Pharmaceuticals & Energy: Our SA Articles on Vitae Pharma & Dover Corporation

Investors That Stick With Vitae Pharmaceuticals Should Reap The Rewards

Summary

• The clinical-stage pharmaceutical developer has achieved promising clinical trial results.
• Vitae manages operating expenses superbly, with no debt and considerable cash to support ongoing R&D.
• An untapped market for Vitae’s powerhouse pipeline is encouraging for future sales.

Typical for a clinical-stage biotech, Vitae Pharmaceuticals (NASDAQ:VTAE) has weathered quite a bit of volatility in its stock price since going public in September 2014. Until Wednesday March 16, shares of VTAE had declined by 77%, reaching a new all-time-low. Despite the overall poor ROI since going public, investors have an opportunity to buy in at a major discount before the gradual growth pattern finally kicks in.

VTAE hit its 52-week low last week, followed by a sharp upswing from $4.08 to where the shares are currently trading - around $7.00. This price explosion - more than 80% - came in the aftermath of positive Phase-2 clinical trial results from one of Vitae's product candidates, VTP-43742. The experimental psoriasis ("PsO") therapy showed positive efficacy and tolerability in patients. The first-in-its-class drug has strong promise to fill a massive market gap: the need for tolerable and successful non-biology therapies for psoriasis sufferers... READ MORE



Dover's Share Price Rally Could Stall Amid Bleak Fundamentals

Summary

• Dover’s share price rallied amid improving oil prices.
• The company’s stock could decline again as oil prices are not likely to recover rig activities.
• Its dividends are safe but the macro environment could make for a better opportunity down the road.
• Buying on the existing rally is not a good strategy.

Dover Corporation (NYSE:DOV) has been experiencing several risks due to its dependence on the energy sector. It operates in four key segments: Engineered Systems, Energy, Fluids, and Refrigeration & Food Equipment.

The company's business model is directly dependent on these key industries. With the depression in economy and low oil prices, the company posted a decline of almost 14% for its fourth quarter revenue. The company's earnings also declined sharply by 21% to $171.8 million. For fiscal 2015, Dover's revenue dipped 10% mostly due to depressed energy segment while earnings declined above 20% to $595.9 million... READ MORE