Hospira's Potential

In This Issue: Hospira's Potential Another LNG Play Steams Ahead Start Your Profit Engines Just outside the legendary Daytona International Speedway, a new empire is growing. Its visionary founder is tapping into the NASCAR craze. Over 75 million people – including countless kids – are huge fans of this sport. What better place to create a sprawling 1.1-million-acre entertainment destination for shopping, dining, hotels, movie theaters and more! The profit potential is enormous – double, triple, even more in the next 24 months. The time to buy is now. We have a FREE REPORT that outlines why. Click here to start your profit engines. Hospira's Potential 8/26/2014 By Thomas Scarlett Hospira Inc. (NYSE: HSP) is the world's leading provider of injectable drugs and infusion technologies. This is a market that promises to have rapid growth in the coming years, and this Illinois-based company has already established a dominant position within it. Hospira's products are used by hospitals and alternate site providers, such as clinics, home healthcare providers and long-term care facilities. It was formerly the hospital products division of Abbott Laboratories. Worldwide sales in 2013 were approximately $4.5 billion. The company won an important legal victory last week when a federal court overturned a decision by the U.S. Food and Drug Administration that would have allowed rival companies to sell generic copies of Hospira's leading product, the sedative Precedex. Hospira is trying to preserve its market exclusivity for Precedex, which accounts for about 11 percent of the company's annual sales. The drug is used to sedate patients with breathing tubes in an intensive-care setting, as well as patients without breathing tubes before and during surgeries and other procedures. The company argued that the FDA's decision was wrong because some of the uses remaining in the prescribing labels for generic Precedex would violate Hospira's patent. The federal district court agreed, although there will probably be at least one more decision by a federal appellate court, and perhaps even the U.S. Supreme Court. But there's more to Hospira than just Precedex. The firm has been a pioneer in developing drugs known as "biosimilars" -- biologic medical products whose active drug substance is made by a living organism or derived from a living organism by means of recombinant DNA or controlled gene expression methods. The legal status of these products has been uncertain, but trends seem to be moving in their direction. Hospira recently commended Massachusetts Gov. Deval Patrick for approving a law that creates a pathway for the substitution of interchangeable biologic drugs and helps pave the way for patient access to cost savings from biosimilar products. "The introduction of biosimilars promises to help put new cost-savings in the hands of patients," said Dr. Stan Bukofzer, corporate vice president and chief medical officer. "Massachusetts is now among a growing number of U.S. states taking early action to establish clear and transparent policies for the substitution of these high-quality and more affordable biologic products." Hospira is a market leader in biosimilars in Europe, and expects to submit its first biosimilar to the U.S. Food and Drug Administration (FDA) later this year or in early 2015. The company's most recent earnings report was impressive. Net sales for the second quarter were $1.1 billion and adjusted earnings per share were 72 cents. "Hospira delivered another strong quarter, driven by continued positive performance in our Specialty Injectable Pharmaceuticals products," said F. Michael Ball, chief executive officer. "The investments we have been making to reinforce our foundation and drive growth are also contributing to our results, as are the diligent efforts of Hospira employees around the world. Given our favorable performance for the first half of 2014, we are raising our guidance for the full year, with a continued focus on serving our customers, driving profitable growth and delivering shareholder value." The company has completed the acquisition of an active pharmaceutical ingredient (API) manufacturing facility and an associated research and development (R&D) facility from Orchid Chemicals & Pharmaceuticals Ltd., a leading Indian pharmaceuticals company, for approximately $218 million, after settling prior advances of approximately $30 million. The acquisition enables Hospira, already a leader in certain critical antibiotic injectable products, to vertically integrate into the beta-lactam antibiotic APIs (penems and penicillins), and is also expected to improve Hospira's cost position in this therapeutic space. In addition, backward integration into these beta-lactam APIs will improve the company's security of supply. Beta-lactam antibiotics represent a class of drugs with a wide spectrum of antibacterial activity. The API manufacturing facility -- which is located in Aurangabad, India -- has capabilities for manufacturing sterile APIs and employs approximately 665 employees including chemists, engineers and technicians. Hospira's purchase also includes an associated Orchid R&D facility based in Chennai, India, that will be directed primarily to beta-lactam and other API development with approximately 110 scientific personnel. Hospira has a market cap of $9.21 billion. It seems like a strong candidate to exceed expectation when its next earnings report comes around. Much of the growth of the U.S economy in coming years will come from improvements in health care and cutting-edge technology. Hospira will be a factor in both of those areas. HSP is a buy below 56. Tom Scarlett is an investment analyst with Personal Finance. Your secret blueprint for bigger dividends Whether you're building a nest egg for retirement or are already retired, you need income now. But it's tough finding high-quality, long-term income investments, what with interest rates