Word of the Day

Commodity

Even if you don't think you do, you already know plenty about commodities. Want us to prove it? No problem.

What makes oil produced in Saudi Arabia different from oil exported from Nigeria? It's the same thing that makes the corn you ate at last summer¿s barbecue different from the corn used to produce ethanol. Stumped? Well, don't feel bad, it's a trick question. The answer? Absolutely nothing. Corn is corn no matter where it comes from -- just as wheat is wheat and natural gas is -- right! -- natural gas. (Though the quality may differ, the make-up is uniform.)

So, in less elaborate terms, corn and oil (and all other commodities) are homogenous goods that can be processed, resold and more often than not, used as an input to the production of other goods or services. These goods are traded on a commodity exchange, thus setting the price-per-barrel (or other metric unit) used to value them.

Now pay attention, here's a question that indeed does have an answer: What is the difference between a commodity and a stock? While a stock can tank and become worthless, a commodity cannot have its value be wiped to zero. One other difference: Most commodities are traded in futures, meaning traders buy and sell where they think the price of a product will be at a certain point in the future. Stocks trade based on the value of the underlying company at that point in time.

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Thursday, June 12, 2008

Zacks Analyst Interview Highlights: Celgene, Regeneron, Myriad Genetics, Alkermes and Trimeris

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CHICAGO, Jun 12, 2008 (BUSINESS WIRE) ----Zacks.com releases the latest Analyst Interview. Today's interview is with senior analyst Grant Zeng, who discusses Celgene (Nasdaq: CELG), Regeneron (Nasdaq: REGN), Myriad Genetics (Nasdaq: MYGN), Alkermes (Nasdaq: ALKS) and Trimeris (Nasdaq: TRMS).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=2678.

Were there any surprises this quarter from companies in your coverage?

During this quarter, some companies surprised me in either total revenue or earnings per share. Some surprised me with specific product sales.

One example is Celgene (Nasdaq: CELG). Net product sales in 1Q08 were $417.6 million, higher than our estimate of $409.7 million. Total revenue in 1Q08 was $448.8 million, versus our estimate of $434.4 million. Adjusted earnings per share (EPS) were $0.29, versus our estimate of $0.28 per share. Much of the surprise came from sales of the company's key product Revlimid. 1Q08 sales of Revlimid were $286.8 million, $6.8 million higher than our estimate of $280 million. Another positive example is Regeneron (Nasdaq: REGN). In 1Q08, total revenue was $56.4 million, way higher than our estimate of $35 million. Actual loss per share in 1Q08 was -$0.15 versus our estimate of -$0.21 per share. Myriad Genetics (Nasdaq: MYGN) also surprised me with higher 1Q08 predictive medicine sales ($59 million versus our estimate of $58.5 million).

On the negative side, Alkermes (Nasdaq: ALKS) surprised me with less than expected total revenue. In fiscal 4Q08 ended March 2008, total revenue came in at $62.4 million, $10.1 million short of our estimate of $72.5 million. Another negative example is Trimeris (Nasdaq: TRMS). Total revenue in the 1Q08 was $42.7 million, way lower than our estimate of $66 million. The shortage is mainly due to lackluster sales of its product Fuzeon, which was $17 million, versus our estimate of $28.5 million.

Which sub-sector of the biotech industry has the brightest outlook at this time?

It's hard to say which one sub-sector has the brightest outlook at this point of time. But we see a great potential for molecular diagnostics. The diagnostics market has enjoyed a high growth in the past few years and we believe the sector will continue to grow at a high rate in the next few years thank to the breakthrough in genomics and proteomics. Also, personalized medicine has gained favor in the past few years and the trend will continue in the future. Diagnostics is a lucrative business and is less risky than therapeutic programs.

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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which 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 Pros at http://at.zacks.com/?id=4581.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

SOURCE: Zacks.com

Zacks.com Mark Vickery Zacks Web Content Editor
   312-265-9380 Visit: www.zacks.com

Copyright Business Wire 2008 **********************************************************************
   As of Sunday, 06-08-2008 23:59, the latest Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a DOWNTREND
   on 06-05-2008 for REGN @ $16.23. As of Sunday, 06-08-2008 23:59, the latest Comtex SmarTrend Alert, an automated pattern recognition
   system, indicated a DOWNTREND on 06-02-2008 for TRMS @ $5.87. For more information on SmarTrend, contact your market data
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