three laparoscopic power morcellators due to a risk of spreading cancerous tissue, following FDA's warning in April.
- FDA warned that healthcare providers and patients should carefully consider available alternative treatment options for symptomatic uterine fibroids.
- The negative news could result in further pullback in Johnson & Johnson's stock, offering excellent investing opportunity.