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Novo Nordisk A/S Message Board

  • topher_562000 topher_562000 Sep 15, 2012 10:19 AM Flag

    Drop in Stock Price

    Why the significant drop in stock price this last week? No news

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    • There was a downgrade from Buy to Neutral by a firm not widely known on 9/12. Pullback should be healthy.

      I did not think anyone visited NVO. I have been a holder for about 3 1/2 years. I am a physician and like the products and pipeline. PE ratio is high, so I think the good product growth and good pipeline is already priced in but if there is not bad news, should drift higher.

      I am also seeing a "ton" of pre-diabetes (the coversion from pre-diabetes to diabetes is 10% per year). I also like that NVO is trying to get market share in China (up to 10% of population with diabetes).

      It would be good to have some stock discussion on NVO since it does not seem to be followed much.

      • 1 Reply to gs88gs88
      • Hey Doc. I share your frustration with lack of conversation with this stock.
        I've been a hospital Pharmacist in central MN for about 9 years, and been investing for about 6 years. This is the only Pharmaceutical company I own in my retirement portfolio, because it is as close to a pure play on diabetes as I can find. Lack of debt, lots of secular revenue growth for any foreseeable future, with minimal generic pressure are what I believe justify the current high PE, however I am not adding to my position at this point. In my fun money account, I like to play around with biotechs by selling deep in the money covered calls, or using deep in the money call spreads. There is so much premium in these calls it feels like printing money every couple months. I've been doing this with VVUS for about a year, since I don't believe the product will actually make any money for them (a combo of 2 generics, that I have already seen prescribed separately for this indication), however the hype around an effective weight loss drug creates this premium.
        Anyway, good luck with NVO, and I hope some conversation gets started with this stock.

        Sentiment: Hold

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