APOL, CEDU, SVNT, YMI, XOMA, XNPT, Schools Stocks 26.53% undervalued
January 26, 2011 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Schools sector and these stocks are the most undervalued as of today. APOLLO GROUP INC-CL A (NASDAQ:APOL), CHINAEDU CORP-ADR (NASDAQ:CEDU), SAVIENT PHARMACEUTICALS INC (NASDAQ:SVNT), YM BIOSCIENCES INC (AMEX:YMI), XOMA LTD (NASDAQ:XOMA), XENOPORT INC (NASDAQ:XNPT) are all expected to go Up as they are undervalued according to industry standard valuation metrics. The valuation model employs a three-factor approach to stock valuation using fundamental variables--the company's trailing 12-month Earnings-Per-Share (EPS), the analyst consensus estimate of the company's forecasted 12-month EPS, and the 30-year Treasury yield--to create a highly accurate reflection of a company's fair value.
The chart below displays the projected Fair Value and Valuation discount/premium of the most undervalued stocks in the highlighted industry group:
Symbol Company Name Last Close Fair Value Valuation Industry APOL APOLLO GROUP INC-CL A 41.72 56.78 26.53% undervalued Schools CEDU CHINAEDU CORP-ADR 7.834 7.95 1.50% undervalued Schools SVNT SAVIENT PHARMACEUTICALS INC 10.16 12.09 15.97% undervalued Biomed - Genetics YMI YM BIOSCIENCES INC 2.1 2.11 0.48% undervalued Biomed - Genetics XOMA XOMA LTD 5.77 22.98 74.89% undervalued Biomed - Genetics XNPT XENOPORT INC 8.17 21.32 61.67% undervalued Biomed - Genetics
Here are some of the variables that are utilized when calculating the Fair Market Valuation of a stock: Long-run EPS growth rate, Duration of Business-growth-cycle, Volatility of EPS growth rate, Systematic or beta risk of the firm, Correlation between the firm's EPS and the interest rate environment, EPS growth volatility, Dividend payout ratio, Buffer earnings, Interest rate related criteria: Interest rate (30 year yield) long-run level, Duration of interest rate cycle, Interest rate volatility. The Fair Market Valuation uses 12-month historic and forecasted EPS values and the current 30-year treasury yield as primary determinants. When calculating risk/return values such as the Sharpe ratio, the historic periods used are five years.
Some expected results of the Valuation Model are: the valuation of a stock increases in a declining interest rate environment. Increasing current and/or projected EPS will produce a higher Valuation. While long-term EPS growth would produce a corresponding long-term Valuation increase, concomitant long-term interest rate increases would offset EPS growth and depress the Valuation. The shorter a company's own business cycle, the higher its stock Valuation will be.
APOLLO GROUP INC-CL A (NASDAQ:APOL) - Apollo Group, Inc., together with its subsidiaries, provides various educational programs and services at the undergraduate, graduate, and doctoral levels. The company offers associates, bachelors, masters, and doctoral degree programs in arts and sciences, business and management, criminal justice and security, education, human services, health care, psychology, technology, and nursing through its campus locations and learning centers in 39 states and the District of Columbia, and Puerto Rico, as well as through online educational delivery system. It also provides program development, administration, and management consulting services, including degree program design, curriculum development, market research, student recruitment, accounting, and administrative services to private colleges and universities. In addition, the company offers financial services education programs and certification programs in retirement, asset management, and other financial planning areas. Further, it provides degree programs online to working learners in Canada and internationally, as well as offers education and training to professionals in the legal and finance industries in the United Kingdom. Additionally, the company provides educational and administrative services to public schools to operate full-time online high school programs. Apollo Group, Inc. was founded in 1973 and is based in Phoenix, Arizona.
CHINAEDU CORP-ADR (NASDAQ:CEDU) - ChinaEdu Corporation, together with its subsidiaries, provides educational services to the online degree programs of universities in the Peoples Republic of China. Its services include academic program development, technology services, enrollment marketing, student support services, and finance operations. The company offers online degree programs to provide associate and bachelor degree programs in a range of subjects, including accounting, marketing, finance, business administration, international business, law, civil engineering, education, computer science, literature, project management, marketing, and administrative management. Its online degree programs also include academic program development, technology, enrollment marketing, and student support services. The company also provides English language programs to secondary schools and international polytechnic programs to vocational schools in China. In addition, it engages in the operation of private primary and secondary schools; the marketing of international post-secondary and English language curriculum programs to learning institutions; and the provision of online interactive tutoring services to primary and secondary school students. Further, the company provides recruiting services for universities through its nationwide learning center network. ChinaEdu Corporation was founded in 1999 and is headquartered in Beijing, the Peoples Republic of China.
SAVIENT PHARMACEUTICALS INC (NASDAQ:SVNT) - Savient Pharmaceuticals, Inc., a specialty biopharmaceutical company, focuses on developing KRYSTEXXA, a biologic PEGylated uricase in the United States. The KRYSTEXXA is being developed as a treatment for chronic gout in patients refractory to conventional therapy. The company also sells and distributes branded and generic versions of oxandrolone, a drug used to promote weight gain following involuntary weight loss. It sells its products directly to drug wholesalers. The company, formerly known as Bio-Technology General Corp. and changed its name to Savient Pharmaceuticals, Inc. in June 2003. Savient Pharmaceuticals, Inc. was founded in 1980 and is headquartered in East Brunswick, New Jersey.
