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Zacks Analyst Blog Highlights: VeriSign, Google, Osiris Therapeutics, Genzyme and Penn Virginia Resource Partners

CHICAGO, May 13, 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: VeriSign (Nasdaq: VRSN), Google
(Nasdaq: GOOG), Osiris Therapeutics, Inc. (Nasdaq: OSIR), Genzyme
Corporation (Nasdaq: GENZ) and Penn Virginia Resource Partners (NYSE:
PVR).

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 Monday's Analyst Blog:

Downgrading VeriSign to a Hold

VeriSign (Nasdaq: VRSN) reported revenue of $223 million, up 23%
year-over-year (y/y). Stronger-than-expected EBIT margins of 30.3%
were mitigated by higher net interest expense (lower rates, less
cash). Second quarter 2008 guidance called for revenue of $228-$233
million compared to consensus of $228 million. Management expects EBIT
margins to rise modestly, and net interest expense to be a slightly
higher. We estimate Q2:FY08 EPS of $0.22, compared to consensus of
$0.24.

The domain name business (approx. 60% of the core) posted 22% y/y
growth in units, and benefited from a blended 8% price increase
enacted October 2007, suggesting revenue growth of about 30% y/y. Unit
growth y/y of the domain name business has moderated over the past
five quarters by 28%, 27%, 25%, 24%, and 22%, respectively. Concerns
were raised that regulators and/or Google (Nasdaq: GOOG)-initiated
actions could reduce the number of "parked domains" (8-10% of names).
Concerns surrounding this issue will likely persist.

Osiris' Pipeline vs. Cash Burn

Osiris Therapeutics, Inc. (Nasdaq: OSIR) is a company founded to
commercialize stem cell products from adult bone marrow, a readily
available and non-controversial source. The company is making
significant progress with stem cell therapies.

The potential for Prochymal is enormous if several of the phase
III trials in Graft vs. Host Disease (GvHD), Crohn's Disease (CD), as
well as early-stage programs in acute MI and Type-1 diabetes, pan out.
In the meantime, cash burn is a concern and we do not see
profitability until 2011.

Both GvHD and CD opportunities are significantly under-served and
offer large market potentials, especially for a novel biologic
therapeutic like Prochymal. Mid-stage data in acute myocardial
infraction and Type-1 diabetes also looks encouraging. These are
potentially blockbuster indications, although our enthusiasm is
tempered based on the early-stage nature of the data.

The $224.7 million contract win with Genzyme Corporation (Nasdaq:
GENZ) from the U.S. Department of Defense was fantastic news. Although
the headline number of $224.7 inflates the actually economic value to
Osiris, if Prochymal can eventually receive FDA approval for acute
radiation syndrome (ARS), this could be a very profitable venture for
management.

We are excited about the potential that Osiris has with its
pipeline. However, things are still a little early and our income
statement shows continued operating losses for the next few years. In
the meantime, we see $14 as fair value and rate the shares Hold.

Upping Hold-Rated Penn Virginia Ests

Penn Virginia Resource Partners (NYSE: PVR) partners reported
record net income of $34.5 MM or $0.65 per limited partner unit, an
increase of nearly 117% over Q1 07 earnings of $0.30 per unit and
beating our expectations of $0.37 per unit. In the company's two main
operating segments -- coal and midstream gas processing -- prices,
margins and production increased year-over-year due to a strengthening
coal market and increased crude prices from the same period a year
ago.

This led to record revenues and increased distributable cash flow,
a primary measure of MLP performance, over the first quarter '07. As a
result, we have increased our full-year 2008/2009 earnings estimates,
from $1.37 and $1.56 to $2.64 and $2.59 per limited partner unit,
respectively.

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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

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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
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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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