Continue reading Reconciliation is a nasty word for healthcare stocks (UNH, WLP and HUM)

Reconciliation is a nasty word for healthcare stocks (UNH, WLP and HUM) originally appeared on BloggingStocks on Thu, 20 Aug 2009 18:50:00 EST. Please see our terms for use of feeds.

"Johnson & Johnson (NYSE: JNJ) has vast holdings, but its strategy is simple: Support a deep pipeline of new drugs and medical devices with an aggressive acquisition strategy and cost controls," notes blue chip investor Richard Moroney.

In his Dow Theory Forecasts, he adds, "And despite the recession, J&J has kept its financial footing, remaining one of the few companies with the top credit rating of AAA." Here's his long term outlook.

"This year the U.S. pharmaceutical market is expected to contract for the first time in 50 years as fewer people visit doctors or start new therapies for chronic conditions.

"Beyond 2009, an economic recovery should reinvigorate J&J, though it is too early to determine whether health-care reform will help or harm the company.

Continue reading Johnson & Johnson (JNJ): A triple A play

Johnson & Johnson (JNJ): A triple A play originally appeared on BloggingStocks on Wed, 29 Jul 2009 15:20:00 EST. Please see our terms for use of feeds.

"Health care reform could mean opportunities for astute investors," says Brandon Clay in his Invest With an Edge.

Here, eyes two biotech ETFs that "should be on everyone's watch list." The advisor notes, "With health care on the front burner in Washington, these biotechnology ETFs may finally be ready to pop."

"Investors in health care should think outside the realm of traditional pharmaceutical companies and health insurers. Those sectors are each facing headwinds that make stock picking difficult.

"In addition, several big pharma companiesare desperate to reload their empty pipelines in the face of increased competition from generic drug makers.

Continue reading Biotech ETFs: Best bets on health care reform

Biotech ETFs: Best bets on health care reform originally appeared on BloggingStocks on Fri, 10 Jul 2009 11:40:00 EST. Please see our terms for use of feeds.

"In looking for a highly speculative stock for our portfolio, I have settled on MannKind Corp. (NASDAQ: MNKD), a company that is developing an inhaled insulin product," says Nate Pile.

In his growth-oriented Nate's Notes, the advisor cautions, "I believe we are looking at a situation in which we will either lose most of our money, or triple (or better) our investment in a fairly short period of time."

"In a nutshell, the company's near-term fate hinges upon AFRESA, a novel, ultra rapid acting mealtime insulin therapy being studied for use in adult patients with type 1 and type 2 diabetes mellitus for the treatment of hyperglycemia.

"Working against the company is the fact that there has never been an inhaled insulin product approved for commercial use that has worked very well.

Continue reading MannKind: Speculation on inhaled insulin

MannKind: Speculation on inhaled insulin originally appeared on BloggingStocks on Mon, 06 Jul 2009 15:40:00 EST. Please see our terms for use of feeds.

"Biotech company Celgene Corp. (NASDAQ: CELG) is a prime example of a stock that plays both offense and defense," says Ian Wyatt.

In his Top Stock Insights, he explains, "The valuation is low and growth is attractive. With the pipeline of products in development, Celegene offers investors a huge upside potential."

"Celgene offers investors a steady product base, a variety of drug treatments in development and a cash pile ready to purchase existing technologies.

"Celgene engages in the discovery of therapies designed to treat cancer and immune-inflammatory related diseases. They have a number of products at the commercial stage.

Continue reading Celgene (CELG): Play offense and defense with biotech

Celgene (CELG): Play offense and defense with biotech originally appeared on BloggingStocks on Mon, 22 Jun 2009 13:40:00 EST. Please see our terms for use of feeds.

"India-based Dr. Reddy's Laboratories (NYSE: RDY), a generic-drugs play with solid market positions in India, Russia, the US and Germany," says Asian stock expert Yiannis Mostrous.

In his specialty newsletter, The Silk Road Investor, he explains why he has chosen the firm as his latest "Stock of the month".

"Seventy percent of the firm's growth comes from generic drugs, and the trend there has been favorable. New products, market share gains and a revamp of the supply chain in India should contribute to profitability. The company is also building a proprietary pipeline to supplement it core business.

Continue reading Dr. Reddy's (RDY): Get ready for generic gains

Dr. Reddy's (RDY): Get ready for generic gains originally appeared on BloggingStocks on Thu, 11 Jun 2009 13:30:00 EST. Please see our terms for use of feeds.

