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Here are highlights from Monday's Analyst Blog:

HCP a Play on Healthcare Strength

HCP, Inc. (NYSE: HCP) is a self-administered real estate investment trust (REIT), which invests in and leases directly or through joint venture healthcare facilities in over 40 states. The company had a solid 2nd quarter, reporting FFO (funds from operations) per share of $0.57 (excluding charges), $0.02 below our estimates.

Operations are holding up well in the company's core portfolio. The company has raised $1.3 billion this year through asset sales, equity issuance and mortgage debt. HCP used the proceeds to pay down its line of credit and bridge loan used to acquire the SEUSA portfolio. The company has done a successful job of de-levering and strengthening the balance sheet. We think health care will continue to outperform other sectors in 2008.

Ryland Cuts Costs in Weak Market

The Ryland Group, Inc. (NYSE: RYL) reported a loss of $5.70 per share in 2Q08, worse than a loss of $1.25 per share in the prior-year, due to a decline in sales and margins as a result of the slowdown in the U.S. housing market. For the remainder of this industry downturn, we expect the management to focus on generating cash flow, lowering inventory, reducing land investment and shedding overhead costs.

We expect gross margins to remain under pressure due to weaker average selling prices, heightened incentive use, and accelerated option write-offs. We recommend investors to Hold shares of RYL.

Alnylam Pharma Seeks Alliances

In the second quarter of 2008, revenue for Alnylam Pharmaceuticals, Inc. (Nasdaq: ALNY) came in at $23.8 million, an 161% increase year-over-year, but less than our estimate of $33 million. The significant increase in revenues in the second quarter of 2008 was primarily related to $13.4 million of net collaboration revenues related to the company's alliance with Roche.

Revenues for the second quarter of 2008 also included $10.4 million of expense reimbursement and amortization revenues from Novartis AG (NYSE: NVS), Takeda Pharmaceutical Company Limited, the National Institutes of Health (NIH), the Department of Defense (DOD), Biogen Idec, InterfeRx, research reagent and services licensees and other sources.

Corrections a Good Place to Enter

Corrections Corporation of America (NYSE: CXW) holds a significant market share advantage over its peers, with a substantial pipeline of additional capacity scheduled to be added to the portfolio over the next two years. CXW is the clear leader in an industry with a strong outlook, supported by favorable economic and demographic trends.

Shares of CXW trade at 21.2x and 17.2x our 2008 and 2009 EPS estimates, respectively. The multiples represent a premium to peer group average multiples of 17.3x and 14.4x consensus 2008 and 2009 EPS estimates, respectively. We note, however, that the consensus estimates for one competitor have yet to be updated after the release of a disappointing full-year outlook and subsequent 17% sell-off in the shares. Additionally, shares of CXW are currently trading at approximately 10.9x and 9.1x our 2008 and 2009 EBITDA estimates, respectively.

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Story Source: Business Wire