Monday, June 9

• The Pediatric Ethics Subcommittee of the Pediatric Advisory Committee will meet at 8:30 am to discuss the application of 21 CFR 50.52 (Clinical investigations involving greater than minimal risk but presenting the prospect of direct benefit to individual subjects) to FDA-regulated research. The discussion will be illustrated with hypothetical case examples of research involving HIV vaccines in adolescents and controlled trials of inhaled corticosteroids in children with asthma.
• Texas Instruments (NYSE: TXN) to give mid-quarter update at 5:00 pm.

Tuesday, June 10

• The Pediatric Ethics Subcommittee will meet at 8:00 am to discuss the application of 21 CFR 50.52 to FDA-regulated research illustrated with a hypothetical case example of research using stem cells for treating periventricular white matter injury in children.
• Cisco Systems (NASDAQ: CSCO) to hold conference call at 11:00 am to discuss business video innovation.
• Varian Medical Systems (NYSE: VAR) to hold mid-year review meeting at 12:00 pm.

As the teaching programs of the pre-college educational community evolve, so must the offerings of the firms providing educators with materials and equipment. One such outfit helps its associates stay in touch with the daily needs of its customers by giving them paid time to volunteer in the classroom of their choice.

School Specialty (NASDAQ: SCHS) provides educational products and equipment to preK-12 school markets in the United States and Canada. The company's specialty products line includes customized academic agendas, hands-on science education materials, arts and crafts materials, and physical education and special needs equipment. Its essentials products include instructional materials, art supplies, educational games, school forms, school furniture, and outdoor equipment. Altogether, the firm offers more 100,000 items, through catalogs and multiple websites.

School Specialty pleased investors earlier in the month, when it reported fiscal Q2 EPS of $1.74 and revenues of $392.9 million. Analysts had been expecting $1.53 and $383 million. Management also guided FY08 EPS to $2.15-$2.25 ($2.12 consensus) and FY08 revenues to $1.08-$1.10 billion ($1.07B consensus). SCHS shares popped on the news and then moved into a bullish "pennant" consolidation pattern. Prices frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with one "strong buy," one "buy," and three "holds." Analysts see a 15 percent average annual growth rate, through the next five years. The SCHS P/E ratio (14.67), PEG ratio (0.98), Price to Sales ratio (0.65), Price to Book ratio (1.23), Price to Cash Flow ratio (7.63), Price to Free Cash Flow ratio (11.21) and EPS Growth rate (35.94%) compare favorably with industry, sector and S&P 500 averages. The stock is one of those used to calculate the S&P 600 SmallCap Index. Over the past 52 weeks, it has traded between $31.01 and $40.31. A stop-loss of $30.15 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.