It has certainly been a "long, strange trip" with SVNT as Jerry G would say.
I have a number of what I consider "value" plays that I have followed for quite a while, but all of them are up quite a bit right now.
Probably the most interesting name on a pullback is SPA, which is just emerging from a turnaround after a near-bankruptcy and a management change. They are now debt free with $3 a share in cash and selling for under $6. There is a Yahoo! board that is reasonably informative, though there are a bunch of somewhat sour former employees.......
I think it can be $10 in 12-18 months. Not a SVNT, but neither is it a SVNT timeline or risk profile.
Any ideas?
AA, TraderJay
PS -- I think I have to "enable" you individually to let you start your own posts. Give me a couple of days to get it set up, otherwise use the comment section for now. I'm not a master at this stuff and pretty busy.
re: SPA
ReplyDeleteQuick look - very thinly traded (22K avg. daily vol.), mkt cap -> 58 million w/ annual revs around $195 million 2011 and growth to $215 million in 2012. EPS to go from 0.64 to 0.81. I saw some insider transactions, do you know were those open market buys? Saw some as high as low $6's.
I'm looking for another biotech; need some excitement. Started to look at huskys BCRX and also EXAS. I'll finsih the investor day presentation huskys likely by tomorrow. Had meant to put a buy in (BCRX) early today @ $4.99 but it slipped my mind. BIOD has moved nicely the past few days.
Excitement in biotechs is nice, but they are a long process. This is a name I first started following in the 1980s.
ReplyDeleteI just latched onto ALIM, as they have an October PDUFA data, but haven't done enough work on it yet. Also following JAZZ and NGSX as well as SQNM and RIGL, CBST, and ALTH and QCOR. Unfortunaely, my knowledge of most of them is a tiny fraction of my knowledge of the Sav.
As for SPA< the core business is defense sector. They produce sonobuoys that are disposable electronic devices designed to track enemy submarines. They are routinely deployed around air craft carrier battle grous whenever tey are at sea. There are only tow manufacturers of sonobuoys and they operate through a joint venture. China's growing submarine fleet means a big increase in demand from Navies in Southeast and East Asia. The funny thing is...they just drop them out of airplanes and helicopters into the middle of the ocean and then they need to be replaced!!!
They also have a medical division and an EMS division. The valuation to me is compelling and new management seems experienced in turnarounds. I am in contact with the HF manager that owns a chunk of the company (Lawndale), who is a poster on their YHOO! message board and also blogs about it on Seeking Alpha.