Archive for the ‘Health Care Stocks’ Category

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Buzz Stock of the Day – Healthcare Services Group (HCSG)

Wednesday, April 15th, 2009


Healthcare facilities management companies were up today, led by our Buzz Stock of the Day — Healthcare Services Group, Inc. (Nasdaq: HCSG).

The Bensalem, Pa.-based company, which provides maintenance, food services and housekeeping to hospitals, retirement homes and rehabilitation centers reported first quarter profit of $7.7 million, or $0.18 per-share, a 13 percent increase over the same period last year.

Analysts estimated EPS of $0.17 per share for the quarter.

Revenue for the quarter increased 9 percent to $160.45 million, from $147.2 million a year earlier. The company also declared a first quarter cash dividend of $0.18 per common share, payable on May 15, 2009 to shareholders on record at the close of business on April 24, 2009. This marks a 6 percent increase over the dividend declared for the 2009 first quarter and a 29 percent increase over the 2008 same period payment. It is the 24th consecutive regular quarterly cash dividend payment, as well as the 23rd consecutive increase since the company initiated a regular quarterly cash dividend payments in 2003.

HCSG has quarterly revenue growth (yoy) of 5.2 percent, and has generated EBITDA of $44.7 million, on revenue (ttm) of $602.7 million. The company has an operating margin of nearly 7 percent, and has plenty of cash on hand. We like HCSG because it generates healthy operating cash flow and levered free cash flow, and has consistently raised its quarterly dividend.
The company also doesn’t take any reimbursement revenue, and all of its fees are paid in cash by customers. That protects Healthcare Services Group, Inc. from cuts or other changes in reimbursement rates, and despite the economic downturn, nursing homes need the company’s services, and are unlikely to cut them due to budget constraints.

The company also just announced an asset purchase agreement with Contract Environmental Services, Inc., a provider of professional housekeeping, laundry and food services to long-term care and related facilities. The transaction is expected to close around May 1st, and add more than $40 million to HCSG’s annual revenue, “as well as being accretive to future earnings per share,” according to the company’s first quarter earnings release.

As of December 31, 2008, Healthcare Services Group, Inc. provided services to approximately 2,100 facilities in 47 states.

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Buzz Stock of the Day – Antigenics (AGEN)

Tuesday, April 14th, 2009

Last month, cancer vaccine developer, Antigenics, Inc. (Nasdaq: AGEN) announced that its personalized cancer treatment, Oncophage(R) was granted a positive recommendation by the Committee for Orphan Medical Products (COMP) of the Europen Medicines Agency (EMEA) for orphan drug designation for the treatment of giloma, a life-threatening cancer that starts in the brain or spine.

Results from a Phase 1, 12 patient investigator-sponsored study, showed that the overall median survival was approximately ten and a half months, with four patients surviving beyond 12 months and one patient surviving almost two and a half years.

This compares with survival based on historical experiences in a similar patient population, which is in the range of six and a half months. The company is currently enrolling patients for the Phase 2 portion of the study, which is ongoing and has enrolled about two-third of its target patients, according to Antigenics’ chairman and CEO, Garo Armen, PhD.

Oncophage is already approved as an adjuvant treatment for early stage kidney cancer in Russia, where the company is still seeking commercial partners and government reimbursement. Russia has only recently launched proprietary products from western companies, and there are additional uncertainties including the company securing the necessary partnerships and government funds to successfully launch the product.

Antigenics’ bread and butter is its licensing revenue from QS-21, an adjuvant that’s used in various vaccines. Antigenics’ licensees include GlaxoSmithKline and Elan. There are currently 16 vaccines that cover a number of indications including non-smal cell lung cancer, malaria, HIV, melanoma, and influenza that use QS-21. GSK’s malaria vaccine, which uses the adjuvant, should enter a phase 3 study across Africa in the “very near term,” according to Armen.

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Buzz Stock of the Day- Misonix (MSON)

Monday, April 13th, 2009


There were more than 28,000 prostate cancer-related deaths in 2008.

Many of the current treatments including radiation and hormone therapies either result in a recurrence of the cancer, or have harsh side effects such as osteoporosis and anemia.

Minimally invasive treatments in late clinical trials are showing promise, however.

