Global Payments Inc. (GPN)

BUSINESS SUMMARY

Global Payments, Inc. provides payment processing and consumer money transfer services worldwide. The company operates in two business segments, Merchant Services and Money Transfer. The Merchant Services segment provides credit and debit card transaction processing, including VISA, MasterCard, and online and off-line debit card processing; and check-related services, including check verification, recovery, and guarantee services. It also offers VIP Preferred proprietary software products that provide tools for gaming industry to establish revolving check cashing limits for casinos’ customers. This segment also offers sales, installation, and servicing of automated teller machine and point of sale terminals; and card issuing services. In addition, it processes retrieval requests on behalf of merchants for issuing banks, as well as provides chargeback resolution services. The Merchant Services segment serves customers in various industries, including financial institutions, government, professional services, restaurants, universities, utilities, gaming, retail, and health care. The Money Transfer segment provides consumer-to-consumer money transfer services to immigrants in the United States and Europe. As of May 31, 2006, this segment operated 835 retail branch locations in the United States; and 40 branches in Europe. Global Payments markets its products through independent sales representatives, telesales groups, trade associations, alliance and agent bank relationships, retail outlets, and financial institutions. The company has operations in the United States, Canada, Europe, Latin America, Morocco, and the Philippines. The company was founded in 1967 and is headquartered in Atlanta, Georgia.

About Global Payments
With every transaction, with every service, with every product and with every system … Global puts your needs first.

Global Payments (NYSE: GPN) is one of the world’s largest transaction processors and offers worldwide, world-class electronic transaction processing services through our high speed, robust electronic information networks. These networks process billions of business and consumer payment card and money transfer transactions annually for customers in the United States, Canada, Europe and Latin America.

Global Payments also provides comprehensive business-to-business payment card and processing services, such as money transfer, cash management, financial electronic data interchange, management information and reporting services.

While the range and depth of our products and services sets us apart from others in the industry, it is our customer service that truly distinguishes Global Payments. With a relentless commitment to “delight our customers” included in our corporate values, we seek to ensure all our payment and processing services meet the needs of businesses today and set industry standards for the future.

Our team of worldwide, world-class service consultants is committed to helping you and your customers gain every opportunity for growth and profitability in today’s ever-changing and demanding electronic payment economy. Our sales professionals are dedicated to offering innovative products designed to meet your specific needs and help increase your market share and productivity levels. Our IT experts are entrusted to deliver technology-advanced and regulation-compliant software and services.

Global Payments serves an ever-growing variety of consumers, businesses, associations and organizations with a comprehensive line of transaction processing solutions that include:

* Processing services for all credit, debit, gift, purchasing cards and brands
* Electronic check conversion, guarantee, recovery and verification
* Cash access, player-tracking and reporting services for gaming
* Industry-leading POS applications with market-specific features
* Consumer and commercial money transfer services
* Business-to-business payment card services
* Comprehensive connectivity options
* Terminal management and merchant Point-of-Sale support services
* Internet payment, eCommerce processing services
* Advanced merchant accounting
* Fraud monitoring and chargeback protection

Accelerating the transfer of funds and the seamless flow of information

We seek to continually enhance our networks and transaction capabilities to make our services even more beneficial and to seamlessly carry and deliver billions of transactions to millions of service points worldwide. Through our advanced technology, we are well positioned for expanded services and functionality. Our reliable, high-speed data networks and virtual communication links connect you to the information and services that help you to be more productive and effective.

Management Team

Paul R. Garcia,
Chairman, President and
Chief Executive Officer

Paul R. Garcia is Chairman of the Board, President and CEO of Global Payments Inc. (NYSE:GPN), one of the world's leading payment processing companies. He is a pioneer and leader in the financial and payments services industry, having served in management and executive management roles for thirty years. Garcia originally became Chief Executive Officer of NDC's Atlanta-based eCommerce line of business in June 1999. NDC eCommerce began operating as Global Payments Inc. on December 11, 2000, and the new company spun off from National Data on February 1, 2001.

