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(USGovernment-News.Com, July 22, 2012 ) New York, NY -- VFC's Stock House, an information and research outlet that brings ideas and opens discussions to a broad spectrum of investors, has released this week's list of hot stocks to watch, with an emphasis on earnings reports that will be dominating the financial headlines.
As we discussed last week, most media outlets refrained from making much of the European situation after an encouraging summit a few weeks ago, but the calamity over there is far from over, or solved, so there is also the chance that sporadic news will flow in to the US markets and spark another round of major selling. Already, the Euro has declined against other major foreign currencies, including the dollar, which is good news for vacationers or business folk looking to see their money go just a little further on the continent of bank vacation spots.
Worrisome news from Europe, still, is just something for investors to keep in the back of their minds, although there may be enough going on in the US to damper any hopes of a summer rally anyway.
Stocks dropped earlier in the month after a weak jobs report and just last week it was revealed that retail sales numbers are continuing to slump, both signs that the US recovery may be in a phase of slowdown and spurring some analysts to predict that another recession is all but upon us. On the upside, comments from Bernanke last week indicated that the Fed is prepared to continue its measures of stimulating encouraging growth - although debates flared in the media circuits about whether or not there is much left for the Fed to do that it hasn't been tried already.
The key data expected to roll in this week will be Friday when the second quarter GDP numbers will roll in. Data are expected by analysts to reveal growth of 1.5% and any disappointment there could send stocks tumbling, maybe more dramatically so than how the markets ended last week.
Earnings are still in full swing this week. The recent trend has the big boys reporting slightly better-than-expected earnings numbers thus far during the period, but nothing significant enough to spark a broad and long-lasting rally. More on earnings numbers a little later. Earnings highlights for the upcoming week will include Apple (AAPL), where investors are banking on another dose of strong numbers, and Amazon (AMZN), who last week it was rumored would jump into the smart phone market.
The Facebook (FB) report, however, could be the key one to watch. Given the hype and hoopla surrounding the IPO that left many investors feeling like victims of insider greed rather than shareholders of a game-changing company, these numbers are going to be much anticipated and have the potential to seriously influence the short to mid term FB trading trends. Numbers not publicly released before the IPO showed declining earnings for the social media behemoth and if that trend continues into the company's first quarterly report as a public company, then shares could be in for another quick round south. More than likely, however, we'll see numbers in line with estimates, which won't have much of a bearing on trading.
Both Human Genome Sciences (HGSI) and GlaxoSmithKline (GSK) are set to issue their respective reports, with the highlight there being being the recently-announced agreement on a buyout price between the two that ends months of immature haggling. Given the deal is already announced and all but done, investors looking for other gains in the volatile biotech sector can banke their HGSI winning (congrats!) and go looking for another similar play, which leads us right into the next segement.
FDA Approval Plays:
Amarin Corp. (AMRN): As we noted last week, it's 'now time' for Amarin Corp. This is the week that the FDA is set to issue an approval decision for AMR-101, the company's lead drug candidate that treats high triglycerides, and shares have been inching higher for weeks in anticipation of the key date. What makes this play that much more exciting is the buyout and partnership talk that accompanies speculation on the approval.
Horizon Pharma (HZNP): Horizon Pharma is another one that has posted huge gains over the past few months and also has an FDA date pending this week. Shares have more than doubled since early June when investors started taking notice of the pending FDA date for the company's rheumatoid arthritis treatment, Rayos. Horizon also has an osteoarthritis and rheumatoid arthritis drug, Duexis, on the market, although sales for that product have been modest, thus far.
While consensus also has it that Rayos will also receive approval coming up, the product has not necessarily been identified as an 'instant blockbuster' like Amarin's AMR-101. Additionally, speculation also has it that the product is not going to gain swift market share and has even been labeled as a "me, too" drug since it is a controlled-release dosage of something already on the market.
MRI Interventions (MRIC): Shares of MRI Interventions closed at under three bucks on Friday, a potential nice point to enter for those looking for the company's MRI-augmenting technology to continue making in-roads into the mainstream.
Implant Sciences (IMSC): Implant Sciences tripled in price in short time and has since retreated a bit, but still has some key catalysts pending that make it one to keep on the radar. Implant's explosive trace detection technology (ETD) has been gaining traction in high-threat international markets and may be poised to receive an approval by the US TSA in August that could launch this small company into the mainstream.
VFC's Stock House is an information and research outlet that brings new ideas to the table and opens discussions for a broad spectrum of investors, with a strong focus on - but not limited to - biotech stocks, biopharma stocks, growth stocks and the pharmaceutical and healthcare sectors. VFC's Stock House provides individual company profiles, write-ups and reports as well as giving general insights into broader-market news through various 'Stock Watch' lists. At the conclusion of most weeks, VFC's Stock House issues a "Weekly Stock Watch" that examines news items, stocks and stories that made headlines during the previous trading week, but may also make headlines or influence trends during the upcoming week as well. The information contained within the pages of VFC’s Stock House are not intended to be taken as advice, but as a starting point where investors can follow up with their own DD and devise their own entry and exit strategies.
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