To: scaram(o)uche who wrote (539 ) 8/13/2001 7:24:15 AM From: Jim Oravetz Read Replies (1) | Respond to 8/10/01 15:51 ET Immunex (IMNX): 16 +1.28: One biotech stock bucking the sector's recent downward trend is Immunex... One reason -- IMNX has already been beaten up pretty badly this year, as the stock is down 72% from its 52-wk high, and down 61% ytd... However, what we like to see is that stock has spent the past four months building a solid base in the 14-18 range... While today's move merely puts the stock right in the middle of that range, Briefing.com contends that IMNX is a strong turnaround candidate... First of all, company already has a few money making drugs... Enbrel, its flagship arthritis drug, has the potential to be a big money maker, especially if FDA approves it for use in treatment of psoriatic arthritis... Company also needs to address its capacity constraints - which it is in the process of doing... For the first six months of the year company did nearly $443 mln in sales... Should top the $1 bln figure next year (consensus is for $1.3 bln)... Second, company is profitable - not something you can say about many biotech outfits... IMNX is projected to earn $0.28 in FY01 and $0.30 in FY02... Third, positive cash flow will help company in developing pipeline... Though currently would have to label IMNX's pipeline as "early stage" company has the cash needed to ride out the lean years... Could also acquire pipeline... In addition to being cash flow positive, IMNX sitting on about $1.7 bln in cash and marketable securities... Given solid financials, decent product stable and beaten up stock price, IMNX a relatively low-risk way to play the often streaky biotech sector. -- Robert Walberg, Briefing.com
