Here at The Motley Fool, I've long cautioned investors to keep a close eye on inventory levels. It's a part of my standard diligence when searching for the market's best stocks. I think a quarterly checkup can help you spot potential problems. For many companies, products that sit on the shelves too long can become big trouble. Stale inventory may be sold for lower prices, hurting profitability. In extreme cases, it may be written off completely and sent to the shredder.
Basic guidelines
In this series, I examine inventory using a simple rule of thumb: Inventory increases ought to roughly parallel revenue increases. If inventory bloats more quickly than sales grow, this might be a sign that expected sales haven't materialized. Is the current inventory situation at Buckeye Technologies (NYSE: BKI ) out of line? To figure that out, start by comparing the company's inventory growth to sales growth. How is Buckeye Technologies doing by this quick checkup? At first glance, OK, it seems. Trailing-12-month revenue decreased 8.8%, and inventory decreased 5.5%. Comparing the latest quarter to the prior-year quarter, the story looks decent. Revenue dropped 9.9%, and inventory shrank 5.5%. Over the sequential quarterly period, the trend looks OK but not great. Revenue dropped 4.3%, and inventory dropped 0.7%.
Top 10 Heal Care Companies To Invest In Right Now: Vertex Pharmaceuticals Incorporated(VRTX)
Vertex Pharmaceuticals Incorporated engages in discovering, developing, manufacturing, and commercializing small molecule drugs for the treatment of serious diseases worldwide. Its products include telaprevir, a prescription medicine used for the treatment of patients with genotype 1 hepatitis C virus (HCV) infection; and Ivacaftor, a prescription medicine used for the treatment of cystic fibrosis. The company markets its products under the INCIVEK brand name in the United States and Canada; INCIVO brand in the United Kingdom, Germany, France, Sweden, Austria, Finland, Denmark, Switzerland, and Norway; KALYDECO brand in the United States; and TELAVIC brand in Japan. Its drug candidates comprise VX-222, a Phase II clinical trial drug candidate, and ALS-2200 and ALS-2158, a Phase I clinical trial drug candidates that are designed to inhibit the replication of HCV; VX-809 and VX-661, a Phase II clinical trial drug candidates that improve the function of defective cystic fibro sis; VX-509, a Phase II clinical trial drug candidate for the treatment of patients with rheumatoid arthritis and other immune-mediated inflammatory diseases; VX-765, a Phase II clinical trial drug for the treatment of epilepsy; and VX-787, an investigational drug candidate for the treatment of influenza A. The company was founded in 1989 and is headquartered in Cambridge, Massachusetts.
Advisors' Opinion:- [By Melly Alazraki]
Vertex Pharmaceuticals (VRTX)topped the list with a 38.4% return as of Wednesday's close of $48.48. This $9.8 billion market capnon-profitablecompany is all promise. It is itspipelinethat's drawing investors, especially thehepatitis C treatment telaprevirandpotential cystic fibrosis drug VX-770.
Both diseases present large market opportunities: Liver disease caused by the hepatitis C virusaffects 3.2 million individualsin the U.S. and as many as 100 million people worldwide. Cystic fibrosis is an inherited genetic disease that affects about 30,000 people in the U.S. and has few treatment options.
Analysts ! have favored the stock, with aconsensus buy recommendation. However, just on Thursday, Vertex announcedtwomore telaprevir studyresultsthat did not impress investors and the stock declined 2% to $47.50. Also, Vertex is not without competitors and is in a race with Merck (MRK) and its experime ntal Hep C drug boceprevir to be the first to reach the market.
The stock's 52-week high of $52.13 was set on March 7, up from a low of $31.25 set on July 1, 2011. - [By Dug]
Vertex Pharmaceuticals is a discovery and development company focused on small molecule drugs for viral diseases such as Hepatitis C, cancer, autoimmune diseases and more. Their HCV (HepC virus) protease inhibitor drug, Telaprevir, is in Phase III trials, but the company also has a huge pipeline of additional candidates and collaborates with the likes of GlaxoSmithKline and Merck. Vertex shares were worth just under $25 in January 2012, peaked at nearly $35 in July and have held value showing a strong finish at just under $30 in December.
- [By TheStreet Staff]
Vertex Pharma's (VRTX ) cystic fibrosis drug Kalydeco will be approved. More importantly, studies testing Kalydeco combined with other Vertex's cystic fibrosis drugs will show strong benefit in a larger swath of patients. Vertex becomes a cystic fibrosis company. Hepatitis C? What's that?
