Tuesday, March 1, 2011
Labopharm Underwhelms, Capstone's Big Order, Amarin's Entry Point, Feuerstein Slams RPC
DDSS: Shares of Labopharm set a new 52-week low on Tuesday, after having released an underwhelming quarterly release last week.
You had to know that things weren't all peachy for the company when the "commercial activities" mentioned at the beginning of the company's earnings press release highlighted "physician visits" by the sales staff and "free samples" before product sales even received mention.
The company also noted that OLEPTRO sales were not where the company had previously predicted they would be at the current time.
With the significant dip in price over the past weeks, DDSS may look like a nice 'buy the dip' play, but while I do think the stock will rebound during the year, I'm taking a little break from this one for now.
Unless Italian partner Angelini is going to market OLEPTRO to Silvio Berlusconi as an afrodisiac, then it's going to be slow going for Labopharm.
There's a few milestone events still developing that make DDSS a speculative mid to longer term pick, so it's still worth keeping an eye on; and that's not to say that a quick rebound back to the dollar level might not occur once the bad earnings have been digested.
Disclosure: No position.
CPST: Capstone Turbine announced a pretty significant order last week, an order to supply 24 C65 microturbine units to support the Eagle Ford shale play in South Texas.
The announcement of this purchase, a re-order from an original 18-unit order that was placed last summer, underlies the long term viability of Capstone as a player in the green energy sector and also spurred a move back to the $1.50 mark for the CPST stock.
CPST had previously dipped back down towards 'buy territory' after spiking following a positive earnings report.
Capstone is still one to watch in the alternative energy/green sector.
Disclosure: Long CPST.
AMRN: Amarin Corporation finds its shares trading to the lower side of $7.50 on Tuesday, after posting over two months of solid gains from right around the three dollar mark.
Positive trial results back in December for AMR101 started the run, and follow-up news about the expected early completion of a second Phase III trial for AMR101 is what spike the stock to over nine dollars.
The current pullback may be offering investors who missed out on the first run a second chance, although it's unlikely, in my opinion, that we'll see anything close to three bucks again, barring any unexpected bad news.
Keep an eye on AMRN. In this market, with the shaky global geo-political situation providing a reality check, you never know just how low this dip could go.
Disclosure: No position.
RPC: Long shareholders of Radient Pharmaceuticals were without a doubt unhappy with TheStreet.com on Tuesday, as that website's biotech blogger, Adam Feuerstein, produced another one of his infamous hatchet jobs on companies that he's got a beef with.
Radient was the target this time, but more important that who the target was, Mr. Feuerstein once again provided an exclamation point next to every reason why he's NOT a journalist, even though he'll tell you all day long that he is one.
I've said it a few times before, that journalism is about reporting the news, not speaking or writing about it with a biased twist - that's called OpEd.
In what might have been a valid 'other side' to the Radient story, Feuerstein discredited the entire piece and his supporting 'facts' by selling it more as a third grade note between two feuding females than as a journalistic work of stock and company analysis.
Drama sells, especially in America, and that is why there's no chance you'll get a drama-free report from TheStreet's biotech blog. The point is to get you to click on the story, and then rile you up enough to click again when you post a comment. And that's not even taking into account the fact that you've got to click five different pages to read one story.
This guy would love to have you believe that he provides his audience with some nice "Ah-Hah!" moments on his blog, but more truthfully you'll find yourself saying, "HA-HA" at the fact that the biotech blogger considers himself a journalist.
There's more journalism in a Garfield comic strip than there is at TheStreet.com. There's obvious bias at work, and to make the story even more comical, Feuerstein is like the horse getting led by the carrot. He's doing a pretty good job at keeping up with BioMedReports.com and then posting a 'counter-opinion' on his own blog.
Investors should dissect the Radient story based on their own DD, and take with a grain of salt anything you read about any stock on a blog - especially one that puts bias, drama and emotion above an honest and down-to-earth reporting of the facts.
And you wonder why people looking for true reporting of news flock to the European news channels.
Disclosure: No position.