Aug 27, 2010 10:04 AM PDT
Trends, Observations, and Exclusive Opinion
Three SmallCaps Not to be Overlooked
SBGI: 58 Television Stations in 35 Markets
SPAR: Company Holds its Own During Auto Sector Debacle
BIOD: Insulin that Adjusts Automatically to Changing Glucose Levels
First up this morning we have Sinclair Broadcast Group Inc., (SBGI) http://www.sbgi.net/ currently trading in the $6.20 range on a 3-Month average daily trading volume of 510,802 shares. SBGI has a 52-week high of $7.96 set on 04-26-10 with current trailing twelve month revenues of $671+ million. SBGI operates television stations and broadcasts free over-the-air programming comprised of network provided programs; news produced locally; local sporting events; and syndicated entertainment programs. As of December 31, 2009, SBGI owned or provided programming and operating services pursuant to local marketing agreements, or provided sales services pursuant to outsourcing agreements to 58 television stations in 35 markets. I wrote about SBGI in the beginning of June when there was some big changes in management; a new station mgr., a couple of new VPs promoted from within, and the board was re-elected. I gave SBGI a ‘Buy’ consideration then and I’m sticking with that. SBGI will report its Q2 ’10 results at 7:30 a.m. EST on Wednesday, August 4.
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Next up this morning we have S&P SmallCap 600 company Spartan Motors Inc., (SPAR) http://www.spartanmotors.com/ currently trading in the $4.82 range on a 3-Month average daily trading volume of 270,652 shares. SPAR has a 52-week high of $7.90 set on 07-27-09 with current traing twelve month revenues of $436+ million and a positive, corresponding diluted EPS of $+$0.17. I like those earnings. $3+ down from its high a year ago today, SPAR is a short-term (6 Mo) ‘Buy’ consideration for me. SPAR builds custom vehicle and truck chassis and bodies for the auto industry and the Co survived the industry realignment during the recession. Now with the ‘playing field’ a bit clearer, SPAR could return to its high during the recovery. Last week SPAR, which had implemented its own realignment plan, posted a net loss for the quarter of $2.6 million, which included ‘the unfavorable impact of these actions.’ Before one-time restructuring charges; adjusted net earnings from continuing operations was a positive $0.9 million, or $0.03 per diluted share. Investors shouldn’t be surprised if the Co sells off its Road Rescue division. It is an under-performing division and the Co has publicly said it has been ‘receiving offers.’
Finally this morning we have Biodel Inc., (BIOD) http://www.biodel.com/ currently trading in the $4.08 range on a 3-Month average daily trading volume of 306,458 shares. BIOD has a 52-week high of $6.25 set on 05-10-10. Dropping more than $2+ in the last 10-weeks, BIOD is a ‘Buy on the Dips’ consideration for me. BIOD is a Pharma development and commercialization Co focused on treatments for diabetes. BIOD develops its product candidates by utilizing its proprietary VIAdel technology that allows the study of interaction between peptide hormones and small molecules. Its product candidates include VIAject, an injectable formulation of recombinant human insulin, which has completed two pivotal Phase III clinical trials for the treatment of Type 1 and Type 2 diabetes; and VIAtab, a sublingual tablet formulation of insulin, which has completed Phase I clinical trial for Type 1 diabetes. Earlier this month BIOD reported results of preclinical tests which demonstrated the potential of the company's glucose-regulated or "smart" basal insulin product candidate, BIOD620, to release insulin proportionally in response to changing glucose conditions. That is a Big Deal in the treatment of diabetes. BIOD620 is BIOD’s proprietary injectable formulation of insulin glargine that has been designed to alter its insulin release profile in response to changing glucose concentration. Dr. Solomon Steiner, chief scientific officer of BIOD said, “We are excited about these results because they suggest we have developed a new form of basal insulin that adjusts automatically to changing glucose levels.”
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