Trends, Charts and Exclusive Opinion
Three SmallCaps Push the Ball Forward
STAA: Index Inclusion Nudges Stock to New 52-Week high
ARNA: Phase III Results Highlighted at American Diabetes Association
WWWW: Co Buys Register.com for $135 Million
First up this morning we have STAAR Surgical Company (STAA) http://www.staar.com/ currently trading in the $5.44 range on a 3-Month average daily trading volume of nearly 100k shares. STAA has a 52-week high of $5.49 set on 06-22-10 with current trailing twelve month revenues of $79+ million. STAA makes and sells implantable lenses for cataracts and refractive surgery. STAA also makes intraocular lenses (IOL’s) that include silicone Toric IOL, which is used in cataract surgery to treat preexisting astigmatism; a Preloaded Injector, a three-piece silicone or acrylic IOL preloaded into a single-use disposable injector; Aspheric IOLs that provide a clearer image than traditional spherical IOLs; and nanoFLEX IOL, a single-piece collamer aspheric IOL. The good news for STAA last week was that it has been included on a list of preliminary additions to the Russell 3000 Index, the Russell Microcap Index and the Russell Global Index posted by Russell Investments on June 11, 2010 on http://www.russell.com/. These changes are expected to go into effect after the close of trading on Friday, June 25, 2010. Initial inclusion in the Russell indexes may lead to an increase in trading volume of STAAR Surgical shares if investment funds that track the index add the shares to their portfolios. I gave STAA a ‘Buy’ consideration in ’09 and I’m sticking with that in the short-term (6 Mo) this summer.
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Next up this morning is Arena Pharmaceuticals Inc., (ARNA) http://www.arenapharm.com/ currently trading in the $3.07 range. ARNA has a 52-week high of $5.93 set on 09-18-09 with current trailing twelve month revenues of $10+ million. Last week ARNA announced that new data analyses from Lorcaserin's pivotal Phase III clinical trial program will be presented in sessions at the American Diabetes Association's 70th Scientific Sessions in Orlando, Florida from June 26, 2010 until June 28, 2010. The sessions will highlight ‘Changes in Glucose Tolerance and Cardiovascular Risk Factors after 52 Weeks of Treatment with Lorcaserin’ and ‘Lorcaserin, a Selective 5-HT2C Agonist, is Efficacious for Weight Loss Across Patient Subgroups.’ ARNA 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). ARNA is also a short-term ‘Buy’ consideration for me.
Finally this morning we have Web.com Group Inc., (WWWW) http://www.web.com/ currently trading in the $4 range on a 3-Month average daily trading volume of 168,289 shares. WWWW has a 52-week high of $7.93 set on 09-23-09 with current trailing twelve month revenues of $104+ million and a positive, corresponding diluted EPS of +$0.04. WWWW, which does online marketing for small businesses, said last week it has agreed to acquire privately held Register.com for $135 million. WWWW will pay $20 will pay $20 million in cash, and finance the rest with proceeds from a new $110 million term loan and a $5 million seller note. Register.com, which provides Web domain name registration and website design, will complement WWWW’s existing services. The deal is expected to cut annual costs by $10 million and the combined company will have more than 1 million paying subscribers and more than 1,100 employees in the U.S. and Canada. WWWW primary services include: eWorks! XL, a Website design and publishing package that includes initial site design service, online marketing capabilities, performance scorecard, email marketing tool, Web mail service, online Web tool, modification and redesign service, domain name registration, hosting and technical support service, and mobile Website; and SmartClicks, a performance-based service for customers that want additional online advertising in their local service areas. Nearly $4 off its high and with the acquisition expected to boost earnings, WWWW is a long-term (1 Yr) ‘Buy’ consideration for me.
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