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David Nichols Recommends the Following Stocks: Inamed Corp. and Penwest Pharmaceuticals.

Business Editors


Finding a profitable investment isn't that difficult when you know where to look. But, as everyone now knows, that's easier said than done. David Nichols gives readers a shove in the right direction, with a couple of recommendations that seem to be in the right place at the right time. Read his takes on Inamed Corp. (NASDAQ:IMDC) and Penwest Pharmaceuticals (Nasdaq:PPCO). Click here for the full story exclusively on

Here are the highlights from the Featured Expert column:

Plain and simple, we need a resolution to this Iraqi situation. Nichols' puzzlement over the potential outcome is exactly the same thing that tens of millions of other market participants are experiencing. Nobody knows. And basically, that has been -- and will continue to be -- the dominant market theme. As long as this uncertainty exists, it will be tough to make money on the long side.

Inamed Corp. (NASDAQ:IMDC) is advancing in the very fast-growing aesthetic "lifestyle" niche. With millions of affluent middle-aged Americans and Europeans looking unhappily in the mirror, and millions more headed inevitably toward middle age over the next 20 years (to be followed by their own children), Inamed is in the right place at the right time.

Inamed makes money in every product category, both in the U.S. and internationally. Total sales for the third quarter were $67 million, up 18% over last year, with earnings per share up 38%. The stock traded recently at $32; the market capitalization is a surprisingly low $703 million. Inamed has $58 million in cash, some of which it will need for upcoming product trials. It won't surprise Nichols if Inamed declares a dividend within the year.

Penwest Pharmaceuticals (Nasdaq:PPCO) develops drug products based on novel drug delivery technologies. It's developed an unusual new controlled-release technology called TIMERx. TIMERx is being used in an oxymorphone extended-release (ER) tablet by Endo Pharmaceuticals, who makes big-name pain-management drugs including Percocet and Lidoderm.

Penwest gets revenue from royalties, licensing arrangements, milestone payments, and from the purchase of formulated TIMERx material. Par for the course, third-quarter net loss was up slightly to $4.5 million, since research, development and clinical trials cost a bundle. Revenues were $11 million compared to last year's $9.8 million. It traded recently at $10.65. Market cap is a reasonable $163 million, and the high short interest should help to prop up the stock price.

Receive even more information on the above-mentioned companies, and get several more of David Nichols' recommendations, by clicking:

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Article Details
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Publication:Business Wire
Geographic Code:1USA
Date:Jan 17, 2003
Previous Article:Corporate Profile for ADC, dated January 17, 2003.
Next Article:Richard Moroney Recommends the Following Stocks: Duke Energy and Guidant.

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