tkg: sounds as if you, like Favus, don't understand about the Medicaid/care rebates.
Once again, the latter are now a POSITIVE for QCOR earnings. While there may be legitimate controversy about the exact timing of the flows (but not much), the previous situation of Q needing to rebate (ie. give back) 100% of M payments has now been changed to needing to rebate only 23.1%. So, shorts will be best advised to stop misrepresenting this.
Sounds like Medicaid has to refund money already booked as earnings in previous quarter....so this will be a drag on earnings for Q1....you say 23.1 will have to be refunded.....wonder what PHARMA thinks about this item?
Bottom line is that it's already underpriced relative to lower reimbursements and the cost of Biovectra. They have a ton of cash. QCOR has been under unwarranted down pressure ever since the AETNA reimbursement controversy. If earnings are weak, it may fall some more, even though its already priced in.
I can't believe that there's a 50% short position of the float. Unbelievable. The slightest good news...even expected and not negative news, could propel this to $36-$40 with short covering.
My opinion is that we will come back and easily hit above $30 early next week.
another fool posting under different handle because "slightest good news" what good news you want foolish person, 8 straight beats, and last two quarters spectacular earnings, anything happened ? i am sure you have to mikey
it depends upon your time horizon. I hope they have a good quarter, but am focused on the future...the rest of 2013, and into 2014.
And if this quarter is not impressive enough for shorts and weak longs, I will probably continue adding on significant pull-backs.
Long term investors are able to buy at embarrassing prices now, all due to perceived "uncertainty". That is the time to buy if one really "knows" the QCOR story. If there were no uncertainty qcor would probably be selling in the $100/share range (9x PE now...just add 18x multiple-which is still low+PEG).
Plus I am collecting an average of 3 1/2% to sit and wait.
And I've got the patience to wait.