From March 1997 until September 1998, Mr. Garcia was President and Chief Executive Officer of Productivity Point International, Inc. ("PPI, Inc."). PPI, Inc. is a leading provider of instructor-led information technology training to major corporate clients.

Prior to joining PPI, Mr. Garcia was Group President of First Data Issuing Services, a division of First Data Corporation. Mr. Garcia joined First Data Corporation in late 1995, following its merger with First Financial Management Corporation. At the time of the merger, Mr. Garcia was Chief Executive Officer of First Financial Bank and Chief Executive Officer of National Bancard Corporation (NaBANCO), the world's largest processor of merchant Visa and MasterCard transactions.

Mr. Garcia has served on a number of Boards of Directors, including the Global, U.S. and Latin American Boards of MasterCard International and the Electronic Transactions Association (ETA). Currently, Mr. Garcia is a director of Verso Technologies, Inc. In addition, Mr. Garcia is a Trustee of Pace Academy in Atlanta, GA and is a member of the New York Stock Exchange Listed Company Advisory Committee. Mr. Garcia is also a member of the Rotary Club of Atlanta and was honored recently as 2004 Ernst & Young Entrepreneur of the Year® in Financial Services for Georgia, Alabama and Tennessee, and named one of the best CEOs in America by Institutional Investor magazine.

Mr. Garcia is a graduate of Kentucky Military Institute, Louisville, Kentucky; Haberdashers Aske's School, Elstree, Herefordshire, England; and Ithaca College, Ithaca, New York. Mr. Garcia is 52 years old and resides in Atlanta with his wife and six children.

VALUATION MEASURES
Market Cap (intraday): 3.29B
Enterprise Value (7-Jan-07)3: 3.13B
Trailing P/E (ttm, intraday): 24.81
Forward P/E (fye 31-May-08) 1: 19.38
PEG Ratio (5 yr expected): 1.64
Price/Sales (ttm): 4.17
Price/Book (mrq): 4.79
Enterprise Value/Revenue (ttm)3: 3.31
Enterprise Value/EBITDA (ttm)3: 11.991
FINANCIAL HIGHLIGHTS
Fiscal Year
Fiscal Year Ends: 31-May
Most Recent Quarter (mrq): 31-Aug-06
Profitability
Profit Margin (ttm): 14.44%
Operating Margin (ttm): 22.79%
Management Effectiveness
Return on Assets (ttm): 14.59%
Return on Equity (ttm): 18.93%
Income Statement
Revenue (ttm): 943.91M
Revenue Per Share (ttm): 11.903
Qtrly Revenue Growth (yoy): 16.00%
Gross Profit (ttm): 550.04M
EBITDA (ttm): 260.73M
Net Income Avl to Common (ttm): 136.29M
Diluted EPS (ttm): 1.66
Qtrly Earnings Growth (yoy): 35.00%
Balance Sheet
Total Cash (mrq): 168.58M
Total Cash Per Share (mrq): 2.102
Total Debt (mrq): 446.00K
Total Debt/Equity (mrq): 0.001
Current Ratio (mrq): 2.364
Book Value Per Share (mrq): 10.242
Cash Flow Statement
Operating Cash Flow (ttm): 203.07M
Levered Free Cash Flow (ttm): 143.03M

Others Info

Insufficient Funds From Global Payments
By Ryan Fuhrmann, CFA
January 5, 2007

The recent turn of events at transaction processor and money-transfer firm Global Payments (NYSE: GPN) just goes to show you why Benjamin Graham was always wary of growth stocks.

Management summed it up well during this morning's second-quarter conference call. It conceded that "not overachieving expectations is a disappointment for some." In other words, investors were disheartened by the fact that Global Payments was only able to meet earnings expectations, not exceed them as it has regularly done over the past four years. The punishment for posting 18.7% revenue growth and a nearly 19% jump in diluted earnings before stock options expenses was an 18% hit to the stock price.

