Wachovia CM：SFD业绩改善现曙光

8/29 04:00 EST

猪肉供应商Smithfield Foods(代號:SFD) 当季业绩报告显示，每股亏损2美分，优于业界预期的每股亏损4美分，同时大大高于券商Wachovia Capital Markets预期的每股亏损20美分（其中不包括每股15美分的对冲交易亏损与4美分的与Campofrio（由SFD收购的一家西班牙肉类加工企业）相关亏损。

SFD生猪与猪肉业务利润总额为5300万美元，与上一季度的1000万美元相比增幅巨大，第一季度生猪现货价格亏损每英担（cwt）由上一季度的12美元缩减至5.5美元。

该券商原本认为玉米饲料价格上涨将使SFD第一季度生猪现货价格亏损达到20美元。不过情况并没有如此糟糕。

该券商将其对SFD2008财年每股收益预期由75美分提高到92美分，不过将2009财年每股收益预期由2.00美元降低到1.12美元，以此反映近期生猪与玉米期货价格的剧烈波动。

8月6日玉米现货价格下跌2.50美元至5.08美元，使种子价格凶猛的上涨趋势暂时告一段落（种子价格今年以来累计上涨10.5%），不过这对于大宗玉米期货组合来说简直是杯水车薪（玉米价格从近期低点起算累计上涨13%）。

出口业务处于极度危险的境地。过去12个月的净出口额占美国工业产值的14%，向中国、香港、墨西哥、俄罗斯与韩国的出口量大致相当，美国工业产值结构（国内消费类谷物、大型农场、科技）较为合理，意味着2009年国内市场需求仍将占据主导地位。

通过可转债的成功发行（3.37亿美元）以及与中国Cofco Limited公司的直接股权交易（1.22亿美元），SFD的流动性资产由3.14亿美元增加到5.04亿美元。公司预计第二季度牛肉业务（7.65亿美元）将保持稳定，管理层自信满满地表示公司业务不存在危机，意味着流动性资产完全满足资本运作的需要。

尽管SFD股价在上涨之前可能还会经历一段阵痛期，不过该券商认为，投资者在SFD上的投资所面临的风险要比直接投资在大宗商品上的风险低得多，该股后市具有较大的涨升空间。该股上一次处于相同的估值水平之时，当时背负着12亿美元的形式债务。玉米价格当时为7.50美元（如今为5.75美元），冷冻猪肉存量高出5%（目前库存为25%，达到历史顶峰）。

该券商认为，SFD不一定适合长线投资，不过短期内该股反弹有望，后市涨升空间较大。

MDCO抗血凝药物春风得意

8/18 05:35 EST

当大型医药公司孜孜不倦寻找上亿美元的医药业务以确保业绩增长率时，The Medicines Co(代號:MDCO) 却能够取得理想的市场成绩，每年2-3亿美元的销售额着实令人满意。公司总裁Clive Meanwell表示：“不到10亿美元的产品通常会被大型医药公司拒绝的。”但是抗血凝剂Angiomax今年的销售额将上涨至3亿美元，这又为公司赢得了一次业绩春。近期由FDA批准的Cleviprex主要使用于急性高血压外科手术，也将迎来2亿美元的年销售额。这对于这家位于新泽西州的医药开发公司来说是绰绰有余了。

Cleviprex的获批加上Angiomax取得的一系列利好业绩令The Medicines Co业绩锦上添花。公司在六月季度的营收增长了54%至8670万美元，每股收益为0.08美元。08年上半年的营收增长了35%至1.66亿美元。公司的股价为今年市场低迷注入了一丝活力，由19美元升至23美元。几乎所有的销售额都来自Angiomax抗血栓药品，08年上半年销售额升至1.61亿美元，同比为1.21亿美元。Angiomax销售额的增长主要来自今年两度价格上调。总裁表示明年还将有进一步上调价格的可能性。

08年全年的Angiomax销售额预测为3.2-3.3亿美元。他表示Angiomax的提价仍然是能够为住院病人所接受的。Angiomax是由剑桥大学和Biogen(代號:BIIB)联合研发的。但是FDA一季度对于Angiomax的反响平平，而Biogen也不愿意进行生产。因此The Medicines Co就“肥水不流外人田”地获得了生产此项药品的机会。“FDA对此表示十分理解，Angiomax在治疗血栓方面的功效是毫无疑问的。”

随着Angiomax上市大获全胜之后，公司再度乘胜追击推出了Cleviprex，也获得了大卖，目前公司在着手组建危重病医学基地并开发一系列新药， niche就是其中一支，这种抗血凝剂药品如今已经获得高级认证。但是仍然存在的疑云是，Angiomax专利保护将在2010年到期，但是公司在专利保护延期方面行动落后了，而现存法律是不允许专利保护延期的。目前公司正在游说政府以授权专利保护延期，虽然白宫已经通过了，但是参议院方面仍然存在阻碍。一项分析师怀疑一旦专利保护延期失败，将对公司业绩有不利影响。

同时，随着两大主要市场竞争对手分别大幅降价，公司的Angiomax销售额将下降60-70% 。公司总裁显然对于专利保护申请失败造成的亏损十分不满，并再度游说华盛顿政府以获得支持，但他也接受专利保护截止日期的扩展。“一旦成交，我们将接受。我们的核心消费能力将在2010年专利权到期后面临危机。因此我们将寄以最好的期望，做最坏的打算。”

如果失去了专利保护，公司应该如何找到接替产品呢？总裁表示公司将拓展欧洲市场。他预计新型Cleviprex最终将获得2亿美元的年度销售额，并在 2010年获得FDA批准。分析师预警公司在很大程度上依赖于政府的帮衬，一旦专利保护到期，两大竞争对手将蚕食掉60-70%的销售额；一旦有更多的竞争对手加入分蛋糕的行列，有85-90%的销售额将为他人所享用。

Investor's Business Daily
Drug Company Comes In A Day Late, But Not A Dollar Short
Friday August 15, 6:12 pm ET
Norm Alster Big Pharma looks for billion-dollar drugs to keep growing at rates that please Wall Street.

But Clive Meanwell, president of The Medicines Co. (NasdaqGS:MDCO - News), is content with more modest market success. A nice $200- to $300-million-a-year seller will do.

"Products that won't turn over $1 billion dollars have largely been rejected by Big Pharma," Meanwell said. But he has been able to ride the success of the anticoagulant Angiomax, which will do upward of $300 million in sales this year.

Waiting in the wings is Cleviprex, recently approved by the FDA for acute high blood pressure, often a problem with surgical patients. Cleviprex should prove to be a $200- million-a-year drug in the U.S., Meanwell says.

That's enough for the New Jersey-based The Medicines Co., which licensed the AstraZeneca-developed drug. "Astra Zeneca didn't believe the drug would be a multibillion-dollar product," Meanwell said.

Though the firm is often labeled a biotech, both drugs are made by "conventional chemistry," Meanwell notes.

FDA Approval

The approval of Cleviprex, along with the growing success of Angiomax, has been a winning parlay for The Medicines Co. In its June quarter, the company grew revenue by 54% to $86.7 million. GAAP earnings per share came in at 8 cents, up from just two cents a year before. For the first six months of 2008, revenue grew by 35% to $166 million. Shares of The Medicines Co. have bucked the market downturn this year, rising from just over $19 to a recent price above $23.

Nearly all of its sales derive from Angiomax, used to stop clotting during cardiac surgery. The drug is an alternative to heparin. In the first six months of 2008, Angiomax sales jumped to over $161 million. That's a healthy bump from $121 million in the first half of 2007. Much of the growth came from two price hikes.

Meanwell says there is a good chance of a further price hike in the next year. For all of 2008, the firm expects Angiomax sales of $320 million-$330 million. He believes the drug offers enough value to hospital customers to command price hikes.

Angiomax was developed by Cambridge, Mass-based Biogen (NasdaqGS:BIIB - News). But the FDA was at first cool to the drug. And Biogen thought it would be costly to produce. Meanwell convinced Biogen to license the drug to The Medicines Co.

He also set about trimming production costs and cajoling the FDA. The FDA withheld approval because Angiomax was no more effective than heparin in trials. Meanwell convinced the FDA the new drug had fewer side effects, such as bleeding.

"The FDA was quite receptive" to that pitch, Meanwell said. "It's very much the safer alternative to heparin" agreed Jason Kantor, an analyst with RBC Capital.

