AMRI -  (Sold on 7/16/07 for a gain of 67%)
BOUGHT at $9.78     SOLD at $16.36

   
                Next Closed Pick                Back to Closed Positions List


 The following is the commentary subscribers originally received.
     On May 9th, Albany Molecular Research, a provider of chemistry services and drug discovery technologies used to identify new lead compounds, reported 1st quarter 2006 revenue of $43.4 million which compares to revenue of $48.6 million in the 1st quarter of 2005. Net income was $1.9 million or 6 cents per share. Net income in the 1st quarter of 2005 was $5.6 million or 17 cents per share. AMRI derives it's revenue from contract services as well as royalties from the sales of Allegra.  During the  1st quarter  contract revenue was $36.2 million and royalty revenue was $7.2 million. Contract revenue was better than anticipated by the company.
    During the 1st quarter AMRI's 2 largest customers accounted for 12% and 10% of total contract revenue. The company also engages in proprietary research and development to discover new lead compounds with commercial potential. AMRI is in the process of expanding globally to better compete for business which in recent years has been trending overseas. On March 1st the company completed it's acquisition of Comgenex which gives the company an immediate presence in Europe with the potential to establish new relationships with European Pharmaceutical and Biotech companies.
     AMRI is currently involved with 11 products that are in Phase III clinical evaluation. As products are commercialized by their customers there is the potential for recurring revenue by being designated as a commercial supplier.
     AMRI has cash and investments worth $107.8 million or $3.15 per share. The company carries debt of $22 million. The net cash and investments position ($107.8 -$22 million) is $85.7 million or $2.50 per share. Book value is $8.13 per share. At the current level the stock has a price-to-sales ratio of 1.8 and a price-to-book ratio of just 1.2. The company is expected to report a profit next quarter and for the full year. (originally recommended on 7/11/06)


7/16/07-  SOLD AT $16.36 FOR A GAIN OF 67%. DURING THE SAME TIME PERIOD THE NASDAQ WAS UP 28%.

 

  Next Closed Pick               Back to Closed Positions List