Some drug companies can bring drug after drug through their pipeline, and get them approved in a timely manner. Others (like ACAD) cannot make the same claim. The ongoing delays for bringing this sone drug to market is bothersome. I believe the stock price is still too high based on their past earnings history and inability to execute on their pipeline.
Speculative stocks like ACAD sometimes get haircuts of 25% or more for their inability to execute. Maybe CELG would be abetter buy if you want to own biotech? That firm knows how to execute!
I hit him up on Twiiter with no reply. If the stock went up 22% he would take a victory lap.
Now the stock has cratered, he goes silent and hopes nobody notices he supported this equity.
The stock is down 22% on massive volume. The shorts may like this action? But, as I long I find it destructive to my portfolio. I bout at $27, and this action has severely cut into profits.
Canning the CEO is a positive action moving forward. The delay is not, and that is a problem. ACAD continues to delay their drug, and Wall Street does not trust their management team. The uncertainty is a big problem for Wall Street. The stock may trade in a range of $32-$36 for a while?
The execution by ACAD management has been poor. The CEO was shown the door. Perhaps the new CEO has a clue?
There is a ton of M&A in this sector right now. There is no reason to think ACAD will not be a part of the consolidation in this space.
Even with an earnings miss the stock did not flinch. Now, the firm will either have a successful drug or a buyout, or both! The shorts cannot win here. All longs need to do is hold and buy dips. This squeeze will take time to unwind.
AWR is currently trading below its 10 week line. Every time the stock has done that the past few years it has been a buying opportunity. Will this time be different? With solid earnings and increasing dividends; I doubt it!
AWR is a buy under $39!
VZ is a long term hold in any retirement portfolio. The stock has a 4.5% yield, and they pay you to hold the stock. It is not a high flier like TSLA or NFLX. I just check the quarterly performance and have been happy holding VZ for many years.
ACAD is a speculative stock. They are losing more money every quarter, and has a four billion dollar market cap without any earnings. The stock price is being pumped up based on one drug coming to market in the future.
The stock has run up quite a bit, and I would not be surprised if we saw a sell the news picture here…
There is a lot to like in AWR as a long term investment. They have a long track record of increasing earnings, and steady EPS reports. I expect the stock to hover around $40 for some time. But, over the long haul (5-10 years) I expect AWR to outperform the indexes by a good margin.
They will have the ability to increase rates (no utility ever goes down) in the future and grow their business at a gradual but steady pace. The firm has a market cap of $1.5 billion and I would expect that to increase in the future.
Yes, all the bad news is priced in to this stock. KORS fell out of favor with fund managers as the management team sold too much stock.
If the management team does not want to own the stock then why should you or fund managers?
The dollar continues to weaken. Although, Europe is in a real funk.
These times are when management really earns their money.
This is likely to be a challenging quarter for RPM.