Balance sheet has deteriorated, but company could manage a profit this year.
Angiotech (NASDAQ: ANPI, Stock Forum) may be seeing some benefits in the coming weeks as the company's news flow may have finally taken a turn for the better after a series of positive releases. For starters, the news around drug stents and the negative trends of stent bashing all seem to be getting better for the company.
Four years ago this was a $20+ stock. While the company's balance sheet has deteriorated, it has ample operating cash and it is back at the stage where it could manage a profit this year with any more positive news and could earn more money than expected in 2009.
We'd look for a turnaround type move here, but because of the balance sheet this would be an intermediate holding period goal. The favorable news flow and trends in the biotech and molecule sector are also likely to keep things from getting bad again in the immediate future. At $2.86, and with a $1.50 to $7.90 range over the last year we feel the risk-reward profile is still much more favorable.
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