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  • Small Cap Stocks Onyx (ONXX) and Orexigen (OREX) Lead Nasdaq Pharmaceuticals and Gentex (GNTX) and Overstock.com (OSTK) Gain on Quarterly Numbers  0 comments
    Jul 23, 2009 11:15 AM | about stocks: ONXX, OREX, GNTX, OSTK

    ONXX Phase II Trials Succeed, OREX Phase III Trials Near Completion and Quarterly Numbers Propel GNTX Past Estimates and OSTK Finally Posts a Net Profit.

    Posting a 25.65% ($7.36) gain in early trading today, Onyx Pharmaceuticals (ONXX) http://www.onyx-pharm.com/ set a new market cap of $2 billion. ONXX is now trading in the $36 range on the Nasdaq. ONXX has a 3-Month average daily trading volume of 867,638 shares and had topped 6,266,351 shares traded by 11 a.m. EST.

    The huge trading and share value jumps came on news today from ONXX that its first cooperative 'group-sponsored' Phase II trial in advanced metastatic breast cancer met its primary endpoint of progression-free survival.

    The trial is evaluating primary drug Nexavar, Sorafenib tablets in combination with the oral chemotherapeutic; Capecitabine, in patients with locally advanced or metastatic breast cancer. The results demonstrated that progression-free survival was extended in patients treated with Nexavar and capecitabine compared to patients receiving capecitabine and placebo. Nexavar works. Nexavar is collaboration with Bayer HealthCare Pharmaceuticals (private).

    Based on the findings, Onyx and Bayer are evaluating various strategies for Nexavar in treating breast cancer. Nexavar is already benefiting patients in more than 70 countries for liver cancer and in more than 80 countries for the treatment of advanced kidney cancer.

    Eggs in a basket...

    One thing I really like about ONXX is that they have a research and development collaboration agreement with Warner-Lambert Company (NYSE:PFE) to discover and commercialize small molecule drugs that restore the control of dysfunctional cell cycle in tumor cells.

    A 'buy' signal goes up for me whenever I see diversity in Pharma alliances and ONXX has certainly connected with two Big Cap heavy weights.

    At $36, ONXX is below its 52-week high of $45.69 set on 08-18-08 and above its 52-week low of $21.66 set on 10-28-08 (another good buy signal). At $36, ONXX is ahead of both its 50-day and 200-day moving averages. ONXX has trailing twelve month revenues of $199 million and its shares out versus float ratio is near-parity.

    Another Nasdaq pharmaceutical posting a huge, 20.18% gain ($1.52) this morning is Orexigen Therapeutics (OREX) http://www.orexigen.com/ now trading in the $9 range.

    OREX has a new market cap of $311 million and nearly quadrupled its average daily trading volume by 11 a.m. EST today. OREX has a 3-Month average daily trading volume of 625,411 shares and by 11, topped 2,240,466 shares

    The big gains come on the continuing excitement from Monday when OREX announced its obesity-drug candidate Contrave met its main goals in three late-stage clinical trials, and that Contrave also surpassed a FDA requirement for effectiveness.

    Patients who took Contrave had significantly greater weight loss than those who took a placebo, and the drug reduced other risk factors like waist circumference. For diabetes patients, the drug also diminished blood sugar levels.

    OREX said it plans to seek FDA approval for Contrave in early 2010 and that has brought the buyers out. An FDA thumbs-up to a pill that produces weight loss and waist circumference will surely soar past $9. OREX also makes Empatic, which in the late stages of Phase II Trails. When it enters Phase III, the stock will jump.

    At $9, OREX is below its 52-week high of $12.28 set on 09-03-08 and far above its 52-week low of $1.55 set on 12-05-08 (a good buy signal). At $9, OREX is ahead of both its 50-day and 200-day moving averages. Like most Pharma's with drugs in trial phases OREX has hardly any revenues. I would like to see more shares in the public float, but it isn't a red flag.

    Also picking up a double digit gain this morning is Michigan-based Gentex Corp., (GNTX) http://www.gentex.com/ which added $2.35 (a 19.03% gain) to its current trading price on the Nasdaq of $14 and set a new market cap of $2 billion. GNTX has an average 3-Month daily trading volume of 1,532,940 shares and today it surpassed 3,273,102 shares by 11 a.m. EST.

    What sent GNTX skyrocketing this morning was the release of its Q2 numbers that were better than analysts expected. While GNTX had a second-quarter profit that fell 55 percent, it did earn $12.2 million, or 9 cents per share (compared with $26.9 million, or 19 cents per share, in the same quarter last year). Analysts were looking for 5 cents a share.

    That GNTX still has such earning power is quite amazing: GNTX makes mirrors for Detroit auto makers. Management at GNTX said it expects its third-quarter revenue to be down about 10 percent from year-ago levels.

    At $14, GNTX is below its 52-week high of $17.76 set on 09-19-08 and above its 52-week low of $6.50. At $14, GNTX is above both its 50-day and 200-day moving averages. GNTX has trailing twelve month revenues of $539 million. GNTX also produced a trailing twelve month diluted EPS of $0.22 and I think the stock will rise from the $14 level based on its innovation to deal with the auto crisis and maintain some vestige not only as a going concern, but one that is profitable.

    Also now trading in the $14 range, Overstock.com (OSTK) http://www.overstock.com/ gained $1.77 (14.43%) in early trading on its Q2 numbers release today. OSTK has a new market cap of 318 million. The 3-Month average daily trading volume for OSTK is 157,848 shares and it soared past 208,109 shares traded today a few hours into the session.

    OSTK reported a net income of $389 million, or 2 cents a share, in its second quarter. It posted a loss a loss in Q2 08. OSTK also only posted a single digit decrease (7%) in its year-over-year revenues ($176.1M vs. $188.8M) and its gross profit increased 8% for the same period.

    That was enough to get the buyers out this morning. OSTK is an online, closeout retailer. Rival E-Bay (NASDAQ:EBAY) will report its quarterly numbers later today.

    At $14, OSTK is below its 52-week high of $22.60 and well above its 52-week low of $6.34. At $14, OSTK is above both its 50-day and 200-day moving averages. OSTK has trailing twelve month revenues of $818 million. Its shares out versus float ratio is near-parity.

    Sign-up for Free to Receive Future Commentary and Trading Alerts on ONXX, OREX, GNTX and OSTK

    Stocks: ONXX, OREX, GNTX, OSTK
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