Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

5 Stocks Seeing Growth in Critical Sectors


These companies are growing steadily in sectors where we'll see the next megatrends appear.


These five companies are growing steadily in sectors where we'll see the next megatrends appear.

1. Paramount Gold & Silver (PZG) said the first analysis of the waste heaps at its Sleeper Mine showed 0.27 grams per tonne of gold, with a likely recovery rate of 70%. So, let's do the math:

  • 54 million tonnes (with a "-nes," meaning metric ton, or 2,205 pounds) times .27 grams per tonne = 14,580,000 grams of gold
  • 14,580,000 grams of gold = 514,294 ounces of gold
  • 514,294 ounces of gold x 70% recovery rate = 360,000 ounces of gold
  • 360,000 ounces of gold x $1,700 an ounce = $612 million
  • Half for the recovery company that will pay all expenses, half for Paramount = $306 million
  • $306 million / 140 million shares = $2.18 a share

Or, Paramount hires a recovery company, pays the startup and operating expenses itself, and keeps something over $500 million or $3.50-plus a share.

Buy Paramount under $4 for my $15 target when the company is acquired, possibly in 2011. There is a lot of good news coming, including the announcement that the Sleeper waste dumps contain $70 million worth of gold to fund the company.

2. Antares Pharma (AIS) is only days away from Food and Drug Administration approval of Anturol, and not much more than that from BioSante's (BPAX) release of the Phase III LibiGel data.

Female sexual dysfunction, or hypoactive sexual desire disorder, affects millions of women in the US, especially those past menopause. It is more common than erectile dysfunction, which is a $2 billion per year prescription business in the US. There currently are no FDA-approved drug therapies for the treatment of HSDD in women.

Projections for the US market alone range from $2 billion to $5 billion in sales. Not only does Antares get a royalty on that, but it owns the rest-of-world rights. AIS remains a top buy trading idea up to $3 for a $5 target by the end of 2011.

3. Dendreon (DNDN) said that in 2013 it'll do a Provenge trial in earlier-stage prostate cancer, setting the stage for an important label expansion. Most of the new "competitors" to Provenge actually aim at later-stage patients, and success in earlier-stage patients would substantially broaden Provenge's market.

In this trial, the placebo will be a true placebo, not the frozen Provenge that was used in the approval trials. The company expects a much higher overall survival advantage due to this change. The widely quoted 4.1-month survival advantage was for Provenge competing against frozen Provenge, a little fact the Dendreon bears never mention.

Dendreon is a top buy under $28 with a $50 target as they roll out Provenge, bring on more manufacturing capacity, and file for approval in Europe.

4. Sprint (S) and Clearwire are engaged in a game of chicken over whether Clearwire will make its $237 million debt payment due on December 1. They have a 30-day grace period, and I would not be surprised to see this whole issue resolved, with another partner announced, by the end of the year.

Sprint is a top buy trading idea under $4 for my $8 target in 2012 -- which I expect to raise.

5. 3D Systems (DDD) is acquiring Z Corp., the leading multicolor ink-jet 3-D printer, for $137 million in cash. Z Corp. did the adjustable wrench manufacturing that I showed in the original 3D Systems recommendation.

3D Systems also gets Vidar Systems in the deal. Vidar is a leader in medical imaging, and will offer 3-D medical models, surgical guides, hearing aids, dental applications, and implantable devices. The acquisitions should close just after the end of the year.

3D Systems is a top buy under $17 for a $27 target price in 2012.

Editor's Note: This article was written by Michael Murphy of New World Investor.

Below, find some more great investing and trading content from MoneyShow:

US Solar Industry: Up to the Challenge?
By James Trippon

5 Stocks If You're Hungry for Growth
By Kate Stalter

France's AAA Rating Is Doomed
By Jim Jubak

What to Look For in a Financial Advisor
By Evelyn Jacks

Twitter: @TopProsTopPicks

< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos