IMO Mr. Market is overdue for a correction. While Pharma is normally a safe haven at such times, I believe that changed with the election. Moreover, HSP sports a relatively high PE and is a serial earnings disappointer. Additionally, on Wednesday one of the large brokerages lowered the 12 month target price from $40 to $36. Stocks generally range below analyst targets. All fundamental reasons to believe the stock is a poor hold. However, as a trader I'm kicking myself for not buying yesterday and as a result missing the $1+ trade off lows in the afternoon to a sell this morning.
I'm seeing a gradual slide this afternoon off the earlier daily highs on HSP. That may be indicating that traders who bought on the drop, sense that they have gotten all of the dead cat bounce it was going to give, and are now taking whetever profit they made. I still believe the lows of yesterday will be broken. We'll see.
I'm was trying my best to be optimistic about holding Hospira, but I just couldn't find anything to hang my hat on. If there was any positive news during that earnings release I couldn't find it. If I have missed something, please let's discuss.