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Eli Lilly and Company Message Board

  • dnyknp dnyknp Jan 16, 1998 1:05 PM Flag

    Why the weakness?

    Can anyone tell me why LLY has been so weak this last week? When will this stock start to move above it's high? I'm still optimistic but would like to hear some ideas.

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    • fewbucks26's real name is Karnak, the Magician. He answers questions before they are asked. Karnak has pretty much answered your question in post #163. Read it.

      I hear he also does windows.

      • 1 Reply to cydcharisse
      • I got a chuckle out of your comment. I'd look
        pretty good in a tophat I guess.

        Let me clarify something, my comments in
        post #163 are really more medium to longer
        term issues. I don't think they are affecting
        the short term. As far as this past week, a few
        things are happening. First, the stock is already
        highly valued at a 40+ P/E. Second, the market is waiting
        for confirmation of Lilly's earnings. They should
        release them within a week if they stick to past
        practice. In any case, it's not really an issue
        since they've already said they "are comfortable"
        with the Street's expectations. This has
        taken some of the upside surprise potential out of
        the stock in the short term.

        Second, folks are waiting to see what happens as
        they start stocking Evista, as well as the continued
        performance of Zyprexa and Gemzar (and don't forget
        Prozac). Evista will get a quick start as they
        sell to stock initial inventories. The real key will
        be the "script" information, i.e. are the doc's writing
        a lot of prescriptions for Evista. This is key, so
        pay attention to any information you can find on
        what is happening with 'scripts being written for

        Let me repeat, FOR 1998, Lilly is a buy at $65. It
        traded in the $64's twice over the past week or so.
        Did you get any? If Evista takes off like projected,
        Lilly could see $90 per share towards the end of 1998,
        but it will be with a whopper P/E attached to it, so
        no room for error.

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