RLI: Niche P&C Player with Solid Profitability

An LA presenter recommends RLI Corp. (NYSE: RLI, $59.55) as a Buy. Consistency of underwriting characteristics, a strong balance sheet and management focusing its strategy in good niche markets positions this specialty P&C insurer attractively. Presenter highlights the company's superior ratings, the combined ratio well below the industry's average and valuation.

Global Cash Access Holdings: Valuation Cheap Even in Worst Case

An LA presenter likes Global Cash Access Holdings (NYSE: GSA, $3.65) at this level. Casino cash access for customers is a big data business as well as a necessity. Global Cash Access is an innovator in the space with the largest database on casino patrons spending patterns and the most advanced cash and cashless functionality. Despite losing its Harrah’s contract recently, the company still has a 67% market share. At the current valuation, the stock may be over reacting to an impact of one lost customer.

Accelrys: Transformational Merger with Symyx

An LA presenter recommends Accelrys (NASDAQ: ACCL, $7.25)as a buy at this level. As companies in multiple businesses develop scientific testing, Accelrys’ products are benefited by recent acquisition and the leading application within its space. A solid balance sheet and niche specialty markets are compelling features that the presenter feels support valuation and growth. Once the restructuring stemming from the recent merger with Symyx is complete, the company will be on track to earning $0.50+/share, resulting in a potential upside of 50-100%+.

LogMeIn: Lofty Valuation May Take a Hit

A New York presenter recommends a short on LogMeIn (NASDAQ: LOGM, $37.10). The company provides remote access services to the SMID, enterprise, and consumer markets. LOGM has been able to make some headway with its products, but the free remote access functionality offered by Windows 7 and the threat from much larger competitors like Citrix and Cisco can quickly erode the gains the company has made so far. Its Ignition product for iPads is in intense competition with a number of similar applications, most of which are priced significantly cheaper. The stock has run up on the back of the Ignition launch in April, but now the buzz seems to be fading. Trading at 50 times forward earnings, the presenter believes LOGM is a short at this level.

Cleveland Biolabs Not a Typical Biotech Play

A New York presenter is recommending Cleveland Biolabs (NASDAQ: CBLI, $7.02) as a buy. The company will be filing an application with the FDA next year for its anti-radiation drug CBLB502. Unlike the regular process, the filing will be done under the animal efficacy rule, where only a proof of efficacy in animals and safety trials in humans are required. CBLB502 has shown a remarkable efficacy profile in promates and mice and the company has already successfully concluded two human safety trials. The downside risk has been reduced substantially with the award of a contract by the DOD last month. The potential market for medical applications for the drug in reduction of radiation and chemoterapy treatment side effects far exceeds the defense uses. CBLI's research is supported by various government agencies. The company has other promising programs in its pipeline. The presenter believes that the upside could be very large at this level.

Roulston's Auto Expert with GM's former Chair on CNBC

Paul Ingrassia, one of the most well-known and connected auto industry experts, will be on CNBC at 1.30pm ET with Bob Lutz, former GM Chairman. Paul participated in two auto roundtables we hosted last week in New York. He will be meeting with top executives at Ford and GM in the next several weeks. If you would like to set up a discussion with Paul, please let us know.



Paul Ingrassia, Independent Consultant, Journalist, Author, former President, Dow Jones Newswires (In January, Mr. Ingrassia published Crash Course, a book about 2009 bailouts and bankruptcies of GM and Chrysler. Paul is a Pulitzer Prize-winning journalist, author and former news executive, who worked for The Wall Street Journal and its parent company for 31 years, focusing on the automotive industry, which continues to be the subject of his books and commentaries. He is a regular contributor to the op-ed page of the Journal, SmartMoney magazine, Nihon Keizei Shimbun and CNBC.)

EBIX: Technology Leader in Insurance Software Services

A New York presenter likes Ebix (NASDAQ: EBIX, $23.83). The company operates insurance exchanges around the world that allow carriers to initiate and process policies in a paperless mode. 70% of revenue is recurring. EBIX is growing at 40% rates despite headwinds in the insurance space, with margins approaching 50%. The company is a clear technology leader offering the only end-to-end bundled solution available. There are multiple opportunities for expansion, both in the domestic market and overseas. Ebix is executing an acquisition strategy focused on immediate accretion to supplement organic growth. The presenter believes the stock can double or triple from this level as the company continues to take share in a $10 billion market.