Steve Hach's  Instablog

VALUATION WARNING:  Our models find that overvaluation is approaching levels typically seen when a market correction is imminent. Overvalued stocks now make up almost 65% of our universe and almost 31% of the universe is calculated to be overvalued by 20% or more.  15 of 16 sectors are now calculated to be overvalued.

Drug Maker Pain Therapeutics (PTIE, $PTIE) Gets Drug Resubmission Approval, Ranks Third in ValuEngine Forecast Screen

 ValuEngine has issued a STRONG BUY recommendation for Pain Therapeutics on Jan. 27, 2011. Based on the information we have gathered and our resulting research, we feel that Pain Therapeutics has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE expected EPS growth, momentum and market valuation.

  Based on available data as of Jan. 27, 2011, we believe that PTIE should be trading at $7.4. This makes PTIE 13.30% undervalued. Fair Value indicates what we believe the stock should be trading at today if the stock market were perfectly efficient and everything traded at its true worth. For PTIE, we base this on actual earnings per share (EPS) for the previous four quarters of -$0.11, forecasted EPS for the next four quarters of $0.25, and correlations to the 30- year Treasury bond yield of 4.60%.

 When we screened for top-ranked stocks in both short and long-term forecast projections that had a minimum share price of $3.00 and average daily volume of 100k shares/day, PTIE finished third in our results.  The long-term forecast figures are very impressive and lead to the ticker's rating of STRONG BUY.  The one-year forecast figure ranks in the top 1% of our universe of more than 5500 stocks.

  Pain Therapeutics is developing a new generation of opioid painkillers. Opioids are drugs derived from the poppy plant. The company uses technology to reformulate opioid drugs, such as morphine, into new painkillers with improved clinical benefits. The company has four opioid painkillers in Phase II clinical trials. The company believes its drugs offer enhanced pain relief, fewer adverse side effects and reduced tolerance and addiction compared to existing opioid painkillers. 

  Today,  Pain Therapeutics, Inc. announced that the U.S. FDA has accepted a New Drug Application resubmission for REMOXY.  REMOXY is designed to provide steady, around-the-clock pain relief, while resisting common methods of tampering intended to result in the rapid release of oxycodone. 

 Subscribers can check out the latest figures on Pain Therapeutics from our models HERE. 

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