Hovnanian Enterprises, Potash Corporation of Saskatchewan, Supernus
Pharmaceuticals, Actavis and Anika Therapeutics highlighted as Zacks Bull and
Bear of the Day
CHICAGO, Aug. 12, 2013
CHICAGO, Aug. 12, 2013 /PRNewswire/ -- Zacks Equity Research highlights
Hovnanian Enterprises, Inc. (NYSE:HOV-Free Report) as the Bull of the Day and
Potash Corporation of Saskatchewan (NYSE:POT Free Report) as the Bear of the
Day. In addition, Zacks Equity Research provides analysis ontheSupernus
Pharmaceuticals, Inc. (Nasdaq:SUPN-Free Report), Actavis, Inc. (NYSE:ACT-Free
Report) and Anika Therapeutics Inc. (Nasdaq:ANIK-Free Report).
Here is a synopsis of all five stocks:
Bull of the Day:
Housing stocks have fallen from their recent highs. Yet builders like
Hovnanian Enterprises, Inc. (NYSE:HOV-Free Report) are still expected to
generate double digit earnings growth this year and in 2014. Is this stock
weakness a buying opportunity?
Hovnanian and its brands, which include Brighton Homes, Parkwood Builders,
Town & Country Homes and Oster Homes, is one of the most recognizable
homebuilders in the United States. Founded in 1959, it has operations in 16
states, including the hot housing markets of California, Florida, Illinois,
Arizona and Virginia, and the District of Columbia.
Hovnanian reports earnings outside of the normal earnings cycle. It reported
second quarter earnings results all the way back on June 5. But it was a sign
of things to come with the rest of the homebuilders as it easily beat the
Zacks Consensus by 120%.
The company made a penny, beating the Zacks Consensus by 6 cents. The Zacks
Consensus was looking for a loss of 5 cents.
Revenue was up 23.8% to $423 million. For the first six months of fiscal 2013,
revenue rose 27.8% to $781.2 million.
Hovnanian was able to raise home prices in the quarter throughout the country
to offset increases in labor or material costs. Homebuilding gross margin
percentage increased 150 basis points to 18.9% from 17.4% in the second
quarter of fiscal 2012.
Bear of the Day:
The fertilizer industry was blindsided on July 30 when Russian potash giant
Uralkali announced it was leaving the lucrative potash cartel. Shares of
Potash Corporation of Saskatchewan (NYSE:POT Free Report), the world's largest
potash producer, got hit and earnings estimates were slashed. Earnings are now
expected to decline by 14% in 2013.
Russian-based Uralkali's announcement, that it would operate its plants at
nearly 100% capacity, thereby flooding the fertilizer market with potash,
caught everyone by surprise. Uralkali is part of a cartel of companies which
includes Belarus-based Belaruskali and the Canadian producers, Potash, Mosaic
and Agrium, which regulates the inventory of potash on the market.
Analysts expect the price of potash to plunge as a result. Potash price per
ton averaged $485 in 2012. Analysts expect it to fall as low as $300 per ton.
Of course, this will go directly to the bottom line.
Supernus Files Suit Against Actavis
Supernus Pharmaceuticals, Inc. (Nasdaq:SUPN-Free Report) recently announced
the filing of a patent infringement lawsuit against Actavis, Inc.
(NYSE:ACT-Free Report). Actavis is looking to launch its generic version of
Oxtellar XR – an antiepileptic drug.
With the patent infringement lawsuit being filed in the U.S. District Court
for the District of New Jersey within 45 days of the receipt of the paragraph
IV certification notice, the U.S. Food and Drug Administration (FDA) cannot
grant final approval to the generic versions of Oxtellar XR before 30 months.
The challenged patents are scheduled to expire on Apr 13, 2027.
Oxtellar XR is an extended release formulation of oxcarbazepine. Oxtellar XR
is an antiepileptic drug indicated for adjunctive therapy for the treatment of
partial seizures in adults and in children 6 to 17 years of age.
Oxtellar XR is the sole marketed product in Supernus' portfolio, which was
launched in Feb 2013 in the U.S. In Nov 2012, Supernus had received three
years of marketing exclusivity from the FDA. As of Mar 31, 2013, net deferred
product revenue was $3.6 million. In the first two months of its launch,
prescriptions totaled 579.
Supernus has an agreement with Patheon Inc. for the manufacture, formulation,
development and supply of commercial-grade quantities of oxcarbazepine, the
active pharmaceutical ingredient in Supernus' Oxtellar XR, in the U.S. As per
the terms of the commercial supply agreement, Patheon will manufacture
(including processing, packaging and labeling) oxcarbazepine at its facility.
Supernus will provide Patheon with all relevant materials required for
manufacturing the product.
Supernus carries a Zacks Rank #3 (Hold). Currently, companies like Anika
Therapeutics Inc. (Nasdaq:ANIK-Free Report) look well-positioned with a Zacks
Rank #1 (Strong Buy).
Get today's Zacks #1 Stock of the Day with your free subscription to Profit
from the Pros newsletter:
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are
likely to outperform (Bull) or underperform (Bear) the markets over the next
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from
Zacks Equity Research about the latest news and events impacting stocks and
the financial markets.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative
analysis to help investors know what stocks to buy and which to sell for the
Continuous analyst coverage is provided for a universe of 1,150 publicly
traded stocks. Our analysts are organized by industry which gives them keen
insights to developments that affect company profits and stock performance.
Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the
latest analysis from Zacks Equity Research. Click here to subscribe to this
free newsletter today.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed
in 1978. The later formation of the Zacks Rank, a proprietary stock picking
system; continues to outperform the market by nearly a 3 to 1 margin. The best
way to unlock the profitable stock recommendations and market insights of
Zacks Investment Research is through our free daily email newsletter; Profit
from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED
to be worth your time! Register for your free subscription to Profit from the
Get the full Report on HOV - FREE
Get the full Report on POT - FREE
Get the full Report on SUPN - FREE
Get the full Report on ACT - FREE
Get the full Report on ANIK - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook:
Zacks Investment Research is under common control with affiliated entities
(including a broker-dealer and an investment adviser), which may engage in
transactions involving the foregoing securities for the clients of such
Zacks Investment Research
800-767-3771 ext. 9339
Zacks.com provides investment resources and informs you of these resources,
which you may choose to use in making your own investment decisions. Zacks is
providing information on this resource to you subject to the Zacks "Terms and
Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment
is the potential for loss. This material is being provided for informational
purposes only and nothing herein constitutes investment, legal, accounting or
tax advice, or a recommendation to buy, sell or hold a security. No
recommendation or advice is being given as to whether any investment is
suitable for a particular investor. It should not be assumedthat any
investments in securities, companies, sectors or markets identified and
described were or will be profitable. All information is current as of the
date of herein andis subject to change without notice. Any views or opinions
expressed may not reflect those of the firm as a whole. Zacks Investment
Research does not engage in investment banking, market making or asset
management activities of any securities. These returns are from hypothetical
portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced
monthly with zero transaction costs. These are not the returns of actual
portfolios of stocks. The S&P 500 is an unmanaged index. Visit
http://www.zacks.com/performance for information about the performance numbers
displayed in this press release.
SOURCE Zacks Investment Research, Inc.
Press spacebar to pause and continue. Press esc to stop.