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VE Medical Sector Pick Amylin Pharma (AMLN,$AMLN) is Up More than 13%

|Includes:Bristol-Myers Squibb Company (BMY)

Amylin Pharmaceuticals (AMLN,$AMLN) is a biopharmaceutical company committed to improving lives through the discovery, development and commercialization of innovative medicines. Amylin has developed and gained approval for two first-in-class medicines for diabetes, SYMLIN injection and BYETTA injection. Amylin's research and development activities leverage the company's expertise in metabolism to develop potential therapies to treat diabetes and obesity. Amylin is located in San Diego, California with over one thousand five hundred employees nationwide.

Amylin Pharma is a strong performer for our VE Forecast 16 Market Neutral Strategy newsletter. Since our rebalance on the 18th of this month, AMLN is up @13% and leads our long side. Amylin was trading at around $10 in mid-December. Shares are still priced below the consensus price target of @13.32. 

ValuEngine has issued a STRONG BUY recommendation for AMYLIN PHARMA on Dec. 28, 2011. Based on the information we have gathered and our resulting research, we feel that AMYLIN PHARMA has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE market valuation and company size.
 

Based on available data as of Dec. 28, 2011, we believe that AMLN should be trading at $25.37. This makes AMLN 54.76% 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 AMLN, we base this on actual earnings per share (NYSEARCA:EPS) for the previous four quarters of -$0.70, forecasted EPS for the next four quarters of -$1.43, and correlations to the 30- year Treasury bond yield of 3.04%.


 

ValuEngine Forecast

 

 

 

Target Price*

Expected Return

1-Month

12.1

5.43%

3-Month

13.03

13.49%

6-Month

13.4

16.71%

1-Year

14.44

25.80%

2-Year

14.17

23.45%

3-Year

14.89

29.74%

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Valuation & Rankings

 

 

 

Valuation

54.76% undervalued

Valuation Rank

92

1-M Forecast Return

5.43%

1-M Forecast Return Rank

100

12-M Return

-24.27%

Momentum Rank

35

Sharpe Ratio

-0.35

Sharpe Ratio Rank

33

5-Y Avg Annual Return

-22.90%

5-Y Avg Annual Rtn Rank

29

Volatility

65.15%

Volatility Rank

33

Expected EPS Growth

-105.90%

EPS Growth Rank

2

Market Cap (billions)

1.67

Size Rank

78

Trailing P/E Ratio

n/a

Trailing P/E Rank

17

Forward P/E Ratio

n/a

Forward P/E Ratio Rank

n/a

PEG Ratio

n/a

PEG Ratio Rank

n/a

Price/Sales

2.54

Price/Sales Rank

28

Market/Book

5.36

Market/Book Rank

16

Beta

1.55

Beta Rank

27

Alpha

-0.25

Alpha Rank

36

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MARKET OVERVIEW

Summary of VE Stock Universe

Click to enlarge

Stocks Undervalued

71.45%

Stocks Overvalued

28.55%

Stocks Undervalued by 20%

37.63%

Stocks Overvalued by 20%

12.54%

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SECTOR OVERVIEW

Sector

Change

MTD

YTD

Valuation

Last 12-MReturn

P/E Ratio

Aerospace

-0.13%

1.27%

-1.30%

2.02% overvalued

-7.78%

15.7

Auto-Tires-Trucks

-0.57%

-1.64%

-31.43%

13.99% undervalued

-1.52%

22.31

Basic Materials

-0.90%

-5.28%

-23.48%

8.43% undervalued

-24.41%

28.02

Business Services

-0.18%

1.07%

-7.83%

2.89% undervalued

3.08%

28.4

Computer and Technology

-0.22%

0.54%

-7.03%

4.26% overvalued

-5.52%

35.18

Construction

0.00%

1.78%

-19.48%

8.63% undervalued

-20.13%

39.06

Consumer Discretionary

0.09%

0.49%

-10.90%

8.13% undervalued

-6.78%

22.77

Consumer Staples

-0.16%

2.72%

-11.16%

6.78% overvalued

-2.54%

19.25

Finance

-0.31%

1.97%

-6.50%

11.44% overvalued

-6.34%

20.27

Industrial Products

-0.26%

-0.08%

-10.85%

10.67% overvalued

-8.31%

23.63

Medical

-0.10%

1.02%

-3.08%

11.26% overvalued

24.06%

28.53

Multi-Sector Conglomerates

-0.07%

0.03%

-13.14%

1.17% undervalued

-9.90%

14.52

Oils-Energy

-0.26%

-1.87%

-16.46%

12.34% overvalued

-15.93%

35.02

Retail-Wholesale

-0.17%

0.80%

-1.25%

5.38% overvalued

0.96%

21.99

Transportation

-0.60%

0.22%

-13.42%

0.10% overvalued

-17.51%

29.84

Utilities

0.33%

0.00%

3.53%

10.55% overvalued

3.03%

24.47

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Stocks: BMY