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Wed, January 26, 2011

VICL, TTHI, SRLS, TSPT, THLD, STEM, Biomed - Genetics Stocks 49.29% undervalued


Published on 2011-01-26 12:31:48 - WOPRAI
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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. VICAL INC (NASDAQ:VICL), TRANSITION THERAPEUTICS INC (NASDAQ:TTHI), SERACARE LIFE SCIENCES INC (NASDAQ:SRLS), TRANSCEPT PHARMACEUTICALS IN (NASDAQ:TSPT), THRESHOLD PHARMACEUTICALS (NASDAQ:THLD), STEMCELLS INC (NASDAQ:STEM) 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               
     VICL       VICAL INC                           2              3.94           49.29% undervalued          Biomed - Genetics      
     TTHI       TRANSITION THERAPEUTICS INC         1.98           7.39           73.22% undervalued          Biomed - Genetics      
     SRLS       SERACARE LIFE SCIENCES INC          4.45           5.24           15.08% undervalued          Biomed - Genetics      
     TSPT       TRANSCEPT PHARMACEUTICALS IN        8.84           18.95          53.34% undervalued          Biomed - Genetics      
     THLD       THRESHOLD PHARMACEUTICALS           1.76           7.04           75.00% undervalued          Biomed - Genetics      
     STEM       STEMCELLS INC                       0.9654         6.93           86.07% 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.

VICAL INC (NASDAQ:VICL) - Vical Incorporated engages in the research and development of biopharmaceutical products based on its deoxyribonucleic acid (DNA) delivery technologies for the prevention and treatment of serious or life-threatening diseases. Its products include Allovectin-7 immunotherapeutic, a Phase III clinical trial product to treat metastatic melanoma; TransVax, a Phase II clinical trial product to prevent viral reactivation and disease after transplant; Prophylactic vaccine for H5N1 pandemic influenza virus, which completed Phase I clinical trial to protect against infection, disease, and/or viral shedding; Prophylactic vaccine for H1N1 pandemic influenza virus, which is under preclinical trial to protect against infection, disease, and/or viral shedding; CyMVectin prophylactic vaccine for cytomegalovirus, which is under preclinical trial to prevent infection before and during pregnancy; and Therapeutic vaccine for herpes simplex type 2 virus, which is under research to prevent recurring flare-ups. The company, through corporate collaborations, develops Collategene angiogenic therapy encoding Hepatocyte Growth Factor, Temusi angiogenic therapy encoding Fibroblast Growth Factor 1, and Angiogenic therapy encoding Hepatocyte Growth Factor to induce local growth of blood vessels to restore blood flow to limbs and heart affected by ischemia; Therapeutic vaccine encoding human telomerase reverse transcriptase to treat non-small cell lung, prostate cancer, melanoma, or carcinomas of the upper GI tract, colon, kidney, or bladder; Prophylactic and/or therapeutic hepatitis C vaccine to protect farm-raised salmon from infection; and ONCEPT therapeutic cancer vaccine encoding human tyrosinase for the treatment to increase survival time of dogs with oral melanoma. Vical Incorporated, through government collaboration, develops Prophylactic and/or therapeutic HIV vaccine to prevent/treat infection or disease. The company was founded in 1987 and is based in San Diego, California.

TRANSITION THERAPEUTICS INC (NASDAQ:TTHI) - Transition Therapeutics Inc., a biopharmaceutical company, develops novel therapeutics for various disease indications primarily in Canada. Its lead products include ELND-005/AZD-103, a Phase II clinical trial product for the treatment of Alzheimer's disease; and TT-223 gastrin analogue, a Phase II clinical trial product for the treatment of diabetes. The companys TT-223 gastrin analogue, includes TT-223 in combination with a GLP-1 analogue as a therapy for the treatment of type 1 and type 2 diabetes, which is under Phase 1b clinical study in type 2 diabetes patients; and TT-223 in combination with EGF analogues that has completed two Phase I clinical trials for the drug candidate in type 1 and type 2 diabetics. In addition, it has an emerging pipeline of preclinical drug candidates developed using its proprietary drug discovery engine. Transition Therapeutics Inc. has a strategic collaboration with Elan Pharma International Limited to develop and commercialize ELND-005/AZD-103 therapeutic agent, as well as a licensing and collaboration agreement with Eli Lilly and Company to develop and commercialize gastrin based therapies, including the lead compound TT-223. The company was formerly known as Transition Therapeutics and Diagnostics Inc. and changed its name to Transition Therapeutics Inc. in December 2000. Transition Therapeutics Inc. was founded in 1987 and is based in Toronto, Canada.

