SRPT....Great Company.....Stock May Be Ahead of it's Ski's
Good summary of SRPT stock's near term risk/rewards from a brokerage MB.
"I suggest caution. Option open put interest is highest @ $ 26 and $ 30 for April 20, $ 17.50 and $ 25 for May. The market was expecting a positive indication from the FDA this month for expedited review. The FDA requested additional information with the determination moved out at least one quarter. Many have conjectured that a negative response would have resulted in a retrenchment to the low to mid $20's; a corresponding favorable indication of expedited approval was expected to propel the stock to the low $ 50's. After hours ranged from $ 33.92- $ 38, closing @ $ 36.68. The delay and request for more documentation increases the risk threshold and is therefore moderately negative, hence the pullback. A combination of less than positive news from the FDA, and a choppy market suggest a price in the mid $ 30's may be problematic. Please also consider that short % of Float (as of Mar 28, 2013) is very high at 34%. IMO adding to a position in the high $ 20's to low $ 30's offers a better risk adjusted return."
Full disclosure.I have significant holding in the stock @ $ 23.65, and $ 33.31 respectively, but sold half my position last week @ $ 42.05"