A lot of us are holding tremendous amounts of QCOR. I see nothing but upside right now. What are shorts seeing that we are not? Is shorting QCOR the product of a mental deficiency or do they really believe in their hearts this company is going to tank? What is it in their hearts they believe is going to crush this company?
QCOR shorts are just like someone did not heard a train coming on to them at crossing and got killed. I believe they are not hearing QCOR train moving quickly on to them, except some heard/saw it and covered.
It is called committing suicide.
Sentiment: Strong Buy
The short argument was mainly built on the Insurance companies' drug coverage of Acthar, DOJ investigation into marketing practices, and the belief that QCOR would not be able to continue growing their market share.
This real short attacks started with Aetna reducing coverage of Acthar last year. The shorts used the Aetna coverage as proof that all the insurance companies are going to back away from Acthar due to the high prices. That has not been the case, as several companies have actually reaffirmed their drug coverage policies on Acthar.
Bailey handled the DOJ investigation story pretty well, by stating that it won't be resolved for at least a couple of years, so there is no immediate threat, if there is a threat at all.
But in my mind, the possibility of reduced insurance drug coverage of Acthar is still the biggest threat. I think it's very unlikely that companies will be reducing coverage of Acthar, but even so, that's the only valid threat the shorts may have as an excuse to short. Other than that, we're golden.
Sentiment: Strong Buy
That is a good question and one that lost steam when two things happened.
The first being when they bought their supplier at the beginning of the year. Make no mistake about it there was a lot of belief that this supplier arrangement could be a problem for QCOR and that somehow the shorts were going to take advantage of it since the whole deal is the secrecy of their product. Buying them took a lot of steam out of their argument provided none of the employees snitch on how Actur is made thus the future contingency payments.
The second thing was recently buying the second company that could have been a direct competitor. Remember the deal that our hedegefund Cramer friend that made a bid was attempting?
Our CEO seems to have handed the shorts a pretty good slap on the cheek with these two transactions.
So now you ask what these shorts are thinking. I believe that the shorts are doing exactly what we see and that is covering this massive position as best that they can under the circumstances. Lets face it not long ago ""over half of all shares were shorted"" today that number is shrinking a lot but still has a long ways to go.
Imo, the shorts are doing quite well at working out of a very large problem but ""not at a cheap price"".
To put it bluntly the shorts are giving up but that doesn't mean it won't take months for them to get totally covered. Further you can bet your bippy that some of them will simply want to reverse their positions and the reason is that they can see that they have been outflanked by our CEO.
Lets face it a lot of them can see what we see now that their plan is in disarray.
All just an opinion of course.