With Angiomax winning market acceptance and Cleviprex on deck, The Medicines Co. is building a niche in critical care medicine. Meanwell hopes to expand on that niche with new drugs. Cangrelor, for example, is an anticoagulant now in advanced trials.

But there are clouds on the horizon. Angiomax patent protection is due to expire in late 2010. Angiomax might have had over four more years of generic-proof life but for a tardy FDA filing.

The company was one day late in filing for an extension. Under existing law, the extension was denied. The company has been lobbying Washington to allow the Patent Office freedom to grant the extension. The House has passed such a provision, but the Senate has not.

Some analysts doubt that it will pass this session. "On balance, the world remains skeptical this will happen," said analyst Kantor.

"Right now, there are low odds they'd be successful," said Biren Amin, a senior analyst with Stanford Group.

The Medicines Co. could face competition from generics very swiftly if the patent expires at the end of 2010, says Amin. He believes at least two generic makers have plans to enter the market. The impact of generics would be dramatic. With two new rivals slashing prices, Angiomax could suffer "60% to 70% sales erosion," Amin said.

Meanwell is clearly frustrated by the loss of years of patent protection for a one-day filing mistake. That's akin to losing your house for sending in a mortgage payment one day late, he reasons.

Meanwell has lobbied to win political support for a Washington fix. He would accept a compromise that upholds the sanctity of deadlines, but eases the penalty. Asked if he would be willing to accept a loss of one year in patent protection, he replied: "If that was the deal, I would take it."

But he's not counting on any breaks. "Our core assumption is the patent will expire in late 2010," he said. He summed up his approach: "Let's plan for the worst and hope for the best."

European Expansion

But how will the company replace the hundreds of millions in sales it stands to lose to generics? Meanwell suggests the company can make up the slack if needed.

He has built up marketing in Europe. In time, he predicts, Angiomax can do $100 million in European revenue. He also expects newly approved Cleviprex eventually will be a $200- million-a-year drug. He hopes that Cangrelor will win FDA approval by 2010.

Much of the stock's relative strength this year derives from hope that Washington will approve a fix to the patent issue, Amin says.

"The stock has moved on legislative speculation," he said. Amin believes there is risk in the stock. Should the company fail to get legislative relief, generics would shred Angiomax sales.

Two generic rivals would eat up "60% to 70%" of sales. But if there are five or more generic rivals, "it could be 85%-90% sales erosion," he warned.

So Meanwell continues to scout for new midsize drug prospects scorned by Big Pharma.

"We have a staff of eight looking for new products," he said.

UBS看高煤炭股板块

8/21 08:08 EST

UBS提高Foundation Coal Holdings(代號:FCL)、Massey Energy(代號:MEE)和Arch Coal(代號:ACI)评级，由中性升至买入，目标价分别为75美元、77美元和70美元。

Barron's：CVA废物提取能源市场广阔

8/21 00:52 EST

Barron's报导，随着油价飞速飙升，全球对于原油紧张和气候变化的担忧与日俱增，而致力于从废弃物中提取能源的Covanta Holding(代號:CVA) 公司将在国内和估计市场中大获全胜。Covanta主要头通过焚烧来自城镇和自治区的生活生产垃圾来发电，公司拥有的不负债资产能够加强资产负债表的基础，并提高贷款能力。加上9%的自由现金流量，公司将拥有较大的承压空间进行项目拓展和收购计划。尽管去年股价增长了23.4%，公司股价在前三个月下降了4.8%，主要是由于公司主席兼房地产大鳄Sam Zell出售股票引发了投资者的超卖风波。

Stanford Group分析师Michael Horwitz表示：“今年这支股票尚未出现高峰，我们认为Sam Zell不会长期售股，他已经没有多少股份了。”公司CEO Anthony Orlando表示：“我们处于一个稳定发展的业务基础之上，拥有大量美国和海外市场垃圾合同订单，以及可替换能源的强劲发展前景。”无论08年总统大选结果如何，能源政策仍将不会有所改变。分析师一致认可Covanta将通过减少二氧化碳法案获益匪浅，因此目前是投资者地位买入的最佳时机。
——Vanilla 盛

Quality Systems电子病历将改写历史

8/19 08:01 EST


对于一家旨在由医师纸张病历卡转变为电子系统记录和处理过程的企业来说，变革往往是件好事。Quality Systems(代號:QSII)就拥有充足的医师进行调配。但是目前的问题在于，美国的医疗市场中不仅充斥着大量文书记录的文职人员，就连医疗就诊等尚且处于技术蒙昧时期。

美国仅有20%的医师已经转变为利用电子健康记录系统进行工作，即所谓的HER。而目前Quality Systems就再着手进行相应转变。截止到今年8月16日，56岁的保健协会会长Steven Plochocki就已经带领公司进行了长达8年的医疗体系改组进程。公司的新任CEO表示将进行一次性的业界大变革。而宽松的联邦法律制度也为这场变革提供极大的便利，为公司提供给HER医师津贴补助而大开方便之门。

“医院希望医师能够与医疗小区结合得更加紧密，”Jefferies.分析师Richard Close表示。同时，新型医疗保险制度法规还涵盖了鼓励医师通过电子记录开药的条款，这也是促进HER发展的又一因素。而政治家也在极力促进保健IT行业的电子病历卡和其它电子记录平台的发展。

NextGen software就将代替文檔病历卡，成为未来日益流行的电子记录平台，主要使用于外科医疗和门诊病人，还将为投资HER医师的医院所采用。Stifel Nicolaus分析师Todd Weller不是：“外科医疗市场拥有及富吸引力的发展前景，远比医院市场的市场开拓型强。”

Investor's Business Daily
With New CEO, Company Hopes More Doctors Will Go Electronic
Monday August 18, 5:51 pm ET
Marilyn Alva Change is considered a good thing for a firm that tries to get doctors to switch from paper to electronic health records and procedures.

And Quality Systems (NasdaqGS:QSII - News) has plenty of doctors to change.

Aside from clerical tasks such as billing, physicians' practices are still in the technology dark ages. Only about 20% of U.S. doctors on average have switched to electronic health records, or EHR as it's called in the industry.

Now Quality Systems will be trying to change the score under a new chief executive. On Aug. 16, health care veteran and board member Steven Plochocki, 56, took over from Louis Silverman, who led the firm during the last eight years of its expansion.

Silverman plans to join a private startup firm, where he wants the chance to hit "a home run," said a source familiar with the transition, referring to equity payback.

Another source, analyst Charles Rhyee of Oppenheimer & Co., wrote in a client note that it'd be no surprise if board tensions led to his exit.

During Silverman's tenure, yearly revenue grew from $31 million to $187 million. Return on equity jumped from 8% to 38%. The stock ran up more than 400%.

"It is not my intention of changing the core growth strategy of the company," Plochocki said. "But (internal) growth initiatives and acquisitions will accelerate."

Look for more new products, service offerings and fill-in acquisitions, he says.

Quality Systems' major business -- NextGen -- accounts for 93% of revenue. The fast-growing division includes software-based EHR products and practice management, or PM, tools for billing and other clerical uses.

The remaining 7% comes from Quality Systems' legacy dental-practice unit, a slow-growth but steady business.

There wasn't anything slow about the company's overall business in the latest quarter, which ended in June. As reported on Aug. 7, earnings beat Wall Street estimates by 3 cents a share, sending shares up 18% over the next two days.

Profit rose 38% from a year earlier to 40 cents a share. NextGen sales rose 34% to $51.2 million.

The strong quarter reversed some that had disappointed Wall Street over the past year or so.

But the whole sector had a tough year, analysts say, as players tried to meet high expectations from Wall Street.

While Quality Systems' profit growth slowed some in its March-ending fiscal year from the earlier year, chief rival Allscripts Healthcare Solutions (NasdaqGS:MDRX - News) suffered more, largely from a product misstep, analysts say.

Like Quality Systems, Allscripts also beat Wall Street views in the last quarter. So did Athena Health (NasdaqGM:ATHN - News), which is focused on billing software.

Quality Systems' most recent acquisition of billing software firm Healthcare Strategic Initiatives makes it more competitive with Athena and enhances its own cross-selling efforts.

Analysts tracked by Thomson Reuters expect Quality Systems' profit to rise 19% this fiscal year to $1.72 a share and go up another 19% the next year.

Quality Systems' new CEO takes over at a time of change in the industry. Loosened federal rules make it easier for hospitals to subsidize purchases of EHR systems by doctors.

"Hospitals are looking at ways to become more integrated with the doctors in their community," said analyst Richard Close of Jefferies & Co.

