The biotech sector has been pretty exciting this year�with small cap biotech stocks Prana Biotechnology Limited (NASDAQ: PRAN) and TNI BioTech (OTCMKTS: TNIB) having recently produced noteworthy news for investors�while Acceleron Pharma, Inc (NASDAQ: XLRN), Ophthotech (NASDAQ: OPHT) and BIND Therapeutics (NASDAQ: BIND) have just�set term sheets for their upcoming IPOs. Just consider all of the following recent news:
Surge in Biotech IPOs. Unquote.com has noted�a surge in biotech IPOs this year as there have been�almost 30 biotech IPOs since January - marking a 13-year high and sparking some concerns about a bubble. More specifically and according to the National Venture Capital Association (NVCA), there was just one venture capital-backed biotech IPO in the US in the first quarter of this year, but this was followed by a massive increase of 20 in�the second quarter and a�further six since July. There has also been a small uptick in�venture capital-backed European biotech companies going public (four) with�a listing on the Nasdaq appearing to be the most popular or rather the safest option. � New IPO Term Sheets. This month, a couple of small cap biotech companies announced their terms for upcoming IPOs, including 1)�Acceleron Pharma, Inc, a clinical stage biotech developing protein therapeutics for cancer and rare diseases, plans to raise $65 million by offering 4.7 million shares at a price range of $13 to $15; 2) Ophthotech, a clinical-stage biotech developing therapeutics for eye diseases, plans to raise $100 million by offering 5.7 million shares at a price range of $16 to $19; and 3) BIND Therapeutics, a clinical-stage biotech developing a platform of targeted and programmable therapeutics, plans to raise $71 million by offering 4.7 million shares at a price range of $14 to $16. Biotechs Invest More on R&D. The 2013 BDO Biotech Briefing examined the most recent 10-K SEC filings of publicly traded companies listed on the Nasdaq Biotechnology Index and�found that companies spent on average $54 million on R&D in 2012, up from $50 million in 2011 and $48 million in 2010. Moreover, biotech companies also saw an average 13% revenue jump in 2012, but it was larger cap�biotechs (revenues over $50 million) who were the primary contributors to the increase. On average, the saw a�28% increase in revenue, while smaller biotechs reported a 27% decline in average revenue last year. Nevertheless, smaller�biotechs saw a 9% increase in average overall R&D spending while�average R&D spending as a percentage of revenue increased to 215% in 2012 from 143% in 2011. Australia and New Zealand�� Hot Biotech Market. Thebull.com.au has a lengthy article about the biotech sector downunder which noted that the�Aussie Biotech Sector is the largest in the world as a proportion of GDP while the Australian Life Sciences Index has generated consistently better returns than both the US NASDAQ Composite Index and�Australia���All Ordinaries Index since mid-2006. The big winners as of the beginning of September have been New Zealand-based Neuren Pharmaceuticals Limited (ASX: NEU), which has a drug to treat Traumatic Brain Injury investors that�could be the first drug of its type to get US FDA approval, as it was up�300%; and Australia-based and NASDAQ listed Prana Biotechnology Limited which�focuses on developing drugs to treat degenerative processes associate with aging (it has clinical trial of a treatment for Alzheimer�� underway). Prana Biotechnology Limited. And speaking of Prana Biotechnology Limited, its shares were sliding after announcing last week that the results from a study of its most advanced experimental drug will be delayed. Prana Biotechnology Limited said it now expects to report results from�a trial�which evaluated PBT2 as a treatment for Huntington's disease, in early 2014 instead of the fourth quarter of 2013. Nevertheless and as of this week, Prana Biotechnology Limited is still up about 99% since the start of the year. � TNI BioTech Makes a Couple of Important Announcements. Formed in 2012 to acquire patents, develop treatments, market and license immunotherapies for the treatment of cancer, HIV/AIDS and autoimmune diseases using methionine enkephalin (MENK) and low dose naltrexone (LDN), small cap TNI BioTech�� first patents and therapies were acquired from Dr. Nicholas P. Plotnikoff and Dr. Fengping Shan. This month, TNI BioTech announced a manufacturing and supply�agreement with Laboratorios Ramos for the production of Low Dose Naltrexone (��DN�� for commercial use. FDA-approved naltrexone, in a low dose, can normalize the immune system and help those suffering from�HIV/AIDS, cancer, autoimmune diseases and central nervous system disorders. Last week, TNI BioTech also gave a financing update where it noted that the company has�received $826,250 as consideration for the exercise of the previously-issued warrants and $531,250 for the purchase of common stock under the Private Placement, for an aggregate sum of $1,357,500.Given the above, it looks like the small cap biotech sector is set to stay hot and get even hotter.
Best Safest Stocks To Own For 2014: Fluor Corporation(FLR)
Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.
Advisors' Opinion:- [By Louis Navellier]
If we look at the sector using Portfolio Grader, we see that many of the big names in the group like Flour (FLR), Granite Construction (GVA) and KBR incorporated (KBR) are rated ��ell.��The anticipated spending for both government and private industry simply hasn�� materialized, and the companies are not seeing revenue or profit growth.
- [By Rich Duprey]
South America has become an unsettled region to mine in. Newmont Mining (NYSE: NEM ) had its Peruvian Conga project brought to a short stop over environmental concerns, while Vale (NYSE: VALE ) recently abandoned an Argentinean project because of the country's policies.�Costs for Pascua-Lama have ballooned over the past decade and now stand at about $8.5 billion, putting it at risk of becoming an albatross around the miner's neck even before the court decision. Barrick even resorted to bringing in engineering specialist Fluor (NYSE: FLR ) to expand the scope of its project management before the court order.
- [By Louis Navellier]
Fluor Corporation (FLR) is one of the world�� leading heavy construction and engineering firms. I don’t want to imply that this is a bad company because it is actually a very good one. However, Fluor has divisions including Oil & Gas, Industrial Infrastructure, Government, Global Services and Power. Virtually all of them are seeing limited spending as a result of the global slowdown and reduced government spending around the world. The stock is up more than 23% this year, but earnings are actually down on flat revenues. Analysts have been lowering their estimates for the rest of this year as well as 2014, and the stock is currently rated as a by Portfolio Grader. When the economy recovers, I expect will see this company’s fundamentals improve substantially … but until that happens investors should avoid the stock.
Best Safest Stocks To Own For 2014: Goldman Sachs Group Inc.(The)
The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.
Top 10 Undervalued Stocks To Watch Right Now: Under Armour Inc.(UA)
Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.
Advisors' Opinion:- [By Steve Symington]
If you've ever lamented the day you had to give up your stylish 1990s workout gear, the creative minds at Under Armour (NYSE: UA ) have something awesome for you.
- [By Tamara Rutter]
Take cover
Competitors including Nike (NYSE: NKE ) and Under Armour (NYSE: UA ) jumped at the opportunity to capitalize on Lululemon's shortcomings. In fact, Under Armour's recent ad campaigns are both amusing and timely. For example, an ad for Under Armour's line of yoga pants included the slogan: We've Got You Covered." - [By Steve Symington]
Hold onto your hats, folks! Performance apparel specialist Under Armour� (NYSE: UA ) is all set to announce second-quarter earnings on July 25 before the market opens.
Best Safest Stocks To Own For 2014: Petroleo Brasileiro S.A.- Petrobras(PBR)
Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.
Advisors' Opinion:- [By Jim Jubak]
The auction news isn't good for investors in Brazil's Petrobras (PBR), but it could well be a boon for China and Chinese oil companies such as PetroChina (PTR) and CNOOC (CEO).
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