Our Buzz Stock of the Day — Misonix, Inc. (Nasdaq: MSON) — is developing a prostate cancer therapy based on High Intensity Focused Ultrasound (HIFU) technology. The company’s HIFU-based therapy is in Phase III clinical trials at a number of academic centers throughout the U.S.

In 1999, Misonix obtained a 20 percent equity position in Focus Surgery, a company leading the way in High Intensity Focused Ultrasound (HIFU) technology. Misonix manufactures the product for Focus Surgery. Misonix also markets the SB500 in the United Kingdom, Europe and Russia.

Treatment time using HIFU is usually 3-4 hours, and patients will more than likely be discharged the same day, or next day at the doctors discretion, according to Misonix’s Web site.

We like Misonix because the company makes money from its portfolio of ultrasonic medical devices that are being used in cosmetic surgery, neurosurgery, and laparoscopic surgery; is aggressively expanding its geographic footprint, and has a very promising pipeline.

For the three months ended December 31, Misonix reported net income of $194,000, or $0.03 per-share, compared with a net loss of $117,000 or $0.02 per-share. Revenue for the company’s second fiscal quarter increased 5.1 percent over the same period last year, largely due to sales growth for the company’s medical device products.

“Our medical device business made solid progress as we expanded our sales opportunities both domestically and internationally,” said Misonix CEO, Michael McManus in an earnings release.

The company has made continued strides to expand it sales and distribution network recently, and announced several agreements to enter new markets including Eastern Europe, Belgium and Luxenbourg, and Israel.

Misonix also recently strengthened its balance sheet by selling its Ultrasonic Laboratory non-core business for $3.5 million.

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Buzz Stocks for the week of 3/16/09- CELG, RMDX, LOCM, RJET, PANL

Friday, March 27th, 2009

Here’s a quick recap of this week’s Buzz Stocks.

3 out of our 5 daily buzz stocks ended the week higher.

Monday
Buzz Stock of the Day:
Celegene Corp. (Nasdaq: CELG)
Open (3/23/09): $47.19
Close (3/27/09): $46.04
Percentage Change: -2.4 percent
Click here to read the post

Tuesday
Buzz Stock of the Day:
RemoteMDx, Inc. (OTCBB: RMDX)
Open (3/24/09): $0.13
Close (3/27/09): $0.17
Percentage Change: +23.5 percent
Click here to read the post

Wednesday
Buzz Stock of the Day:
Local.com, Inc. (Nasdaq: LOCM)
Open (3/25/09): $2.36
Close (3/27/09): $2.26
Percentage Change: -4,2 percent
Click here to read the post

Thursday
Buzz Stock of the Day:
Republic Airways Holdings, Inc. (Nasdaq: RJET)
Open: (3/26/09): $5.11
Closed (3/27/09): $5.96
Percentage Change: +16.6 percent
Click here to read the post

Friday
Buzz Stock of the Day:
Universal Display Corp. (Nasdaq: PANL)
Open (3/27/09): $9.29
Close (3/27/09): $9.34
Percentage Change: +0.5 percent
Click here to read the post

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Buzz Stock of the Day- Celgene (CELG)

Monday, March 23rd, 2009


One of two things will happen within the biotech sector over in the short-run:

“We’ll either see a lot of companies disappear after their funds run out, or we’ll see a wave of consolidation in biotech,” said Michael Becker, CEO of consulting firm MD Becker Partners.

Coming to the table with speculative science in today’s market, as IBD pointed out, is an exercise in futility for small biotech companies looking to borrow money, or go public.

If biotech investing is appealing to you, we suggest you look at two criteria for companies:

1. Companies with operating cash flow
2. Companies that are likely acquisition targets

Our Buzz Stock of the Day, Celegene Corp. (Nasdaq: CELG) meets both. The New Jersey-based company generates strong free cash flow, yielded returns of 19.6 percent in 2008, and is projecting future growth.
According to a recent Motley Fool article, more than 95 percent of the Web site’s community are bullish on the stock.

New data expected later this year to support front-line use of the company’s myeloma treatment drug, Revlimid could also result in a “modest” uptick in U.S. adoption of the drug, according to a Cowen and Co. survey.

Celgene Corp. has about $2.2 billion in cash, and has quarterly revenue growth (yoy) of 51.5 percent. The company has operating free cash flow (ttm) of $182.1 million, and out performed the S&P 500 over the last 12 months. Shares of Celgene trade about 18 percent above their 52-week low.

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