Also, new Medicare legislation includes incentives for doctors who prescribe drugs electronically -- another boost for EHR. And politicians on both sides of the aisle are pushing for electronic medical records and other improvements in health care IT.

NextGen software -- which replaces file folders -- targets physician practices and outpatient centers. It's also being sold to hospitals that are investing in EHR for doctors.

"The physician market represents one of the more attractive growth opportunities. It's less penetrated than the hospital market," said analyst Todd Weller of Stifel Nicolaus.

On the electronic medical records side, Allscripts and NextGen are the two biggest with independent and small and midsize practices, Close says.

Epic Systems is a major player among larger customers such as medical centers. Cerner (NasdaqGS:CERN - News) also sells to big hospitals.

Stepped-up growth will come as chief rival Allscripts doubles in size after it buys the North American health care business of U.K.-based Misys later this year. The combined company will represent about $700 million in annual revenue.

"Misys has 100,000 doctors using various practice management products and a very small amount of them have electronic medical products," Close said. "Allscripts is looking at penetrating that base with their electronic medical products."

Plochocki doesn't seem too worried. "Quality Systems is on a $220million run rate. My history is in small- to midmarket companies and taking them through growth and consolidation."

A board member since 2004, Plochocki was most recently CEO of Omniflight Helicopter, a Dallas-based air medical services firm. He previously was CEO of Trinity Hospice and co-founder and CEO of CentraTex, a $50 million medical billing firm.

Plochocki is keeping an eye on an upcoming proxy fight. Dissident board member Ahmed Hussein is leading a proxy battle to vote in a new slate of directors.

He claims the current board is controlled by Chairman Sheldon Razin and thus cannot act independently.

It's not the first time Hussein has stirred controversy, charging that board members are under Razin's control. Razin and other directors have long denied the charge.

Plochocki says the company's record over the past four or five years speaks for itself.

Hussein owns 17% of the company's shares. One of his board picks owns roughly the same.

Other board members up for a vote told shareholders that the dissident slate "would destroy shareholder value based on Mr. Hussein's past behavior and lack of a viable strategy for Quality Systems."

The feud will likely be resolved at the annual shareholders meeting on Sept. 4.

"I call it a nuisance vs. anything that is material from a company operational prospective or for the stock," said Stifel Nicolaus' Weller.

FBR强烈看好Cleveland-Cliffs

8/15 04:12 EST

券商Friedman Billings Ramsey初评大型铁矿石与冶金煤炭生产商Cleveland-Cliffs(代號:CLF)股票评级为优于大市，为期12个月的目标价位为130美元。

CLF近期官方宣布收购Alpha Natural Resources(代號:ANR)，而其最大股东公开反对这项交易并寻求以变通方式实现股东价值最大化，要么CLF仍然保持独立运营状态并成功收购Alpha，要么摇身一变成为其所在行业的潜在收购目标。

不考虑这一突发性状况，该券商认为CLF的估值水平没有在目前的股价上得到充分体现，对该股后市的涨升空间持乐观态度。单纯从基本面来看，储量增长，铁矿石涨价（即使仅仅只是维持基准价格不变效果也相同），未来至少2-3年内大宗商品价格处于见顶回落的趋势之中，以及来年庞大的自由现金流量，所有这些因素都支持投资者持有CLF股票。

如果CLF成为所在行业公开的收购目标，那么其股价的涨升趋势将会更快更猛。如果该公司成功收购Alpha，其股价的涨升空间仍然存在，不过要等到2010年业绩因这一收购而出现显著增长，除非冶金煤炭价格维持目前的坚挺状况或者这一收购动用的现金比重增加。

CLF的估值水平相当诱人。从其单独运营的角度分析，该券商认为CLF130美元的目标价位对应5.2倍的2009年企业价值与未计利息、税项、折旧与摊销利润（EBITDA）动态预期比值。如果CLF成为同行的收购目标，该券商对其目标价位就提高至140-143美元，对应的是预期净资产价值122美元 15%的溢价，以及在独立运营状态下估值水平10%的溢价。

在CLF完成收购后，该券商对其设定的目标价位为124美元，对应5.5倍的企业价值与EBITDA比值。不过该券商认为，CLF收购Alpha的交易不会影响其2009年的业绩预期。

CLF铁矿石业务比重为79.5%，冶金煤炭业务比重为18.6%。若完成收购，该公司铁矿石业务比重变为46.7%，冶金煤炭业务比重变为34%，热炭业务比重为12.5%，代理煤炭业务比重为6.7%。

此外，CLF2009年来自巴西与澳大利亚铁矿石以及亚洲煤炭资产储量也将实现增长。该券商预计2009年该公司铁矿石储量增长2.2%，煤炭储量大幅增长41%。

该券商预计CLF2009年自由现金流量增长率将从目前的12.2%增加至18.8%，这对其股价是实实在在的利好因素。

CLF还制定了进一步丰富业务结构的经营战略，因此不排除继续收购扩张的可能，比如动用自由现金流量投资于炼钢产业。

该券商认为，CLF收购Alpha不会对其2009年的业绩产生直接影响，不过会在2010年对公司业绩产生促进作用。只有当这一收购的现金比重提高到40.4%或者冶金煤炭基准价格从250美元上涨到283美元，这一收购才会显现出即时效应。

此外，如果CLF将这一收购的现金比重提高到74.6%，将会立即明显改善其经营状况。更重要的是，股东表决权将不再具有决定性作用，因为股权将会稀释扩大20%。

Genoptix血液和肿瘤试验方兴未艾

上个月国会颁布的一项总统否决权将降低10.6%的医疗偿还率，处于政府医疗保险计划之列的医生和大多数的老年人及残疾人终于扬眉吐气了，Genoptix(代號:GXDX)也是如此。这是一家位于加州的提供个性化学服务公司，主要为肿瘤学家和血液学家提供骨髓和血液癌检测服务。医疗偿还占到公司总业务的40%，单单削减10.6%的医疗偿还率当然对公司的业绩不利，但是公司认为下半年的医疗偿还率将保持，到09年将上涨1.1% 。

目前，随着公司不断在新的地区和新的国家扩展销售市场，营收得到大幅增长，大量新客户涌现。Genoptix预计今年营收将打破1亿美元大关，去年公司的销售额达到5900万美元。08年上半年的营收就已经达到了5010万美元。公司的CEO表示：“我们的任务就是扩大销售力度，不断为更广泛领域的客户提供高质量诊断服务，并以此拓展全球客户量。”

二季度，公司的销售额大涨了99%至2780万美元，每股收益上涨了39%至0.32美元。本季度公司在Carlsbad的实验室就处理了9,300起试验，同比增长77% 。公司预测今年每股收益将达到1.11至1.16美元，同比增长0.78美元。ThomsonReuters分析师预期为1.16美元。

作为一家仍然年轻的企业，公司自1999年组建以来直到04年才开始提供诊断服务，04年10月上市以后，公司就专注于为商业性肿瘤和血液研究机构提供诊断服务。公司认为在商业小区内有8,700家商业性肿瘤和血液研究机构，并不包括医院和医疗中心。公司已经与这8,700家机构中的10%建立起了客户关系，并预计总数将以3.8%的年增长率上升。基于公司长期看涨的前景，分析师表示：“基于较低的市场份额，以及强劲的销售额，公司将在今后五年中创造强劲的营收。”

全国来看，每年的骨髓测试市场价值达到10亿美元，其中将有60%的份额被Genoptix收入囊中。以目前的医疗偿还率来算，每一项骨髓测试将为公司创造约有3,000美元的营收。血液测试尤其需要更为简便的试验环节，每个病人将创造100到3,000不等的营收。分析师表示，不同于其它公司， Genoptix的测试结果还能为主治医生提供病人的准确病史。但是公司并没有测试的专利技术权，因此必须通过不断赢得客户服务来维持业务运营。

但是Cowen&Co分析师KempDolliver并不认为这会对公司蓬勃发展构成阻碍，“公司已经扩建了实验室以便提高生产效率，因此有能力提供高水平的服务。”全国范围内，分析师表示有1-2%的测试标本会被丢失，而多数的骨髓测试对于病人来说极为痛苦，“所以你最不愿听到的事就是：你的测试标本被丢失了。” Genoptix对此颇有对策，公司将建立第二所实验室以辅助第一所实验室的运营，预计将耗资1500万美元。

Investor's Business Daily
Override Of Bush Medicare Veto Provides A Lift For Medical Lab
Wednesday August 13, 5:55 pm ET
Kevin Harlin Last month, Congress overrode a presidential veto that would have meant a 10.6% cut to Medicare reimbursement rates.