Benjamin Graham warned of the dangers of growth stock investing nearly 60 years ago, stating that "the more enthusiastic the public grows about it, and the faster its advance as compared with the actual growth in earnings, the riskier proposition it becomes." Fortunately, he also recommended taking advantage of overly high levels of pessimism regarding a company's prospects.

So where does Global Payments stand after the recent share price drop? Based on management's fiscal 2007 diluted earnings guidance of $1.69-$1.75, the shares are still trading at about 24 times earnings. However, the company is a cash-generating machine and has been growing the top and bottom line more than 20% since it was incorporated in 2000.

Over the past three fiscal years, free cash flow has exceeded reported net income by a rather wide margin, speaking to the prodigious amount of cash thrown off by the company's two primary business units. Based on last year's numbers and the current stock price of $40, I estimate that Global Payments would have to grow about 11% per year over the next decade to justify the shares' current price.

That sounds like a piece of cake, given the Global Payments' track record as a public company. However, the company only met expectations for the quarter, and investors are worried that growth may now be slowing from its breakneck pace. I can't say if that is true, and neither could management during the conference call, but the 18% haircut has at least made an investment proposition less risky.

Plus, the overall transaction and money-transfer industries are appealing. Larger competitors such as First Data (NYSE: FDC) have more successful track records. First Data recently chose to retain its payment processing businesses and jettison its money-transfer Western Union (NYSE: WU) unit into a separate firm. Moneygram (NYSE: MGI) is another pure-play money-transfer firm. Global Payments is the fastest-growing of the bunch, but that has attracted a very enthusiastic following and a subsequently emotional crowd, so tread carefully.

Syntax-Brillian Corporation (BRLC)

BUSINESS SUMMARY

Syntax-Brillian Corporation engages in the design, development, and distribution of high-definition televisions (HDTVs) in liquid crystal display (LCD), and liquid crystal on silicon (LCoS) formats. The company provides Olevia branded product lines, which include flat panel LCD models in diagonal sizes from 20 inches to 42 inches, and 65-inch Gen II LCoS Rear Projection HDTV for the high-volume home entertainment market; 42-inch and 47-inch high-end HDTVs for the home entertainment and home theater markets; and Gen II LCoS rear projection 65-inch HDTV for audio/video market. It also offers a line of LCoS microdisplay products and subsystems, including LCoS imagers that original equipment manufacturers (OEM) could integrate into proprietary HDTV products, home theater projectors, and near-to-eye applications, such as head-mounted monocular or binocular headsets and viewers for industrial, medical, military, commercial, and consumer applications. These microdisplay products also include a line of LCoS display imagers and associated application specific integrated circuits that provide driver, controller, and converter functions that operate the imager. The company’s optical modules for near-to-eye applications comprise illumination, prisms, color separators and combiners, and lenses to provide complete display products. Syntax-Brillian sells its products to high-end audio/video manufacturers, distributors of high-end consumer electronics products, and consumer electronics retailers in North America, Asia, and Europe. The company has a joint venture, Olevia Senna do Brazil, to assemble and market Olevia branded HDTVs in Brazil and throughout South America. It also has a joint venture with China South Industries Group Corporation, Sino-Brillian Display Technology Corporation, to assemble and sell LCoS light engines to HDTV manufacturers in China and internationally. Syntax-Brillian was founded in 2003 and is headquartered in Tempe, Arizona.

A Tier One Digital Entertainment Company

On November 30, 2005, privately held Syntax Groups Corporation and publicly held Brillian Corporation merged to form Syntax-Brillian Corporation. The company has a commanding presence in the two technologies that many expect to dominate the future of high-definition TV: thin-film-transistor liquid crystal display (TFT-LCD) for 60-inch and smaller HDTVs, and rear-projection liquid crystal on silicon (LCoS™) for large-screen, home theater and commercial HDTV applications. On November 21, 2006, Syntax-Brillian further broadened its product portfolio and distribution network with the acquisition of imaging technology pioneer, Vivitar Corporation.

