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Zacks Analyst Blog Highlights: ValueClick, eBay, Google, Pozen and GlaxoSmithKline

CHICAGO, May 09, 2008 (BUSINESS WIRE) -- Zacks.com announces the list of stocks featured in the Analyst
Blog. Every day the Zacks Equity Research analysts discuss the latest
news and events impacting stocks and the financial markets. Stocks
recently featured in the blog include: ValueClick, Inc. (Nasdaq:
VCLK), eBay (Nasdaq: EBAY), Google (Nasdaq: GOOG), Pozen, Inc.
(Nasdaq: POZN) and GlaxoSmithKline (NYSE: GSK).

Get the most recent insight from Zacks Equity Research with the
free Profit from the Pros newsletter: http://at.zacks.com/?id=4579

Here are highlights from Thursday's Analyst Blog:

ValueClick Trades at Fair Value

ValueClick, Inc. (Nasdaq: VCLK) is a leader in the online
advertising industry, which we believe is a growth business as
traditional marketers shift advertising spending from traditional
media to online outlets. However, VCLK is facing the fallout from an
FTC (Federal Trade Commission) investigation in its lead generation
business and one of its largest customers, eBay (Nasdaq: EBAY), has
brought its advertising network inhouse.

Although VCLK raised full-year guidance, this was largely the
result of a $5 million one-time gain in the first quarter, and lowers
guidance for the remainder of the year by default. We therefore
maintain a Hold rating on the shares of VCLK and set a $20.50 price
target, a multiple of 25x our EPS estimate.

VCLK is currently trading at a P/E multiple of 25x our 2008
earnings per share estimate of $0.82, a discount to the industry
median. Due to the fallout of the FTC investigation, the company's
lead generation revenues were down for the third straight quarter.
Moreover, the company faces intense competition from Google's (Nasdaq:
GOOG) Performix and other direct advertisers and has lost its largest
customer eBay. We believe this will hurt the company going forward.

Buy-Rated Pozen Worth the Risks

Pozen, Inc. (Nasdaq: POZN) and partner GlaxoSmithKline (NYSE: GSK)
announced in mid-April that the U.S. Food and Drug Administration
(FDA) has approved Treximet for the acute treatment of migraine
attacks with or without aura in adults. The product should become
commercially available here in May 2008.

The news is a big positive for Pozen. Besides the $20 million
milestone from Glaxo, Pozen will start receiving royalties on Treximet
sales here in the second quarter. Couple that with expected positive
newsflow on the rest of the pipeline, and we remain very bullish on
the future prospects for Pozen. We are maintaining our Buy rating and
increasing our price target to $22 per share.

Pozen has only 35 employees. The company has no manufacturing, no
sales force, no significant internal R&D costs and very low overhead.
Based on the royalties from Treximet alone, Pozen should be able to
deliver positive operating cash flow in 2009. We expect the second
quarter 2008 will be positive with respect to EPS and cash-flow based
on the $20 million Glaxo milestone on the approval of Treximet.

Biotechnology stock investing carries significant risk. Besides
the obvious drug development risk, stocks in the industry also have
significant regulatory and financing risk. Thus, the ideal situation
to be in from a company standpoint is to have low product development
risk, low regulatory risk, have plenty of cash (or at least be
operating cash-flow positive), and have big catalysts ahead.

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from the Pros newsletter: http://at.zacks.com/?id=2649.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and
qualitative analysis to help investors know what stocks to buy and
which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly
traded stocks. Our analysts are organized by industry which gives them
keen insights to developments that affect company profits and stock
performance. Recommendations and target prices are six-month time
horizons.

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About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which
was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew
he could find patterns in stock market data that would lead to
superior investment results. Amongst his many accomplishments was the
formation of his proprietary stock picking system; the Zacks Rank,
which continues to outperform the market by nearly a 3 to 1 margin.
The best way to unlock the profitable stock recommendations and market
insights of Zacks Investment Research is through our free daily email
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Profitable ideas GUARANTEED to be worth your time! Register for your
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Visit http://www.zacks.com/performance for information about the
performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before
making any investments. Nothing herein should be construed as an offer
or solicitation to buy or sell any security.

SOURCE: Zacks.com

Zacks.com
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

Copyright Business Wire 2008


 
 

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