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$18.75 1.09 (6.17%)
10/10/2008 4:00 PM

Cubist Pharmaceuticals, Inc. (CBST)

CAPS Rating:
***

A biopharmaceutical company focused on the research, development and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment.

Rating a stock in CAPS consists of three components:

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What the Community Thinks

Total Members

184 Outperforms
15 Underperforms
 

All-Stars

45 Outperforms
4 Underperforms
 

Wall Street

6 Outperforms
1 Underperforms
 

Members bullish on CBST are also bullish on:

Members bearish on CBST are also bearish on:

Ticker Tags

Drug Manufacturers - Other (105), Biotechnology (295), Small Cap (1922)
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Cubist Pharmaceuticals, Inc. At A Glance

Current Price: $18.75
Last Trade Time: 10/10/2008 4:00 PM
Open: $17.42
Previous Close: $17.66
Daily Range: $16.25 - $19.03
52-Week Range: $16.54 - $24.75
Volume: 1,296,371
Market Cap: $999.13M
P/E Ratio: 21.02
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Stock Trends

CBST VS S&P 500 (SPY)

CBST 12 month chart vs. S&P

News & Discussion Boards

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Top Bull Pitch

Recs

1

Cubist Pharmaceuticals, Inc. (CBST)

Avatar chloe0328 (76.13) Submitted: 3/24/08 2:53 PM

The programs offered in the US to help bring cost down for elderly and poor shall effect this stock

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Top Bear Pitch

Recs

1

Cubist Pharmaceuticals, Inc. (CBST)

Avatar narlinbeaty (31.63) Submitted: 5/17/08 3:42 PM

This company make a drung called Daptomyocin. The drug is affective against MRSA and is used internationally for skin infections and bactermia. In many ways ths drug is a heavy hitting antiboitic used has last line of defense in the hospital setting. The drug is last line because it is theorized t...More

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Recs

0

 (CBST)

Avatar zzlangerhans (98.66) Submitted: 9/19/08 3:12 PM : Underperform Start Price: $22.89 CBST Score: -10.88

Cubicin revenues have continued to grow at a steady rate, and this quarter the market finally noticed. The recent jump may have been a slight over-reaction, especially since higher overheads and R&D caused actual profits to tank. I predict a slippage back down the the 18 level where I'll put in another outperform.

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Recs

0

 (CBST)

Avatar TMFBiologyFool (99.24) Submitted: 9/08/08 11:21 AM : Outperform Start Price: $22.69 CBST Score: 12.43

Cubicin will get used earlier as number of resistant bugs increase.

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Recs

0

 (CBST)

Avatar BfloBull (96.10) Submitted: 8/08/08 10:11 AM : Outperform Start Price: $22.74 CBST Score: 13.47

Reason to BUY :


PEG Ratio: .73


5 Yr Proj EPS Growth: 29%


Postive Analyst Est Rev: 6 last 30 days


EVA: Positive


EPS Surp: Positive past 5 Qtrs


Inst Ownership: Mazama, Alger, Stoneridge

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Recs

0

 (CBST)

Avatar ennui (64.73) Submitted: 6/05/08 9:28 PM : Outperform Start Price: $18.79 CBST Score: 36.01

The big attraction here is Cubicin, an injectable antibiotic used for treating MRSA, a deadly & rapidly spreading threat in hospitals. The incidence of MRSA (Methicillin resistant Staph Aureus) is growing astronomically, and the infection is very difficult to treat. Cubicin is one of the few antibiotics used to treat the infection, and sales of the drug have been expanding very rapidly.

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Recs

0

 (CBST)

Avatar RudolphsChoice (85.80) Submitted: 6/05/08 6:04 PM : Outperform Start Price: $18.90 CBST Score: 36.18

Here’s another pitch I wanted to write about a smaller drug manufacturer by the name of Cubist Pharmaceuticals. I predicted Vertex Pharmaceuticals would do well back early this year and they are up almost 50% since I recommended them back in January. Now onto Cubist Pharmaceuticals. They are a smaller company with one marketable drug and another important drug (DX-88, which they say has a market potential of $500 million) going through to its 2nd phase 2 testing. This prediction is based on a few things, mostly from management’s tendency to low-ball earnings (or just do really well when they thought they wouldn’t).





The company’s big drug is Cubicin, an antibiotic for fighting MRSA, which was once solely a hospital insulated disease. Now that it has leaked out of hospitals and into the environment (epidemic is the term used by doctors), there seems to be growing demand for the number 1 drug.





Last quarter the company reported EPS .31-basic and .26-diluted on 88.3 million in revenue. Now here comes the interesting analysis. The company said that they projected revenue for the this year at 380-395 million in the U.S. and about 6.5 million abroad (Year over year (total) revenue growth of 28.48-34.1%, which in itself is strange because from 06’-07’ (total) revenue growth was 51.3%). Anyhow, the company’s 1st quarter earnings accounted for 20.2 and 20.6% in 06’ and 07’ respectively. Now, in the 1st quarter of 08’, the company’s earnings account for 22.84% of this year’s projected earnings (It accounted for 12% more revenue than it has over the past 2 1st quarters). This might get confusing but stick with it…so year over year revenue growth for the 1st quarter only from 06’-07’ was 48.4% while 07’-08’ was 47.8%. This starts to show that the company could exceed earnings this year and that the 12% more revenue than expected for the 1st quarter is actually what the company should have been predicting.


Now, if we apply that 12% premium to the low end of the year end projection, we get revenues of 432 million, completely beating the company’s estimate as well as Wall Street’s (avg. of 400.37 million). This is further solidified by the fact that MSRA is becoming an epidemic and that demand will not slow down.





If you take our new number of 432 million in revenue and get the net income by using the company’s projected COGS, SG&A and other expenses…you get a net income of 81.3 million, a close to 100% increase in net income from FY07. Using the company’s 2% increase in shares outstanding year over year (for this year it should be around 56.81 million), we come to a full year basic EPS of $1.43. Multiply that by MSN’s analysts’ forward P/E estimate of 16.20 (which even seems on the low end)…you arrive at a year end price target of $23.17 for a 21.6% return from today’s closing price. Using the current P/E would give you a price target of $27 for a return of 41.7% [these numbers are on the low end and are the safest, but I believe in a price target of over $30] ...sounds like a good deal to me…I’m setting a 1 year outperform rating and will most likely invest 20 shares now at $19.05 and another $20 on any dip below $18.75-$18.50, especially going into earnings next month…hope this helps…


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Wall Street

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Pick
Member NameMember RatingStart
Date
CallTime FrameStart
Price
Stock
Gain
S&P
Gain
ScorePitch
TrackNeedham < 20 07/01/08 Outperform NS $18.01+4.11%-30.10%+34.21
TrackStanfordRes 73.73 01/24/08 Outperform NS $19.07-1.68%-33.86%+32.18
TrackRWBaird 96.79 01/15/08 Outperform NS $21.50-12.79%-36.69%+23.90
TrackStifel 92.16 07/19/07 Outperform NS $22.85-17.94%-42.98%+25.03
TrackJMP 24.52 01/05/07 Outperform NS $17.07+9.84%-37.38%+47.22
TrackJefferies < 20 10/16/06 Outperform NS $22.62-17.11%-35.17%+18.06
TrackMatrix 91.80 08/31/06 Underperform NS $23.52-20.28%-32.37%-12.08

Results 1 - 7 of 7  

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