PropThink: KERX Way Oversold. Take Advantage of Fire Sales Price. LINKED
Seeking Alpha By: PropThink
In this case, we believe KERX is way oversold and investors can take advantage of the stock at fire sale prices. Like our "Trouble is Opportunity" article when Endo Health Solutions (ENDP) was in its lows, investors can take advantage of blood in the Street. Expect shares of KERX to continue to bounce off of the $6.55 support until the overhang of sellers clears out, then start to trade higher as demand for KERX, once again, overwhelms supply; a break out of the stock through $7.30 would be a highly bullish sign. We believe this phenomenon could happen quickly with KERX given the high turnover of the stock, the company presenting next week at the BIO CEO conference in New York, and Keryx's lead banker, JPMorgan, preparing to come back in to support the stock via the "Green Shoe" from the recent capital raise.