Investment Research Insights

Most, but even those that do can be more complex than they seem.

Amgen, one of the world's biggest biotech companies, appears on an MSN Money list of recommended stocks. Here are StockScouter's top investment ideas.

How can you navigate the threat of the 'flations'? One option is to follow the yellow brick road and buy gold.

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With the publication of his memoirs, the former premier is in search of redemption in the eyes of the British people, but that may prove elusive

With sentiment turned against the White House and a bitter midterm congressional campaign about to start, political gridlock is in prospect – which could be what the public wants

Week ending August 27.

A study regarding Cepheid’s (CPHD) Xpert MTB/RIF test, which is meant for the detection of tuberculosis (TB), was published in the latest edition of the New England Journal of Medicine. The study was aimed at comparing the sensitivity and specificity of the Xpert MTB/RIF with the standard currently used. Apart from the detection of TB, the study is also meant to identify if the disease is resistant to rifampin, a first-line drug used for the treatment.
The study was conducted with 1,730 TB patients at five centers in Peru, Azerbaijan, South Africa, and India. It was observed that the MTB/RIF test could detect TB and rifampin resistance within two hours. Speedy diagnosis of the disease is crucial in the areas of sub-Saharan Africa and Southeast Asia due to the close connection between HIV and TB.
A person suffering from HIV is highly susceptible to TB, resulting in one third of the 33 million HIV patients globally infected with TB. The mortality rate of these patients is quite high if left untreated. Given the situation, development of the MTB/RIF test will be a boon for the patient population. Although the Xpert MTB/RIF test is available outside the US, it is expected to become available in the US within the 2012-2013 timeframe.
Cepheid derived 78% of its product revenues from the Clinical market during the second quarter, which recorded a robust 41% growth. The increase was driven by robust growth in both Clinical Systems (7% to $6.1 million) and Clinical Reagents (51% to $31.6 million). A rise in sales of the company’s healthcare associated infections (HAI) portfolio of tests along with Xpert EV and Xpert MTB/RIF tests were responsible for the growth in Clinical Reagents while revenues from Clinical Systems grew due to increased GeneXpert System sales.
Cepheid’s portfolio consists of several tests, many of which are witnessing greater acceptance. Following the success of the C. difficile test, it has become the second biggest test in Cepheid’s portfolio (behind MRSA surveillance) with multimillion-dollar revenue contribution each quarter. Outside the US , Cepheid witnessed growth in the tuberculosis product, especially in Eastern Europe , where capital spending capacity is limited. We believe that the company is well positioned to grow its top line based on an attractive test menu.
We are currently Neutral on the stock.
 
CEPHEID INC (CPHD): Free Stock Analysis Report
 
Zacks Investment Research

A study regarding Cepheid’s (CPHD) Xpert MTB/RIF test, which is meant for the detection of tuberculosis (TB), was published in the latest edition of the New England Journal of Medicine. The study was aimed at comparing the sensitivity and specificity of the Xpert MTB/RIF with the standard currently used. Apart from the detection of TB, the study is also meant to identify if the disease is resistant to rifampin, a first-line drug used for the treatment.
The study was conducted with 1,730 TB patients at five centers in Peru, Azerbaijan, South Africa, and India. It was observed that the MTB/RIF test could detect TB and rifampin resistance within two hours. Speedy diagnosis of the disease is crucial in the areas of sub-Saharan Africa and Southeast Asia due to the close connection between HIV and TB.
A person suffering from HIV is highly susceptible to TB, resulting in one third of the 33 million HIV patients globally infected with TB. The mortality rate of these patients is quite high if left untreated. Given the situation, development of the MTB/RIF test will be a boon for the patient population. Although the Xpert MTB/RIF test is available outside the US, it is expected to become available in the US within the 2012-2013 timeframe.
Cepheid derived 78% of its product revenues from the Clinical market during the second quarter, which recorded a robust 41% growth. The increase was driven by robust growth in both Clinical Systems (7% to $6.1 million) and Clinical Reagents (51% to $31.6 million). A rise in sales of the company’s healthcare associated infections (HAI) portfolio of tests along with Xpert EV and Xpert MTB/RIF tests were responsible for the growth in Clinical Reagents while revenues from Clinical Systems grew due to increased GeneXpert System sales.
Cepheid’s portfolio consists of several tests, many of which are witnessing greater acceptance. Following the success of the C. difficile test, it has become the second biggest test in Cepheid’s portfolio (behind MRSA surveillance) with multimillion-dollar revenue contribution each quarter. Outside the US , Cepheid witnessed growth in the tuberculosis product, especially in Eastern Europe , where capital spending capacity is limited. We believe that the company is well positioned to grow its top line based on an attractive test menu.
We are currently Neutral on the stock.
 