Doctors and many elderly and disabled covered by the government insurance plan breathed sighs of relief.

So did Genoptix (NasdaqGM:GXDX - News).

The Carlsbad, Calif., lab company runs bone marrow and blood-based cancer tests for oncologists and hematologists.

Medicare reimbursements make up about 40% of the company's business. So an almost 11% cut alone would have hurt. But since other insurers watch and often follow Medicare's reimbursement practices, the pain would have been amplified.

Instead of cuts, the company is now looking at flat reimbursement rates for the rest of this year and a modest 1.1% increase in 2009.

Revenue Growth

"It was sort of a head wind until that was passed," said Bud Leedom, an analyst at Global Hunter.

Now, revenue is growing fast as the company expands its sales force, branching into new regions of the country and selling more services to existing customers.

Genoptix expects to break the $100 million mark in revenue for the first time this year. Last year, it posted $59 million in sales.

Through the first half of 2008, the company had already reported revenue of $50.1 million, including $1.3 million from 2007 due to an accounting estimate change.

"Expanding our sales efforts and improving our ability to provide high-quality diagnostic services to a wider audience continues to drive customer growth nationwide," the company's chief executive, Tina Nova Bennett, said in a statement. "Higher case volumes reflect the success of these initiatives."

In the second quarter, sales were up 99% to $27.8 million. Earnings per share climbed 39% to 32 cents. The Genoptix lab in Carlsbad handled 9,300 cases in the quarter, a 77% increase from a year earlier.

The company expects to earn between $1.11 and $1.16 per share for the year, up from 78 cents in 2007. Analysts surveyed by Thomson Reuters forecast $1.16.

Genoptix is still a young company. It incorporated in 1999 but didn't begin selling its specialized diagnostic services until 2004. It went public in October.

The company focuses on diagnostics for community-based hematologists and oncologists -- hem/oncs, as the company collectively refers to them. Genoptix thinks there are about 8,700 hem/oncs in community settings -- that is, not within a hospital or medical center.

It already has about 10% of those community hem/oncs as customers. And the company says the overall number of practicing hem/oncs is growing by about 3.8% a year, faster than the ranks of the general medical profession.

That gives it a potentially long runway for growth, Leedom says.

"Based on the low market share to date and the aggressive ramp in sales, you could really see a lot of incremental revenue over the next five years or so," he said.

Nationwide, bone marrow tests are about a $1-billion-a-year market, the company says.

Those cases make up about 60% of Genoptix's volume. Under the current Medicare reimbursement rates, those cases generate an average of about $3,000 in revenue. Blood-based cases typically require fewer and less complicated tests, and generate between $100 and $3,000 per patient, the company says.

Genoptix's focus on hematologists and oncologists is part of what distinguishes it from larger labs, which can run a wider range of tests.

Analysts say that unlike competitors' results, Genoptix's test result reports also give the treating physician the history of previous tests, the progression of the cancer and possible treatment options.

But the company doesn't have proprietary test technology. That leaves it having to win and maintain business through strong customer service, analysts say.

Cowen & Co. analyst Kemp Dolliver doesn't see that as a problem.

"The larger labs have designed their work flows for higher productivity, but have sacrificed the ability to provide a higher level of service as a result," he wrote in a client note.

Cowen does business with Genoptix and was involved in its IPO.

Lost Samples

The company has a tight relationship with shipper FedEx (NYSE:FDX - News), which Dolliver says helps maintain its record of never having lost a sample. Nationwide, analysts say 1% to 2% of shipped samples are lost.

Since many bone marrow tests in particular are uncomfortable or painful for patients, "the last thing you want to hear is we need to do another sample because we lost the first," Dolliver said.

The company expects to finalize a location soon for a second laboratory, which could increase its capacity and provide necessary backup to its first lab. Dolliver thinks it will cost less than the company's $15 million estimate.

The slowing economy has little direct impact, Nova Bennett told analysts in a second-quarter conference call. Most of Genoptix's community doctors seldom deal with Medicaid patients, who are poorer and possibly more likely to delay medical visits and tests during an economic slowdown, the CEO said.

"Unfortunately, our patients still need to be diagnosed with cancer," she said.

Varian医疗成像技术卓越

Varian Medical Systems(代號:VAR) 是一家位于加州Palo Alto地区的医疗成像仪器制造商，今年引进了两项肿瘤学的医疗技术和产品，第三项技术也将为公司带来额外的业绩增长。这三项技术将促进三季度每股收益增长50%，明年业绩将有更多的增长空间。公司副总裁Elisha Finney表示：“Varian最实际的利润在于我们制造能够以任何方式成像的多种仪器，无论病人是通过门进入诊所还是其它，我们的产品都可以进行检测。” RapidArc系统为客户提供了一种更加便捷、更加精准的成像技术，用以治疗癌症。而公司的平面板X射线仪器使得X射线成像股价清晰，价格低廉。

这两项新技术使得公司三季度每股收益达到0.58美元，同比上涨了49%，远高于分析师的预期。本季度净营收上涨了21%至5.13亿美元，高于预期的 4.803亿美元。公司预测08年去年营收将上涨17-18%左右，分析师预期公司三季度每股收益将达到0.65美元，去年每股收益将达到2.223美元。07年公司每股收益为1.83美元。对于维持目前的增长率，公司信心满满，由于公司拥有世界领先的放射技术，并远超同行的竞争对手。分析师表示：“我们的管道核查显示，医生对于Varian技术系统十分满意。” Varian拥有行业最尖端的RapidArc系统。日益上涨的市场需求显示RapidArc软件应用能力使得运营商能够在较快获得成像，速度是以往的2 至8倍。“这意味着诊所可以通过较短的投资过程来获利并提高生产量，Varian的病人在治疗仪中进行检查的时间越短越是有利于整体的治疗。”

在过去六个月中，公司出售了130个RapidArc系统给新增客户，有20家升级了这个系统的安装基础。这一开门红的利好显示市场对于肿瘤系统的上市是有极大需求量的。Varian在世界成像市场中拥有60%的份额，美国市场拥有70%的份额。公司在美国拥有一座安装基地，有超过5,000台的仪器。同时，公司拥有大量的回头客户，而RapidArc在目前仪器上的安装使用率尚未达到饱和，因此本季度的销售额将有所上涨。“对于医院来说，Varian在产品质量和服务方面仍然是极具吸引力的。”

X射线业务占到公司总营收的15%，公司预测新型平板X射线产品将带来强劲的销售额。今年前三个季度中，X射线板块创造营收增长25%，平板产品销售额大涨了150% 。国际市场的销售前景也很看好。公司的国际和国内市场业绩各占营收的一半。分析师表示：“我们对于这种对半开的份额比较满意，但是我们预计国际市场的营收将逐年递增，超过北美市场。”

同时，美国和世界港口的运营安全性也将促进公司技术的市场需求，预计今年于此相关的营收将达到1亿美元，同比涨幅达到30% 。而来自政府的合同也将促进销售额大涨。公司目前在全世界拥有350座安装基地，而在美国只有20个安装系统。“仅有2%的货运量来自美国市场，因此公司面向世界市场还是征途漫漫。”

Investor's Business Daily
New Products Drive Growth For Medical Imaging Equipment Maker
Tuesday August 12, 6:10 pm ET
Paula L. Stepankowsky If Varian Medical Systems builds it, customers will come.

The Palo Alto, Calif., imaging equipment maker has hit two home runs this year with the introduction of two new oncology products. A third technology, one that rapidly screens cargo containers at ports, is poised for additional growth.

Combined, the three technologies boosted earnings by nearly 50% in the fiscal third quarter with the outlook for more growth ahead in the next year.

"The real benefit of Varian (NYSE:VAR - News) is that we make versatile machines that can do imaging in any form,'' said Elisha Finney, senior vice president and chief financial officer, in an interview. "Whatever kind of patient walks through the door of a clinic we can treat on our machines."

The RapidArc system gives customers a faster, more precise imaging technology used to treat cancer, while the company's flat panel X-ray product makes X-rays filmless -- and less expensive as a result.

Oncology Products

The two new oncology products helped Varian earn 58 cents a share in the fiscal third quarter ended June 27, up 49% from the year-ago period and 12 cents higher than estimates by analysts surveyed by Thomson Reuters.

Net revenue grew 21% to $513 million in the quarter, beating estimates of $480.3 million. With third-quarter results now known, the company expects revenue will grow between 17% and 18% for the entire fiscal year.