Today, the company's lead products include its Olevia brand of widescreen HDTV-ready and HD built-in LCD TVs — one of the fastest growing global TV brands; its Brillian brand of next-generation Gen II LCoS™ 720p and 1080p rear-projection HDTVs for the high-end video/audio market, and its Vivitar brand of digital still and video cameras. As a result of its award-winning products, broad sales channels, growing brand recognition and extensive patent portfolio, Syntax-Brillian is uniquely positioned to deliver quality digital entertainment products to the world market. The U.S.-based company has strong Asian partnerships, well-established, global retail and distributor sales channels, and a worldwide supply chain that allows it to leverage economies of scale to deliver both outstanding quality and value.

Vision: Quality Digital Entertainment Products
Syntax-Brillian has a clear and focused strategy to become a Tier One digital entertainment products manufacturer, and to play a leading role in the global HDTV market expansion with its award-winning Olevia family of LCD and LCoS™ products.

Distribution
Syntax-Brillian has built an Asian supply chain coupled with an international manufacturing and distribution network to support worldwide retail sales channels and position the company as a market leader in high-quality, high-value consumer digital entertainment products. The company has established a significant retail presence and distribution channels throughout North America. For its Olevia brand, distribution channels include national retailers such as CompUSA, Staples, and Radio Shack; regional retailers such as Fry’s, HH Gregg and Meijer; as well as online retailers including Amazon.com, Buy.com, and TigerDirect.com. The high-end Brillian brand HDTVs are available from home theater and Pro-AV distributors. Syntax-Brillian has also established distribution agreements, partnerships and joint ventures in Asia and expects to continue to expand internationally. For its Vivitar brand cameras, distribution channels in the United States include such mass merchandisers as Wal-Mart, Comp USA, Office Depot and Radio Shack. In Europe, Vivitar products can be found at major retailers, including Tesco, Woolworth's, E.LECLERC (France), Saturn (Germany) and others.

Management Team
Management Team

Vincent F. Sollitto, Jr.
Chairman and Chief Executive Officer

James Li
President and Chief Operating Officer

Wayne Pratt
EVP and Chief Financial Officer

Dr. Robert L. Melcher
Chief Technology Officer

Thomas Chow
EVP and Chief Procurement Officer

Michael Chan
EVP Operations

Hope Frank
Chief Marketing Officer

Jon A. Steging
VP, Corporate Controller and
Chief Accounting Officer


Vincent F. Sollitto, Jr.
Chairman and Chief Executive Officer
Mr. Sollitto has been the Chairman of the Board since December 2005 and the Chief Executive Officer and a director since June 2003. Prior to joining Syntax-Brillian, he was President and Chief Executive Officer of Photon Dynamics, Inc., a manufacturer of flat-panel-display inspection, test, and repair equipment. He was instrumental in growing the company’s revenues from $12 million to $94 million. He previously worked at Fujitsu Microelectronics as General Manager of the Logic Products unit, after heading all technical operations for an IBM-funded start-up, Supercomputer Systems, Inc. He also worked at IBM for more than 21 years in a range of increasingly responsible positions, with a final assignment as Director, Technology and Process, for the Enterprise Systems headquarters. Mr. Sollitto earned his Bachelor of Science degree in Electrical Engineering from Tufts University in 1970. He also continued his education in management, business, and technology at Syracuse, Cornell, and Carnegie Mellon Universities. A holder of four technical patents, Mr. Sollitto serves as a director of Applied Films Corporation, a thin film deposition equipment company, and Ultratech Inc., a photolithography equipment company, each of which is a public company.

James Li
President and Chief Operating Officer
Mr. Li, founder/director of Syntax-Brillian, is responsible for the company’s global LCD TV business development and management. Commencing his career with Gateway, where he was Senior Business Manager in the Global Procurement Office, Mr. Li has extensive experience in sales, operations, management and manufacturing in the IT and retail PC industries. Prior to Syntax-Brillian, he was Executive Assistant to the Chairman and CEO of Elitegroup Computer Systems, as well as Director of ECS’ OEM/ODM Business. Also at ECS, Mr. Li established and developed the Latin America market, growing its motherboard and notebook sales business to $180 million per year. He is on the Board of Directors of DigiMedia Technology Company, the joint venture formed in Taiwan by Syntax Groups and Taiwan Kolin Company and Sino-Brillian Display Technology Corporation. He holds a Bachelor’s degree in English and international business from Christ’s College in Taiwan and a Bachelor of Arts degree in clinical psychology and religion from Northwestern College.

