Aug 27, 2010 10:04 AM PDT
SCLN: Gains 6.10% on $0.04 in Diluted Q3 EPS
GPOR: Rides $0.16 EPS from Last Thursday
CHRS: Gains 9.47% on Swing toward 52-Week High
Gaining 6.10% this morning is SciClone Pharmaceuticals, Inc., (SCLN) http://www.sciclone.com/ currently trading in the $3.16 range. SCLN is a very heavily traded SmallCap. The story here is a comeback tale. Can SCLN make it? Yes.
On September 1, 2009, SCLN set a 52-week high of $5.33 and a look at the chart will see the Company's fall to a big valley in late November. SCLN is a resilient company. It has trailing twelve month revenues of $66 million (not bad for a SmallCap Bio-Pharma) and even managed to return a positive $0.11 diluted EPS during the 'great recession'.
SCLN released its Q3 2009 results this mornings and thus the gain supported by investors. SCLN had revenues for Q3 that grew 20% to $17.2 million compared with the same period last year. Twice the EPS over Q3 2008: $0.04 per share vs. $0.02 per share.
The CEO noted today, "We are proud of our commercial and financial results this quarter which allowed us to build on our strong cash position and moved SciClone closer to achieving full year profitability."
For the nine months ended September 30, 2009, net income was $9.5 million, or $0.20 per basic and diluted earnings per share, compared with a net loss of $5.2 million or $0.11 per share on a basic and diluted basis for the same period last year. Nice comeback y-o-y. I said SCLN was resilient.
Eggs in a Basket
SCLN sells Zadaxin in China. It's a booster drug of sorts for H1N1 vaccines and is in trials in the U.S. and in Italy. But I like the fact that SCLN has more than one product going for it. Its SCV-07 drug is into Phase II trials for treating Hepatitis C. SCV-07 is also in Phase II trials for as a treatment for severe oral mucositis. SCLN also holds Chinese marketing rights from Biocompatibles International for DC Bead, a product for the treatment of liver cancer or hepatocellular carcinoma.
GUIDANCE
SCLN management also updated its full year 2009 revenues this morning. They expect full year 2009 revenues between $70-72 million (a 29-33% increase over 2008) and full year 2009 EPS of $0.18 to $0.22.
I also like the fact that management at SCLN is bottom-line prudent, they cut 7 jobs late in October (17% of its U.S. workforce) and they are honest: In October they discontinued a clinical trail of RP101 for the treatment of late-stage pancreatic cancer following the recommendation of the Data Safety Monitoring Committee. No crying and complaining; just stopped it.
I believe SCLN can retrieve some of its lost value. At $3.16, I think the stock could make a near-term (3 Mo) run for the $4 level. This is a 'Watch Closely' stock for me. Official news about the progress of drug trials wouldn't hurt and hiring back those 7 people would be a real comeback.
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SCLN GPOR
Gaining 5.25% this morning is Gulfport Energy Corporation (GPOR) http://www.gulfportenergy.com/ currently trading in the $8.42 range. Just the name of the company gave new investors shivers this morning considering Hurricane Ida was on the way, but GPOR is based in Oklahoma City, OK and while it does do a lot of business in Louisiana, Ida has been downgraded this morning to a tropical storm. Good news.
GPOR is off approximately $1.18 from its 52-week high of $9.60 set on 10-21-09. I believe GPO set a floor at the $8 level in September-October, and even though it's been spiking up and down, I believe this is a near-term 'Buy' at its current price as a strong dollar has held oil in the $70-72 range. As the market settles and oil returns against a weaker dollar, I believe GPOR will set a new high.
Last Thursday, GPOR released its Q3 2009 earnings and solid revenues are pushing the stock higher. GPOR reported net income of $6.7 million on $22.2 million in revenues or $0.16 per diluted share.
Sequential Increases
GPOR produced oil and gas sales volumes of 415,716 barrels of oil in Q3 09, an 8% sequential increase over Q2 09 and GPOR's net income was a 31% increase over Q2 09. GPOR also posted $14.8 million Q3 09 EBITDA, a 14% increase over Q2 09 and the Company reduced its total debt by $9.2 million, a 14% reduction from the balance at the end of Q2 09.
GPOR has drilling interests in West Texas, Canada, Asia and has drilled a total of thirteen wells in Southern Louisiana since beginning its 2009 drilling program in June of 2009.
CHRS 3-Month CHRS 1-Month
Gaining 9.47% this morning is Charming Shoppes Inc., (CHRS) http://www.charmingshoppes.com/ currently trading in the $5.26 range. A five dollar value proposition for a company with $2.25 billion in trailing twelve month revenues; Amazing.
CHRS is a very, very heavily traded SmallCap. At its current price of $5.26, CHRS is $0.58 away from its 52-week high of $5.84 set on 10-23-09. I think the disparity is a near-term problem and this is a 'Buy' for me. I think the bottom here is $4.80 with some more wild swings to the $5.40-60 range to come. With a good holiday season, I think it can set a threshold at a new high of $5.85.
CHRS just did something very smart. The clothes retailer got out of the credit card business. Smart. An 8-k filed 11-03 will give you the details. In short, CHRS received $136 million in cash from Alliance Data and the latter will now provide CHRS with its credit card services. Bank of America, Merrill Lynch and Barclays Capital served as financial advisors to CHRS.
CHRS operates women's clothing stores including: Lane Bryant, Lane Bryant Outlet, Fashion Bug, Catherines Plus Sizes, Petite Sophisticate and Petite Sophisticate Outlet. CHRS operated 2,301 stores as of 01-31-09.
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