Wednesday, June 24, 2009

Wednesday's Stock Briefs/Updates

KERX: It's usually a positive indicator for a stock when insiders buy shares of a company because it tells investors that those insiders are confident enough that they are willing to put their own money on the line alongside the common shareholders. This week insiders continued to buy shares of Keryx Biopharmaceuticals (KERX).

While it may be a positive indicator for the KERX stock, I got a good chuckle out of the amount of shares that were purchased and the total cost of the transactions. The most recent transactions, according to filed SEC paperwork, were for a whopping total of a few hundred bucks! Don't get me wrong, an insider buy is an insider buy, but you expect to see a whole lot more shares purchased and money spent when insiders buy.

I'm not quite sure how to take these small buy amounts, but I'd never buy based solely on the actions of insiders anyway.

I have accumulated a few shares of Kerx over the past couple of months based on the positive Phase II results of their lead drug candidates.

KRX-0401, an oral anti-cancer agent, is being prepped for a Phase III trial and has demonstrated to be effective and safe in Phase II trials.

Zerenex was also shown to be safe and effective in the treatment of Hyperphosphatemia in End-Stage Renal Disease Patients.

KERX could be a while before paying off investors, but I like to stagger my investments from short to long term and I thought KERX made a fairly compelling long term pick.

I'm still chuckling over the most recent insider buys, however.

Disclosure: VFC is long KERX

55% OFF TV on DVD at Expires June 30

CRYP: Shares of online gaming software maker CryptoLogic Limited (CRYP) have remained stable at around six dollars and could benefit from proposed legislation by Barney Frank to legalize online gambling in the United States.

A couple of years ago shares of CRYP traded for nearly thirty dollars before Congress put a ban on online gambling in the US.

CryptoLogic has numerous contracts in place to supply software to the online gaming market, as well as the on and off line gambling markets. Additionally, various licensing deals, including with DC Comics, Marvel (MVL) Entertainment and Paramount, allow them to utilize copyrighted characters in conjunction with their software which helps to boost their exposure.

The company has recently undergone corporate restructuring and, in an effort to return to profitability, has also undertaken significant steps to reduce cash burn as a slew of recent marketing agreements have been established. These restructuring measures, a growing business and a push by members of Congress to legalize online gambling could make CRYP a bargain at $6.

Let's make no mistake about the intentions Barney Frank and Congress, however. By no means are they looking out for the American people or for companies such as CryptoLogic; this is simply another revenue stream, as Congress will heavily tax gambling profits and then use those taxes to fund a whole bunch more pork barrel projects that the American people don't want.

That being said, I like the chances of CRYP trading significantly higher over the course of the next year. If a measure to allow online gambling in the US ultimately garners approval in Congress, CRYP should rally just as easily as it dropped after the ban took effect.

Disclosure: VFC is long CRYP

World of Warcraft 125x125

Don't forget to accumulate these: The pink sheets and a drop in volume has Titan Pharmaceuticals ( out of the spotlight again, but with Vanda's (VNDA) Fanapt due to hit pharmacy shelves later this year, TTNP is bargain for a dollar.

Titan will receive up to 10% in royalties on net Fanapt sales.

Even if Vanda were to completely bungle the Fanapt launch, the current market cap of Titan does not warrant the value of the pending revenue stream.

Disclosure: VFC is long TTNP and has no position in VNDA

CVM: Shares of Cel Sci (CVM) are back to trading for forty cents as the company prepares to launch a Phase III trial for it's head and neck cancer treatment, Multikine, later this year- if all goes as expected.

Cel Sci also holds inherent value with the potential of it's L.E.A.P.S. technology and potential shelf-life extending products.

I'm continuing to add at these low prices.

Disclosure: VFC is long CVM

C: I can't help but get the feeling that Citi wishes it never went into business with the government. To paraphrase a famous Don Corleone line, "Citi keeps trying to get out, but gets pulled back in!" That goes for everyone who took tarp.

It's tough to look around at the auto makers and financial institutions and not feel like we're living in Venezuela, but at least the unions and the thousands more who will get hired into increased government bureaucracy over the next few years are sitting pretty.

For Citi, $3 continues to be accumulation level for VFC.

The bad times are far from over and some credit card and mortgage write-downs will continue, but things are stabilized enough to where these big financial institutions could come out with surprising profits over the next few quarters.

Citi has also announced that they will be increasing employee pay to offset the loss of bonuses. I don't see them making this move if they seriously hurting for cash and I also see it as a thumb in the eye to lawmakers who are continuously butting into private industry.

C is more beat down than most and could therefor be in for a better recovery than most.

Disclosure: VFC is long C

CSUH.ob: I could be wrong, but I have a feeling we're going to see a very good quarter from Celsius Holdings.

Advertising in the northeast has been picking up and local news reports, such as the most recent one in Miami, that highlight the product in 'weight loss success stories' does wonders for product awareness.

Although settled in my position of this stock, I added this week in anticipation of possible surprise earnings for next quarter.

I also like the fact that the trading volume has remained fairly consistent with the daily average.

Disclosure: VFC is long CSUH.ob

No comments:

Post a Comment

Follow by Email