2008-10-07 12:26:01 -

- 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: Hoku Scientific, Inc. (Nasdaq: HOKU), Merrill Lynch (NYSE: MER), ArthroCare Corp. (Nasdaq: ARTC), 3SBio, Inc. (Nasdaq: SSRX) and Amgen (Nasdaq: AMGN).

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Here are highlights from Monday's Analyst Blog:

Hoku Traction 1-2 Years Away

Hoku Scientific, Inc. (Nasdaq: HOKU), based in Kapolei, Hawaii, engages in the design, development and manufacture of Membrane Electrode Assemblies (MEAs) and non-fluorinated membranes for Proton Exchange Membrane (PEM) fuel cells. Hoku Solar markets and installs turnkey photovoltaic (PV) systems in Hawaii.

HOKU's $1.7 billion of polysilicon order backlog for up to 10 years from four solar companies represents a great growth story. However, its poly-silicon plant with the exit of Merrill Lynch (NYSE: MER) is facing a capital crunch forcing the company to resort to dilution of its equity base. Also, the facility will not be operational before 2009, and will achieve full capacity only in 2010.

Until then, the company will have to depend upon its PV system installation business. This, along with a diminishing significance of fuel cells, increasing O&M (operations and maintenance) expenses leading to higher cost structure, earnings dilutive stock issuance and a strong competitive challenge in the alternative energy industry may present material risks to the company.

ArthroCare Downgraded to Hold

The near-term should be difficult for ArthroCare Corp. (Nasdaq: ARTC) investors as the company navigates the delayed filing of financial statements, FBI probe, and class action suits. The Centers for Medicare and Medicaid Services' non-coverage determination combined with the DiscoCare litigation will likely damage the Spine segment. Our recommendation moves to Hold.

The company's clear strategy to leverage its patented Coblation technology and other innovative, clinically superior surgical devices for the surgical treatment of soft-tissue conditions should help pull them through this difficult time. New products in Sports Medicine are stimulating growth in a fairly mature segment. Oncology also represents another growth opportunity for the company.

3SBio Initiated with a Buy Rating

3SBio, Inc. (Nasdaq: SSRX) is a China-based biotech company focused on developing and marketing therapeutics for nephrology, oncology and cancer supportive care. The company's flagship product, EPIAO, is the number 1 brand in the EPO (erythropoietin) market. EPIAO is basically the generic version of Amgen's (Nasdaq: AMGN) Epogen.

The company's second lead product, TPIAO, has gained rapid physician acceptance for thrombocytopenia and is making a meaningful contribution to the company's top line growth. TPIAO was launched in Jan 2006 for the treatment of thrombocytopenia (deficiency of platelets) associated with chemotherapy in cancer patients with solid tumors.

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