>A New York presenter likes Ensco (NYSE: ESV, $47.75) at this level. The company is the lowest-cost producer of deepwater rigs in the space. This business is expected to contribute 50% of the total revenue in 2-3 years, once all 8 of ESV’s units become operational. The jackup segment has been hit by declining day rates, but the rate of decrease is slowing down and management projects stabilization in the second half of 2010. Long-term dynamics remain very favorable for the offshore drilling industry. Ensco has $1.2 billion in cash on the balance sheet and the lowest leverage ratio among its peers. The company has just raised its dividend from $0.10 to $1.40. $560 million remains available for buybacks under the current authorization. ESV has moved HQ’s to the UK and will have a significantly lower tax rate going forward. The presenter’s target is $60, but if jackup rates start increasing, the upside could be more significant. A takeover is not out of the question.

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>A New York presenter recommended a pair trade on Expedia (NASDAQ: EXPE, $23.68) and Priceline (NASDAQ: PCLN, $264.30). EXPE has been exceeding expectations in the recent quarters, but the stock performance hasn’t been nearly as good as PCLN’s. Priceline remains the #1 player in Europe, but Expedia is gaining on the continent with its substantially increased hotel inventory. EXPE is also able to offer air and hotel packages to European consumers, who prefer to order packaged accomodations, something Priceline is not providing. Expedia’s TripAdvisor portal is the only real advertising revenue generator in the space, with growth in this business accelerating recently for EXPE. Trading at 8x EV/EBITDA versus 17x for Priceline, Expedia is strongly undervalued in the presenter’s view, while PCLN may be topping here.

>A New York presenter likes Vitesse prospects following last year’s debt resturcturing (OTC: VTSS, $0.43). With the company’s financial difficulties largely behind, management was very optimistic discussing VTSS’ growth potential on the fiscal Q1 call. Vitesse is the only player in the space offering a full line of products for both Carrier and Enterprise network applications. The company has an impressive customer list, which includes Cisco, HP, IBM, Huawei, Alcatel among others, and is a sole-source supplier for all of the chips it supplies to its largest accounts. The explosion in data traffic and growing network complexity and speed requirements will drive demand for Vitese’s products for years to come. A reverse split to get relisted on NASDAQ has been approved by shareholders. The presenter targets at least a double from here based on earnings and peer valuation. New investors may want to take a closer look at the company before it starts going on the road in the next few months.

>A New York presenter believes Somaxon’s (NASDAQ: SOMX, $7.43) insomnia treatment can achieve blockbuster status. Silenor has just been approved by the FDA in March, with the launch expected in Q3. Limited sleep maintenance properties and residual effects of the leading sleep aids currently on the market leave a large proportion of insomnia patients dissatisfied with the treatment. Somaxon’s drug helps maintain sleep for 7-8 hours, is non-addictive, and doesn’t trigger a hangover effect. The product’s non-controlled status will allow faster penetration of the $2.5 billion market. The company is looking for a partner to help with Silenor commercialization. SOMX is an attractive acquisition target in the presenter’s opinion. A 3-year exclusivity period originally given to Silenor may be extended to 10 years of protection.

>A New York presenter commented on Air Products’ fiscal Q2 results (NYSE: APD, $76.77). APD had an excellent quarter virtually across the board. The company beat the consensus by $0.03 and raised its full year earnings guidance. In APD’s take or pay business very few customers are not taking what they’ve paid for, a great sign going forward. The backlog situation signals consistency of future earnings. Margins are moving up and getting closer to the company’s 17% target. Management didn’t offer more clarity on the progress of its offer for Airgas, but the presenter expects resolution by early September.

>A New York presenter believes Corning (NYSE: GLW, $20.40) doesn’t get enough credit for its dominant postion in the LCD glass market. The company commands a 60% share in the space that’s projected to grow 14-22% this year. Consumers around the world are both switching from CRT TV’s to LCD models and adding new TV sets. The penetration rate in North America is 40% and substantially lower in developing regions, where most of the growth will come from in the coming years. The company has high expectations for its new Gorilla Glass technology. Management predicts incremental sales from this product may reach $1-4 billion in the next 3 years. The technology is very well-suited for touch screen devices and new borderless TV’s. It’s already used by 17 major brands. The stock is currently trading at 10x forward earnings. The presenter believes that as concerns about the supply/demand picture subside, the multiple should expand to 12-14x. Incremental earnings from Gorilla Glass will be $0.20-0.75/share in his estimation.

>Our New York presenter continues to recommend Onyx (NASDAQ: ONXX, $29.14). The company has said that the data from a Phase III trial in lung cancer for its main product Nexavar would come out mid-year. Nexavar has been approved for breast cancer and is being tested in other indications. If the lung data is positive, the stock will go up dramatically, but the downside should the results dissapoint is limited to 5-10%, in the presenter’s opinion. He would add to his postion aggressively if the date is negative. The Street is underestimating Nexavar’s potential in breast cancer and is not giving enough credit to the drug’s prospects in other types of cancer.