Friday, April 28, 2006
'Go West'
WST (WEST PHARMA SVCS INC)
When you've got a stock that's hitting its 52-week high... When virtually
everything else in its sector is snoozing if not getting hurt... That's
something you need to take a look at.
I got one. I've got a pharma co. - can you believe it, that one of them is
actually doing well?
It's West Pharma (WST). And right now, as we talk, it's hitting it's
52-week high.
When you see a stock that's bucking a trend - that's right, bucking the sector
- that is usually a stock that can make you some mad money.
WST manufactures tamper-proof packages - plastic packaging for the drug and
delivery markets.
This is not as sexy as any of the innumerable biotech co.s trying to cure the
ms or cancer but, unlike those co.s, it's profitable, and getting more so.
Now I’ve got a new angle, at least for the short term. It's got nothing
to do with the tamper-proof syringes or this other stuff.
Remember, yesterday when I was talking about Exhubera, the new inhaleable
insulin? I told you I thought the NKTR would work.
Well, guess what? NKTR may have developed the delivery system, but they
outsourced the manufacturing of the inhaler. Who do you think they
outsourced it to? Of course! To WST!
Cramer still likes NKTR for the trade, at least through May. But WST is a
more solid, less risky way to play the Exhubera hoopla.
They just beat their numbers yesterday handily. They guided up huge, and
that's why the stock's flying so high.
This stock is only followed by three analysts - not a lot of coverage, especially
for the kind of momentum this one has.
Stocks that are 'under followed' are usually undervalued because, when nobody's
paying attention, nobody's buying the stock.
Even though it's moved a lot, it's still in 'mon-back territory.
The bottom line! even at its 52-week high, WST needs to go higher, and I
think you need to be thinking about getting into it, even if you can't get into
their darn products.
FROM FRIDAY NIGHT'S SHOW:
4/28/06
Lightning Round
Island Paradise
Go West
Healthspring Eternal
