We started with short interest increasing thru 2/15; then earnings missed by 6 cents & no clarity on the FDA position. We trade down a quick 6% or $1.85 from yesterday's close, then voila', we trade up until we're green, & up almost 1.4% for the day on decent volume.
No one running for the exits; even after a downgrade in TP to $19. In came the reinforcements with two brokerage houses increasing their respective TP for SRPT.
I, for one, am very happy with today's action, & I truly believe we longs will hear the news we have been waiting to hear very soon. I would not want to be short this keg of dynamite if over a weekend, or some morning at 8 a.m., there is news that in essence reverses the FDA "premature" news from 3+ months ago.
Seriously, the shorts will be like the Nazis at the end of Indiana Jones, having their eyes pop out of their skulls, & melting in a puddle .In fact, I'm going to provide my own personal opinion on the time line. SRPT gets its positive clarification from the FDA. It will be no later than the week of March 17th. Again, all in all it was a good day today. GLTAL
If the early Bid/Ask are any indicator, we may be in for another good day to follow up Friday's nearly 6% advance. There was an unusual AH volume on Friday (approx. 500K shrs) & the FDA may choose this week to give the greatest of holiday gifts to the children & their families. GLTAL
greyzone; I agree, and IMHO she will do the right thing this coming week for these boys who have found themselves caught up in politics driven by money interests..
My bad for even responding to the likes of you, but it's as the high of the day as I type. What don't you get about 5x the average daily volume with 2 hr of trading left?
I would tend to think there is some truth to some positive development which has not as yet hit the news wires. Enough with your senseless dribble as I put you on ignore.
Share on emailEmailShare on printPrintRussell Rebalance Could Push These Stocks Even Higher!
By Brian Nichols - July 1, 2013 | Tickers: CBK, SRPT, YRCW | 1 Comment
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Brian is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Last year, these three stocks weren’t even on the radar of most retail investors, but have since returned incredible gains. Now, another catalyst could catapult each even higher, along with continued fundamental improvements.
What Are The Russell Indexes?
The Russell Indexes combined are tracked by more than $4 trillion, meaning that institutional and retail investors alike invest in their indexes more so than all other U.S. equity indexes combined. Among its offerings, are the Russell 2000, 3000, and Global indexes, which are among the most popular.
On Friday, Russell indexes began the process of rebalancing, which means purchasing new stocks and selling others. Those that are sold, no longer qualify, either falling below the requirements or being above the requirements.
Those that are purchased are typically IPOs or stocks that now meet certain requirements, while they may not have in the year prior. In this piece, I am looking at three such stocks; they are stocks that could move considerably higher with the rebalancing of Russell indexes.
From Bankruptcy To Large Gains
Last year, YRC Worldwide (NASDAQ: YRCW) was a $50 million company, today it is valued at $265 million. Its large gains have come after the company posted its first quarter of operating profit in many years’ time.
Moreover, the company is in talks to acquire a fellow trucking company, Arkansas Best, a company growing at more than 15% annually with over $2 billion in annual revenue. Currently, YRC Worldwide trades at 0.05 times sales, which is by far the cheapest in the transportation sector.
If the company can continue to improve then large gains can be created. On Friday, gains of almost 2% occurred due to it being added to the Russell funds. Thus, I’d watch this stock over the next week, as it trades near 52-week highs.
Unprecedented Data & Large Sales Potential Have Pushed This Stock Higher
Sarepta Therapeutics (NASDAQ: SRPT) did not qualify for Russell funds last year, trading with a market cap of just $100 million. However, on Friday, it was added to both the Global and 3000 Russell indexes with a market cap of $1.2 billion.
Sarepta Therapeutics’ large gains were created after data for its Phase 2 Orphan candidate Eteplirsen for the treatment of Duchenne Muscular Dystrophy. Currently, there are no approved products for this disease, and analysts project that it could result in revenue of $700 million annually.
The company is awaiting an FDA decision on whether or not Eteplirsen’s approval can be accelerated. Sarepta Therapeutics continues to trade higher, as continuous checks on data from the Phase 2 trial indicate a drug that improves the outcome of the disease with time. With its institutional ownership on the rise, over the last year, I’d watch this stock, as the Russell inclusion could push shares even higher.
With 32 mil shares outstanding, and a combined 24 mil being held by insiders (17%), & institutions (60%), that leaves 8 mil shares available for trading. If there are 9 mil shares short as of 2 weeks ago, 30% of the float, well you do the math.
This company gets positive news from the FDA one morning or after the close, and you will see an upward gap of monstrous proportions as the shorts attempt to buy their shares back to cover.
Perfect storms occur periodically in the marketplace, & SRPT appears to be setting up for one. GLTAL
I believe along with others that the Court Order has to do with government contracts, & not with any merger discussion. All in all, positive news.
kk, math in your example doesn't bear out your assessment that you illustrate. In your example, more to lose than to gain. If this stk loss $20, the % loss would be in excess of 65%, where in your positive scenario, a gain of $17 would yield less than 60%. So by your example, more to lose, less to gain. Taste great, less filling.!
I've been long SRPT for some time. Wrote some covered April 45 calls on Tuesday of this week, believing the stock might retest or remain in low 30s for a bit longer.
Yesterday, the stock is down .79, & the April 45 call goes up .35 to 1.85 on pretty good volume for an out of the money call by $12. Any serious feedback appreciated.