Brian Nelson

Best Idea Ancestry.com Surges on Buyout Rumors

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This article appeared on Seeking Alpha. Please view disclosures: https://seekingalpha.com/article/642181-private-equity-facebook-most-likely-buyers-of-ancestry-com Best Ideas portfolio holding Ancestry.com () surged Wednesday on a report from Bloomberg that said the firm is working with famous technology banker Frank Quattrone’s Qatalyst Partners to sell itself to unlock shareholder value. We believe the company is significantly undervalued, and think the move, if confirmed, makes a lot of sense, given the market’s reluctance to place an appropriate value on the firm’s shares. Ancestry.com, in our view, should get a substantial premium over its current price if it were sold either to a strategic bidder or to a private-equity consortium, given the firm’s tremendous cash-flow generation and negligible debt. Our fair value estimate for the firm rests in the high-$40s, and we would not be surprised … Read more

Bristol-Myers Squibb Cancer Drug Shows Promise

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Drug maker Bristol-Myers Squibb (BMY) reported some promising results in a Phase-I trial for a cancer drug that helps the body fight cancer cells by harnessing the patient’s immune system.   Link to the trial study results: http://seekingalpha.com/news-article/3046321-investigational-anti-pd-1-immunotherapy-bms-936558-showed-clinical-activity-in-phase-1-trial-of-patients-with-previously-treated-non-small-cell-lung-cancer-metastatic-melanoma-and-renal-cell-cancer   Though the sample size was relatively small, the firm’s study showed that the immune system was more responsive while under drug therapy. Nevertheless, this is the first stage of a very long process to approval, and we aren’t too excited about shares at current levels. We prefer Pfizer (PFE) or Teva Pharmaceuticals (TEVA) at current levels on the basis of our Valuentum Buying Index.   Please click the following link to view our reports on the pharmaceutical industry:   /20110914_1