Why the Rush to Buy These Stocks: EPIQ, SCLN, NAVR

Trends, Observations, and Exclusive Opinion

For Shareholders it’s Earnings, Earnings, Earnings

EPIQ: Co Returns +EPS, Retires $50m in Notes and Gives a Dividend

SCLN: Drug Co Returns ttm Diluted EPS of +$0.33.

NAVR: A $500 million+ Stock for Under $3

First up this morning we have S&P SmallCap 600 company EPIQ Systems Inc., (EPIQ) http://www.epiqsystems.com/ currently trading in the $12.91 range on a 3-Month average daily trading volume of 224,670 shares. EPIQ has a 52-week high of $16.55 set on 07-30-09 with current trailing twelve month revenues of $233+ million and a positive, corresponding diluted EPS of +$0.35. I really like those earnings. EPIQ is in the business of electronic discovery, document review, legal notification, claims administration, and controlled disbursement of funds in the United States and the United Kingdom. The company operates in three segments: Electronic Discovery, Bankruptcy, and Settlement Administration. EPIQ serves law firms, corporate legal departments, bankruptcy trustees, and other professional advisors. Earlier this week EPIQ reported its Q2 ’10 numbers: Net income for the second quarter of 2010 was $3.9 million, $0.10 per share, up 36% compared to $2.9 million, $0.08 per share, for the year ago quarter. EPIQ also retired approximately $50 million aggregate principal amount of 4% contingent convertible subordinated notes in the quarter and the Co’s Board of Directors approved the Company's first quarterly cash dividend of 3.5 cents per common share and announced a share repurchase program authorizing up to $35 million in share repurchases. That’s some Q2. Approximately $3.50 off its high, EPIQ is a short-term ‘Buy’ consideration for me.  

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Next up we have SciClone Pharmaceuticals Inc., (SCLN) http://www.sciclone.com/ currently trading in the $3.45 range on a 3-Month average daily trading volume of 427,602 shares. SCLN has a 52-week high of $5.33 set on 09-01-09 with current trailing twelve month revenues of $75+ million and a positive, corresponding diluted EPS of +$0.33. I like those earnings. The primary drug at SCLN is ZADAXIN and the treatment given with the Novartis H1N1 vaccine led to statistically significant increases in the percentage of subjects who seroconverted when evaluated at both 21 days and 42 days after vaccination, as compared with vaccine alone in a recent study. A higher seroconversion rate is indicative of the robustness of a patient's immune response. "We are pleased by the results of this study which demonstrate that ZADAXIN provides a significant and rapid enhancement benefit to the H1N1 vaccine during the critical first six weeks following vaccination," said Israel Rios, MD, SCLN’s Sr. VP and Chief Medical Officer. ZADAXIN is also used for the treatment of hepatitis B and hepatitis C viruses, and certain cancers, as well as for use as a vaccine adjuvant or as a chemotherapy adjuvant for cancer patients with weakened immune systems. ZADAXIN has approval in approximately 30 countries, primarily in Asia, eastern Europe, the Middle East, and Latin America. SCLN also has a very active drug candidate pipeline. Nearly $2 off its high, SCLN is also a short-term ‘Buy’ consideration for me. SCLN will report its Q2 ’10 numbers on Monday, August 9, 2010.

Finally this morning we have Navarre Corporation (NAVR) http://www.navarre.com/ currently trading in the $2.63 range on a 3-Month average daily trading volume of 111,950 shares. NAVR has a 52-week high of $3.05 set on 10-14-09 with current trailing twelve month revenues of $528+ million and a positive, corresponding diluted EPS of +$0.62. I really like those earnings. NAVR, a leading distributor and publisher of computer software and provider of third party logistics services, recently joined the Russell Microcap Index. NAVR sells its products through wholesale clubs, mass merchandisers, third party distributors, computer specialty stores, book stores, office superstores, and electronic superstores. A $500 million+ stock for under $3 certainly is an eye-catcher, but those ttm +earnings put it over the top. NAVR is a short-term ‘Buy’ consideration for me. NAVR will report its financial results for the first quarter of its 2011 fiscal year, ended June 30, 2010, prior to the opening of the U.S. financial markets on Monday, August 2, 2010.

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