CEPHEID INC (CPHD): Free Stock Analysis Report
 
Zacks Investment Research

Goldcorp Inc. (GG), the leading Canadian gold producer is acquiring the Australian gold miner Andean Resources Ltd for a total consideration of C$3.6 billion (US $3.4 billion) along with its key assets including Cerro Negro gold project in Argentina. Currently, the company has resources of 2.54 million ounces of gold and 23.56 million ounces of silver. Goldcorp believes that the acquisition of Cerro Negro that has substantial expansion potential would compliment its high-growth and a low-cost production profile.
The Deal nitty-gritty
Pursuant to the deal, each Andean shareholder would receive 0.14 shares of Goldcorp or cash payment of C$6.50, subject to a maximum cash consideration of C$1 billion for each Andean share held. Andean shareholders will have the option to elect between cash or shares or any combination of cash and shares, subject to the aggregate cash limitation. Goldcorp’s cash and stock bid was superior to Eldorado’s C$6.36 per (all in stock) bid. Eldorado is one of Canada’s leading gold miners and the second suitor of Andean Resources.
Goldcorp’s current offer represents a 35% premium over Andean’s closing price as on September 2, 2010 and a 56% premium to Andean's 20-day volume weighted average trading price.
Although the board of directors of both the companies has unanimously approved the deal, the transaction is contingent upon a 75% vote from the Andean shareholders. Andean has agreed to pay Goldcorp a termination fee equal to 1% of the aggregate of the total consideration offered by Goldcorp, under certain circumstances.
M&A–Miner’s Forte
Mergers and acquisitions (M&A) have always been a critically important growth strategy for metals and mining companies. Large producers like Newmont Mining (NEM) and Agnico Eagle (AEM) with huge resources are able to discover and develop new deposits, and boost reserves; while smaller ones own few mines and confined to them. The M&A activity is supported by higher metal prices that have strengthened the financial position of many mining giants.
Like other industry players, including Barrick Gold Corporation (ABX) and Kinross Gold (KGC), Goldcorp also follows an aggressive acquisition strategy for attaining growth. The acquisition of Glamis Gold Limited and Placer Dome’s Canadian assets were major milestones for the company. Goldcorp’s merger with Glamis Gold Limited in 2008 positioned it as the world’s largest gold mining company. The company also acquired the Placer Dome Canadian mines and other agreed interests from peer Barrick Gold, which pushed its annual production up by 50% and increased the gold reserves by 72% in 2009.
We are optimistic about Goldcorp’s Penasquito mine in Mexico, which is expected to start commercial production in the third quarter of 2010. In addition, we saw Goldcorp divesting many of its non-core assets and generating huge cash flows, which are likely to be used for future growth projects. However, Goldcorp is exposed to various political and economic risks. Goldcorp also faces foreign exchange risk as it pays most expenses in local currencies and sells in dollars.
Currently, Goldcorp is a short-term (1 to 3 months) Zacks #3 Rank which translates into a longer term (6+ months) Neutral recommendation.