Wayne Pratt
EVP and Chief Financial Officer
Mr. Pratt brings nearly 20 years of experience to his role and is instrumental in shaping the company's business and financial model, and investor relations strategies. Mr.Pratt oversees finance, accounting, information systems, procurement, investor relations, and facilities. Prior to Syntax-Brillian, Mr. Pratt served as Senior Vice President and CFO for Limelight Networks, a provider of outsourced IP delivery solutions, where his strategic leadership helped the company more than double its revenue. Prior to that, he held a number of executive and senior financial positions at GlobalCenter, Inc., Swift Transportation, KPMG, Primenet, Frontier Communications, and Axient Communications. During his employment with Axient, he helped grow the company from 20 to 130 employees, oversaw the deployment of IP networks in 70 cities, and assisted the company in raising $12 million in equity financing and over $40 million in debt and lease financing. Mr. Pratt received a Bachelor of Science degree in Accounting from Arizona State University in Tempe, Arizona.

Dr. Robert L. Melcher
Chief Technology Officer
Dr. Melcher brings extensive experience in technology management and research initiatives to his role and is responsible for defining the technological vision for the company. From October of 1999 to the spin-off of Brillian, Dr. Melcher served as Chief Technology Officer of Three-Five Systems, Inc. (TFS) and was in charge of both the microdisplay and passive matrix Display Technology Center. Prior to joining TFS, Dr. Melcher had an illustrious 29-year career with IBM. He is the recipient of two IBM Outstanding Contribution Awards, as well as an IBM Group Award. During his tenure at IBM, he held a number of increasingly important positions. His final assignment with IBM was Program Leader for projection displays. He led an international team from IBM Research, which worked with IBM's Display Business Unit in Japan to invent, develop, and market large-area projection displays based on reflective liquid-crystal-on-silicon microdisplays. He also served as IBM's Director of the Input/Output Technology Department; Manager of Low-Temperature Physics; Senior Manager for Condensed-Matter Physics; Manager of Laser Science and Technology at IBM Zurich; Director of Technical Planning; and Director of the Physical Sciences Department.

Dr. Melcher holds a Bachelor of Science degree in Physics and Mathematics from Southern Methodist University, and master's and Ph.D. degrees in Solid-State Physics from Washington University. A holder of 15 patents and author of more than 100 technical articles, Dr. Melcher has served on the program committees of several international conferences; he was elected to the AD COM of the IEEE Group on Sonics and Ultrasonics; and is a fellow of the American Physical Society. He served as a member of the CTAN Yale Advisory Board and was Vice Chairman of the Board of Trustees of the Science Port Museum.

Thomas Chow
EVP and Chief Procurement Officer
Mr. Chow is Executive Vice President and Chief Procurement Officer of Syntax-Brillian. Prior to the merger, he served as Syntax's Chief Financial Officer. He co-founded Lasertech Computer Distributor, Inc. in October 1994, a distributor of computer equipment, and formerly a wholly owned subsidiary of Syntax, and served as its Chief Operating Officer until 2004. In 1996, he co-founded Warpspeed, a manufacturer of graphic display adapters. Earlier, he was President of the QDI Group, a manufacturer of personal computer motherboards and graphic display cards, and a wholly owned subsidiary of Legend Holding Group, Hong Kong. Mr. Chow was Sales Manager for Legend Holding Group, the largest personal computer manufacturing company in China. Mr. Chow graduated with first class BSC honors in microelectronic and microprocessor technology at Newcastle University (United Kingdom).

