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Opko Health, Inc. Message Board

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  • lsddc07 lsddc07 Nov 2, 2012 9:24 AM Flag

    With all the recpect to the good Dr. - what drives the shorts?

    In a nutshell- OPK has an extremely high Price to Sales Ratio of 40.77 (market cap/annual sale rev). which is an indicator that the stock is grossly overpriced. Just to give you and idea- Facebook (FB) has a P/S ratio of around 10 and is still heavily shorted. At a P/S of 40- it looks on the surface to be a no brainer to short.

    What people don't factor in is that Opko is essentially an R&D medical/healthcare venture capitalist or a medical holding company. They are taking company's/products that they believe will be extremely successful in the future. As such, their annual revenues are limited at this point but could explode if some/any of their holdings product significant results. They have a healthy cash flow and minimal burn rate of cash- so IMHO they can be in it for the long haul.

    In summary- it all boils down to how successful OPKO is with the investments they move forward with. Dr. Frost has proven that he has done this on several occassions and the fact he is putting a significant amount of his own cash leads me to believe he is confident in his/OPKO's future.

    Sentiment: Strong Buy

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    • In a nutshell, that's one of the reasons that OPK is one of the LARGEST SHORT TRAPS AROUND.:)
      It is becoming harder to borrow shares for "shorting".
      I have two brokers in the last week calling to offer paying a pretty good "interest", if I agree to let them borrow my OPK shares, so they could be used to lend them for "shorting".
      Quarter results are due on Monday.
      In the June Q the Top Line increased 16.34% sequentially, and it should grow at a faster rate with the new PSA test now available in Europe.
      The application to the FDA for the the PSA in the U.S is due to come out at any time.
      News on the PIII on Rolapitant should be available in the 1st Q of 2013
      And any other "news" on any of the others OPKO's "IRONS on the FIRE" could come out unexpectedly, which could trigger a SHORT SQUEEZE. :)

      Sentiment: Strong Sell

    • thier burn is 40mm that is not a minimal

16.28-0.09(-0.55%)Aug 3 4:03 PMEDT