Sign Up NowThis Month's Tiny Gems - July 2010

Abraxas Petroleum Corp. (NASDAQ: AXAS)
BioScrip, Inc. (NASDAQ: BIOS)
Endeavour International Corp. (NYSE AMEX: END)

 

 

 

Abraxas Petroleum Corp. (NASDAQ: AXAS)

 

Abraxas Petroleum Corp. (NASDAQ: AXAS), an independent natural gas and crude oil exploitation and production company based in San Antonio, Texas, was founded in 1977 by current CEO Robert L.G. Watson who took the company public in 1991. The company's business strategy is focused on increasing shareholder value while maintaining financial flexibility and liquidity. It is Abraxas' belief that growth is best achieved through the drill-bit.

 

The company's operations are located in the Rocky Mountain, Mid-Continent, Permian Basin and Gulf Coast regions of the United States. Abraxas focuses on quality assets having high working interests with operational and infrastructure control, high producing rates per well, large acreage positions with substantial upside, exploitable using its expertise in horizontal drilling and/or 3-D seismic.

 

Abraxas recently reported its financial results for the first quarter of 2010 which detailed net income of $11.2 million, or $0.15 per share, compared to net income of $4.5 million, or $0.09 per share, for the same period in 2009. Revenues also increased significantly from $10.9 million to $16.1 million. In the press release, CEO Watson stated that this year should be "very busy operationally" as the company drills multiple wells throughout its portfolio of properties.

 

Currently four analysts cover the stock with three issuing a "Strong Buy" recommendation and the remaining issuing a "Buy" recommendation. As of last report, the company had $177.8 million in assets with total liabilities of $184.7 million. Approximately 50% of the outstanding shares are held by institutional investors while insiders hold about 10%. With a solid business plan in place and a portfolio of high quality assets, Abraxas is well positioned for continued growth.

 

 

 

 

BioScrip, Inc. (NASDAQ: BIOS)

 

BioScrip, Inc. (NASDAQ: BIOS), provider of comprehensive pharmaceutical care solutions, has partnered with healthcare payors, pharmaceutical manufacturers, government agencies, physicians, and patients to deliver cost effective programs that enhance the quality of life. The company offers services in four core areas; specialty medications delivered via mail, pharmacy benefit management, community pharmacies and infusion services.

 

The company's pharmacy benefit management programs include customized benefit plan design, pharmacy network management and sophisticated reporting capabilities that deliver improved clinical and economic outcomes. BioScrip's specialty medication distribution capability includes condition specific clinical management programs tailored to improve the care of individuals with complex health conditions.

 

BioScrip recently closed the acquisition of CHS and has made significant progress with integration efforts. The company is on target to reach cost synergy goals and has identified additional cost of goods savings. According to CEO Richard H. Friedman, the company is already seeing tangible results from cross-selling efforts and believes that the combined platform positions BioScrip to be a leading national, specialty pharmacy provider.

 

Four analysts cover the company with two issuing "Strong Buy" ratings and the remainder recommending the stock as a "Buy". The stock currently trades at a trailing P/E ratio of 4.65 and P/S of 0.21, both of which are considered extremely undervalued within the healthcare industry. With a cash position of $37.2 million, BioScrip has total assets of $714.6 million and total liabilities of $458.3 million.

 

 

Endeavour International Corp. (NYSE AMEX: END)

 

Endeavour International Corp. (NYSE AMEX: END) an independent energy company, has its efforts focused on the exploration, production and acquisition of energy reserves in the North Sea and United States. Since inception in 2004, the company has been transformed from a start-up entity to a balanced oil and gas company with a strong production base and significant cash flow.

 

The company is currently moving forward with three major development projects in the United Kingdom sector of the North Sea and has added a new focus area in the United States that includes significant positions in highly prospective gas shale and frontier plays. Over the next five years, Endeavor plans to grow production to 40,000 barrels of oil equivalent per day.

 

This year started with a bang highlighted by successful appraisal drilling in the company's North Sea Cygnus field that confirmed the discovery as one of the largest ever in the Southern Gas Basin and added reserves that more than replaced expected production for the current year. Endeavour also began drilling its first exploratory wells in U.S. gas shale plays as part of the company's U.S. initiative to balance the longer cycle time activities in the North Sea and increase current production.

 

In more recent news, the company announced that its drilling program in the United States is recording encouraging test results from joint-interest wells in the Haynesville, Cotton Valley and Marcellus gas plays. CEO William L. Transier said that the results support the Endeavour's belief that its move into emerging US gas shale and frontier plays will serve as a predictable and sustainable source of reserves and production.