Michael Chan
EVP Operations
Mr. Chan brings substantial experience in operational efficiencies, and prior to the merger, he served as Syntax's Chief Operating Officer. From June 2000 to April 2004, Mr. Chan was Vice-President of Lasertech Computer Distributor, Inc., a distributor of computer equipment and formerly a wholly owned subsidiary of Syntax, with responsibility for sales and marketing. He co-founded NCX Corp., a wholesaler of computer peripherals, and served as its Chief Executive Officer from July 1997 to May 2000. Earlier, he served as Chief Operating Officer of Shinho Technology and Communication, Inc., a manufacturer of monitors. Mr. Chan was financial controller at Infiniti Manufacturing and Microstar Computer, a system integrator and wholesaler of personal computer components from 1992 to 1994. Mr. Chan graduated from the University of Southern California, with honors, with a Bachelor of Science degree in accounting and finance.

Hope Frank
Chief Marketing Officer
Hope Frank, Chief Marketing Officer, brings 25 years of strategic international marketing, brand development, and global public relations experience to her position. Prior to joining Syntax-Brillian in 2003, she was Vice President, Communications for Photon Dynamics, a manufacturer of flat-panel-display inspection, test, and repair equipment. She also co-founded Strategy10X, best known for the fully integrated marketing launch of the Starbucks 802.11b wireless mobile network. As a founding partner of FHP, an award-winning strategic marketing and brand development firm in San Francisco, she directed more than 300 projects. Key clients included Apple, AT&T, Bank of America, Intel, CNN, Charles Schwab, Microsoft, Dockers, Banana Republic, NIKE, and Sprint. Frank was also president of FHP Corporation, an intellectual property-focused marketing firm serving the venture capital community in Seattle and Silicon Valley, with key emphasis on merger and acquisition strategy as well as global marketing integration. Earlier Frank partnered with the State of the World Forum, co-managed global public relations and provided positioning counsel to heads of state including President Mikhail Gorbachev, Prime Minister Margaret Thatcher, President Thabo Mbeki, and President George Bush, Sr.

Frank earned a bachelor of arts degree from University of Colorado, Boulder. She has a working knowledge of French, Spanish and German.

Jon A. Steging
VP, Corporate Controller and Chief Accounting Officer
Mr. Steging brings extensive financial and management experience to his role here at Syntax-Brillian. His responsibilities include finance, accounting, treasury, tax, audits, and SEC and SOX404 reporting. Prior to joining the Company, Mr. Steging served as the CAO, Treasurer and Controller, and the Interim CFO for VistaCare, Inc., a publicly traded national hospice company. Prior to that, he was a Partner with Tatum partners, LLP, providing interim CFO services to a number of firms throughout the Southwest. In 1997, he founded his own successful consulting firm focusing on assisting companies to developing business and growth strategies. He also has held a number of executive and senior financial positions at eai Healthcare Staffing, Laidlaw Industries, Gould, Inc. and Jewel Companies. His background includes acquisitions, high growth and financial and management systems design. Mr. Steging received a Bachelor of Science Degree in Accounting from Southern Illinois University and a Masters Degree in Finance from Northern Illinois University.

VALUATION MEASURES
Market Cap (intraday): 552.53M
Enterprise Value (6-Jan-07)3: 523.55M
Trailing P/E (ttm, intraday): N/A
Forward P/E (fye 30-Jun-08) 1: 15.34
PEG Ratio (5 yr expected): 0.74
Price/Sales (ttm): 1.93
Price/Book (mrq): 6.66
Enterprise Value/Revenue (ttm)3: 2.07
Enterprise Value/EBITDA (ttm)3: 82.203
FINANCIAL HIGHLIGHTS
Fiscal Year
Fiscal Year Ends: 30-June
Most Recent Quarter (mrq): 30-Sep-06
Profitability
Profit Margin (ttm): -5.71%
Operating Margin (ttm): 0.21%
Management Effectiveness
Return on Assets (ttm): N/A
Return on Equity (ttm): -35.58%
Income Statement
Revenue (ttm): 252.65M
Revenue Per Share (ttm): 5.638
Qtrly Revenue Growth (yoy): 218.10%
Gross Profit (ttm): 23.89M
EBITDA (ttm): 6.37M
Net Income Avl to Common (ttm): -14.41M
Diluted EPS (ttm): -0.32
Qtrly Earnings Growth (yoy): N/A
Balance Sheet
Total Cash (mrq): 8.27M
Total Cash Per Share (mrq): 0.161
Total Debt (mrq): 43.59M
Total Debt/Equity (mrq): 0.599
Current Ratio (mrq): 1.24
Book Value Per Share (mrq): 1.424
Cash Flow Statement
Operating Cash Flow (ttm): -28.16M
Levered Free Cash Flow (ttm): -33.76M

