Wednesday, May 5, 2010

Intra-day action (ITMN)

US markets are about half a percent lower today, continuing yesterday's drop.

Most of today's gainers are companies beating earnings expectations.  Among them is American Medical Systems(AMMD), a specialist in minimally invasive "Pelvic Health" solutions for men and women.  They're an interesting company for an aging demographic, with products that correct extremely unpleasant conditions such as incontinence.  Several Wall Street brokerages have upgraded shares today based on management's boost to full year guidance.  These firms are taking the position that good execution and a robust product pipeline will result in not only higher earnings, but a higher multiple on those earnings.

The company is, as Judge Smails would put it, "no slouch" when it comes to R&D spending, at 10% of revenues...

Among losers today is Intermune, down 77% after what looked like a "shoe-in" FDA approval for its Esbriet drug (to combat lung function decline) instead turned into a rejection.  Shares are down to the $10 range, where they were back in the fall...


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