 
BARRICK GOLD CP (ABX): Free Stock Analysis Report
 
AGNICO EAGLE (AEM): Free Stock Analysis Report
 
GOLDCORP INC (GG): Free Stock Analysis Report
 
KINROSS GOLD (KGC): Free Stock Analysis Report
 
NEWMONT MINING (NEM): Free Stock Analysis Report
 
Zacks Investment Research

Goldcorp Inc. (GG), the leading Canadian gold producer is acquiring the Australian gold miner Andean Resources Ltd for a total consideration of C$3.6 billion (US $3.4 billion) along with its key assets including Cerro Negro gold project in Argentina. Currently, the company has resources of 2.54 million ounces of gold and 23.56 million ounces of silver. Goldcorp believes that the acquisition of Cerro Negro that has substantial expansion potential would compliment its high-growth and a low-cost production profile.
The Deal nitty-gritty
Pursuant to the deal, each Andean shareholder would receive 0.14 shares of Goldcorp or cash payment of C$6.50, subject to a maximum cash consideration of C$1 billion for each Andean share held. Andean shareholders will have the option to elect between cash or shares or any combination of cash and shares, subject to the aggregate cash limitation. Goldcorp’s cash and stock bid was superior to Eldorado’s C$6.36 per (all in stock) bid. Eldorado is one of Canada’s leading gold miners and the second suitor of Andean Resources.
Goldcorp’s current offer represents a 35% premium over Andean’s closing price as on September 2, 2010 and a 56% premium to Andean's 20-day volume weighted average trading price.
Although the board of directors of both the companies has unanimously approved the deal, the transaction is contingent upon a 75% vote from the Andean shareholders. Andean has agreed to pay Goldcorp a termination fee equal to 1% of the aggregate of the total consideration offered by Goldcorp, under certain circumstances.
M&A–Miner’s Forte
Mergers and acquisitions (M&A) have always been a critically important growth strategy for metals and mining companies. Large producers like Newmont Mining (NEM) and Agnico Eagle (AEM) with huge resources are able to discover and develop new deposits, and boost reserves; while smaller ones own few mines and confined to them. The M&A activity is supported by higher metal prices that have strengthened the financial position of many mining giants.
Like other industry players, including Barrick Gold Corporation (ABX) and Kinross Gold (KGC), Goldcorp also follows an aggressive acquisition strategy for attaining growth. The acquisition of Glamis Gold Limited and Placer Dome’s Canadian assets were major milestones for the company. Goldcorp’s merger with Glamis Gold Limited in 2008 positioned it as the world’s largest gold mining company. The company also acquired the Placer Dome Canadian mines and other agreed interests from peer Barrick Gold, which pushed its annual production up by 50% and increased the gold reserves by 72% in 2009.
We are optimistic about Goldcorp’s Penasquito mine in Mexico, which is expected to start commercial production in the third quarter of 2010. In addition, we saw Goldcorp divesting many of its non-core assets and generating huge cash flows, which are likely to be used for future growth projects. However, Goldcorp is exposed to various political and economic risks. Goldcorp also faces foreign exchange risk as it pays most expenses in local currencies and sells in dollars.
Currently, Goldcorp is a short-term (1 to 3 months) Zacks #3 Rank which translates into a longer term (6+ months) Neutral recommendation.



