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A Global Epidemic That Needs to Be Stopped -- Now!
*** Worldwide Diabetes Threat.
*** Inside Today’s Boiler Room…
Dear American Capitalist Reader,
The quest to live longer, healthier, more productive lives is engrained in our DNA, especially as we get older and hope that our later years doesn’t mean a one-way ticket to the nursing home.
One company that Diligent Investor has profiled that is committed to developing innovative therapies offering advances in the treatment of serious diseases is Merck (MRK:NYSE). As a pioneer member of the Diligent Investor index, Merck has refocused its mission to become the largest and most profitable research-driven pharmaceutical company in the world.
One particular drug that Merck is awaiting approval for is Januvia, a once-daily medicine with a novel mechanism of action for the treatment of type 2 diabetes. If approved by the FDA, Januvia would potentially be the first in a new class of oral medications that enhances the body’s own ability to lower blood sugar (glucose) when it is elevated.
333 Million With the Disease by 2025
Diabetes is a worldwide crisis not just here in the United States, but in other developed countries around the world. Nearly 21 million people in the United States, or 7% of the population, have diabetes, with type 2 diabetes accounting for 90–95% of the cases. Less than 50% of adults with diagnosed diabetes achieve the American Diabetes Association target level of glucose control.
It is estimated that one in three Americans born in 2000 will develop diabetes sometime during their lifetime. There are currently more than 194 million people with diabetes worldwide, and if nothing is done to slow the epidemic, the number will exceed 333 million by 2025.
My colleague, Steven Lord, has written an excellent piece on the global diabetes epidemic. Steven has personal ties to the disease, as his father-in-law has developed the condition and continues to fight it every day. Steven is as knowledgeable as any analyst I have ever met when it comes to the topic, and I highly recommend you take a few moments to review his article...
You will quickly understand the unfortunate power that diabetes brings to the human race. Steven cuts through the confusion and draws out a plan of what big pharmaceutical companies need to do to fight and stop this horrible disease.
After reading Steven’s missive, you’ll realize how important Merck’s new drug, Januvia, will have in fighting type 2 diabetes and the positive effects it will have in saving millions of lives around the world. This is a breakthrough, and is as close to a cure as we can get right now to stop the progression of diabetes.
I know you’ll enjoy reading Steven’s piece and the educational value of it. Please let me know what you think, and any other thoughts you may have on potential new anti-diabetes drugs that we should be aware of.
Have a nice weekend,
Todd M. Schoenberger,
Senior Equities Analyst, Diligent Investor
Over to Ian Cooper with more…
Inside the Boiler Room…
I’m going to make this short and sweet… It pays to read the Boiler Room. Today, for instance, we offer a complimentary EVS-style trade. We’re recommending that you pick up shares or even the December 7.50 Biolase calls today on company reports that it received “a letter from U.S. health regulators indicating that the company had adequately addressed regulators’ concerns.”
The company had received a September 5 warning letter from the FDA regarding manufacturing processes. We may see some momentum behind this play today as well as some short covering. About 27% of the float is short.
Top 5 Stocks
1. Pemco Aviation GRO
(28.90%)
2. Corel Corporation
(22.91%)
3. Research IN MOTION
(19.61%)
4. USA Truck INC
(15.45%)
5. Biolase Tech INCS3
(15.59%)
Top 5 World Markets
1. China/Shanghai B Index
(2.92%)
2. Korea/KSE Composite
(1.37%)
3. India/Bombay 200
(0.75%)
4. Australia/ASX All Ordinaries
(0.74%)
5. Austria/ATX
(0.65%)
Earnings Announcements
AZZ Inc, Corinthian Colleges Inc, and Magnetek Inc are releasing earnings.
Brought to you by your FREE www.americancapitalist.net
Unlock Dates for October 2006
Wendy’s will distribute its remaining 82.75% stake in Tim Hortons Inc on September 29, 2006. When these shares flood the market, look for THI to drop. THI has a PE of 19 as compared to a company like McDonald’s, which trades with a PE of 16, is much cheaper, and has more growth.
10/3/06 – Visicu Inc is unlocking 6 million shares.
10/3/06 – Castle Brands Inc is unlocking 3.5 million shares.
10/4/06 – Sealy Corporation is unlocking 28 million shares.
10/23/06 – Corel Corporation is unlocking 6.5 million shares.
10/31/06 – Delek US Holdings is unlocking 10 million shares.
Brought to you by www.vixtrader.com
Upgrades and Downgrades
Accenture upgraded by Credit Suisse (from Neutral to Outperform) and by Accenture (from Hold to Buy).
Acorda Therapeutics upgraded by Piper Jaffray from Market Perform to Outperform.
Corel upgraded by JP Morgan from Neutral to Overweight.
Research in Motion upgraded by Deutsche Securities from Sell to Hold.
WebMD Health upgraded by Needham & Company from Underperform to Hold.
Check Point Software downgraded by Lehman Brothers from Overweight to Equal Weight.
Chubb Corporation downgraded by AG Edwards from Buy to Hold.
Kraft Foods downgraded by Morgan Stanley from Equal Weight to Underweight.
Phelps Dodge downgraded by Bear Stearns from Outperform to Peer Perform.
Sherwin-Williams downgraded by Morgan Stanley from Overweight to Equal Weight.
Brought to you by www.gressor.com
