Tag - Mnkd

Mannkind Corp (Nasdaq:MNKD), Sterling Construction Co Inc (Nasdaq:STRL), Virnetx Holding Corp (Nasdaq:VHC) and Cytori Therapeutics (Nasdaq:CYTX) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Mannkind Corp (Nasdaq:MNKD), Brightpoint Inc (Nasdaq:CELL), Transcat Inc (Nasdaq:TRNS) and Maine & Maritimes Corp (Nasdaq:MAM) are among the biggest percentage losers in day's trading among companies with market capitalizations under $1 billion.

"In looking for a highly speculative stock for our portfolio, I have settled on MannKind Corp. (NASDAQ: MNKD), a company that is developing an inhaled insulin product," says Nate Pile.

In his growth-oriented Nate's Notes, the advisor cautions, "I believe we are looking at a situation in which we will either lose most of our money, or triple (or better) our investment in a fairly short period of time."

"Working against the company is the fact that there has never been an inhaled insulin product approved for commercial use that has worked very well.

"Thus, if MannKind’s product manages to both win FDA approval and achieve commercial success, MannKind will truly be treading where no one has gone before.

"Indeed, an inhaled insulin product is one of those ideas that has been around forever, but, for all its promise, has never really resulted in anything but heartache for investors over the years.

"For example, though Pfizer managed to get its inhaled insulin drug (Exubera) approved a few years ago, the product was pulled from the market in late 2007 after generating only $12 million in sales.

"While this implies that MannKind may be facing an uphill battle, it should be kept in mind that Pfizer’s product required users to become proficient at loading and 'pressurizing' a cumbersome apparatus – and releasing the powder and inhaling it with precisely the right technique.

"But MannKind has managed to develop a much more compact and discreet device for delivering inhaled insulin.

"AFRESA passed its Phase III clinical trials with what appear to be sufficiently robust results to warrant approval for the control of hyperglycemia in patients with type 1 or type 2 diabetes, a New Drug Application has been filed with the FDA based on those results, and a ruling is expected early next year.

"In anticipation of approval, the company recently acquired an insulin production facility in Germany from Pfizer. If approved, this facility will nicely complement MannKind’s existing facility in Danbury, Connecticut.

"An additional 'intangible' value associated with this story is that it is still being led by its founder (and largest stockholder), Aflred E. Mann, who has started -- and then sold -- several biomedical companies.

"We again caution that the stock has already made very nice run in recent months (and thus may be due for a pullback before new highs are set again. In addition, the stock has the potential to be even more volatile than your typical development stage company.

"Further, a delay or denial of approval from the FDA will almost certainly results in a major 'haircut' in the stock price. As such, you do not want to become too overweighted in the stock until after the risk surrounding approval has been removed.

"For now, we would encourage speculative investors to start building a position in the stockso that you at least have a bit of 'skin in the game', as the saying goes.  We rate the stock a buy under $10 and a strong buy on any pullbacks under $7."
 

Small-cap stocks had another lackluster, range-bound session Tuesday and remain in a holding pattern waiting for a breakout move. In the end, the Russell 2000 closed down 0.76, or 0.11%, at 711.92.

Look for support today at 705.50, 700 and 694, while resistance should be seen at 717, 725 and 731.

The market could face yet another sluggish session today, with very little on the economic calendar. The 10:00 a.m. ET Wholesale Inventory report typically doesn’t move stocks. Fed Chair Bernanke is making an appearance at 9:30 a.m. ET, but is only giving opening remarks at a Jumpstart Coalition meeting, and probably won’t jolt the markets.

Development stage company MannKind Corp. (Nasdaq: MNKD), reported a narrower-than-expected loss for the third quarter.

For the three months ended Sept. 30, the small cap recorded a net loss of $73 million, or $0.99 per share, narrower than the $1.09 net loss per share eleven analysts polled by Thomson were forecasting. This compares with a net loss of $61 million, or $1.23 per share for the third quarter of 2006.

Shares of MannKind (MNKD) were halted in pre-market trading.