There is no doubt that Allergan has solid fundamentals. Their ROI, Equity, EPS, and Sales growth over the past 5 yrs is 10%, 19%, 12%, and 13% respectively year over year. However, I think their eye care competitor Alcon (ACL) has a lot more going for them at the moment. Not only are Alcon's fundamentals better (40%,20%,21%,and 11%), but Alcon's PE is 23.7 compared to Allergan's 31.7. I also think Alcon has 2 additional catalysts that Allergan does not. See my thoughts at
Cramer said that AGN was strong and was actually up today in a down market. I think the price held up by people who expected the AGN spiel later today. I shorted AGN when it was up 79 cents today. I had already covered some of my energy and gold shorts at the time and turned to a few overpriced health care and retail stocks.
Even if AGN is up early Friday, I think it will sell off later in the day and again on future days.
I've been out of AGN for weeks, reconsidered it today, but think it's neither a long nor much of a short, so I'm staying away from now. Does anyone have any good arguments to short this stock if it breaks support? Right now I have better trades and considered adding AGN with proceeds from trades I just closed, but can't get a feel for AGN. Any comments?