Utah Stock Exchange

Huntsman (HUN) is the second Utah based concern targeted by Jana Partners as an attractive situation. Jana also claimed a stake in QEP Resources (QEP). Jana committed $132.395 million to acquire 6,423,824 shares during the past calendar quarter. The average share price was $20.30 compared to the Nov 15 close at 23.04. The stake is approximately 2.6% of Huntsman's outstanding shares. The presence appears benign as no activist rumblings were hear thus far contrary to Jana's entry into QEP. HUN shares reacted favorably to quarterly results released Oct 29 which exceeded consensus estimates. Shares reached the highest point since 2008. Margins appeared decent as an improving revenue track offset some of the expense line rise. Although no longer bargain priced, HUN remains reasonably priced compared to the 26.39 Fair Market Value. The Jana news has not as yet received wide circulation and HUN has not as yet issued comments. No remarks may be forthcoming since the JANA stake is currently less than 5%, the SEC filing disclosure level that many players regard as meaningful.

QEP Resources issued a statement Nov 18 concerning the situation surrounding stakeholder Jana Partners. The issuance was brief and contained the ordinary and customary remarks. QEP welcomed Jana's presence commenting that the Company was always dedicated to value enhancement so ideas from shareholders were treated respectfully. The statement acknowledged that QEP was engaged in conversation with JANA, a dialogue likely to continue. During October news that Jana Partners acquired a substantial stake in QEP and assumed an activist role moved the shares from the high 20's to the current price near $33. Jana regarded QEP as undervalued and under loved, a view shared here. Further, Jana called upon QEP to discuss prospective value enhancement initiatives. QEP Resources (QEP) reported constructive quarterly results Nov 5 albeit below consensus estimates. A brief impulsive retreat briefly ensued. The shares stablized resuming the push toward 52 weeks highs. QEP numbers are sustaining a constructive track and currently support a $40 Fair Market Value. QEP is a reasonably priced issue worth acquiring or holding if owned.

MYGN reported results Nov 5 delivering numbers well above subdued expectations. The headline combined with raised guidance regarding 2014 prospects lifted price more than 9%. Sobriety ensued which erased the excitement and the gain. Finding objectionable material within the results is difficult. MYGN is fiscally solid, margins are firm and steady and product acceptance strong. Period to period comparisons remain consistently positive albeit modest. The drag is related to the fallout from patent related litigation concerning the BRCA breast cancer test. The Supreme Court ruling likely leads to suppressed margins as MYGN adjusts to sharing the field rather than fencing out others. BRCA is 74% of sales. Transitions accommodating change in dominant products is always challenging hence the stock's seemingly low valuation. While not cheap, the stock trades below the Exchange's $27.68 Fair Market Value. As such, operating risk appears significantly reflected in the price. However, the data fails to support new money commitment quite yet.

FC delivered results that should not only be the envy of its peers but nearly any other public company. The numbers provoked thoughts that special items produced the far better than expected results. The only adjustment applied was accommodation for a lower than the year ago tax provision. Applying a full worst case charge the results demonstrated very strong gains. FC produced the results through highly effective plan execution. Further, the feat is consistent way of life over the past several years. Despite the price advance this year FC's stock appears further behind its productivity than it was last year at this time. The operating trends support higher expectation for forward results. Rising estimates are likely and pushing next year's EPS estimate by $.05-.10 should be forthcoming before probing too deeply into the line items. FC operates in a space that generates excitement among growth buyers. Several other issues in the sector sport extraodinary valuations. If a mere fraction of the love shown for those is devoted to FC, there is plenty of headroom for the shares.

The revenue shortfall was benign casting no negative implications regarding the forward view. SKYW continue proving itself as one of the consistently better performers in a chronically difficult business. Major assessemnt considerations appear under control and producing favorable outcomes. Among the factors are balance sheet management following the additional borrowings, fleet replacement and peaceable interaction regarding SKYW's service contracts with its major airline customers. The stock initially rose following the release but surrendered the gain. For chart followers, the draw down was disappointing since SKYW was resolving a decade long base formation with major uptrend implications if successfully executed. What can be said without reservation is that SKYW's enterprise value based upon results produced is considerably greater than anytime in the past dozen years yet the stock has not surpassed the highs during the same time frame. Although carrying forward estimates less aggressive than others, Fair Market Value exceeds $18.20.