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  • Small-Cap Gains in a Flat Market: Drug stocks NVGN and TRGT Post Impressive Gains  0 comments
    Jul 8, 2009 1:31 PM | about stocks: MSCS, NTSC, TBAC, CBIO, NVGN

    On Good News and No News; TBAC, NTSC and MSCS Post Gains

    The shining light in Small-Caps today is an Australian drug company: Novogen LTD., (NVGN) trading on the Nasdaq in the $4.85 range. The stock picked up $2 (over 71%) in early trading today and saw its 3-Month average trading volume of 36,361 shares increase nearly 20 times past 605,594 shares.

    The huge jumps came off of yesterday's good news that researchers at the Malaghan Institute of Medical Research in Wellington, New Zealand found that abnormally proliferating human T-cells, rapidly dividing cancer cells such as primary myeloid and lymphoid leukemic blast cells, undergo programmed cell death when exposed briefly to the investigational anti-tumor drug phenoxodiol.

    NVGN is the majority shareholder of Australian BioTech firm Marshall Edwards Inc., (MSHL) that is the leader in phenoxodiol research and development for commercialization.

    Even at its new price of $4.85, NVGN is off its 52-week high of $7.45 set on 08-20-08 but well above its 52-week low of $1.23 set on 03-11-09. Patience won the day for short-term investors in NVGN. Like all Bio-Pharma companies, NVGN has little in the way of revenues. At $4.85 it is above both its 50-day and 200-day moving averages.



    The other drug stock making a splash in the otherwise flat markets of today is Targacept Inc., (TRGT) trading on the Nasdaq in the $3 range. TRGT picked up $0.62 (25%) in early trading this morning and ran past its 3-Month average daily trading volume of 76,495 shares by nearly 10 times within a couple of hours.

    The news that catapulted the stock came from a TRGT's licensing partner (AstraZeneca - which trades on the FTSE) that it will pay TRGT $10 million to further develop TRGT's experimental treatment for attention deficit/hyperactivity disorder (NASDAQ:ADHD) and give TRGT an eligibility for $100 million if development, regulatory and sales milestones are achieved for the drug. That's some serious backing. In May, TRGT's drug (AZD3480) met the main goal of a mid-stage trial in adults with ADHD.

    A lot of investors like TRGT's alliances: SmithKline Beecham Corporation (SKB) and Glaxo Group Limited (GLAX). TRGT was founded in 1997 and is based in Winston-Salem, North Carolina.

    At $3, the stock is far off its 52-week high of $10.11 set on 08-15-08 and above its 52-week low of $1.40 set on 11-25-08. At $3, its above both its 50-day and 200-day moving averages. I would like to see more shares in the float for stability, but it isn't a red flag.


    Reeling in Costs...

    Tandy Brands Accessories Inc., (TBAC) trading on the Nasdaq in the $2.33 range picked up $0.22 (10%) on news that its Compensation Committee had set new salaries and benefits for its officers and directors and in my opinion they were; modest. That's a big encouragement to investors in these days of dealing with huge employment packages. The CEO's new salary: $330,000.

    TBAC's product line includes: belts, wallets, small leather goods, handbags, hats, sporting goods, gift accessories, and other fashion accessories. The company markets its merchandise under various licensed and proprietary brand names, including Dockers, Levi's, Goodyear, and Dr. Martens.

    At $2.33, TBAC is far below its 52-week high of $6.34 set on 07-08-08 and above its 52-week low of $1.25 set on 12-31-08. In the $2 range, TBAC is basically at both its 50-day and 200-day moving averages with trailing twelve month revenues of $132 million. It shares out versus float ratio is near-parity.


    On no official news (must be the message board investors), National Technical Systems inc., (NTSC) trading on the Nasdaq in the $3.50 range, also surged this morning; topping a 10% gain. The Aerospace engineering firm seems to be slowly, but surely, climbing back from its 52-week low of $2.53 set in May.

    Finally, MSC Software Corp., (MSCS) jumped out of the gate this morning gaining 10 times its 3-Month average daily trading volume of 166,292 shares within hours (16,799,927 shares traded as of this writing).

    Private investors Symphony Technology Group plans to buy MSCS for about $360 million and NSCS stockholders will receive $7.63 for each share of common stock that they own, a 13% premium to MSCS's $6.75 Tuesday closing stock price.



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