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  • Select Comfort (SCSS) Initial Coverage, Republic Airways (RJET) Beats Southwest and Immunomedics (IMMU) FDA Application  0 comments
    Aug 14, 2009 12:53 PM | about stocks: SCSS, RJETQ, IMMU

    Select Comfort (NASDAQ:SCSS) gets initial ‘Buy’ coverage from KeyBanc, Republic Airways (RJET) beats Southwest bid for Frontier and Immunomedics (NASDAQ:IMMU) files FDA Application.

    While market buyers and sellers were both disappointed that the Consumer Price Index, the CPI, was flat for July, or a 'non-event' for igniting enthusiasm one way or the other, there were SmallCap gains being made by Select Comfort (SCSS), which received an initial 'Buy' coverage from KeyBanc today, Republic Airways (RJET), which beat out Southwest Airlines (NYSE:LUV) in a bid for bankrupt Frontier Airlines and by Immunomedics (IMMU) which filed a Phase II trial application with the FDA.

    Gaining 6.67% ($0.19) on news of an initial coverage by a major house today is Select Comfort (SCSS) which set a new market cap of $138 million. Currently trading in the $3.04 range on the Nasdaq, SCSS has a 3-Month average daily trading volume of 336,238 shares and it topped that by mid-session.  

    The SCSS jump came on news that KeyBanc analyst Bradley B. Thomas, who previously did not have a rating on the stock, said Select Comfort's lower-priced models are boosting sales. Mr. Thomas issued a 'Buy' rating on SCSS.

    SCSS reported Tuesday that its same-store sales edged up 1% percent in July, partly helped by the closing of more than 50 stores. For the fiscal month ended Aug. 1, SCSS retail sales fell 7 percent and total company sales dropped 10 percent. SCSS management said it will keep a close eye on sales over Labor Day weekend, as it is a significant factor in its third-quarter performance.

    SCSS also said it is considering selling a controlling interest to Sterling Partners and will hold a special shareholders meeting on Aug. 27. Shareholders can vote on the proposed sale, which includes a 52.3 percent controlling stake priced at 70 cents per share.

    SCSS makes and sells adjustable-firmness beds and other sleep-related accessory products in the United States and Canada. SCSS, as of January 3, 2009, had 471 company-owned stores and 801 retail partners.

    At $3.04, SCSS is pennies above its 52-week high set on 08-13-09 and is far above its 52-week low of $0.19 set on 12-09-08. At $3.04, SCSS is above both its 50-day and 200-day moving averages. SCSS has trailing twelve month revenues of $548 million. It shares out versus float ratio is near-parity.

    Gaining 7% ($0.42) this morning on a bankruptcy bid is Republic Airways Holdings Inc., (RJET) which set a new market cap of $220 million. RJET has a 3-Month average daily trading volume of 608,944 shares and was on its way to topping that by noon EST. RJET is currently trading on the Nasdaq in the $6.40 range.

    RJET stock has gained today on news that a bankruptcy court accepted its offer to acquire Frontier Airlines over a substantially higher bid from Southwest Airlines (that would have required a pre-merger deal between the two pilot unions). RJET was Frontier's largest unsecured creditor. Frontier entered bankruptcy protection in April of last year.

    Frontier has a fleet of 51 airplanes and flies routes primarily serving western states. RJET has a fleet of 228 planes and serves 98 destinations through agreements with larger airlines. Control of the Denver hub will figure into this purchase after the dust settles. RJET offers scheduled passenger service on approximately 1,250 flights daily to 109 cities in 35 states, Canada, Mexico, and Jamaica.

    At $6.40, RJET is below its 52-week high of $15.72 set on 10-31-08 and is above its 52-week low of $4.20 set on 06-22-09. At $6.40, RJET is above its 50-day moving average and below its 200-day moving average. RJET has $1.37 billion in trailing twelve month revenues. Its shares out versus float ratio is near-parity.

    Finally, getting a nice 5.58% gain ($0.23) today is Immunomedics Inc., (IMMU) with a new market cap of $330 million. IMMU is currently trading in the $4.36 range. IMMU has a 3-Month average daily trading volume of 832,855 shares and had topped that at the time of this writing.

    IMMU announced today the allowance of a new drug application filed with the FDA to initiate a Phase I/II clinical trial of the doxorubicin conjugate of milatuzumab for the treatment of patients with multiple myeloma. This conjugate is IMMU's first antibody-drug conjugate to enter human studies. The drug could be a potent fighter used in the treatment of metastatic colorectal cancer.

    The IMMU 'Trials Pipeline' is impressive: IMMU's lead is epratuzumab, a Phase IIb clinical trail product for the treatment of systemic lupus erythematosus and non-Hodgkin's lymphoma; and Veltuzumab, which is in Phase I/II clinical study for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia, and for patients with ITP. Other IMMU products in the pipeline include: IMMU-102, a Y-90-labeled epratuzumab product candidate, which is in Phase I/II clinical study for the treatment of patients with non-Hodgkin's lymphoma; and IMMU-107 a humanized monoclonal antibody product, which is in Phase I/II dose-escalation trials for the treatment of pancreatic cancer and Milatuzumab, a Phase I/II multicenter clinical trial product for the treatment of multiple myeloma, non-Hodgkin's lymphoma, and chronic lymphocytic leukemia, and lastly, Labetuzumab, a Phase II clinical trail product that targets carcinoembryonic antigen. Very Impressive.

    At $4.36, IMMU is below its 52-week high of $5.39 set on 07-28-09 and above its 52-week low of $0.84 set on 03-06-09. At $4.36, IMMU is above both its 50-day and 200-day moving averages. The IMMU shares out versus float ratio is near-parity.

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    Stocks: SCSS, RJETQ, IMMU
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