Spherion Corp. (SFN)

Potential 100x return positive points :

• Good Value with Price below BV.
  Book Value Per Share (mrq):7.627
• Low-price cost cutter :Spherion heads into 2007 with a continued emphasis on major cost-cutting initiatives, especially with regard to its payroll. CEO Roy Krause has consistently shown a preference to expand the company's margins and returns rather than sacrifice profitability to grow the top line at a faster pace -- a conservative approach that I'm always willing to applaud, as long as it benefits long-term shareholders.
  Although Spherion definitely needs to start growing sales in a more inspired manner if it wants to increase shareholder returns over the long haul, Krause is delivering the goods with respect to the current cost-reducing objectives. In early November, Spherion reported a 61% increase in net income for the third quarter, despite minimal revenue growth. On top of that, the company bought back 118,000 of its shares, to complete a buyback authorization for 6 million shares at an average price of $8.76.
  Spherion certainly exhibits some attractive investment characteristics that aren't generally found in many low-priced stocks. With a strong brand name, margin-improving business initiatives in full gear, and a positive long-term outlook for the industry, this single-digit stock seems quite deserving of its five-star rating.( From Fool.com)

Allos Therapeutics Inc. (ALTH)

Potential 100x return positive points :

• Insider buying 1,034,580 shares between $5.50 to $5.80
• Potential huge return with approval of EFAPROXYN.
• Good Business strategy and well executed -Our goal is to become a profitable biopharmaceutical development and marketing company. The key elements of our business strategy are to:
  * Focus on the oncology market. We intend to continue to focus our drug development efforts on the oncology market. We believe the oncology market is attractive due to its large market size, continual demand for safer and more effective cancer treatments, well-characterized endpoints, and potential for expedited regulatory review.
  *Obtain regulatory approval to market EFAPROXYN. We are currently focused on completing our Phase 3 ENRICH trial and, if the results are positive, obtaining regulatory approval in the United States to market EFAPROXYN as an adjunct to WBRT for the treatment of brain metastases originating from breast cancer. We may pursue regulatory approvals in other countries if deemed strategically and economically feasible. In addition, in the event we obtain regulatory approval to market EFAPROXYN, we intend to expand our clinical development activities involving EFAPROXYN to pursue additional labels for which there is evidence of clinical benefit.
  *Advance the development of PDX and RH1. We plan to evaluate PDX and RH1 for oncology use as single agents or in combination with other therapies in target indications that we believe offer the most expedient pathway to marketing approval. In the near-term, we plan to initiate a Phase 2 trial of PDX in PTCL, which we hope may provide the basis to obtain marketing approval for PDX in this indication. *Expand our product candidate portfolio. We may pursue opportunities from time to time to expand our product candidate portfolio by identifying and evaluating new compounds that have demonstrated potential in preclinical or clinical studies and are synergistic with our existing oncology portfolio. Our intent is to build a strong and continual pipeline of novel and powerful drug candidates. *Develop sales and marketing capabilities to maximize the commercial potential of our product candidates . We currently retain exclusive worldwide commercial rights to EFAPROXYN, PDX and RH1 for all target indications. We intend to develop sales and marketing capabilities, either internally or through a combination of contract relationships or strategic collaborations, to market our products in the United States. We intend to enter into co-promotion or out-licensing arrangements to reach all markets outside the United States.