SERACARE LIFE SCIENCES INC (NASDAQ:SRLS) - SeraCare Life Sciences, Inc., a life sciences company, provides products and services to facilitate the discovery, development, and production of human and animal diagnostics, and therapeutics. The companys portfolio includes diagnostic controls, plasma-derived reagents, and molecular biomarkers, as well as biobanking and contract research services. It operates in two segments, Diagnostic & Biopharmaceutical Products and BioServices. The Diagnostic & Biopharmaceutical Products segment provides controls and panels used for the evaluation and quality control of infectious disease tests in hospitals and clinical labs, blood banks, and in vitro diagnostic (IVD) manufacturing; and reagents and bioprocessing products, including biological materials for use in the research, development, and manufacture of human and animal diagnostics, therapeutics, and vaccines. This segment sells various controls and panels to hospital laboratories, independent clinical laboratories, public health laboratories, blood banks, IVD manufacturers, and government regulatory and research agencies; and reagents and bioprocessing products to diagnostic, pharmaceutical, and biotechnology product developers and manufacturers, as well as to research laboratories affiliated with government, academia, and private foundations. The BioServices segment offers biobanking, sample processing, and testing services for research and clinical trials; and contract research support services, including method validation and optimization, preparation of information for FDA submissions, and test kit production in molecular biology, virology, and biochemistry. This segment serves the government and academic institutions, IVD manufacturers, and pharmaceutical and biotechnology companies. SeraCare Life Sciences sells its products through direct sales force and independent distributors primarily in the United States, Europe, and Asia. The company was founded in 1984 and is headquartered in Milford, Massachusetts.

TRANSCEPT PHARMACEUTICALS IN (NASDAQ:TSPT) - Transcept Pharmaceuticals Inc.

THRESHOLD PHARMACEUTICALS (NASDAQ:THLD) - Threshold Pharmaceuticals, Inc., a biotechnology company, engages in the discovery and development of drugs targeting the microenvironment of solid tumors for patients living with cancer. Its product line includes TH-302, a product candidate in Phase I and Phase I/II for the potential treatment of patients with cancer; and 2DG, a product candidate for the potential treatment of patients with cancer and has been evaluated in a Phase I clinical trial alone and in combination with docetaxel as a combination therapy. The company was founded in 2001 and is headquartered in Redwood City, California.

STEMCELLS INC (NASDAQ:STEM) - StemCells, Inc., a biopharmaceutical company, engages in the research, development, and commercialization of stem cell therapeutics and related technologies. It develops cell-based therapeutics for the central nervous system and liver. The companys lead product candidate, HuCNS-SC cells have completed a Phase I clinical trial for the treatment of infantile and late infantile neuronal ceroid lipofuscinosis, a neurodegenerative disease that affects infants and young children. HuCNS-SC cells are also in Phase I clinical trial for the treatment of Pelizeaus-Merzbacher disease, a fatal myelination disorder in the brain. In addition, it involves in preclinical development with its human liver engrafting cells (hLEC) to evaluate hLEC as a potential cellular therapy for a range of liver diseases. Further, the company is developing and commercializing applications of its technologies to enable stem cell-based research to academic and industrial laboratories. It markets a range of proprietary cell culture products under the SC Proven brand, including iSTEM, GS1-R, GS2-M, RHB-A, RHB-Basal, NDiff N2B27, NDiff 2 and 27 supplements, HEScGRO, and ESGRO Complete proprietary media. StemCells, Inc. has exclusive rights to approximately 50 issued or allowed U.S. patents, and 200 granted or allowed non-U.S. patents. The company was founded in 1988 and is based in Palo Alto, California.

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