Analysts believe Varian will earn 65 cents a share in the fiscal fourth quarter and $2.23 for the year. In fiscal 2007, the company earned $1.83.

The company looks poised to maintain its growth rate as it has one of the largest installed bases for radiation technology in the world, says Les Funtleyder, an analyst with Miller Tabak, in an interview. The company's technology also appears to be superior to that of competitors, he says.

"Our channel checks show doctors feel comfortable with Varian over time,'' Funtleyder said.

Varian has seen a particularly strong start for its RapidArc system, which was introduced in the second quarter and can be ordered as a completely new machine or as an upgrade to an existing Varian machine, Finney says.

Driving demand is the fact that RapidArc's software capability allows operators to take an image nearly two to eight times faster than in the past.

"This means the clinics can increase throughput and get a return on investment in very short order,'' Finney said. "They deliver better treatment because the patient is on the table for a very short period of time."

In the first six months on the market, the company sold 130 RapidArc systems to new customers and about 20 as an upgrade to its installed base, Finney says.

This rapid start "indicates more demand than any other oncology system launch in the company's history," wrote Julie Hoggatt, an analyst with Noble Financial Equity Research, in a recent report. Noble expects to seek banking business with Noble.

Varian has had a 60% share of the worldwide imaging market and a 70% share of the U.S. market for more than a decade, Hoggatt wrote.

She added that Varian has an installed base of more than 5,000 machines in the U.S. and that they have a very strong customer retention record. Going forward, Hoggatt wrote, upgrades to RapidArc on current machines are not fully reflected in net orders. These upgrades can be done on machines that are several years old. As a result, there could be an upside to quarterly sales estimates, she wrote.

"Varian remains attractive to hospitals for capabilities, quality and for the fact that they are the only player in this market that has maintained a truly upgradeable machine,'' Hoggatt wrote.

On the X-ray side of the business, which represents about 15% of revenue, Varian is seeing strong sales for its new flat panel product that allows filmless imaging.

In the first three quarters, Varian's X-ray segment saw revenue grow 25%, with flat panel product sales growing almost 150% year to date, Finney says.

The prospects for international sales growth are strong as more emerging markets use imaging to find and treat cancers, Funtleyder says.

The company's revenue is currently split 50/50 between domestic and international revenue.

"We're happy with the split," Finney said. "However, that said, we would anticipate over time that international will grow faster than North America because of their need for equipment."

Port Security

Growing concern about security at U.S. ports and ports around the world is driving demand for another Varian technology, one that allows a scan of an entire truck or cargo container in a minute or less, Finney says.

"The real key is to scan cargo containers at the rate of commerce," she said. "We don't want to slow down for screening."

Port-related revenue will total $100 million this year, and it's growing at a rate of 30% year to date, Finney says. Hoggatt notes that a government security contract could significantly increase sales in this category for Varian because many U.S. ports need full-cargo screening.

Varian has about 350 installations at ports around the world, but only about 20 systems are in place in the U.S., Finney says.

"Only about 2% of the cargo coming in to the U.S. is screened, so we have a long way to go,'' she said.

Varian, which has cash flow from operations of about $100 million per quarter, continues to invest in its business and look for acquisitions, Finney says.

Varian's acquisitions tend to be relatively small and extend the company's geographic reach, Finney says.

IBD：EmcorGroup维修养护利润十分可观

收购战略能够创建产品投资组合并扩展企业的全球市场分布，但是其实收购的作用远不止此，一次小规模的收购往往能够令一项业务多元化。没有任何一家企业会比EmcorGroup(代號:EME) 更懂得收购的内涵和精髓了，这是一家全美最大的电子机械装置服务供货商，公司同时还经营着一家设备管理服务单位，名为EFS。拥有来自商业、工业、效能以及机构领域广泛的客户群，EmcorGroup更多面临的是来自当地同水平企业的激烈竞争。但是项目越是庞大，竞争对手圈越会缩小，深谙此道的 EmcorGroup早在一年前就斥资4.55亿美元从First Reserve处收购了Ohmstede。在过去五年中，公司更是斥资1.2亿美元进行收购战略。

对于EmcorGroup来说，收购Ohmstede一役是史无前例的，但此举对于打开一大新兴市场——炼油厂保养和维修——是极有意义的。此项收购交易结束后，公司表示将染指炼油厂保养和维修这一市场。Stifel Nicolaus分析师Jeffrey Beach表示：“对于EmcorGroup来说首要的目的在于使其终端市场多元化，而一个更加广阔的客户群体将有助于降低运营风险性。”

多元化战略使得EmcorGroup能够稳稳立足于这样一个单一型产品和服务市场中，公司在过去十年中通过收购小型企业获得了巨大的产业协同效益。“我们预计EmcorGroup将进行新一轮收购计划，在周期性较弱的市场中获得一定的份额。”二季度公司拥有2.755亿美元的流动现金，2.014亿美元的债务以及9.63亿美元的股东股票。基于炼油厂保养维修的强劲终端市场，分析师看好EmcorGroup的业务拓展能力。

未来9-12个月内公司订单量将达到46.7亿美元，同比增长10%；约有25%的订单将在短期内完成，并不会影响长期订单量。公司预计在工业、运输以及污水处理市场有较为强劲的市场需求，但是商业和医用订单量自去年以来有所下降。管理层已经将原来的周期性产品和业务进行了多元化拓展，更多地向设施维修服务、炼油厂保养等领域拓展。

二季度公司每股收益上涨了85%至0.72美元，ThomsonReuters分析师预期的为0.56美元。营收上涨了26%至17.2亿美元，主要是受到机械和电子系统强劲的销售额促进。公司CEo表示：“在我们所有的业务板块中，杰出的执行能力和运营表现比比皆是。”他还表示公司的设施维修服务将持续创造利润，EFS创造了4.032亿美元的营收，同比上涨了79%，约有69%的营收是来自被收购企业的。

EFS小组的美国电子服务业务主要提供低压到高压系统，此项服务的销售额上涨了26%至4.299亿美元。美国市场的机械销售额上涨了12%至6.267 亿美元，而加拿大部门销售额则上涨了30%至9650万美元。如果明年美国经济不再下滑，公司的订单量将大涨，毛利润也将十分可观。

Investor's Business Daily
Maintenance Company Keeps The Lights Burning In Big Buildings
Friday August 8, 6:16 pm ET
Brad Kelly An acquisition can build up a product portfolio and enhance a global footprint. But possibly even more important, a smart purchase can diversify a business.

And no company understands the importance of a strategic acquisition -- big or small -- better than Emcor Group (NYSE:EME - News).

The company is the largest contractor of electrical and mechanical installation services in the U.S. It also runs a facilities management services unit, known as EFS.

With a broad range of commercial, industrial, utility and institutional customers, Emcor faces most of its competition at the local level. But the bigger the project becomes, the smaller the pool of rivals, says FBR Capital Markets analyst Alex Rygiel.

A year ago, Emcor spent $455 million in cash to buy Ohmstede from private equity firm First Reserve. In the past five years alone, the Norwalk, Conn.-based company has shelled out more than $120 million for acquisitions aside from last summer's blockbuster deal.

Biggest Acquisition

The price tag on the Ohmstede deal far exceeded any acquisition in the past. But it was important because it opened the door for Emcor into a new and growing market: refinery maintenance and repair services.

After the deal was closed, Emcor said the newly acquired company will provide it with the opportunity to significantly expand its ongoing presence in the robust oil refinery and petrochemical markets.

"The No. 1 theme for Emcor is the diversification of its end markets," Stifel Nicolaus analyst Jeffrey Beach said. "A broader customer base allows it to reduce its vulnerability to cyclicality."

Diversification gives you more stability because a down market in one product or service line may be compensated for by another product or service.

Emcor has spent the past decade acquiring smaller companies with synergies that diversify its businesses, bolsters its services portfolio or both.

"We expect (that Emcor) will make additional acquisitions to improve its exposure to less-cyclical markets and facilities services businesses, which would drive overall growth," Rygiel said.

At the end of the second quarter, Emcor had cash of $275.5 million, debt of $201.4 million and shareholders' equity of $963 million, according to FBR Capital Markets.

As the U.S. economy's woes continue, Emcor's ability to rely on strong end-markets such as refineries and nonresidential construction has helped offset its businesses related to historically cyclical sectors.

A good indication of future growth -- nine to 12 months -- is the company's backlog, which stood at an all-time high of $4.67 billion, up 10% from a year earlier.