YM BIOSCIENCES INC (AMEX:YMI) - YM Biosciences Inc., a biopharmaceutical company, engages in the licensing and commercialization of drug products and technologies primarily for the treatment of cancer or cancer-related conditions worldwide. Its approved product Nimotuzumab, a humanized monoclonal antibody that targets the epidermal growth factor receptor, is used for the treatment nasopharyngeal carcinomas, head and neck cancer, refractory children glioma, adult glioma, and stage III/IV glioma. The company is also developing Nimotuzumab for various other epithelial cancers; and AeroLEF, a proprietary formulation of free and liposome-encapsulated fentanyl administered by pulmonary inhalation for the treatment of severe and moderate acute pain, including cancer pain. In addition, its other product candidates include TGFa and HER-1, the anti-cancer vaccines. The company was formerly known as York Medical Inc. and changed its name to YM Biosciences Inc. in February 2001. YM Biosciences was founded in 1994 and is headquartered in Mississauga, Canada.
XOMA LTD (NASDAQ:XOMA) - XOMA Ltd., incorporated in 1981, is a biopharmaceutical company in the field of therapeutic antibody discovery and development. The Company has a royalty interest in one approved therapeutic antibody, RAPTIVA, which is marketed in the United States, Europe and elsewhere, for the treatment of moderate-to-severe plaque psoriasis. XOMA also has a future royalty interest in additional therapeutic antibody product candidates being developed by others as a result of licensing its technologies. XOMA's pipeline includes both products and collaborative programs at various stages of preclinical and clinical development primarily directed toward treatments for cancer and immune disorders. In addition to supporting its product pipeline, the Company uses its infrastructure to provide process development and manufacturing services on a fee-for-service basis.
RAPTIVA (Efalizumab)
The Company markets RAPTIVA under an agreement with Genentech, Inc. as a result of a prior collaborative product development program. RAPTIVA is a humanized therapeutic monoclonal antibody developed to treat immune system disorders. RAPTIVA can be self-administered by patients as a single, once-weekly subcutaneous injection. In 2005, Serono had launched RAPTIVA in over 40 countries worldwide.
RAPTIVA competes with Enbrel from Amgen Inc. and its partner Wyeth Pharmaceuticals; Amevive from Biogen Idec Inc.; BG-12 from Biogen Idec Inc. and Fumapharm AG; Remicade from Centocor, Inc. Humira from Abbott Laboratories, and ISA247 from Isotechnika, Inc.
CHIR-12.12
CHIR-12.12, which is being developed by the Company in collaboration with Chiron Corporation, is an anti-CD40 antagonist antibody intended as a treatment for B-cell malignancies. In April 2005, XOMA announced the initiation of Phase I study for patients with advance chronic lymphocytic leukemia (CLL). Then in October 2005, the Company initiated a second Phase I study for patients with multiple myeloma (MM).
NEUPREX (opebacan/rBPI21)
NEUPREX (opebacan/rBPI21) is an injectable formulation of rBPI21, a modified recombinant fragment of human bactericidal/permeability-increasing protein (BPI). BPI is a human host-defense protein made by a type of white blood cell that is involved in the body's defenses against microbial infection. In October of 2003, in conjunction with Children's Medical Center Dallas, the Company announced the initiation of an open-label, single center, dose escalation, investigator-sponsored, Phase I/II clinical trial of NEUPREX in pediatric patients with congenital heart abnormalities requiring open heart surgery associated with cardiopulmonary bypass.
XMA005.2
XMA005.2 is a Human Engineered monoclonal antibody with a high-affinity and potent inhibitory activity against its inflammatory target. This high potency means that it may be suitable for use as a monthly-dose injectable therapeutic. XOMA is evaluating XMA005.2 in preclinical studies targeting multiple indications, including osteoarthritis and rheumatoid arthritis, where less frequent dosing could be a significant marketing advantage.
Anti-gastrin Mab
In September of 2004, XOMA announced a worldwide collaboration with Aphton Corporation to develop treatments for gastrointestinal (GI) and other gastrin-sensitive cancers using anti-gastrin monoclonal antibodies. Gastrin has been shown to be involved in the progression of colorectal, stomach, liver and pancreatic cancers and inhibiting gastrin may inhibit such growth.
Metabolic Disease Target
The Company is co-developing Metabolic Disease Target with Lexicon Genetics. Metabolic Disease Target is a secreted protein involved in metabolic functions such as insulin sensitivity and weight gain that was identified through Lexicon's Knockout Technology. Antibodies to this target may be developed to treat Type II diabetes, obesity and other metabolic diseases.
MLN2222
MLN2222 (also known as CAB2) is being developed by XOMA in partnership with Millennium Pharmaceuticals, Inc. MLN2222 is a complement inhibitor for coronary artery bypass graft surgery tar
XENOPORT INC (NASDAQ:XNPT) - XenoPort, Inc., a biopharmaceutical company, focuses on developing internally discovered product candidates that utilize the bodys natural nutrient transport mechanisms to enhance the therapeutic benefits of drugs. The company licenses its lead product candidate XP13512, a transported prodrug of gabapentin, to Astellas Pharma Inc. in Japan and five Asian countries, as well as to Glaxo Group Limited (GSK) in the United States and internationally. Astellas and GSK filed new drug applications for the approval of XP13512 as a treatment for restless legs syndrome in Japan and the United States. The company also develops Arbaclofen Placarbil, which is under Phase IIb clinical trials for the treatment of gastroesophageal reflux disease. In addition, it develops Arbaclofen Placarbil that has completed Phase II clinical trials for the treatment of spasticity. Further, the company develops XP21279, a transported prodrug of L-Dopa, which has completed Phase I clinical trials for the treatment of Parkinsons disease; and XP21510, a transported prodrug of tranexamic acid, that is in preclinical stages for the treatment of menorrhagia or heavy menstrual bleeding. XenoPort, Inc. has strategic alliances with Astellas Pharma, Inc. and Glaxo Group Limited. The company was founded in 1999 and is based in Santa Clara, California.
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