"Generic drug mak Teva Pharmaceutical, Ltd. (NASDAQ: TEVA) delivered respectable earnings results," says Jack Adamo, who added the stock his Insiders Plus model portfolio.

"The company's earnings were up 4% on a proforma non-GAAP basis. In this case, that's the correct measurement. Net GAAP earnings were up tremendously, but aren't really representative of normal business factors.

"Although Teva gets much of its earnings from its proprietary multiple sclerosis drug, Copaxone, its primary business is generic drugs. That segment is inherently lumpy because profitability is greatly affected by which generic drugs it brings to market before any other generic company.

Continue reading Teva (TEVA): Generic profits

Teva (TEVA): Generic profits originally appeared on BloggingStocks on Wed, 27 May 2009 12:00:00 EST. Please see our terms for use of feeds.

"Genomics may be the 'next big thing' after the Internet and biotech. Finding those who can make money early onwill likely pay dividends to investors," expla]in small cap growth stock specialist Jim Oberweis, Jr.

In his The Oberweis Report, he explains the "politics" behind this bullish scenario as well as his top pick for log-term investors seeking exposure to the developing healthcare technologies if genomics and personalized medicine.

"We believe that the biotech boom was a direct consequence of rising National Health Institute (NIH) funding, cheap equity capital, and the ability to patent NIH-funded discoveries. And we see that happening again.

Continue reading Genomics: The next big thing?

Genomics: The next big thing? originally appeared on BloggingStocks on Mon, 18 May 2009 14:00:00 EST. Please see our terms for use of feeds.

"After warning that it would only achieve the low end of its previous guidance range for 2009, Celgene (NASDAQ: CELG) sold off significantly," notes biotech expert John McCamant.

Nevertheless, in his The Medical Technology Stock Letter he sees the selloff as any opportunity, calling the company a "great growth story."

"Celgene pre-announced 1Q 09 revenues of $600 million, which was significantly below Wall Street consensus estimates of $640-$650 million.

"The earnings miss was completely unexpected, and has partially shaken the belief that the Big Bios would be able to deliver solid earnings despite the economic problems.Nevertheless, we remain positive on the CELG story.

Continue reading Celgene (CELG): Selloff creates opportunity

Celgene (CELG): Selloff creates opportunity originally appeared on BloggingStocks on Mon, 06 Apr 2009 14:30:00 EST. Please see our terms for use of feeds.

Some believe health care is the Holy Grail for investors in this horrible market, but I'm not so convinced.

When everyone jumps on a bandwagon, I usually like to jump off. It seems like everyone is preaching the merits of owning health care stocks. And when I say everyone, I mean everyone. Even the barber is touting this sector as a place to be during this recession and beyond. We shall see about that.

Instead of focusing on the space, how about looking at a specific name?

Continue reading Recession-proof stock #5: Johnson & Johnson (JNJ)

Recession-proof stock #5: Johnson & Johnson (JNJ) originally appeared on BloggingStocks on Sun, 29 Mar 2009 12:00:00 EST. Please see our terms for use of feeds.

"Long-time healthcare investors can be forgiven their confusion; drug stocks are supposed to be defensive, but many of the largest drugmakers have been pounded," observes Richard Moroney.

Nevertheless, in the blue chip Dow Theory Forecasts, the advisor sees two favorite healthcare and pharmaceutical issues as long-term opportunities: AstraZeneca (NYSE: AZN) and Johnson & Johnson (NYSE: JNJ).

Moroney explains, "Healthcare companies' profits are supposed to remain fairly steady regardless of the economic situation. But hospitals' capital spending fell in the December quarter, and many consumers are putting off medical care because they cannot afford it.

Continue reading Healthcare favorites for long-term growth

Healthcare favorites for long-term growth originally appeared on BloggingStocks on Wed, 04 Mar 2009 14:00:00 EST. Please see our terms for use of feeds.

Two leading growth stock expert, Brandon Clay, editor of Invest with an Edge, and Alexander Green, editor of The Oxford Club, turn to automated blood testing equipment maker Immucor (NASDAQ: BLUD) as a recession-resistant buy.

Clay suggest, "A good bet is to go with the strongest stock in that particular sector at the time of your pickThat way, the company you select at least has the momentum of the sector backing it. Typically the medical industry performs better than the overall market in a downturn. This recession has been no different.

