Monthly Archives: August 2016

ENDP

blog endp d 8-24-2016

Sells 30 % of ENDP at $24.74.

That’s a $10.86 profit or 78%.

We have been in this for 3 1/2 months and had a few unpleasant moments but patients is king.

Next resistance is $35.40. My sell will be at $34.74.

We can thank LCI which reported last night after the market close and was  up as much as $7.63 this morning. VRX has also moved to new highs from it’s recent low.

VRX and ENDP are pharma companies that develop and sell patented drugs. They also gouge folks who buy these drugs buy raising prices to astronomical levels.

LCI develops and sells off patent generic drugs at market pricing. No gouging. Thus I sold none of that holding this morning.

The price gougers could get a big price shock (congressional action) at any time.

 

 

LCI

Lannett beats by $0.13, beats on revs; guides FY17 revs above consensus  (32.32 +0.89)
8/23/2016, 4:21:00 PM ET
  • Reports Q4 (Jun) earnings of $0.73 per share, excluding non-recurring items, $0.13 better than the Capital IQ Consensus of $0.60; revenues rose 70.1% year/year to $168.9 mln vs the $161.56 mln Capital IQ Consensus.
    • Gross profit as a percentage of net sales was 47% compared with 72% in last year’s fourth quarter, primarily due to the inclusion of KU’s lower-margin business, as well as amortization of acquired intangible assets and other purchase accounting related expenses.
  • Co issues upside guidance for FY17, sees FY17 revs of $690-700 mln vs. $665.94 mln Capital IQ Consensus Estimate.
  • Sees FY17 adj gross margin between 55-56%
  • Courtesy of Briefing.com

Back in late March we bought LCI at $17.11.

With this report LCI is a double because it crossed $37.00 in the after market.

With the FDA approvals they have received and more to come in the future they could  break their previous high of $72.44 in a year or so.

 

CXRX

Concordia: Point72 Asset Management discloses 5.8% passive stake  (9.37 -0.76)
8/15/2016, 5:33:04 PM ET
Concordia enters cross currency swap agreement after evaluating its currency hedging alternatives (9.45 -0.68)
8/15/2016, 1:16:39 PM ET
As previously disclosed, Concordia was actively evaluating currency hedging alternatives. Concordia believes that the Swap Agreement will further align its British pound-sterling earnings and strong free cash flow with its debt obligations and will moderate the impact of fluctuations in the GBP to U.S. Dollar exchange rate.

The pay fixed GBP / receive fixed USD cross currency swap has a notional amount of $382 million and effectively converts this amount of Concordia’s USD debt obligations into a GBP obligation in the amount of approximately GBP 297 million. The maturity date of the Swap Agreement is April 15, 2023.
Concordia says it will continue to monitor its currency risks and hedging strategies.

Courtesy of Briefing.com
Buys CXRX back at $9.26.
Stop price is $8.99
Targets are $12.50—$16.00—$17.50 and $21.50.
The picture is getting a little clearer here. Without this additional info I was not willing to stay in even though CXRX was down from 89 bucks. I am still a little leary here thus the stop at $8.99.

CXRX

Stopped out of CXRX at $9.59-63.

Unfortunately Fibonacci, like everything else, doesn’t work every time.

Yesterday’s low was $9.65 and my stop was at $9.64.

After reading everything I could find on CXRX over the weekend I decided a tight stop would be best.

Loss in three accounts was .12 to .59.