However, not all its work is tied up in backlog. About 25% is done in the short-term time period and it never impacts long-term contracted work, Beach says.

Emcor is seeing strong demand in the industrial, transportation and water and wastewater markets. But commercial and hospitality backlog has slipped a bit since the end of last year.

A concern investors have about the company is its exposure to the construction sector. Management has diversified its business away from cyclical markets with more recurring facilities services business, refinery maintenance and industrial exposure.

"Any downside to its businesses related to construction sectors will be limited," Rygiel said.

Emcor's diversification efforts have really paid off. Second-quarter profit soared 85% to 72 cents a share, excluding a one-time charge related to an adverse jury verdict in a construction contract case. Analysts polled by Thomson Reuters expected 56 cents.

Revenue rose 26% to $1.72 billion, above views, driven by strong sales and orders for mechanical and electrical systems as well as the positive impact from recent acquisitions.

"Excellent execution and performance was evidenced across all of our business segments, driven by our focus on sectors that can grow through the current economic cycle such as health care, industrial, transportation and water and wastewater treatment," said the company's CEO Frank MacInnis in a post-earnings statement.

He added that Emcor's facilities services business continues to increase its profitability while growing both organically and through acquisitions.

EFS revenue shot up 79% to $403.2 million. About 69 percentage points came from acquisitions and the rest stemmed from its mobile mechanical services, which have been increasing as a percentage of sales.

The EFS unit oversees any renovation or expansion of a building, operations and maintenance, facility diagnostics and energy audits.

Its U.S. electrical business services low- to high-voltage systems. The unit's sales jumped 26% to $429.9million, due to hospitality and industrial projects. U.S. mechanical sales were up 12% to $626.7 million.

Its Canadian division, which offers the same services as in the U.S., swelled 30% to $96.5 million. The results were helped by strong health care, automotive and power generation contracts.

U.K. Problems

While revenue increased across all business segments, the breaks have slammed on Emcor's U.K. business. Sales across the pond dipped 1% to $166.6 million.

The U.K. division services Heathrow Airport, the London Tube and government facilities.

But Emcor greatly has downsized its services of light rail projects, which led to losses in the year-ago period as well.

While the majority of its revenue is generated here in the U.S., Emcor's focus on the diversification of its businesses will keep it afloat in 2009.

If the U.S. economy does slide into a recession next year, Emcor's backlog would plateau and margins would contract mildly, Beach says, but he added that Emcor would survive.

"The company diversification efforts will enable it to weather the storm," he said.

IBD：DXP走稳跨地区多元化产业线路

DXP Enterprises(代號:DXPE) 作为一家业界领先的机械维修服务及电气器材提供商供货商，几年前的俄克拉何马州门店的月销售额仅为20-30万美元，之后地方管理部门开始大量招聘具有轴承和切削工具使用经验的专业技术工人，公司销售额开始大涨，攀升至每月120万美元。公司副总裁Mac McConnell表示：“我们的拥有专业技工和员工。”这家位于休斯顿的企业在跨地区多元化产品销售线方面极为出色，这也是公司营收蒸蒸日上的重要促动因素，但并不是唯一的。

业界的经销商通过加大油气市场份额以获得高额利润，DXP Enterprises也不外如此，有30%的营收是来自油气市场，同时公司还在食品和饮料市场有所涉猎，分析师表示：“公司在广泛市场中拥有大量的客户，其品牌知名度颇广。”这使得DXP Enterprises连续11个季度保持了20%以上的销售和营收增长。二季度公司每股收益达到0.93美元，同比上涨66%，比分析师预期的高了 8%；营收同比上涨了120%至1.878亿美元。分析师预期08年每股收益为3.68美元，同比上涨36% 。

每年，养护、维修和操作设备市场价值达到2000亿美元，DXP Enterprises 07年的总销售额在这样一个肥沃的市场中排名22位，通过近期不断的收购计划，此排名将进一步上升。DXP Enterprises在1908年只是南部一家小型的引擎和抽水机供货商，David Little在上世纪80年代收购了这家企业并进一步扩大，在1996年更名为DXP Enterprises并进军工业产品领域。而今抽水机设备仅占公司业务的30%，而养护、维修和操作设备成为公司的主打业务。公司在12个行业中拥有 40,000个客户。

公司为包括Exxon Mobil(代號:XOM)，Dow Chemical(代號:DOW)，Whirl pool(代號:WHR)以及Coca-Cola(代號:KO) 在内的大公司提供抽水机、链轮齿、保险丝、研磨机、离合器以及供应线管理服务。通过不断的并购活动，公司营收和市场份额与日俱增。自05年以来公司收购了 10家企业，最大的一次收购价值1.06亿美元，对象是一家国内工业经销商Precision Industries。

近几个季度中，公司的营收上涨了31% 。考虑到客户将进一步精简供应链，公司表示将对供应业务进行整合。“我们相信整合后的供应链将更能够吸引重要客户，他们将多数业务进行外包。”除此以外，公司还着手于扩大公司规模，出售三条以上的产品线，目前公司拥有108家门店，以及数以千计的专业技术工人。

公司面临的最大风险问题在于多数业务的周期性特征。一旦油价下降，或是食品饮料行业萎缩，公司将岌岌可危。在一个竞争激烈的市场中运营，商品价格日益高涨导致公司成本价格不断攀升，因此公司也在着力于解决成本上涨的问题。Dutton Associates分析师Paul Resnik表示，DXP Enterprises的长期前景依然看好，“在经济低迷的大环境中，DXP Enterprises不仅在传统能源业务方面取得了稳固业绩，还在食品饮料、农业和采矿市场中享有一定份额。”

Investor's Business Daily
Industrial Equipment Maker Diversifies Beyond Its Traditional Pumps
Thursday August 7, 6:10 pm ET
Kevin Harlin

A few years ago a DXP Enterprises store in Oklahoma City was pulling in $200,000 to $300,000 a month selling the industrial supplier's line of pumps.

Then, local managers started hiring people with the expertise to sell bearings and cutting tools and safety equipment. Sales climbed to about $1.2 million a month.

It was one of the company's first "Super Centers."

"They went out and showed us the right way to do this. They experimented," said Mac McConnell, senior vice president and chief financial officer for DXP (NasdaqGS:DXPE - News). "Just adding the product doesn't do it. Just having more things on the shelf doesn't do it. It's having the people and the expertise."

Better cross-selling Houston-based DXP's diverse product line is one of the strategies for driving revenue growth.

But it's not the only way DXP is growing.

Energy Exposure

The industrial distributor is benefiting from high exposure to the booming energy and gas markets. It gets about 30% of its revenue from there. And customers in the food and beverage industries provide a nice balance from the cyclical energy markets, analysts say.

"They have people in place who really know the products, who can offer different solutions to different clients," said Morgan Joseph analyst Christopher Bamman.

That's helped DXP deliver 11-straight quarters of at least double-digit sales and revenue growth.

In the second quarter, it posted earnings of 93 cents per share, up 66% from last year. That was 8% better than analysts expected. Revenue was $187.8 million, up 120% from a year ago.

The company doesn't issue guidance. Analysts expect $3.68 per share for all of 2008, a 36% gain from last year's $2.71.

Estimates vary, but most watchers peg the maintenance, repair and operating equipment market at north of $200 billion a year. DXP was the 22nd-largest firm in that busy and fragmented market by 2007 total sales, according to Industrial Distribution Magazine. The ranking is likely to climb with some recent acquisitions.

DXP formed in 1908 as Southern Engine and Pump Co. In 1979, it rechartered as Sepco Industries (an abbreviation of Southern Engine and Pump Co.). An employee group lead by Chief Executive David Little bought out the company in the 1980s.

It changed its name to DXP Enterprises (short for distribution experts) in 1996 as it was expanding into other industrial product lines. Pumps today are only 30% of its business.

The company distributes maintenance, repair and operating equipment and services, to 40,000 customers in a dozen industries. Its pumps, sprockets, fuses, abrasives, clutches and supply chain management services go to customers such as Exxon Mobil (NYSE:XOM - News), Dow Chemical (NYSE:DOW - News), Whirlpool (NYSE:WHR - News), and Coca-Cola (NYSE:KO - News).

DXP has grown its revenue, geography and product mix through acquisitions.

It has bought 10 companies since 2005. The largest was a $106 million deal for Precision Industries, a national industrial distributor with long reach in the food and beverage industry.

But it's also focusing on organic growth. Revenue was up 31% in the most recent quarter, not including companies purchased in the last year.

