September 14, 2005
SpeculatingStocks.com Stock Pick: Matrixx Initiatives, Inc. (MTXX)
Stock Price: $13.53 (short-term strong buy)
Matrixx Initiatives, Inc. is engaged in the development, manufacture and marketing of over-the-counter pharmaceuticals, which utilize innovative drug delivery systems. Zicam, LLC, its wholly-owned subsidiary, produces, markets and sells Zicam® products in the cough and cold category.
We released this same stock twice a year ago, once in anticipiation and second during cold season. MTXX is a seasonal play and tends to move higher this time of the year extending into November and December.
Second quarter sales were reported strong going into the cold season with revenue coming in at $6.3 million, up 84% and a net loss of only $505,000 compared to a net loss of close to $1 million for the same period last year.
SpeculatingStocks.com Target Price: We expect MTXX to rise above $18 within the next three months.