 
BARRICK GOLD CP (ABX): Free Stock Analysis Report
 
AGNICO EAGLE (AEM): Free Stock Analysis Report
 
GOLDCORP INC (GG): Free Stock Analysis Report
 
KINROSS GOLD (KGC): Free Stock Analysis Report
 
NEWMONT MINING (NEM): Free Stock Analysis Report
 
Zacks Investment Research

Shares of Air Products and Chemicals Inc. (APD) advanced 3.26% or $2.44 and closed at $77.19 on September 2, 2010 after the announcement that the company has won a 15-year contract. Under the contract, Air Products will supply an onsite air separation unit to Voronezhsintezkauchuk, an affiliate of SIBUR, which is a leading petrochemical company in Russia and Eastern Europe. The air separation unit is scheduled to come on stream in 2012 with a capacity up to 3,000 cubic meters per hour of gaseous nitrogen and up to 16,000 cubic meters per hour of dry compressed air. Additionally, Air Products will supply liquid products to the Russian market. Financial terms of the contract were not disclosed.
Voronezhsintezkauchuk states that the outsourcing of the air separation unit and the required industrial gases will help the company invest in renovation of the existing air separation units that were set up in 1970 and require major reconstruction. Currently, Voronezhsintezkauchuk has four air separation plants that engage in the production of nitrogen, oxygen and compressed air for the production of synthetic rubber and latex.
Last week, Air Products won a similar contract from the world’s largest steel maker ArcelorMittal (MT), to supply gases including oxygen, nitrogen and argon to the company’s Gent, Belgium steel facility. The Gent steel mill is operated under ArcelorMittal’s Belgium Affiliate. Under the current agreement, Air Products will construct a third on-site air separation unit at the Gent site to help ArcelorMittal in meeting its industrial gases requirement. The air separation unit, which is expected to come on stream by 2012, will have a total production capacity of 2,000 tons per day.   Air Products has been supplying industrial gases to ArcelorMittal’s Gent facility for last 40 years. Air Products became the leading industrial gas supplier in Central Europe’s fastest growing economy with the acquisition of BOC Gazy in Poland from the Linde Group in 2007. The acquisition added on-site facilities serving chemicals and steel firms as well as liquid bulk and packaged gas plants to Air Products’ profile, which helped the U.S. industrial gas producers benefit from the growing central European market.
We are encouraged by the new contract wins across the industrial gas space in recent months, reflecting a robust growth momentum across the emerging economies of Asia, where the company has a strong presence. Air Products operates in 15 countries throughout Europe, including the central and eastern European countries of the Slovak Republic, the Czech Republic, Russia and Poland. Recent moves by the company clearly reflect its strategy to strengthen its position in leading growth markets.
Currently, Air Products has a Zacks #3 Rank (short-term Hold rating) and a long-term (6+ months) Neutral recommendation.


 
AIR PRODS & CHE (APD): Free Stock Analysis Report
 
Zacks Investment Research

Shares of Air Products and Chemicals Inc. (APD) advanced 3.26% or $2.44 and closed at $77.19 on September 2, 2010 after the announcement that the company has won a 15-year contract. Under the contract, Air Products will supply an onsite air separation unit to Voronezhsintezkauchuk, an affiliate of SIBUR, which is a leading petrochemical company in Russia and Eastern Europe. The air separation unit is scheduled to come on stream in 2012 with a capacity up to 3,000 cubic meters per hour of gaseous nitrogen and up to 16,000 cubic meters per hour of dry compressed air. Additionally, Air Products will supply liquid products to the Russian market. Financial terms of the contract were not disclosed.
Voronezhsintezkauchuk states that the outsourcing of the air separation unit and the required industrial gases will help the company invest in renovation of the existing air separation units that were set up in 1970 and require major reconstruction. Currently, Voronezhsintezkauchuk has four air separation plants that engage in the production of nitrogen, oxygen and compressed air for the production of synthetic rubber and latex.
Last week, Air Products won a similar contract from the world’s largest steel maker ArcelorMittal (MT), to supply gases including oxygen, nitrogen and argon to the company’s Gent, Belgium steel facility. The Gent steel mill is operated under ArcelorMittal’s Belgium Affiliate. Under the current agreement, Air Products will construct a third on-site air separation unit at the Gent site to help ArcelorMittal in meeting its industrial gases requirement. The air separation unit, which is expected to come on stream by 2012, will have a total production capacity of 2,000 tons per day.   Air Products has been supplying industrial gases to ArcelorMittal’s Gent facility for last 40 years. Air Products became the leading industrial gas supplier in Central Europe’s fastest growing economy with the acquisition of BOC Gazy in Poland from the Linde Group in 2007. The acquisition added on-site facilities serving chemicals and steel firms as well as liquid bulk and packaged gas plants to Air Products’ profile, which helped the U.S. industrial gas producers benefit from the growing central European market.
We are encouraged by the new contract wins across the industrial gas space in recent months, reflecting a robust growth momentum across the emerging economies of Asia, where the company has a strong presence. Air Products operates in 15 countries throughout Europe, including the central and eastern European countries of the Slovak Republic, the Czech Republic, Russia and Poland. Recent moves by the company clearly reflect its strategy to strengthen its position in leading growth markets.
Currently, Air Products has a Zacks #3 Rank (short-term Hold rating) and a long-term (6+ months) Neutral recommendation.


 
AIR PRODS & CHE (APD): Free Stock Analysis Report
 
Zacks Investment Research

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