DXP thinks its customers will continue to try to simplify their supply chains.

The company says its integrated supply business, where it takes over the inventory management functions for a company, has strong growth potential. That business was hit in the quarter when a long-time customer was acquired. But DXP says that was an anomaly.

"We believe that integrated supply will continue to gain importance to customers as they continue to drive more of their supply chain to outsource providers," Little told analysts in a conference call.

As part of that push to grow organically, DXP is expanding its superstore format, which are locations that sell three or more of its product lines. It now has 14 of them and 11 more of its 108 total stores are slated for upgrade.

Those provide some nice growth, though Bamman notes that developing or hiring the necessary expertise makes upgrading stores a slow process.

Another major risk the company faces is the cyclical nature of many of its businesses. If energy prices fall or the food and beverage industry slumps, that could slam DXP.

Commodity Prices

The company also operates in a competitive environment with numerous small niche players and some that are divisions of much larger companies.

Commodity prices have gone up, which affects the cost of products DXP offers. But so far, the company says it's able to pass most of those increases on.

DXP is also rolling out new pricing software and other internal initiatives, which is says will help it improve margins and increase sales.

Paul Resnik, analyst with the paid-research firm Dutton Associates, thinks DXP's long-term outlook is strong.

"In the midst of a sluggish economic environment, DXP has seen solid growth not only in its traditional energy business, but in the food and beverage, agriculture and mining sectors as well," Resnik wrote in a research note.

IBD：Team最高端的蓝领维修工

“我们属于高端水管工。”Team(代號:TISI) 的CEO Philip J. Hawk骄傲地宣布道，“我们对于业界的同行来说是所向披靡的魔鬼。”不提自我谦虚和自我描述，Philip J. Hawk对自1998年他接管Team以来公司的一路发展历程，引以为傲是理所当然的。Team一直以来专注于为精炼厂和石化企业提供管道修理服务，04 年以来年均每股收益和营收的增长率达到40%；今年五月31日四季度的营收增长达到50%，不包括收购在内的主体营收增长达到30%；净收入增长了 54%；08年管道维修业务为公司创造了4.785亿美元营收，同比增长50% 。

Team有超过一半的业务客户是精炼和石化企业，有25%的业务伙伴是发电厂和管道企业。公司的任务就是确保这些管道系统在高温高压环境下正常运转，从维修到油田加工、检查管道，Team可谓是样样在行。Philip J. Hawk表示：“我们是在与高温高压的管道环境打交道，这可不是给胆小鬼准备的，我们拥有极为稳固的市场需求基础，尽管不是循环性或是高增长率的，但是需求量十分稳定。”

Team的客户必须要经常减持管道是否处于安全状态，一旦存在危险或是问题，Team在全球各地分布的100个维修点将随叫随到。近几年公司保持了较高的增长率，来自精炼和化工企业的客户源于那不断地为公司带来业务。CJS Securities分析师Arnold Ursaner表示：“如果你是一家大型国有石油公司，你就会希望所有的账单和工作文件都来自同一个地方。”因此，冶炼巨头Valero(代號:VLO)在全球许多地方都拥有炼油工厂，并与Team保持良好的业务往来。

近期的飓风天气，包括05年的卡特里娜在内，为Team带来了许多渠道维修业务。由于许多新的炼油工厂尚在建设当中，石油公司不得不沿用旧工厂，因此需要 Team不断为其提供维修服务。Philip J. Hawk对公司业务前景十分看好，他预计年营收增长率为10-15% 。BB&T Capital Markets分析师Holden Lewis表示：“公司管理层将继续达到长期业绩目标。”

Hawk强调Team能够保持每股收益增长率高于增长率，“营收如果能够增长10%，每股收益就能够增长20%，你的基础建设必须处于不断运营当中，但是我们不必追加更多的分支机构。”同时，公司还对各地分支机构进行业务均衡，将优秀的工人送到世界各地需要的地方。

“小型企业能够做到的，我们也能够做到，”这就是Hawk坚信公司能够在较为分散的市场中赢得份额的原因。预计将或的35-50%的市场份额。Team近期收购了两家加拿大和欧洲的公司。并在08年成功收购了荷兰企业Leak Repairs Specam，为公司进军欧洲市场奠定基础。

Investor's Business Daily
Pipeline Maintenance Firm Tries To Consolidate Fragmented Industry
Tuesday August 5, 6:27 pm ET
Norm Alster "We're high-end plumbers," volunteered Philip J. Hawk, chief executive of Team.

And with no trace of apology or shame in his voice, the one-time McKinsey consultant added: "We're a necessary evil."

Ignore those self-effacing self-descriptions. Hawk is proud of the growth engine he's created since taking over as CEO at Team (NasdaqGS:TISI - News) in 1998.

Specialists in maintaining and fixing pipes for refinery and petrochemical plants, Team has grown revenue and profit at a better than 40% annual rate since 2004.

And there are few signs of leakage. For its fiscal fourth quarter ended May 31, the Alvin, Texas, firm reported revenue growth of 50%. Organic growth -- not counting an acquisition -- was 30%. Net income grew by 54%. For its fiscal year, the piping maintenance outfit had revenue of $478.5 million, also up 50% from fiscal 2007. Net income grew apace.

Steady Revenue

Team does more than half its business with oil refinery and petrochemical customers. Just over 25% is with power plants and pipelines. Most of the rest is with other industrial plants. Team's work is to maintain high-temperature and high-pressure piping systems, everything from repairing leaks to field machining, bolting and inspecting pipes.

"They're all high-pressure. High-temperature. They're not for sissies," said Hawk.

"We have this very stable demand base," he added. "It's not cyclical. It's not high-growth. It's very stable." Team customers must regularly ensure that their piping is in order. And if there is a crisis, Team, with 100 field offices, is ready to respond.

Several factors have pumped Team's growth in recent years. Large customers in the refinery and chemicals businesses have been narrowing their supplier base, says Arnold Ursaner, a managing director at CJS Securities.

"If you're a major national oil company, you want all the billing and documentation of work coming from the same source," he said. Hence, refiner giant Valero (NYSE:VLO - News) has told its plant managers in different locations that Valero would prefer -- though it would not compel -- them to use Team, according to Ursaner. With multiple facilities, Team also has the infrastructure to service large customers. The only big competitor with similar capabilities, analysts say, is Furmanite (NYSE:FRM - News).

One factor that has juiced recent growth could peter out, argues one industry consultant who has worked for Team but asked that his name be withheld. Recent hurricanes, including 2005 killer storm Katrina, produced lots of refinery repair work for companies like Team. Since then, many have also been doing a lot of expansion and upgrades. With new refineries not being built, and with the industry running at or near capacity, many Team customers opted to bolster older plants.

"What will happen when that activity falls off? Team's growth will fall off," the consultant reasoned.

But Hawk is confident he can continue to build the business. He forecasts sustained 10% to 15% annual revenue growth. And as Holden Lewis, an analyst at BB&T Capital Markets, wrote in a recent report, "management routinely beats its long-term objectives." Of course, such modest forecasting can pay off when companies then report earnings that top analyst estimates. Hawk stresses that Team can grow earnings faster than revenue. "If we can grow revenue at 10%, we can grow profit at 20%," he said. How's that?

In essence, he says, Team can grow its business without the cost of opening new field offices. "You're leveraging your infrastructure. We don't have to add branches." As such, revenue per branch has grown as Team field offices continue to penetrate their markets.

Workers are non-union and are paid by the hour. Technicians start at $10 an hour. But with overtime, many earn $40,000 a year, Hawk says. Some even earn six-figure incomes, he says, though he would not specify how many.

Team trims idle time by balancing workload between its various field offices. It will send workers between units as needed. Thus, Team can shift personnel swiftly from, say, it's San Francisco area field office to Los Angeles if there is major customer emergency there. "We can do things a smaller company can't," said Hawk.

And that's why the CEO believes that Team can continue to win share in a splintered market. "Our market share in North America is still less than 20%," he said. "Market leaders in oligopolist industries have 35% to 50%."

But this industry is not an oligopoly. "It should be," snapped Hawk.

Rest assured that Hawk will do his best to create that oligopoly. "I think we can double our business in North America," he said. Hawk is confident that Team can continue to take market share from smaller players in the U.S.

But he won't stop there. He has his eye on buyout targets in other markets. Team's two most recent takeouts were of Canadian and European firms. In Europe, as in the U.S., the piping systems service business hosts many smaller players.

