ATHX, ASTM, ARRY, ARNA, ANDS, AMLN, Biomed - Genetics Stocks 20.48% undervalued
January 26, 2011 / M2 PRESSWIRE / BUYINS.NET / http://www.squeezetrigger.com is monitoring the Biomed - Genetics sector and these stocks are the most undervalued as of today. ATHERSYS INC (NASDAQ:ATHX), AASTROM BIOSCIENCES INC (NASDAQ:ASTM), ARRAY BIOPHARMA INC (NASDAQ:ARRY), ARENA PHARMACEUTICALS INC (NASDAQ:ARNA), ANADYS PHARMACEUTICALS INC (NASDAQ:ANDS), AMYLIN PHARMACEUTICALS INC (NASDAQ:AMLN) 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 ATHX ATHERSYS INC 2.88 3.62 20.48% undervalued Biomed - Genetics ASTM AASTROM BIOSCIENCES INC 2.81 7.11 60.47% undervalued Biomed - Genetics ARRY ARRAY BIOPHARMA INC 2.95 8.96 67.06% undervalued Biomed - Genetics ARNA ARENA PHARMACEUTICALS INC 1.98 7.92 75.00% undervalued Biomed - Genetics ANDS ANADYS PHARMACEUTICALS INC 1.28 3.72 65.56% undervalued Biomed - Genetics AMLN AMYLIN PHARMACEUTICALS INC 15.05 27.7 45.67% 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.
ATHERSYS INC (NASDAQ:ATHX) - Athersys, Inc., a biopharmaceutical company, engages in the discovery and development of therapeutic products in various disease areas in the United States. Its product pipeline includes MultiStem, a novel allogeneic approach to stem cell therapy and regenerative medicine for treating a range of diseases. The company also develops orally active pharmaceutical products for the treatment of obesity and certain central nervous system disorders, including narcolepsy, excessive daytime sleepiness, and chronic fatigue, as well as other potential indications consisting of attention deficit hyperactivity disorder and other cognitive disorders, including schizophrenia. It has product co-development collaboration with Angiotech Pharmaceuticals, Inc. for the potential application of MultiStem in multiple cardiovascular indications, including myocardial infarction, peripheral vascular disease, and certain other indications. In addition, the company has a collaboration agreement with Pfizer Inc. to develop and commercialize MutiStem for the treatment of inflammatory bowel disease. Athersys, Inc. was founded in 1995 and is based in Cleveland, Ohio.
AASTROM BIOSCIENCES INC (NASDAQ:ASTM) - Aastrom Biosciences, Inc. engages in developing autologous cell products for the treatment of severe, chronic, and cardiovascular diseases. The company's proprietary tissue repair cell (TRC) technology expands the numbers of stem and early progenitor cells from a small amount of bone marrow collected from the patient. The company is conducting a Phase II cardiac regeneration clinical trial (the IMPACT-DCM trial) in patients with dilated cardiomyopathy (DCM severe chronic heart failure) and a Phase IIb vascular regeneration clinical trial (the RESTORE-CLI trial) in patients with critical limb ischemia (CLI the most severe form of peripheral arterial disease). Aastrom Biosciences would also initiate its U.S. Phase II clinical trial to evaluate the catheter delivery of CRCs for the treatment of DCM. The company was founded in 1989 and is headquartered in Ann Arbor, Michigan.
