I wrote yesterday, that I thought AAPL would need to destroy estimates in it’s earnings report to move higher, and boy did it ever.
Tag Archives: prx
Par Pharmaceutical Companies, Inc (PRX)
When you are looking to make a profit on options, the ones that are more volatile tend to be the smart play. But the best plays maybe the stocks that are not volatile, but may experience some turbulence in the near future. Par Pharmaceutical Companies, Inc (PRX) could be one one of these stocks. I brought it to your attention in January, when I said it would break $40 in the short term. We were right about a move to the upside and banked some serious coin on the calls.
Now I bring it to your attention again when it is sitting over $40. This is an "under the radar' generic pharma company that has been beating EPS estimates for 10 of the last 11 quarters. A company that has been acquiring assets and putting itself in a better position since it was sitting at $10 in 2008. This once $75 stock is ready to steamroll to $50+ this summer(like I wrote in my January post).
And it sure looks like the company is starting to gain the attention of the investment community with 5 new analysts starting coverage in the last 9 months.
| 4/20/2012 | Piper Jaffray | New Coverage | Overweight | 49.00 | 40.20 | 40.94 | 1.84% | |
| 3/16/2012 | JPMorgan | New Coverage | Neutral | 40.00 | 37.46 | 40.94 | 9.29% | |
| 1/9/2012 | Buckingham Research | Upgrade | Buy | 45.00 | 34.01 | 40.94 | 20.38% | |
| 12/9/2011 | Barclays | New Coverage | Equalweight | 35.00 | 31.46 | 40.94 | 30.13% | |
| 10/6/2011 | ThinkEquity | New Coverage | Buy | 35.00 | 27.87 | 40.94 | 46.9% | |
| 8/18/2011 | Leerink Swann » Updated 11/30/2011 |
New Coverage | Outperform | 35.00 | 29.44 | 40.94 | 39.06% | |
| 3/25/2011 | BofA/Merrill Lynch | Upgrade | Buy | N/A | 29.33 | 40.94 | 39.58% | |
| 9/30/2010 | UBS » Updated 1/9/2012 |
New Coverage | Buy | 42.00 | 28.66 | 40.94 | 42.85% |
Par Pharmaceutical Companies, Inc (PRX) reports first quarter earnings on May 8th. We think now is the time to position before that day, as this stock will trade above $45 in short order.
Disclosure: We currently own the $45 May calls
Some of our trades this past week
We had a phenomenal week at option millionaires, with many alerts and trades providing opportunities for huge returns.
The week started with our call of SINA at the open on Tuesday. Noticing the pre-market volume, and the action on all the China ADR's, we thought SINA provided a great risk vs reward opportunity and brought the $55 weekly calls to our chat rooms attention at .40. As SINA started to break out, we also brought the $60 Weekly calls to the chatrooms attention at .08. You can see out chart below after the alerts. The stock had moved up from $50 open to $51.57. We still felt SINA would test $55 in short order, and felt if it broke $55, $60 had a shot before the week was out.
Sure enough, SINA broke $60 by Thursday on a JPM upgrade, and the $55 calls hit a high of $6.50 and the $60 calls hit a high of 2.12. So both alerts returned over 1600% from the alerts. If you bought $80 of the $60 calls, you could have sold for $2k 3 days later.
DECK was another play we have been screaming about, and liked the $90 Jan 21st calls, which we brought to our chat at .60. They hit over $2.00 on Wednesday, as the stock finally hit the $90 target we thought it would hit in short term. Check out the call.
Check out the chart we posted:
Only a few days later DECK hit out short term target to the penny at $90, and has since retreated.
We wrote about PRX, a generic pharma company, on JAN 6th, when the stock was trading at $33.90. We brought the $35 calls currently asking .35, to the attention of our chat room based on some news of possible upside revisions to its performance. Those calls have now hit $1.50 for almost a 500% gain, and should be an even bigger gainer before expiry on friday.
There were many other calls in the chat room. Make sure you check us out this week, as there is only TWO MORE WEEKS until out free trial ends.
PRX (Par Pharmaceuticals) – On the Move
PRX was a company i followed over the past few years. A generic drug company, that i think one day will trade north of $50. During a presentation today, they noted higher margins and possible upside revisions to guidance. I think this stock is currently undervalued, and should see $40 in short order.
The company sees 2012-2014 CAGR for revenue of 8%; sees CAGR for cash EPS of 15%. The company says potential opportunities for upside to its three-year guidance exist, including new AG partnerships, potential acquisitions, less erosion of base generics than expected, and better pipeline production. Information taken from investor day slide presentation.
Chat Room members were alerted to the $35 Jan 21st calls @ .35.
Lets see if we get some breakout volume as the stock is currently above the Moving averages and upper bollinger band.