Stockchase Opinions

Veronika Hirsch Patheon PTI-T DON'T BUY Feb 07, 2007

This was one of her most successful Shorts last year. Would not be a buyer.
$5.260

Stock price when the opinion was issued

biotechnology pharmaceutical
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PAST TOP PICK
Then 5.95 Stop loss at 5 20. If a stock goes below the stop loss, then if it doesn't recover within a week, it's time to move on. Don't buy right now. Bottom fishing.
PAST TOP PICK

(Top Short) Then 5.50 Had a premium valuation that they no longer deserved. He shorted and it paid for him. It's going to be a long hard turn around.

COMMENT
Made a big acquisition about 2 years ago, which basically almost blew the company up. There were a lot of money-losing contracts that they have been trying to clean up. Eventually it will probably turn around, but the question is will they get it done in 08 or 09.
DON'T BUY
(Market Call Minute.) Model price is $2.75, a -13% differential.
HOLD
(Market call minute.) New management. Closing operations. In a turn around phase.
COMMENT
Relatively risky but the company has made a lot of the right moves. Grew very fast but like a lot of companies, had problems with some of their acquisitions. Have a pretty high cost structure. Thinks the worst is over. On a five-year timeframe, the trend for outsourcing is still there.
HOLD
(Market Call Minute.) You have to be careful of them, as they have had execution issues over time.
COMMENT
Had some challenges over the last few years. Recently been on a recovery path of straightening out operations and lowering costs. There has been an unsolicited takeover bid. Need to continue executing on their current strategy. Worth a look.
SELL
Low margin business and has been decimated over time. Sees nothing that would tempt him to Buy. If you own, consider selling and moving on to something else.
COMMENT

Rates this as C+ in his system, but is probably going to have to upgrade that. Revenue is starting to accelerate. Have a new management team on board that is basically focusing the company and going for profitable business, instead of just doing acquisitions. Last quarter was very, very solid. Stock is up 174% in this last year and is starting to get noticed again.