scraping the bottom of the barrel. Here's good news… I've discovered a new, secret weapon for pinpointing low-risk, high-income investments. It's like a secret blueprint for nabbing big dividends. How does a $4 a share sound? That's just huge income opportunity #1. I have 4 more! Here's what you need to know to get in NOW. Another LNG Play Steams Ahead 8/25/2014 By Igor Greenwald Fans of liquefied natural gas and master limited partnerships have a new way to invest in these increasingly popular opportunity sets. Hoegh LNG Partners (NYSE: HMLP) made its public trading debut on Aug. 7. The Marshall Islands-registered partnership was formed by the Norwegian company Hoegh LNG Holdings, a fully integrated liquefied natural gas (LNG) service provider offering long-term floating production, transportation, regasification and terminal solutions for LNG. The parent company operates two floating storage and regasification units ("FSRUs") and four LNG carriers. In addition to transporting LNG, the regasification vessels function as floating LNG import terminals. Hoegh LNG Holdings' regasification vessels are the GDF Suez Neptune and GDF Suez Cape Ann, which are both on long-term time charters to GDF Suez, a French multinational electric utility company with interests in (among other things) the distribution, transportation and storage of natural gas. The Neptune is chartered until 2029, with an option to extend for up to two additional periods of five years each. The Cape Ann is chartered until 2030, with the same extension options. In 2011 and 2012 Hoegh LNG Holdings ordered four new FSRUs for delivery in 2014 and 2015. The first, Independence, was delivered at the end of March and will be employed under a long-term contract beginning in Q4 2014 as a new LNG terminal in Lithuania. The second is PGN FSRU Lampung, which will serve as an LNG terminal in Indonesia on a permanent basis. PGN is a subsidiary of an Indonesian publicly listed, government-controlled, gas and energy company that builds gas pipelines and distributes natural gas to industrial, commercial and household users. This charter expires in 2034, with options to extend either for an additional 10 years or for up to two additional periods of five years each. The two other FSRUs on order are not yet contracted. The LNG carrier fleet currently consists of Matthew, Arctic Lady, Arctic Princess and LNG Libra. Two of these carriers are under long-term contract to Statoil (NYSE: STO) and Total (NYSE: TOT). Hoegh LNG Partners was formed to own, operate and acquire FSRUs, LNG carriers and other LNG infrastructure assets under long-term charters. The initial fleet consists of interests in the following vessels: A 50% interest in the GDF Suez Neptune A 50% interest in the GDF Suez Cape Ann A 100% economic interest in the PGN FSRU Lampung The partnership intends to grow through additional acquisitions from Hoegh LNG Holdings and third parties of FSRUs, LNG carriers and other LNG infrastructure assets with long-term charters. The partnership is promoting LNG as a major growth opportunity, noting in the prospectus that: Natural gas is projected to be the fastest growing fossil fuel for the foreseeable future LNG production capacity based on existing construction projects is projected to increase by nearly 40% by the end of 2020 LNG exports transported by sea are projected to grow more than twice as fast as overall natural gas consumption through 2035 The number of countries importing LNG has more than doubled from 12 in 2000 to 29 in 2013 Because LNG can be shipped to a wide variety of destinations, as long as regional price differences in gas persist, more countries will pursue LNG imports The partnership expects FSRUs to be preferred over traditional onshore LNG terminals because of greater operational and market flexibility, accelerated project execution, reduced cost and more predictable capital investment requirements. The floating terminals can also function as conventional LNG carriers. The initial public offering was for 9.6 million units at an expected price range of $19-21 per unit. At the midpoint of that range, HMLP would have had a market capitalization of $526 million. The IPO was six times oversubscribed and opened for trading at $22 per unit, rising subsequently to $25. The partnership agreement calls for an initial quarterly distribution of $0.3375 per unit for each whole quarter, or $1.35 per unit on an annualized basis. This amounts to a projected yield of 5.4% at Friday's closing price of $24.85. The partnership forecasts cash available for distribution at approximately $38.2 million for the 12-month period ending Sept. 30, 2015. This would be just enough to pay out the projected minimum distribution. Like many other partnerships with significant foreign or marine operations, Hoegh LNG Partners has chosen to pay taxes as a corporation, which means distributions will treated as qualifying dividends and reported on form 1099. (To better understand why a partnership would elect to be taxed as a corporation, see Marshalling the Marines.) This article originally appeared in the MLP Investing Insider column. Never miss an issue. Sign up to receive MLP Investing Insider by email. Profit Prediction: 709% in 5 Years Love great big capital gains? How about juicy, rich dividends? My favorite energy stock is throwing off a fat 10.6% yield. But here's really good news: The dividend is growing so fast, it could almost triple within 5 years – to 27.7%. But it's more than a dividend story. The stock price could double in 18 months and be up 709% in 5 years. That turns every $10,000 into $80,900! What kind of energy stock is it? One that could make you substantially richer. What it is and how to get it… The details are here. You are receiving this email at benjamart.ss.stock@blogger.com as part of your subscription to Investing Daily's Stocks To Watch, published by Investing Daily. 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