Correct. Kalydeco was approved in January -- in my opinion, the most important drug approval in 2012. The Kalydeco-VX-809 combination study was successful, even though the Street is still debating the magnitude of the regimen's benefit to cystic fibrosis patients
Top 10 Heal Care Companies To Invest In Right Now: 8x8 Inc(EGHT)
8x8, Inc. develops and markets telecommunications services for Internet protocol (IP), telephony, and video applications. The company offers 8x8 Virtual Office Business Telephone Service, an alternative to traditional private branch exchange systems that offers automated attendants to assist callers; extension-to-extension dialing services; direct inward dial; conference bridge, 3-way calling, music on hold, call park/pick-up, call transfer, hunt groups, and do not disturb services; voice mail, including email alerts and direct transfer to mailbox; call waiting/caller-ID; distinctive tone ringing; and optional receptionist console applications. Its products also include 8x8 Complete Contact Center, an integrated hosted call center solution that consists of skill-based routing, multi-media management, real time monitoring and reporting, voice recording and logging, historical reporting, interactive voice response, CRM integration, and contact and case management tools; 8x8 IP Telephones; 8x8 Virtual Meeting, a video Web conferencing service; and 8x8 Managed Hosting and Cloud-Based Computing Solutions. In addition, the company offers 8x8 Virtual Office Pro Unified Communications that allows subscribers to manage business communications functions online and delivers various tools, such as Microsoft Outlook contacts and corporate directory integration; virtual meeting; Virtual Office Mobile extension; fax; call recording; presence management; and a view of voicemails, recordings, FAX messages, calls, and chat history. The company markets its services under 8x8 brand to end users through direct sales force, Web site, and third party resellers primarily in the United States. As of June 30, 2011, it had approximately 25,000 business customers. 8x8, Inc. was founded in 1987 and is headquartered in Sunnyvale, California.
Top 10 High Tech Stocks To Buy For 2014: Full Metal Minerals Ltd. (FMM.V)
Full Metal Minerals Ltd., a junior exploration company, engages in the acquisition, exploration, and development of resource properties primarily in Alaska. The company primarily explores for gold, copper, silver, lead, zinc, and molybdenum ores. Its principal properties include the Pyramid copper-gold-molybdenum porphyry property; and the Pebble South copper property comprising 2 contiguous blocks consisting of an area of 420 square kilometers located in Alaska. Full Metal Minerals Ltd. was incorporated in 2003 and is headquartered in Vancouver, Canada.
Top 10 Heal Care Companies To Invest In Right Now: Cape Lambert Iron Ore Ltd (CFE.AX)
Cape Lambert Resources Limited engages in the investment, exploration, evaluation, and development of mineral properties in Australia, Africa, Greece, and South America. The company primarily explores for iron ore, copper, gold, uranium, phosphate, lead-silver-zinc, and vanadium. It holds interests in various projects located in Sierra Leone and Guinea, West Africa; Coastal Pilbara region in Western Australia; and Queensland in Australia. Cape Lambert Resources Limited is based in West Leederville, Australia.
Top 10 Heal Care Companies To Invest In Right Now: CIT Group Inc(DEL)
CIT Group Inc. operates as the holding company for CIT bank that provides commercial financing, leasing products, and other services to small and middle market businesses. Its products principally include asset based loans; secured lines of credit; operating, finance, and leveraged leases; factoring services; vendor financing; import and export financing; small business loans; acquisition and expansion financing; letters of credit/trade acceptances structuring; and debtor-in-possession/turnaround financing. The company?s services primarily comprise financial risk management; asset management and servicing; debt restructuring; credit protection; accounts receivable collection; debt underwriting and syndication; merger and acquisition advisory services; and insurance services for small businesses and middle market customers. The company provides financing and leasing products to its clients and customers in approximately 30 industries, including transportation, particularly aerospace and rail, manufacturing and retail, and in approximately 20 countries. CIT Group Inc. was founded in 1908 and is headquartered in New York, New York.
Top 10 Heal Care Companies To Invest In Right Now: (NFYEF)
New Flyer Industries, Inc. a Canadian Income Fund, operates as an unincorporated open-ended trust in Canada. The fund engages in the manufacture and sale of heavy duty transit buses in the United States and Canada. It uses various propulsion systems, including diesel electric or gasoline electric hybrid systems, compressed natural gas or liquid natural gas systems, and zero emission electric trolleys in heavy duty transit buses. The fund also provides aftermarket parts and services, including parts distribution, field services, support documentation, and training, as well as bus parts. It supplies heavy duty transit buses primarily to municipal and local transit authorities. New Flyer was founded in 1930 and is headquartered in Winnipeg, Canada.
