Zacks Analyst Blog Highlights: Double Eagle, Cell Therapeutics and Cabela's

Business Wire, Feb 28, 2007

CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Double Eagle (Nasdaq: DBLE), Cell Therapeutics (Nasdaq: CTIC) and Cabela's, Inc. (NYSE: CAB).

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673

Here are highlights from Tuesday's Analyst Blog:

Downward Revision on Double Eagle

Double Eagle (Nasdaq: DBLE) announced Christmas Meadows updates yesterday morning. The company has drilled to its targeted depth of about 16K ft. and has failed to find commercial deposits of oil and gas. After the test's results to date and the re-grouping of the project team, the company plans to test the Nugget and Madison formations, at 18K ft. and 23K ft., respectively.

Our Christmas Meadows value has been reduced by approximately $3.50 on an NAV [net asset valuation] basis. Also, our Atlantic Rim value has been reduced slightly due to a cost reassessment. Overall, our 12-month target price has been revised downward from $30 to $24.

While today's announcement is a disappointment, we still like the Double Eagle story and our Buy recommendation remains unchanged. There is more to Double Eagle than the Christmas Meadows test. The core of the company is the significantly lower risk Atlantic Rim CBM [coal bed methane] play, development of which is expected to commence in the summer after the conclusion of the EIS [environmental impact statement] process in the next few months. Northing has changed on that front.

CTIC Study Progresses Favorably

Cell Therapeutics (Nasdaq: CTIC) is progressing well with its Xyotax program in early 2007. The company filed for Special Protocol Assessment with the Food & Drug Administration [FDA] for Xyotax lung cancer trial in women on January 10, 2007.

On February 26, 2007, CTIC reported positive preliminary results from an investigator-sponsored phase II study of Xyotax in patients with androgen independent prostate cancer. Based on the preliminary data, the study continues to enroll patients and protocol has been amended to include the use of estrogen with Xyotax to determine safety and if efficacy is enhanced.

The results are encouraging in that Xyotax may offer an alternative to such patients who failed prior taxane therapy. Further, Xyotax was administered in a short, ten to twenty minute, infusion without routine pre-medication.

Risks Temper Bullishness on CAB

Cabela's, Inc. (NYSE: CAB) fourth quarter results were ahead of our forecasts, and we are upping our 2007 EPS [earnings per share] estimates. We remain bullish on the stock because of the company's multi-channel strategy, store expansion and management's long-term focus. Even so, our bullish view is tempered by the risks associated the company's rapid store expansion and growing competitive pressures.

Moreover, we think the stock currently trades at a reasonable valuation. We would look for a better entry price before becoming more positive on CAB shares. We maintain our Hold rating.

Cabela's is a direct marketer and a retailer of hunting, fishing, camping and related outdoor merchandise. Its products include hunting, fishing, marine and camping merchandise; casual and outdoor apparel and footwear; optics; taxidermy products; vehicle accessories; and gifts and home furnishings. The company markets its 52-product categories through catalog mailings, the Internet, and telephone.

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2674.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.