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Take a look at TTHI if you are looking |
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Released on Monday, October 24, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - Ever wanted to be a part of something inspiring? Something that can change the world, leave ripples in the fabric of history? Well we may have found a company you can own and support it in attempting to do exactly that.
Transition Therapeutics Inc. (NASDAQ:TTHI) is a therapeutic pharmaceutical research and development company, whose recent products specialize in central nervous system repair and debilitative diseases control and identification. TTHI operates out of Canada, and also lists itself on the Ontario stock exchange under the symbol TTH. On September 27, 2011, the company released data from their recent clinical study on a drug they had been developing, and the results are riveting.
One of the company’s main product lines, a drug known as ELND005, has been shown to provide help to patients with phase II (mild to Alzheimer’s, an effect that is actually of statistical significance. The reviews have been opened now for peer review and editing, but will give great amount of market virility to the product before it is further marketed.
Another one of the company’s smash-out drugs is TT223, which has been proven to regulate and facilitate the treatment of diabetes, a life threatening illness in some forms.
What is even better for the company is the recent clinical study showed support for the usage of insulin as a treatment of Alzheimer’s; we are thinking there might be a connection here, even if it is just the raw material of the products’ base.
TTHI is currently trading low at just $1.61 a share (4:00 PM EDT, October 21st, 2011), but has been as high as $5.49 per share according to its 52-week range. Also, the stock has earnings per share at $0.63 according to their recent financial reports and a price that is 2.68 times those earnings, which is relatively low and could indicate a fundamentally undervalued stock. TTHI’s volatility runs at around a beta of 1.48, so it will move 48% more than the market on any given day.
What else makes this a worthwhile company; well it’s not funded on a finance basis, so they have little to no outstanding debts. In fact, their quick acid test ratio from last quarter was as high as 23.64—an outstanding valuation, almost unheard of in the pharmaceuticals industry. But given the fact that the company is tiny—holding a market capitalization of only around $37.25 million and only 20 employees—so perhaps that is the secret to its financial stability. But certainly, one cannot argue that size counts for everything, as the company runs a hefty profit margin of 43.49% and a revenue stream worth $29 million dollars annually.
Moving to a technical analysis of the firm we see that the stock price has been trending down since February of 2011. Under normal conditions that might be cause for some concern with TTHI, but taking a look at the company’s quarterly income statements, we can see that they do not record income every quarter, but instead have massive quantities in income in any one single quarter—typically the 4th. It is likely that the company receives contractual obligations at the end of the year and recognizes expenditures at that time as well. So it is not surprising that the stock price jumps within the first few months of the year and then tends to trend down to reach a support for the remainder of the year, as quarterly reports show little to no growth in some cases. This is possibly the effect of pure speculation on the stock’s price.
The stock has a support at $1.64 per share, so it is traveling right along that line at the moment. Stochastic indicate that over the long term, this stock is most likely over sold, and would be a bargain at the moment. MACD and RSI offer little conclusion on the momentum of TTHI currently.
So if you are looking to get into something that can manage some nice profits down the line, looking for something that has meaning to it, to support a righteous cause, take a good hard look at Transition Therapeutics Inc.
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