Stock

IRIDEX
Corporation
(IRIX)

Sucampo
Pharmaceuticals,
Inc. (SCMP)

Buy /
Thesis
Current
Short
Price
BUY IRIDEX Corporation is among the leading
$8.13
companies in terms of developing,
manufacturing, and marketing laser based
medical systems. After selling its aesthetics
business to Acera for approximately $5.1 million,
IRIDEX strategy is to focus solely on its
ophthalmology business which is the companys
core strength as IRIDEX managed to generate
net income from its ophthalmology operations
from in each of the past five years.
BUY

$18.23
Sucampo Pharmaceuticals, behind its drug
Amitiza, finished the second quarter on pace to
have the highest revenues in their history.
Compared to last year, high revenues have
caused net income to be up 575.57% though six
months. This helped the stock to reach a new
record high in mid-September. A few days after
reaching its high, the companys stock has faced
declines of around 40%. This is due to the large
macroeconomic pressures that pharmaceuticals
companies have recently been exposed to. There
has been a push in politics to lower the price of
prescription drugs. This would cut into the
profits of pharmaceuticals companies such as
Sucampo Pharmaceuticals. There are some
concerns with the company in terms of
competitiveness. A major competitor has risen in
the United States. Despite this, Amitizas sales
are expected to continue to climb in the United
States. The biggest area for growth is expected
to be in Japan as there has been little
competition there. A BUY is recommended for
Sucampo Pharmaceuticals, Inc. as the stock is
currently priced at $18.23 which opens a window
for entry. With a price target of $27.83, there is
an upside potential of 52.66%.

Target
Price
$12.29

$27.83

U.S. Concrete,
Inc. (USCR)

BUY

U.S. Concrete, Inc. is positioned in the top 3 in

the major markets the firm serves. The firm has
focused on vertical integration through key
acquisitions in the ready-mixed concrete
segment and the aggregates market. The vertical
integration assisted U.S. Concrete, Inc. in
reducing cost by using the aggregates as a
primary source for the ready-mixed business
division. The reduction in cost has produced a
greater margin for U.S. Concrete, Inc. in the
current financial period along with the increased
activity in construction in the U.S. that has
increased demand for materials such as readymixed concrete. A BUY of U.S. Concrete, Inc.
(USCR) is suggested with a one-year target price
of $58.24.

$53.56

$58.24

Westlake
Chemical
Corporation
(WLK)

BUY

Westlake Chemical Corporation is a producer of

chemical and plastic products that enhance the
daily lives of people around the world. With
their strong history of product integration and
acquisitions and future plans to continue both,
combined with their long-term growth
opportunities, Westlake Chemical will continue
to grow their EBITDA margins and continue to
create value for the company and increase the
price of their stock.

$58.92

$67.26