ARRAY BIOPHARMA INC (NASDAQ:ARRY) - Array BioPharma Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of small molecule drugs to treat patients with cancer, inflammatory, and metabolic diseases in North America, Europe, and Asia Pacific. Its programs under development pipeline include ARRY-403, a glucokinase activator for Type 2 diabetes, that is in a Phase 1 multiple ascending dose trial; ARRY-162, a MEK inhibitor for cancer that is in a Phase 1 trial; ARRY-380, an ErbB-2 inhibitor for breast cancer, which is in Phase 1 dose escalation trial; and ARRY-520, a KSP inhibitor that is in Phase 1 expansion trial in solid tumors and Phase 1/2 acute myeloid leukemia and multiple myeloma trials. The companys programs also comprise ARRY-614, a p38/Tie 2 dual inhibitor, which is in Phase 1 trial in myelodysplastic syndrome patients; ARRY-543, an ErbB family (ErbB-2/EGFR) inhibitor for solid tumors that is in Phase 1b combination trials; ARRY-797, a p38 inhibitor for subacute pain and cancer supportive care indications; and ARRY-300, an MEK that completed Phase 1 trial in healthy volunteers. It has collaborations with Celgene Corporation focusing on the discovery, development, and commercialization of novel therapeutics in cancer and inflammation; Genentech, Inc. to develop cancer programs; and AstraZeneca, PLC, which licensed the companys three MEK inhibitors for cancer, including AZD6244 (ARRY-886). The company was founded in 1998 and is headquartered in Boulder, Colorado.
ARENA PHARMACEUTICALS INC (NASDAQ:ARNA) - Arena Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on discovering, developing, and commercializing oral drugs in the therapeutic areas of cardiovascular, central nervous system, inflammatory, and metabolic diseases. The company also discovers small molecule drug candidates that target G protein-coupled receptors (GPCRs). Its clinical development programs include lorcaserin that has completed Phase III clinical trials for the treatment of weight management; APD791, an anti-thrombotic drug candidate, which completed Phase Ia and Phase Ib clinical trials; APD597 that is in Phase I clinical trials for the treatment of type II diabetes; APD916, which has completed preclinical development for the treatment of narcolepsy and cataplexy; and APD811, a preclinical drug candidate for the treatment of pulmonary arterial hypertension. The companys drug candidates use GPCR-focused drug discovery and development approach, as well as technologies, including Constitutively Activated Receptor Technology and Melanophore Technology. It has collaboration agreements with Ortho-McNeil-Janssen Pharmaceuticals, Inc. to further develop compounds for the potential treatment of type II diabetes and other disorders; and Merck & Co., Inc. to develop therapeutics for atherosclerosis and other disorders. Arena Pharmaceuticals also has a strategic cooperation agreement with Siegfried Ltd to manufacture lorcaserin. The company was founded in 1997 and is based in San Diego, California.
ANADYS PHARMACEUTICALS INC (NASDAQ:ANDS) - Anadys Pharmaceuticals, Inc., a biopharmaceutical company, engages in developing medicines in the areas of hepatitis C. It develops ANA598, a small-molecule non-nucleoside inhibitor of the NS5B polymerase for the treatment of hepatitis C; and ANA773, a Phase I trial product, an oral toll-like receptor 7 for the treatment of hepatitis C and cancer. The company was formerly known as Scriptgen Pharmaceuticals, Inc. and changed its name to Anadys Pharmaceuticals, Inc. in May 2000. Anadys Pharmaceuticals was founded in 1992 and is headquartered in San Diego, California.
AMYLIN PHARMACEUTICALS INC (NASDAQ:AMLN) - Amylin Pharmaceuticals, Inc. engages in the discovery, development, and commercialization of drug candidates for the treatment of diabetes, obesity, and other diseases. The companys products include BYETTA (exenatide) injection for the treatment of type 2 diabetes; and SYMLIN (pramlintide acetate) injection for the treatment of type 1 and type 2 diabetes. It also has research and development (R&D) programs in the therapeutic areas of diabetes and obesity. The companys R&D programs for diabetes include exenatide once weekly, exenatide once weekly pen, exenatide suspension formulation, exenatide nasal, and the exenatide transdermal patch. Its R&D programs for obesity comprise pramlintide/metreleptin combination therapy and PYY 3-36. The company markets its products to healthcare providers, managed healthcare organizations, wholesalers and pharmacies, government purchasers, and other third-party payers primarily in the United States. It has collaboration agreements Eli Lilly and Company; Alkermes, Inc.; Takeda Pharmaceutical Company Limited; Biocon, Ltd.; and BioSeek, Inc. The company was founded in 1987 and is based in San Diego, California.
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