but even if you slash earnings by 30%, you're talking about a large biotech trading at a 10 multiple. That's still pretty attractive if you ask me. All the shares they're buying back is serving to reduce the share count and reduce the drop in EPS as Hep C starts to level and fall off. Add in future pipeline developments and possible M&A and you have a pretty attractive opportunity. I still think this is a $120 stock. The overhang right now is mostly from political noise that won't have a major impact on their future earning power.
Teva isn't putting much effort into the product, so they're in a no lose situation. Of course it won't move the needle for a company like Teva. But even for ATRS, it won't move the needle much either. It's a tiny market and has competition. Not ideal if you're looking to strike it rich.
You're forgetting when I wrote that post. You should know, since you dug it up. It's nice that they have Teva involved, but again we're talking about a 50/50 split of very little profit, if any.
Perhaps the stock took some Viagra because I see a large erection on the chart. I wish it would go back down so the company could buy more shares.
A bit of a head-scratcher there in terms of valuation. $467 million for a company with about $27.7 million of cash and investments net of debt, that's losing money on around $50 million in annual revenues. But good news for a company like ATRS. Do I hear $2 anyone?
Nice play, but you sold too early. Good idea picking a stock like that with a tiny float and market cap. Those are the only ones than can randomly surprise huge to the upside.
Yeah, it's just not a big market. As noted above, Otrexup and Rasuvo have to not only compete with generic pills, but also the vial and syringe. Personally I would prefer Otrexup, but it is additional cost and there just isn't enough demand to drive meaningful revenues.
I own the stock, but you can make the argument that the growth is essentially priced in. I think it will easily double within 5 years given the market cap and runway, but in the mean time, you're going to get some periods of consolidation.
Agreed. There needs to be a deal to trigger buying. That's the one legitimate potential catalyst - if they can get a good partner. And it needs to be a good one with a sales track record.
So as soon as a stock starts to go down, it should go to $0 based on that logic? I wish everyone traded like you. The problem is there's too many momo traders in the market these days, so you do see weakness and strength persist longer than they should.
I've already said it's a fool's game to look at institutional holdings. You'll find that every single listed stock has some large institutional holders. So to say it's going higher or lower based on that is faulty logic.