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Steve Hach is the Senior Editor at ValuEngine.com, a Newtown, Pennsylvania-based stock valuation and forecast service. ValuEngine utilizes Ivy League financial research as the basis for its coverage of more than 7000 US, Japanese, and Canadian, and other foreign stocks. Hach utilizes... More
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  • VE Medical Sector Pick Amylin Pharma (AMLN,$AMLN) is Up More than 13% 0 comments
    Dec 28, 2011 2:17 PM | about stocks: 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%


     

     

    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


     

    MARKET OVERVIEW

    Summary of VE Stock Universe

    Stocks Undervalued

    71.45%

    Stocks Overvalued

    28.55%

    Stocks Undervalued by 20%

    37.63%

    Stocks Overvalued by 20%

    12.54%

     

    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


     

    Stocks: BMY
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