Shin Daily US Stock Review 10 June 2017

Shin Daily US Stock Position

ALXN - SHORT Position -  From 106.67$ -  Stopped out at 101.26$ (S/T) +5.41$ (5,07%)

KOS - SHORT Position - From 7.33$ - Closed at 6.12$ (S/T) +1.21$ (16,5%)

ZOES - SHORT Position - From 12.98$ - Stopped out at 14.16$ (S/T) -1.18$ (9,09%)

EXAS - LONG Position - From 36.47$ - Stopped out at 34.94$ (S/T) - 1.53$ (4,2%)

ENZ - LONG Position - Opened - Entry: 10.35$, Target: 13.92$, Stop: 9.83$

ENZ - ENZO BIOCHEM

Enzo Biochem is a pioneer in molecular diagnostics, leading the convergence of clinical laboratories, life sciences and intellectual property through the development of unique diagnostic platform technologies that provide numerous advantages over previous standards. A global company, Enzo Biochem utilizes cross-functional teams to develop and deploy products, systems and services that meet the ever-changing and rapidly growing needs of health care today and into the future. Underpinning Enzo Biochem’s products and technologies is a broad and deep intellectual property portfolio, with patent coverage across a number of key enabling technologies.

ENZ - Fundamental Insight

Third Quarter Highlights

• Total revenues increased to $27.1 million, a 2% increase from $26.4 million in the prior year period.
• Clinical Labs revenues totaled $19.6 million, an 8% increase over the prior year period and the sixth straight quarterly increase, reflecting continued growth in volume of high margin molecular diagnostic tests (MDx). Gross margins advanced 300 basis points, to 42%.
• Consolidated gross margin was 45%, a 200 basis points improvement over the prior year period.
• With operating expenses lower, including legal costs, Enzo recorded a GAAP loss of $71,000, or $0.00 per share. EBITDA, a non-GAAP measure, was $0.7 million, a $1.8 million improvement over the prior year period.
• Enzo Life Sciences’ revenue was $7.5 million, an 9% decline from $8.3 million in the prior year period. This was due to timing of product shipments, continued reduction in the product mix to emphasize higher margins, and industrywide weakness in the academic and governmental markets. Despite reduced revenues, the segment remained profitable and cash flow positive.
• Consolidated cash flows from operations in the quarter were $0.9 million. After investing $0.7 million in capital expenditures related to expansion in the Clinical Labs, total cash and cash equivalents increased $0.2 million over the second fiscal quarter 2017. Working capital at April 30, 2017 was in excess of $70.5 million.
• As previously announced, New York State Department of Health’s recent conditional approval of three new diagnostics for the company’s cost efficient AmpiProbe® PCR platform paves the way for their additions to Enzo’s expected specialized 14-analyte panel, anticipated to be available by fall, that will further establish Enzo’s strong MDx position in women’s health.

Barry Weiner, President, Comments:

“This was another excellent quarter of operational performance, one of sustained growth, technological advances and market inroads. Our transformative strategy to a fully integrated molecular diagnostic company is being recognized in the marketplace. The quarter was notable for the steadily increasing performance of our clinical services. It reflected the addition of new clients, growing interest in our molecular diagnostic development capabilities, and expanding national reference services giving recognition of our leading position as a provider of comprehensive women’s health diagnostics. Enzo Life Sciences was affected by timing of certain U.S. shipments, and tightening of academic and government spending, while the segment focuses on product development and approvals. In a relatively short time, we have streamlined its product mix to concentrate on higher margin products and have reduced products by over one-third to free capacity for molecular diagnostics manufacturing and distribution. At the same time, Enzo Life Science’s research capabilities, uniquely integrated with our Clinical Labs, continues to turn out advanced genomic diagnostic products built around our proprietary technology platforms. This has enabled gross margin expansion at Enzo and broadens our MDx test menu that offers greater efficiency and reduced costs to independent laboratory customers.

“The integration of our operations is proving an important aspect of our activities. We have been able to build a formidable business model employing our significant patent estate and years of accumulated know-how to benefit today’s independent lab market. Specifically, we now provide a growing menu of highly efficient, versatile and cost effective MDx products and platforms, compatible with current open systems, which could result in significant savings -- in many cases between 30% to 50%. We also have gone a step further by making our state-of-the-art lab capabilities available on a reference basis, enabling many independent labs to utilize our services to continue to respond to their client-physician needs and maintain margins as one effective way for dealing with high product costs and shrinking reimbursements.

“Also, Enzo was recently designated as an in-network health care provider in the U.S. by one of the nation’s leading health services organizations. Expanding Enzo’s in-network insurance coverage nationwide is a key component of our growth strategy.

“Lastly, our patent infringement related lawsuits are moving through the court system in Delaware and we expect some trials may get underway before the end of the year.”

ENZ - Technical Insight

Market movement shows it's price break the last 10 year new high territory with huge volume increase, it's a good signal that it will continue it's uptrend, supported by it's latest repetition of descending movement pattern after breakout, definetly a good stock to pick, maintain buy position for now