Quote Notes

Was mentioned in a small cap screen

It has just completed a spin off and looks to be a strong company

A post mentioned that the two are cheap. 

Headquartered in Palo Alto, CA, CV Therapeutics (CVTX) is a biopharmaceutical company focused on applying molecular cardiology to the discovery, development and commercialization of novel, small molecule drugs for the treatment of cardiovascular diseases. Third quarter sales of Ranexa, launched in March for chronic angina, showed signs of improvement. However, uptake will probably remain low until the MERLIN data becomes available in the first quarter of 2007.

Nevertheless, we continue to rate the shares a Buy based on our belief that MERLIN will be positive and use in the first-line indication and acute coronary syndrome (ACS) will drive significant profitably in 2010. We are maintaining our price target of $16.

Mentioned on the Fool

From the Fool:

Should U store it?
I’m not at my best when evaluating real estate investment trusts, so why should I take any time to talk about U-Store-It? Thankfully, I can rely on the research of Foolish friend and REIT expert Nate Parmelee here. Better yet, insiders are spending millions on the shares of this self-storage operator.

CEO Dean Jernigan tops the list. Last Wednesday and Thursday, he purchased 195,000 shares for more than $3.8 million. That’s doubly impressive when you consider that he held just 39,500 direct shares before his buying spree.

Jernigan wasn’t alone; board member William Diefenderfer III added 1,200 stubs on Friday, one of a handful of purchases he’s made since last summer. That’s significant because, according to research, insider buying means little unless it’s consistent and involves multiple members of the executive team, which is what we have here.

Finally, I can’t help but be impressed by management’s desire to cut costs and improve disclosure. Couple that with U-Store-It’s 5.7% dividend yield, and I’m convinced that this stock could be a long-term market-beater.

From the Fool:

The mid-cap REIT that I bring to Fool Nation today is also in the hotel business, and while I have never stayed in one of their properties, I am guessing that they are all set in terms of ironing boards and conditioner. DiamondRock Hospitality Company (NYSE: DRH) owns, acquires, and invests in upscale hotel properties located in North America. Its portfolio is comprised of 14 premium full-service hotels and three premium urban select-service hotels, a mix heavily concentrated in the premier markets of Los Angeles, Manhattan, and Chicago. Their properties include the Chicago Marriott Downtown and the Los Angeles Airport Marriott.

The stock brandishes a 4.5% dividend yield and has plenty of growth potential. DiamondRock had its IPO last June and has seen its stock climb 55% since then. This run is certainly justified by the REIT’s financial performance; the company reported net income of $13.9 million for its second quarter ended June 16, 2006, versus a $5.8 million loss for the year-ago quarter. The company’s FFO (funds from operations) rose to $26 million from a $1.5 million loss in its 2005 second quarter, and its EPS went from -$0.20 to $0.20. It should also be noted that the REIT only had seven properties in its portfolio at the end of Q2 2005.

DiamondRock has maintained a total occupancy rate of around 75% for the past eighteen months, and the red that the company experienced in the second quarter of 2005 has turned around dramatically. Revenue per available room and profit margins have increased in each subsequent quarter and have put the company well into the black. Competitors Ashford Hospitality Trust (NYSE: AHT), FelCor Lodging Trust (NYSE: FCH), and Starwood Hotels & Resorts Worldwide (NYSE: HOT) have also seen their stock prices rise over this time period – thanks to the industry’s rebound — and presently sustain similar occupancy rates of 78%, 73%, and 73%, respectively.

Another positive aspect for DiamondRock investors is management’s commitment to not only adding value to its curent properties, but also expanding its fledgling empire. Management has budgeted to spend approximately $89 million in 2006 on identified capital investment opportunities for its existing hotels, including a total renovation of its Torrance Marriott. In May, the company acquired the 369-room Westin Atlanta North at a purchase price of $61.5 million. All 17 of its properties have been acquired since October 2004, and DiamondRock intends to continue to remain in the acquisition mode.

With a current average trading volume of only around 340,000 shares, DiamondRock presents Fools with an opportunity to buy into an under-publicized REIT at the ground level, relative to what could be an extended charge if the company keeps on its upward path.

CryptoLogic, Inc. (CRYP), a Zacks #1 Rank stock, beat the Street’s earnings estimate in the past five quarters by an average margin of 15.4%. Earnings per share are expected to grow 20.0% over the next 3-5 years. Consensus estimates for this year and next are trending higher. The company is currently yielding 2.2% and has a return on equity of 31%, compared to 3% for the industry average.

Full Analysis

CryptoLogic, Inc. is a software developer in the Internet gaming industry. The company’s complete online gaming lineup includes more than 150 casino table and slot games, player-to-player poker and multi-player bingo. CRYP also provides licensing, e-cash management and customer support services.

Over the past five quarters in which CRYP exceeded analysts’ earnings expectations it did so by an average margin of 15.4%. Earnings per share grew 18.1% over the past five years are expected to grow by a greater magnitude going forward—20.0% over the next 3-5 years.

On Aug 3, CRYP beat the Street’s estimate by a solid 25.5% when it reported second-quarter profits of $8.2 million, or 59 cents per share. Profits in the prior-year period came in at $4.8 million, or 33 cents per share. Revenues ballooned 52.8% to $30.4 million. President and CEO Lewis Rose stated, “"CryptoLogic’s new casino games went head-to-head with the World Cup and warm weather—and won. Our Q2 revenue and earnings were far ahead of expectations and surpassed our results in Q1 2006, which is typically a stronger quarter.” During the quarter, the company launched 11 innovative new casino games.

For the first six months of the year, profits and revenues rose 65.6% and 42.5%, respectively, when compared to the first six months of 2005. The company increased revenues and grew profits for the past three years, most recently by 35.5% and 49.6%, respectively, in 2005.

Consensus estimates for this year jumped 10.5% over the past seven days. Profit forecasts for next year have risen 8.8% over the past week.

The Board of Directors declared a quarterly cash dividend of 12 cents per common share of stock on Aug 1. CRYP has a current dividend yield of 2.2%.

The company is currently trading at a discounted valuation of 11.2x trailing 12-month earnings and at 10.4x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 16.1x trailing 12-month earnings and at 15.4x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 3.3, compared to 4.0 for the market. CRYP’s level of profitability, as measured by its return on equity, absolutely obliterates the industry average. The company has a ROE of 31%, compared to 3% for the industry.

The Fool has been bullish on Cryptologic for a long time as a Hidden Gem 

The Fool singled out Drew Industries in one of their free Hidden Gems features.  They believe that this company will see a lot of growth in the future and is a good stock to hold for 5 to 10 years.