Advisors' Opinion:- [By Paul Goodwin]
Second, New Flyer Industries (NFYEF.PK/NFI.TO) stock has been accelerating since January 19th. The unusual action prompted regulators to ask New Flyer to disclose that New Flyer has been in discussions "regarding a potential commercial and strategic relationship." But company CEO Paul Soubry says there are no deals closing, and several analysts agree.
The stock has been incredibly under-priced since last summer. North American transit bus orders have been slow for the past two years, and New Flyer has been reducing its backlog as a result. But the flip side of the slow bus market has been a rapidly aging bus fleet and increasing pressure on transit operators to replace aging buses.
Top 10 Heal Care Companies To Invest In Right Now: Andatee China Marine Fuel Services Corporation(AMCF)
Andatee China Marine Fuel Services Corporation, through its subsidiaries, engages in the production, storage, distribution, and wholesale purchase, and sale of blended marine fuel oil for cargo and fishing vessels primarily in Tianjin City, and Liaoning, Shandong, and Zhejiang Provinces in the People?s Republic of China. It sells its products through distributors, as well as to retail customers. The company was founded in 1997 and is based in Dalian, the People?s Republic of China.
Top 10 Heal Care Companies To Invest In Right Now: LSI Industries Inc.(LYTS)
LSI Industries Inc. provides corporate visual image solutions primarily in the United States, Canada, Australia, and Latin America. It operates in three segments: Lighting, Graphics, and Technology. The Lighting segment manufactures and markets outdoor and indoor lighting, canopy lighting, landscape lighting, light emitting diodes (LED) lighting, light poles, and photometric layouts products, as well as lighting analysis services. The Graphics segment manufactures and sells exterior and interior visual image elements for use in visual image programs. It offers signage and canopy graphics; pump dispenser graphics; building fascia graphics; decals; interior signage and marketing graphics; aisle markers; wall mural graphics; fleet graphics; prototype program graphics; and solid state LED video screens for the sports and advertising markets, as well as installation services for graphics products. The Technology segment designs, produces, and supports light engines and large fo rmat video screens using LED technology; and specialty LED lighting. Additionally, the company offers menu board systems. It serves commercial, industrial, and multi-site retail markets; petroleum/convenience stores; sports and advertising; and entertainment markets. The company sells its products through regional sales managers, independent sales representatives, and distributors. LSI Industries was founded in 1976 and is headquartered in Cincinnati, Ohio.
Top 10 Heal Care Companies To Invest In Right Now: Intellipharmaceutics International Inc.(IPCI)
Intellipharmaceutics International Inc. engages in the research, development, and manufacture of novel or generic controlled and targeted release oral solid dosage drugs. The company?s patented Hypermatrix technology is a multidimensional controlled-release drug delivery platform that can be applied to the development of various existing and new pharmaceuticals. It has a pipeline of products in various stages of development in therapeutic areas, including neurology, cardiovascular, and gastrointestinal tract, pain, and infection. The company?s lead generic product under development includes generic Focalin XR (dexmethylphenidate hydrochloride), an extended-release capsule for the treatment of attention deficit hyperactivity disorder. Intellipharmaceutics has a license and commercialization agreement with Par Pharmaceutical, Inc. for the development and commercialization of generic Focalin XR. The company also has five generic products filed with the FDA, including a gene ric of Effexor XR (venlafaxine hydrochloride), an extended-release capsule for depression; Protonix (pantoprazole sodium), a delayed-release tablet for conditions associated with gastroesophageal disease; Glucophage XR (metformin hydrochloride), an extended-release tablet for managing type 2 diabetes; Seroquel XR (quetiapine fumarate), an extended-release tablet for the treatment of schizophrenia, bipolar disorder, and major depressive disorder; and Lamictal XR (lamotrigine), an extended-release tablet for the treatment of anti-convulsant for epilepsy. Its lead non-generic product under development is Rexista (oxycodone), an abuse- and alcohol-deterrent controlled-release oral oxycodone hydrochloride formulation for the relief of pain. The company also has a under late stage development product, such as Coreg CR (carvedilol phosphate), an extended-release capsule for hypertension and heart conditions. IntelliPharmaCeutics International Inc. was founded in 1998 and is based i n Toronto, Canada.
Top 10 Heal Care Companies To Invest In Right Now: Korab Resources Ltd (KOR.AX)
Korab Resources Ltd. engages in the evaluation, exploration, and development of mineral resource properties in Australia and Ukraine. The company primarily explores for gold, copper, silver, nickel, iron ore, phosphate, magnesium, uranium, zinc, lead, and other base metals. Korab Resources Ltd. was founded in 1998 and is based in South Perth, Australia.
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