Out Fox The $treet

Savient Pharma ( SVNT ) - a small cap biotech trading 50% below the 52 week high with an approved FDA drug with blockbuster potential - provides an ideal risk/reward scenario. The approved drug also has orphan status, giving it a 7 year marketing exclusivity. Naturally, the stock wouldn't still fall into the small cap arena if everybody agreed on the blockbuster potential of Kyrstexxa. The drug is one of the first for gout in over 40 years and provides treatment of chronic gout in adult patients refractory to conventional therapy. It treats an previously untreatable disease, providing for a under-served patient base. This is why many analysts and investors are high on SVNT and the blockbuster potential of the drug. Read the whole story at Seeking Alpha . 

In the financial world these days, information is loosely passed around as fact whether correct or not. Makes the following table interesting because a lot of people talk about copper and investing in the sector, but this has to be the first table I've seen in a while with the updated production leaders in the category based on 2010 production numbers. Freeport-McMoRan Copper (FCX) has been a big on and off investment of Stone Fox Capital. They currently rank as the top independent producer and the 2nd overall behind Chile state owned Codelco. FCX has a big lead over BHP Billiton (BHP) as well.  This list further highlights the focus on FCX as a proxy for copper. Without doing a lot of research, the other public companies listed only have a small focus in copper. Number 9 Southern Copper (SCCO) is the only other option that is at least investable on US exchanges. SCCO has a $30B market cap so it isn't that small considering the big difference in production as compared to FC...

Interesting results from this poll of the day from CNBC.com. Should the U.S. Have a 'AAA' Rating? Only 464 people votes so far, but a resounding 79% voted NO. So a majority of investors feel that the US shouldn't have a AAA credit rating. Lots of economists argue that the US won't ever default no matter the debt levels because we can always print more money. Regardless a AAA rating is reflective of an countries ability to repay debt and the more borrowed the more risk that has to exist. Personally I don't understand how an investor would buy US treasuries as if we could never default. It also highlight the continued issues with the credit agencies. They are just now downgrading the US to negative watch for a potential downgrade in two years. When everybody else seems to think they are already behind. Nothing new here as the agencies are very good at telling us what we already know. Any official downgrade would never happen until the media in general already a...

It appears that Terex (TEX) has finally turned the corner. Up till now, TEX has remained one of the few companies to not turn around from the 2008 financial crisis. Sure TEX had clearly bottomed out, but after selling their mining equipment business to Bucyrus (BUCY) it left them with a construction heavy product portfolio that continued to remain weak. The Q1 earnings report finally showed a turn in the cycle as opposed to the bottoming process of the last 6-9 months. Sure the backlog had increased over the last few quarters, but this time TEX reported a 30%+ QoQ increase in all 4 segments: AWP, Construction, Cranes, and Materials Processing. AWP had a whopping 45% sequential increase and a 123% increase over last year. Cranes which accounts for over 60% of the total backlog saw a surprising turnaround with a 30% sequential increase while down on the year. Backlog has trended from a low of $1.12B in Q210, $1.223B in Q310, $1.3B in Q410, to $1.79B in Q111. The trend has now become ...

As we've written on ChinaCache International (CCIH) in the past, this Chinese internet company has been completely ignored by the market. While Sina.com (SINA) has soared and numerous other IPOs have garnered attention, the market had forgotten about CCIH. Volume for two days in early April were below 50,000 shares. An absurdly low amount for a hot internet sector. Even the 3 month average volume being only 183K shares. For example, Youku.com averages nearly 2M daily shares and Qihoo 360 Technology (QIHU) averages 5.7M. The difference is very surprising considering the growth rate at CCIH. Today CCIH had 1.2M shares traded which is the highest volume on a up day since the IPO. It is also the 2nd highest day after the 1.5M shares traded on Feb 9th after the announcement of the COO resignation. China internet stocks were hot today, but it appears the key to share gains in CCIH is for it to regain attention as China internet IPO versus a reverse takeover (RTO). Somehow CCIH had ...

Air Lease raised more then expected by selling 30.3M shares at $26.50. The $800M+ will be used to finance a growth strategy with orders for more then 150 additional airplanes on a fleet base of just 49 as of today. This values AL at closer to 1.5 times tangible book value compared to Aercap Holdings (AER) trading below 1 times book value. See my recent article at Seeking Alpha suggesting that AER becomes a much greater value especially as AL surges past the IPO price: Skip the Air Lease IPO, Aercap Holdings Provides Better Value.  Disclosure: Long AER in client and personal accounts. Please review the disclaimer page. 

On Thursday, two more stocks IPO'ed at significant gains. Unfortunately small investors were left out of the process until the stocks opened significantly higher. By that time though, these investments aren't attractive anymore and if anything the small investor comes rushing in and loses money. Nothing new in the investment world that continues to be rigged against the average small investor. Both Zipcar ( ZIP ) and Arcos Dorados ( ARCO ) rose over 25% on the first day of trading.... Read the full article at Seeking Alpha .  Disclosure: Long CCIH. Please review the disclaimer page.