Semiconductor stocks continue to deliver upside surprises.
Integrated Silicon Solution (Nasdaq: ISSI)
, is up nearly +20% today after topping estimates by a handy margin
for the fourth straight quarter. Shares, which trade for less than
15 times projected 2010 profits, could see continued upside as
management notes a swelling backlog and increasing design wins.
Design wins are decisions by key customers to incorporate ISSI's
specialized memory technology into new products that will often
yield sales (and royalties to ISSI) when new products are
released.
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You have to be impressed by a company that is doing well even as
its end-markets remain depressed.
Owens-Corning (
OC
)
, which sells building materials into the residential and
commercial construction market, delivered stellar first-quarter
results, and management now thinks that per-share profits could
nearly double this year to $2.00. Presumably, a healthier housing
market in future years could spike profits sharply higher than
that. Keep an eye out for analyst forecasts in this name, as the
consensus profit estimates - especially for 2011 - are likely to
spike far higher. How high they go will determine whether the stock
looks like a bargain after today's +10% gain in the stock.
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Gout, a form of arthritis that generally afflicts middle-aged
men, has been one of the fastest growing ailments in the United
States. But current treatments are often ineffective or bring
debilitating side effects. In response, any drug that shows promise
in treating gout is bound to attract attention.
Biocryst Pharma (Nasdaq: BCRX)
, which is among several drug companies testing various treatments,
just announced that its BCX4208 drug has proven effective in Stage
2 clinical trials. There are still a few more years worth of
regulatory hurdles to surmount, but Biocryst faces a potentially
large opportunity: More than five million Americans suffer from
gout, a figure that is rising +10% annually. Shares of Biocryst are
up more than +10% in Wednesday trading, but still trade at -40%
below their 52-week high.
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Looking to research other companies seeking a remedy for gout?
Ardea Biosciences' (Nasdaq: RDEA)
key drug, RDEA594, has worked well in conjunction with Allopuriol,
an existing treatment that reduces uric acid in blood. Management
hopes to secure FDA approval by the end of this year. You can also
check out
Savient Pharma (Nasdaq: SVNT)
, which is expected to receive FDA approval for its Krystexxa drug
late this year as well.
-- David Sterman
Contributor
StreetAuthority
Disclosure: David Sterman does not own shares of any security
mentioned in this article.