A week ago investors were wondering if the economic rebound hit a leafy sand island wall called Dubai.
The once-booming Arab city, which became a byword for extravagant real estate projects, scared global markets last week when it asked for a six-month payment delay on billions of dollars of debt owed by government-owned companies.
Tensions have eased over Dubai’s debt woes with one insider saying the credit woes and reaction to Dubai has been “very overstated.” "We are very confident and optimistic about (the regional economy)," said Michael Tomalin, Chief Executive of National Bank of Abu Dhabi.
Content with the news coming out of Dubai, it’s business as usual on Wall Street as the markets pick up where they left off before Dubai’s debt problems sparked new fear.
Sadly, that doesn’t mean the markets have been kind to every stock. That includes penny stocks. On Wednesday, the Nasdaq Stock Market said it was delisting the stocks of four small companies.
This isn’t big news to the companies in question since they have all stopped trading on the Nasdaq. Two companies filed for Chapter 11 and two transferred from the Nasdaq to the dubiously colorful Pink Sheets.
The current economic environment hasn’t hampered the growth of all “exchanges.” A new one you may not be familiar with comes direct from the sunny shores of Somalia.
Somali pirates have opened what they call a "stock exchange" from their swashbuckling lair in Haradheere, Somalia. Somali investors can donate money, weaponry, or other supplies and will see a return on their investments if the pirates complete a hijacking or other nefarious deeds.
Not sure you can trust a pirate to dole out the proper return on your investment - fear not, they are also conducting a recruiting campaign. Diversification is the key.
Afraid you might succumbed to scurvy on the Pirate Exchange? There are plenty of excellent penny stocks trading on legitimate exchanges that have rosier long-term outlooks.
Specialty pharmaceutical firm Santarus, Inc. (NASDAQ: SNTS, Stock Forum) may be just what the doctor ordered. SNTS is a profitable, financially robust company with growing revenues and momentum.
On November 5, SNTS announced that third quarter revenue jumped 22% year-over-year to $32.2 million. Santarus reported net income of $5.3 million, or $0.09 per share, compared with a net (loss) of ($4.0 million), or $(0.08) per share, for the third quarter of 2008.
For the nine months ended September 30, 2009, total revenues increased 18% to $110.1 million. The company reported net income of $7.6 million, or $0.13 per share, compared with a net (loss) of ($8.4 million), or $(0.16) per share, for the first nine months of 2008.
SNTS also just announced the first of two expected FDA approvals. On December 1, SNTS and Merck & Co. (NYSE: MRK, Stock Forum) announced that the Food and Drug Administration approved Merck's over-the-counter version of the Santarus prescription heartburn drug Zegerid.
San Diego-based Santarus partnered with Schering-Plough Corp. (NYSE: SGP, Stock Forum) on the over-the-counter version, and stands to receive a $20 million milestone payment based on the approval. It could also get up to $37.5 million in sales milestone payments, along with royalties on sales.
“We are pleased that Schering-Plough HealthCare Products has achieved this significant regulatory milestone for ZEGERID OTC and we look forward to seeing the product on retail store shelves across the United States in the first half of 2010,” said company President and CEO Gerald T. Proehl.