"There's no player with multibranch capability," Hawk said. The January 2008 takeout of Dutch-based Leak Repairs Specam gave Team its first foothold on the Continent. It is now roughly a $25-million-a-year business by revenue. "If it's not $100 million in five years, I'd be very disappointed," said Hawk.

Danger In The Field

Doing work in dangerous conditions on critical piping systems has its risks. In 2005, for example, a ruptured Consolidated Edison steam line in Manhattan resulted in a death and several injuries. Several lawsuits claim that Team's leak repair services may have played a part.

Team is covered by insurance and shareholders should face no loss even if Team were to lose in court, says Hawk. But the incident reflects the high-stakes nature of Team's services. And Team cannot afford too many such incidents. "The biggest risk is execution on a job-by-job basis. If you lose your reputation in a service business, that's the biggest risk," Ursaner said.

The incessant push for efficiency and profit is not always in the best long-term interest of service companies. They're retained to furnish the costly hand-holding attention customers expect. Hawk says he's aware of the dilemma.

"As you get bigger, you have to keep that small-company responsiveness and dynamism," he said.

American Superconductor Hurts So Good

Ruthie Ackerman, 08.05.08, 8:15 PM ET

American Superconductor achieved positive operating cash flow for the first time, but the recent sharp rise in the money-losing company's share price ironically contributed to a wider than expected loss in the first quarter.

The maker of wind turbine components also lowered its 2008 guidance.

American Superconductor shares tumbled 14.3%, or $5.14, to close at $30.93.

The company posted a net loss of $6.1 million, or 15 cents a share, down from a net loss of $9.7 million, or 27 cents a share, in the prior year, missing analysts’ forecasts of a loss of 6 cents a share before special items. The results include a noncash charge of $2.4 million, or 6 cents a share, for a mark-to-market adjustment on an outstanding warrant driven by the increase in the company's stock price during the quarter.

Revenue rose to $39.8 million, but still fell below analysts’ estimates of $40.1 million.

Raymond James analyst Pavel Molchanov said that although there was a lot of noise in the quarter related to the non-cash charges, he is optimistic on the company given its move toward profitability and the strong growth in the wind industry.

Revenue doubled to $35.9 million from the company’s power systems unit, which sells wind products. The wind industry is attractive for investors because the price for generating electricity from wind turbines is one of the cheapest renewable energies out there. With the price of coal and natural gas soaring, demand for wind turbines is skyrocketing.

Having latched onto a big customer in China's Sinovel Wind, American Superconductor is keen to expand sales in the rapidly growing country. It said that China's installed base of wind power capacity grew more than 130.0% in 2007, to approximately 6.1 gigawatts. It could exceed 120 gigawatts by 2020, according to the Global Wind Energy Council's Global Wind 2007 Report.

Revenue from its superconductors segment fell about 28.0%, to $3.9 million.

“Revenue in this particular segment is not only difficult to predict because it can be lumpy based on the rate of revenue booking under a R&D contract, but it is also a very small portion of the total company’s revenue,” Molchanov said.

The company now expects a net loss of $13.0 million to $15.0 million for the 2008 fiscal year, or 30 cents to 35 cents a share, up from its previous forecast of a net loss of 21 cents to 28 cents.

Nonetheless it increased its revenue outlook for the fiscal year by $10.0 million, to a range of $175 million to $185 million.

Analysts were expecting a loss of 21 cents a share, before special items, on sales of $176.2 million.

There was a silver lining to the dark cloud hanging over American Superconductor’s first-quarter.

The company reported that its backlog increased significantly, to $634.0 million in the first-quarter, up from $73.0 million, in the prior year. Another bright spot on the horizon is that the company received a $450.0 million order from China’s Sinovel Wind for its wind turbine core electrical components, which means it will see continued growth through calendar year 2011. For the three-year pact, that one order accounts for more annual revenue than American Superconductor had last year. (See “American Superconductor Catches Updraft”)

Molchanov believes the stock is oversold and that investors should buy on the weakness. He has a $45 price target.

東元與美國超導聯手 搶食風力發電商機

• 2008-06-07
• 工商時報
• 【沈美幸／台北報導】

　東元電機公司昨日宣佈與美國超導公司攜手合作，發展2MW風力發電機組，成為台灣首家擁有風機系統製造技術實力的廠商，搶攻台灣、中國大陸﹝山東除外﹞及東南亞三地風力發電市場3000億元商機。東元並將斥資12、13億元在兩岸及美國三地興建風機製造基地。

　東元電機董事長劉兆凱與專程來台的美國超導執行副總裁CHUCK　STANKIEWICE共同簽約，超導將提供裝置容量2MW的發電機組設計給東元電機，明年正式量產，搶攻兩岸及東南亞等地風力發電市場。

　劉兆凱表示，風力發電是東元集團未來20年發展主軸，東元發展風力發電產業先從零件供應切入，成為現有風機系統廠商的合格供應商，第二步開始幫國外系統廠商組裝代工，以建立TECO自己的供應鏈，從而學習風機組的技術，現進入自有品牌的風力發電機組系統整合。據指出，東元為了成為風力發電系統整合廠商，本月將與金鋒、中鋼結構等多家國內從事風機葉片、支架及機艙等廠商成立研發聯盟。

劉兆凱

東元電機

IBD：Mindray医疗仪器拓展全球市场

尽管Montvale, N.J.与中国深圳相距千山万水，但是这并不妨碍Mindray Medical(代號:MR)落户在中国深圳。今年五月份，这家中国领先的高科技医疗设备研发商，同时也是全球医用诊断设备的创新领导者，收购了位于Montvale 的Datascope Corp(代號:DSCP) 公司的病人监测业务，此项交易扩大了公司在北美的销售额，此外就是在欧洲市场，公司拥有知名的产品组合以及不断扩展的直接销售和服务能力。此项收购为 Mindray Medical提供了在美国、欧洲海外市场的强有力的业务平台。在此之前，公司在美国市场没有任何涉足，除了西雅图的一个研发中心。但是公司的 Datascope业务去年销售额为1.613亿美元。

Mindray Medical认为收购战略将提高09年每股收益。在进行此次收购时，公司在中国以外的市场业绩增长率非常强劲。在过去五年中，海外市场销售额攀升了 50%，去年公司就有51%的销售额来自海外市场。而收购Datascope业务更是提高了海外市场业绩，涨幅为70% 。

公司专注于三大产品板块，病人监测和生命支持系统是公司最为盈利的业务，其次是超声成像系统和实验室诊断仪器业务。公司产品种类多大60种，而 Datascope就是全球第三大病人监测仪器，售价颇高。公司斥资2.09亿美元收购此项业务，而得到的回报就是海外市场需求量大增。公司CEO表示： “没有在中国以外市场的业务支持，我们很难在海外市场中占有一席之地。目前，公司通过收购Datascope业务已经能够在美国和欧洲市场进行直接的销售和服务提供了，因此，我们得到了一个越区销售的良机，并能够降低振兴产品的成本开支。”


公司将维持现存的Datascope商标产品业务线，并继续在美国制造Datascope产品。“总体上说，收购Datascope为公司在高端和增值市场板块赢得了一定份额。”此项收购也为公司与未来竞争对手间的竞争打下坚实基础。到2011年，此项业务将在制造、研发和销售领域为公司节约3000万美元的成本。

公司目前的产品组合拥有坚实的增长潜力，过去7个季度的销售额增长了25%，每股收益增长了20% 。在中国市场中，公司获得来自中国政府在公共保健领域的资金支持，获利匪浅。过去两年中，中国政府将保健预算提高了至少400%，尤其是在农村和城镇卫生院方面。这促进了公司产品的需求量。

同时，公司的专业研发团队也为降低成本和产品价格做出了贡献。公司每年将销售额的10%投入到全球研发平台中，每个研发团队都拥有1000名专业人员。这为公司稳固的产品线和成本降低打下坚实基础。

一季度公司每股收益上涨了64%至0.23美元，销售额上涨了63%至8920万美元。公司CEO表示：“尽管目前宏观经济环境不景气，但是公司仍然能够在全球市场中获得不断增长的份额和较高的利润率。”在中国市场方面，公司连续在四个季度的销售额上涨了40% 。目前的医疗诊断系统销售额增长最为迅速，同比上涨了61.2%；实验室诊断仪器销售额上涨了56.1%，而生命监测系统销售额增长了30.2% 。

同时，公司计划在今年发布新的医疗产品，包括除颤仪器和数字化X线摄影系统。Thomson Reuters预期公司08年每股收益将上涨54%至1.11美元，09年将增长43% 。