"As we dug deeper into health care, one company surfaced that was worth our attention. Immucor is a blood testing equipment manufacturer specializing in pre-transfusion diagnostics.

"Established in 1982, they brought their first patent to market four years later. Since then they've become a leader in blood diagnostics and blood bank technology.

Continue reading Immucor (BLUD): Two experts bank on blood bank buy

Immucor (BLUD): Two experts bank on blood bank buy originally appeared on BloggingStocks on Mon, 23 Feb 2009 14:00:00 EST. Please see our terms for use of feeds.

Consumer health care companies are traditionally great recession plays, because no matter what happens in the economy, people still need their medicine.

For more than 100 years, Johnson & Johnson (NYSE: JNJ) has supplied the world with what it needs to ameliorate its ailments.

In addition to marquee consumer brands such as Band-Aid and Tylenol, Johnson & Johnson provides the world with a myriad of prescription drugs, medical devices and medical treatments that keep us all healthy.

The healing power -- and the earnings power -- of Johnson & Johnson's products has contributed to the well-being of both consumers and investors for a very long time.

And while shareholders may justifiably feel ill about the stock over the last several months, the company's long-term growth prospects will likely serve as a veritable love potion for investors in the years to come.

Take a look at all ten stocks to fall in love with again.

Jim Woods is a Senior Editor for OptionsZone.com.

Ten stocks to fall in love with again: #8 Johnson & Johnson (JNJ) originally appeared on BloggingStocks on Sat, 14 Feb 2009 16:00:00 EST. Please see our terms for use of feeds.

Humana (NYSE: HUM) reported earnings below analysts' expectations for the fourth quarter of 2008, spurring a quick sell-off of more than 3%.

The stock quickly recovered, due in part to the better-than-expected ISM report, and closed up almost 6% at $40.13.

Humana is one of the nations' largest providers of employer-based health care plans. Humana offers group health and dental plans for individuals and serves the health care needs of military families and seniors through a series of specialized plans.

The fourth-quarter earnings report disappointed analysts initially, as the report revealed a larger-than-expected decline in earnings of 28% from the previous year's fourth quarter.

Continue reading Humana sputters, then hums

Humana sputters, then hums originally appeared on BloggingStocks on Mon, 02 Feb 2009 19:17:00 EST. Please see our terms for use of feeds.

"The company has been around for more than 120 years. It currently operates in more than 130 countries, selling hundreds of products, including Ultane (an inhaled anesthetic), the anti-infective Biaxin XL, and TriCor and Niaspan to manage cholesterol.

"However, Abbott's biggest growth driver is Humira, a blockbuster drug that targets autoimmune disorders. The drug has received FDA approval to treat a number of diseases, including rheumatoid arthritis, psoriasis and Crohn's disease.

Continue reading Abbott (ABT): Contrarian sees healthy gains

Abbott (ABT): Contrarian sees healthy gains originally appeared on BloggingStocks on Fri, 30 Jan 2009 12:30:00 EST. Please see our terms for use of feeds.

"Stryker (NYSE: SYK) is a bargain at 15.1x next 12-month EPS," says J. Royden Ward, editor of The Cabot Benjamin Graham Value Letter, a service which focuses on stocks that would be well-suited to the investing strategy of Ben Graham, legendary value investor and mentor to Warren Buffett.

"Stryker develops, manufactures and sells specialty surgical and medical products. Its orthopedic division makes hip, knee and other implants.

"SYK also makes a wide variety of medical products and instruments ranging from hospital beds to medical video cameras, surgical drills and saws, and instruments for implants.

Continue reading Stryker (SYK): 'Hip' choice in surgical products

Stryker (SYK): 'Hip' choice in surgical products originally appeared on BloggingStocks on Thu, 29 Jan 2009 14:00:00 EST. Please see our terms for use of feeds.

"One of my favor defensive sectors is healthcare," says Elliott Gue; the contributing editor to Personal Finance looks to Quality Systems (NSDQ: QSII), a company that helps automate medical records.

Quantitative analyst Richard Moroney also sees opportunity in the same niche sector. In his Upside newsletter, he looks to a competing play, Cerner (NASDAQ: CERN). Here are their reviews.

"The President made health care a centerpiece of his campaign, including investments in health care-related information technology (IT).

"Health care IT systems can save doctors' offices and hospitals significant administrative costs as well as prevent mistakes. In addition, some major health insurance firms are already putting heavy pressure on their physician networks to adopt these systems."

