Health and Healthcare
Small Caps With Over 50% Stock Upside in 2012 (PNK, CDXS, VVUS, SCMR)
Published:
Last Updated:
Over the last week we have been reviewing some of the “Small Cap Stocking Stuffers” that features the top small cap ideas for 2012 from Credit Suisse. After reviewing the list, it turned out that some stock picks were expected to have upside of 50% or more. We found that the following have 50% upside or did when the firm first added these to the list: Pinnacle Entertainment (NYSE: PNK); Codexis, Inc. (NASDAQ: CDXS); VIVUS Inc. (NASDAQ: VVUS); and Sycamore Networks, Inc. (NASDAQ: SCMR). Other new additions to this were made but the rest did not have an implied 50% upside.
The category of stocks under $1 billion in market capitalization is called by Credit Suisse as the Ultimate Small Caps, and Credit Suisse’s Favorite Ideas are in the following. If applicable, we added in the implied upside, the market capitalization rates, and other color.
Pinnacle Entertainment (NYSE: PNK), in hotels, restaurants & leisure with a $600 million market cap, has an outperform rating, and its $15.00 price target versus a $9.66 target today implies 55% upside. What is interesting is that the Thomson Reuters consensus is actually even higher at $16.06.
Codexis, Inc. (NASDAQ: CDXS), with a $202 million market cap in biotechnology, has a price target of $25.00 on its Outperform rating. Keep in mind that the stock was at $10.41 when it was added to the list in June versus $5.63 today. It is hard to trust exponential gains expectations. To prove the point, the consensus price target is $12.17 today.
VIVUS Inc. (NASDAQ: VVUS), with an $804 million market cap in pharmaceuticals, was commented on this morning even though it was already on the list after being added only on June 14, 2011. At $9.00 after a drop of over 13% this morning makes for a questionable target. The prior $15.00 would imply about 66% upside if it can remain in place. Before the effects of any analyst changes this morning, the Thomson Reuters consensus price target is only $11.33 and the 52-week high is $11.48.
Sycamore Networks, Inc. (NASDAQ: SCMR), worth about $520 million in communications equipment, has a price target objective of $37.00 from Credit Suisse. That is up double from the $18.00 price today and still up 75% from when it was added to the favorite ideas list in June.
JON C. OGG
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.