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Steve Hach is the Senior Editor at ValuEngine.com, a Melbourne, Florida-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 8000 US, Canadian, and other foreign stocks. Hach utilizes ValuEngine's complex... More
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  • Drug Maker Pain Therapeutics (PTIE, $PTIE) Gets Drug Resubmission Approval, Ranks Third in ValuEngine Forecast Screen 0 comments
    Jan 27, 2011 1:43 PM | about stocks: PTIE
    Go to ValuEngine.com
    January 27, 2010 Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE

     

    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.

     

    Pain Killer

    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 (NYSEARCA: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. 

    Seeking Alpha Readers should check out our Seeking Alpha VE Investment App HERE

     

    Market Indices Data
      Latest Change YTD
    Dow Jones
    11,995.30 9.91 3.61%
    NASDAQ Composite
    2,756.43 16.93 3.90%
    Russell 2000
    796.68 2.96 1.66%
    S&P 500
    1,298.77 2.14 3.27%

     

    ValuEngine Market Overview
    Summary of VE Stock Universe
    Stocks Undervalued
    35.14%
    Stocks Overvalued
    64.86%
    Stocks Undervalued by 20%
    15.34%
    Stocks Overvalued by 20%
    30.88%

     

    ValuEngine Sector Overview
    Sector Change MTD YTD Valuation Last 12-MReturn P/E Ratio
    Oils-Energy 1.68% 2.70% 2.70% 30.17% overvalued 38.08% 48.12
    Basic Materials 2.62% -2.82% -2.82% 20.81% overvalued 53.27% 39.62
    Multi-Sector Conglomerates 1.07% 4.51% 4.51% 18.19% overvalued 39.70% 35.22
    Auto-Tires-Trucks 1.91% 1.21% 1.21% 17.49% overvalued 41.30% 20.64
    Business Services 0.94% 2.43% 2.43% 15.26% overvalued 22.53% 33.27
    Transportation 1.84% -0.39% -0.39% 14.60% overvalued 30.49% 28.43
    Industrial Products 1.83% 1.36% 1.36% 14.46% overvalued 33.91% 32.71
    Computer and Technology 1.54% 9.73% 3.51% 11.82% overvalued 39.19% 37.41
    Aerospace 1.77% 4.58% 4.58% 11.70% overvalued 38.57% 19.21
    Finance 0.69% 1.09% 1.09% 9.05% overvalued 20.07% 28.22
    Utilities 0.68% 0.91% 0.91% 8.92% overvalued 18.47% 20.68
    Retail-Wholesale 0.74% -1.18% -1.18% 8.22% overvalued 28.54% 26.70
    Consumer Staples 0.61% 0.68% 0.68% 7.68% overvalued 21.19% 24.88
    Consumer Discretionary 1.14% 0.03% 0.03% 6.87% overvalued 25.44% 31.04
    Construction 2.12% 5.00% 5.00% 5.06% overvalued 16.84% 29.91
    Medical 1.34% 2.69% 2.69% 0.86% overvalued 20.42% 36.10

     

     
     
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    Stocks: PTIE
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