"Medical offices and hospitals are seeking to automate many functions, from storing patient records online to automatically submitting insurance claims for reimbursement.

"It's estimated that as much as 90% of health care records at smaller medical practices are still maintained in paper form, while even bigger hospitals keep close to half of their records manually.

"Quality Systems, a holding in our growth portfolio, is a leading provider of such systems. It sells software used to manage electronic patient records, billing, scheduling and other common administrative functions for medical and dental practices.

Continue reading Obama's plans boost electronic medical records firms

Obama's plans boost electronic medical records firms originally appeared on BloggingStocks on Tue, 20 Jan 2009 15:30:00 EST. Please see our terms for use of feeds.

Allscripts-Misys Healthcare Solutions (NASDAQ: MDRX) is the result of the recently completed merger of Florida-based Allscripts and the health care information technology business of London-based Misys.

The nearly ill-fated merger finally closed late in 2008, after having to be restructured following the untimely demise of Lehman Brothers, the architect of the original merger plans.

The merger with Misys places the company in the forefront of the Obama administration's emphasis on improving health care in part by improving the availability of medical information in electronic form.

Allscripts' solutions are the cutting edge of medical information systems, and the company should benefit substantially from a move in the direction suggested by Obama.

MDRX provides clinical software, connectivity and information solutions to its health care customer base throughout the United States. The company delivers its products through four divisions: Professional Solutions, Enterprise Solutions, Health Systems Group and Medication Services.

Continue reading Obama administration writes prescription for Allscripts' growth

Obama administration writes prescription for Allscripts' growth originally appeared on BloggingStocks on Tue, 13 Jan 2009 18:00:00 EST. Please see our terms for use of feeds.

"The medical arena has long been my favorite sectors; perhaps the best opportunities within the medical sector will be with companies who provide life-saving products for the treatment of serious diseases," says Dave Dyer.

In The Dave Dyer Newsletter, he explains, "That is why Celgene (NASDAQ: CELG) is an excellent choice in this economy." Here's his look at this "recession-resistant" company.

"Celgene is a multinational biopharmaceutical company with a $29 billion market cap and no debt. Revlimid is their blockbuster drug with multi-billion dollar potential. It was first approved by the FDA in 2005, and it has many good years of patent protection ahead of it.

"Revlimid delays the onset of progression of deadly diseases -- leprosy and multiple myeloma. No wonder it is worth $6,000 per month. It is a close derivative of their other drug Thalomid. This drug was used by another company about 50 years ago to treat morning sickness in pregnant women and caused numerous birth defects.

"Despite a recession, we believe that demand for its products will remain strong. For example, if you have multiple myeloma, you would probably do just about anything before missing a payment for your monthly dose of Revlimid.

Continue reading Celgene (CELG): Blockbuster potential?

Celgene (CELG): Blockbuster potential? originally appeared on BloggingStocks on Thu, 27 Nov 2008 14:30:00 EST. Please see our terms for use of feeds.

"We've followed Warren Buffett's advice to 'buy American'," says Mark Skousen; his Hedge Fund Trader eyes Johnson & Johnson (NYSE: JNJ) and FPL Group (NYSE: FPL).

"Johnson & Johnson as well as FPL Group are two strong positions in companies that have suffered a few 'hiccups' during this historic panic selling, but are likely to survive and prosper in the next year.

"First, Johnson & Johnson, the health care and pharmaceutical giant, beat expectations in its most recent earnings report. The company's earnings jumped 30% to $3.3 billion on revenues of $15.9 billion. It currently is selling for only 15 times forward earnings -- a bargain price.

"Second,, FPL Group -- known as Florida Power & Light -- is a large Florida utility company that is holding up well. It, too, is a solid company that now is on sale because of the financial crisis.

"Revenues are down slightly to $15 billion, and earnings dropped 40% during the past year. But Florida Power is still profitable, and at 10 times next year's earnings, it should continue to recover.

"We think it is wise at this time to limit our exposure to the markets, and to keep our powder dry by focusing strictly on a few well-financed utilities and consumer product firms.

"Overall, we consider both Johnson & Johnson and FPL Group to be solid companies selling at a substantial discount to their real value."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

J&J and FP&L: 'Solid American values' originally appeared on BloggingStocks on Mon, 03 Nov 2008 14:00:00 EST. Please see our terms for use of feeds.