 |
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Deal Flow
Economics Unbound
Fine On Media
Hot Property
Investing Insights
New Tech in Asia
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads | |
SEPTEMBER 17, 2007
Is The Big Board A Buy?  Frenzied volatility and high trading volume are usually friends of the New York Stock Exchange, but shares of NYSE Euronext (NYX)
have slumped in spite of the recent credit-liquidity crisis. NYX,
formed by the 2006 merger of the New York Stock Exchange and Euronext,
gains from increased transaction fees as trading volume spikes. NYX
runs cash equity exchanges in five countries and six derivative markets
worldwide. But its stock, which hit 112 last November, up from its May
offering price of 61.50, has since slumped to 72.67. Carl Birkelbach of
Birkelbach Investment Securities says investors are shying away because
NYX is still digesting the purchase of Euronext. And some also worry
that NYX may make another acquisition. But the falling price has
spurred Birkelbach to buy. "The stock is very undervalued," he says,
because earnings are on the rise. In fact, second-quarter results were
boosted by higher volume. Birkelbach sees the stock at 90 this year,
extrapolating from his 2008 earnings estimate of $3.48 a share. In
2007, he expects $2.45, up from $1.36 in 2006. Jason Wiley of Standard
& Poor's (MHP
) says NYX has positioned itself to meet increasing global competition,
and Euronext helps to broaden the footprint. He rates NYX a buy.Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them. By Gene G. Marcial  Why Access Could Turn Heads  Tiny Access Pharmaceuticals (ACCP
) may get a call from France's Sanofi-Aventis (SNY).
Access was trading over the counter at 2.95 when featured in this
column in February. Soon it shot to 10, buoyed by expectations that
ProLindac, its chief product, a platinum-based drug for ovarian and
colorectal cancer now in phase II clinical trials, could be a
blockbuster. The stock has since dropped to 3.85, because of profit
taking. But the outlook for Access and ProLindac has vastly improved,
says Steven Rouhandeh, CEO of SCO Financial Group, which owns a 30%
stake. Access added four new cancer drugs to its pipeline from its
acquisition of Somanta Pharmaceuticals. And ProLindac, he adds, could
attract attention from Sanofi, which owns Eloxatin, the leading
platinum drug for colorectal cancer, a $2.5 billion market. Esteban
Cvitkovic, in charge of developing Eloxatin at Sanofi, has since joined
Access as vice-chairman for Europe and senior director for oncology
clinical R&D. Sanofi's Eloxatin patent has expired in several
European countries; In the U.S., its major patent expires in five
years. Kevin Raidy of health-care hedge fund H4 Capital, which owns
close to 5%, expects Sanofi will be interested in ProLindac. Access CEO
Steve Seiler says other big drugmakers have "expressed interest."
Sanofi declined comment.Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them. By Gene G. Marcial   A Stem-Cell Bank Is Drawing Interest  The
idea of using adults' own stem cells to treat diseases, such as
leukemia, is drawing investors' attention. They're looking at NeoStem (NBS
), a tiny outfit that specializes in collecting, processing, and
storing stem cells from healthy adults for their personal medical use.
It has applied for a patent on its technology using adult cells to
treat specific ailments. "NeoStem has innovative technology whose value
will surely be enhanced as new applications for stem cell therapies
continue to emerge," says John Pappajohn, president of Equity Dynamics,
which owns shares. Its stock, now at 5.00, started trading on the
American Stock Exchange on Aug. 9 at 5.15 a share after a 1-for-10
reverse split. Walter Prendergast of Paradigm Capital Management, which
owns shares, says stem cells represent one of the most exciting areas
for investors. "They can influence how diseases are treated," he says.
With its processing and storage lab in California and collection
facilities using NeoStem's technology in four major cities, "we are
well positioned for growth," says CEO Robin Smith. Some investors see
the stock hitting 9 in a year.Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them. By Gene G. Marcial
| | |
 Copyright 2007, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version
