Three Stocks in Growth Mode: ADLR, MHGC, CMRG

Trends, Charts and Exclusive Opinion

Three SmallCaps in Growth Mode

ADLR: Growth in Hospitals and Increased Drug Orders

MHGC: Will Announce Q1 Earnings Today

CMRG: Addition of a New Board Member John Kyees Pushes Stock

First up this morning is Adolor Corporation (ADLR) http://www.adolor.com/ currently trading in the $2.06 range on a 3-Month average daily trading volume of 337,113 shares. ADLR was trading in the $2.20 range a year ago. In June of 09 ADLR dropped beneath $1.60 and trailed downward from there; dropping below $1.40 in Dec. ADLR jumped in late Feb topping $2, settled back to the $1.80 level and jumped gain in April past $2.20. ADLR has a 52-week high of $2.34 set on 05-08-09.     

In late April ADLR reported a net loss of $9.6 million, or $0.21 per basic and diluted share, for the three months ended March 31, 2010 vs. a net loss of $13.2 million, or $0.28 per basic and diluted share, for the three months ended March 31, 2009. Better. Net product sales of ENTEREG for the three months ended March 31, 2010 were $5.3 million vs. $1.4 million for the three months ended March 31, 2009, primarily as a result of growth in the number of ordering hospitals and increased usage at ordering hospitals. Much better.  

ADLR also has various product candidates in clinical development, which include two delta opioid receptor agonist compounds, ADL5859 and ADL5747, under Phase IIa clinical trial in collaboration with Pfizer for the treatment of pain; and two opioid receptor antagonists, ADL7445 and ADL5945, which are entering into Phase II clinical trial to treat opioid bowel dysfunction, as well as other product candidates in preclinical development for treating moderate-to-severe pain and other central nervous system conditions. I think ADLR is undervalued at its current price. ADLR is a long-term ‘Buy’ consideration for me. 

ADLR 1-Year

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Next up this morning is Morgans Hotel Group Company (MHGC) http://www.morganshotelgroup.com/ currently trading in the $8.52 range on a 3-Month average daily trading volume of 294,116 shares. MHGC was trading in the $4 range a year ago. MHGC topped $6 in Sept of 09, dropped to $3 in Oct, and began a rally in Feb ’10 which continues. MHGC has a 52-week high of $8.99 set on 04-29-10. MHGC will report its Q1 earnings today and regardless of  performance; I think (if you look at the properties listed below) with the cyclical summer vacation ahead and the travel deals now available after the recession; the Company’s resorts will increase bookings, increase revenues, and do quite well. MHGC is a short-term (6 Mo) ‘Buy’ consideration for me.    

MHGC owns and manages Morgans, Royalton, and Hudson hotels in New York, Delano South Beach, Mondrian South Beach, and Shore Club hotels in Miami, Mondrian Los Angeles hotel in Los Angeles, Clift hotel in San Francisco, Mondrian Scottsdale hotel in Scottsdale, Arizona; St. Martins Lane and Sanderson hotels in London, Hard Rock hotel and casino in Las Vegas, and Ames hotel in Boston, Massachusetts. As of December 31, 2009, MHGC owned, or partially owned, and managed a portfolio of 13 luxury hotel properties comprising approximately 4,700 rooms.

MHGC 1-Year

Finally this morning is Casual Male Retail Group Inc., (CMRG) http://www.casualmalexl.com/ currently trading in the $4.18 range on a 3-Month average daily trading volume of 182,434 shares. CMRG was trading below $1 a year ago. CMRG spiked up the $2.50 range in June of 09 and spiked up over the $3.50 range in Sept. CMRG dipped a little in the early winter of 09 and in Dec began a steady climb into its current range. CMRG has a 52-week high of $4.49 set on 04-26-10 with current trailing twelve month revenues of $395+ million and a positive, corresponding diluted EPS of +$0.14.     

Yesterday CMRG announced some fresh thinking will be added to its Board of Directors with John Kyees coming on. Mr. Kyees is the current Chief of Investor Relations of Urban Outfitters, Inc. Mr. Kyees will also become a member of the Board’s Audit Committee. In March CNRG reported earning a profit in its Q4 as it cut costs to compensate for sales being weak. For the three months that ended Jan. 30 was profit was $3.6 million, or 8 cents per share. A year earlier, it recorded a loss of $108 million, or $2.61 per share. Excluding impairment and other charges, the fourth-quarter loss a year ago was 14 cents per share. Still, that’s quite a comeback.

For the 2009 year, CMRG earned $6.1 million, or 14 cents per share vs. a loss of $109.3 million, or $2.64 per share in fiscal 2008. But its revenue fell 11% to $395.2 million from $444.2 million in fiscal 2008. Still, that’s quite a comeback. CMRG operates 395 Casual Male XL retail stores, 65 Casual Male XL outlet stores, and 19 Rochester Clothing stores; and a direct business, which included various catalogs and e-commerce sites. CMRG is a long-term (1 Yr) ‘Buy’ consideration for me.

CMRG 1-Year

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