ALRX News Dutton Associates Announces Investment Opinion: AlphaRX Speculative Buy Rating in Update Coverage by Dutton Associates
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Dutton Associates updates its coverage of AlphaRX (OTCBB:ALRX)
maintaining a Speculative Buy rating. The 10-page report by Dutton
senior analyst Stephen Handley is available at www.jmdutton.com
as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and
other leading financial portals.
AlphaRX is a clinical stage pharmaceutical company engaged in developing
novel formulations of existing drugs that are insoluble or poorly
soluble in water. The Company achieved several significant milestones in
fiscal 2006, ended September 30, and prospects for the current fiscal
year are encouraging. Specifically, we anticipate a $3 million milestone
payment once Phase II studies of the Company’s
lead compound are completed, and royalty and other income could
approximate $500,000. There are clearly significant risks associated
with an investment in AlphaRX, including the fact that the Company’s
market capitalization is less than $10 million and the fact that this
low priced stock has been highly volatile. Nevertheless, we are
favorably impressed with management’s
resourcefulness in capitalizing on its technology, as evidenced by
collaborations announced in recent months. While it is premature to
estimate the level of revenues and earnings that are possible longer
term, it is clear that management is building shareholder value and the
Company’s modest market capitalization appears
to be substantially less than the value of its technology and the
potential offered by its product pipeline.
About Dutton Associates
Dutton Associates is one of the largest independent investment research
firms in the U.S. Its 31 senior analysts are primarily CFAs, and have
expertise in many industries. Dutton Associates provides continuing
analyst coverage of over 140 enrolled companies, and its research,
estimates, and ratings are carried in all the major databases serving
institutions and online investors.
The cost of enrollment in our one-year continuing research program is US
$39,500 prepaid for 4 Research Reports, typically published quarterly,
and requisite Research Notes. Dutton Associates received $33,000 from
the Company for 4 Research Reports with coverage commencing on
11/03/2004. We do not accept payment of our fees in company stock. Our
principals and analysts are prohibited from owning or trading in
securities of covered companies. The views expressed in this research
report accurately reflect the analyst's personal views about the subject
securities or issuer. Neither the analyst's compensation nor the
compensation received by us is in any way related to the specific
ratings or views contained in this research report or note. Please read
full disclosures and analyst background at www.jmdutton.com
before investing.
