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Are Gut Instincts Enough: DDIC, ZINC, SGMO

|Includes: DDi Corp. (DDIC), SGMO, ZINCQ
DDI Corporation (NASDAQ:DDIC) On-the-Road with FLAT-WRAP technology; Horsehead Holding (ZINC) Steady on Industry Indicators; Sangamo Biosciences (NASDAQ:SGMO) Moves Up on Research Award.
By Dennis Askew

Three SmallCaps Require a Little Faith

DDIC: Circuit Board Maker Produces +$0.26 in Calendar Diluted EPS  

ZINC: Faces ‘Glut’ According to Some; Returns +16 Cents in Q1

SGMO: Michael J. Fox Foundation Awards $900k

First up this morning we have DDI Corporation (DDIC) currently trading in the $7.76 range on a 3-Month average daily trading volume of 250,581 shares. DDIC has a 52-week high of $10.01 set on 05-13-10 with current trailing twelve month revenues of $183+ million and a positive, corresponding diluted EPS of +$0.26. I like those earnings. DDIC has very few press statements and flies on the edge of the radar, but it produces and is on the road: it’s latest seminar ‘Enabling Technology for Next Generation Printed Circuits’ was held on 06-24 in San Diego, CA where the Co discussed among other things Laser Direct Imaging, Laser Drilling, Optical Drill & Rout and its Proprietary FLAT-WRAP Technology (wrap plating solution). DDIC makes, sells, and services printed circuit boards primarily in North America. DDIC also provides pre-production and production fabrication services. The Co also supports customer requirements for a transition to higher volume needs. DDIC market sectors include: communications, computing, military/aerospace, industrial electronics, instrumentation, medical, and the high-durability commercial markets. Approximately $2.25 off its high and considering its ttm earnings, DDIC is a short-term (6 Mo) ‘Buy’ consideration for me.


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Next up this morning we have Horsehead Holding Corporation (ZINC) currently trading in the $8.08 range on a 3-Month average daily trading volume of 399,555 shares. ZINC has a 52-week high of $13.92 set on 01-11-10 with trailing twelve month revenues of $273+ million. Nearly $6 off its high, ZINC is the largest U.S. producer of the metal commodity. It is a ‘pure play’ in its truest form. Some industry analysts and trade watchers think the zinc market is flooded and there will be very little increase in demand until inventories shrink. Perhaps. But for its Q1 ended March 31, the zinc producer saw net income of $6.8 million, +16 cents per share, compared with a net loss of $14.8 million, or -42 cents per share, in the year-ago quarter. Sales in the first quarter were $97 million, compared with $39.8 million in the year-ago quarter. If you’re a conservative, cautious investor; ‘Watch Closely’ where the supply and demand trend. I like earnings and discount share prices, so…  ZINC would be a short-term ‘Buy’ consideration for me.      

Finally this morning we have Sangamo Biosciences Inc., (SGMO) currently trading in the $3.64 range on a 3-Month average daily trading volume of 275,531 shares. SGMO has a 52-week high of $9.39 set on 09-21-09. SGMO is a drug development Co and its DNA-binding proteins can be used to turn genes on or off and modify DNA sequences in various ways. SGMO has a number of drugs in Phase I and Phase II trials and preclinical development programs that focus on spinal cord injury, stroke, traumatic brain injury, neuropathic pain, and Parkinson’s disease. Last week SGMO was awarded a second round of funding by The Michael J. Fox Foundation for Parkinson's Research to support studies in non-human primates for the development of a SGMO ZFP Therapeutic to treat Parkinson's disease. The $900,000 award will be paid over a period of two years. SGMO has license agreements with companies, including Dow AgroSciences, LLC; Sigma-Aldrich Corporation; Pfizer, Inc.; Genentech Inc.; F. Hoffmann La Roche Ltd; Hoffmann-La Roche Inc.; and Open Monoclonal Technology, Inc. At its current price, SGMO is a ‘Buy on the Dips’ consideration for me.  

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Disclosure: No position