John, consensus estimates are for .09. In
different reports I have seen, Donaldson, Lufkin &
Jenrette have said they expect NABI to post solid
earnings and will, at least, meet estimates.
Separately, the company has said that they have
totally comitted their supply of plasma for 1997
and are working to increase supply for 1998. Keep
in mind, the stock is at these low levels because
of 3 unforeseen events last year (from oldest to
most recent): (1) discontinuance of one of their
drugs in development; (2) FDA warning letter that
later proved to be nothing and problem was
corrected by NABI; and (3) unexpected charge last
quarter. In contrast, the events of the past few
weeks have been very positive: (1) NABI's HIV drug
to prevent transmission of AIDS from mother to
fetus posed no safety concerns and will resume
clinical studies; (2) the HIV drug was also shown
to be effective in neutralizing the AIDS virus when
taken with another product; (3) NABI is expected to
file for FDA approval for their HBIG4 drug by end
of March 1997; (4) Staphvax Phase III tests appear
to be going well (although FDA approval won't
happen this year); (5) plasma sold-out for 1997;
and (6) NABI has not preannounced any charges for
this quarter. All this info comes from recent DLJ
reports and/or news articles. Also, DLJ has had a
target price for NABI of 21; First Albany has a
target price of 18. Remember, but for the 3
unforeseen mishaps I noted earlier, NABI would be
trading in the high teens. Looking forward, I
don't see how NABI will not meet or exceed
estimates and move toward the high teens. |
