this is a repeat of 2009 just slightly different problems but a lot of similarities. It made a lot of money then and will again. Book value is above present stock price. This is a value trade with a distribution of 7% while you wait. The financial figures were great but I wouldnt be real enthusiastic about another purchase until the LOC is reduced substantially. I still am in the camp of wishing they had totally suspended the distribution in favor of reducing debt faster so they could take advantage of opportunities more easily.
unfortunately i sold 1/2016 $25 calls on my stock but today I bought some jan 2017 $15 calls and paid less premium than what is on the $25 calls so I have my stock partially back looking to do more.
well looks like we were both a little correct, the earnings were greatly affected by merger costs and closing of prefered stock sales and revenue was higher due to great sales, so while it goes down with guidance up I dont see it making it to that gap.
here is my take rad, that is almost $12 per share which puts this stock at $22 after cash but so far its onoy income stream for the future is Vpak sales which have een dismal by most expectations. They need a minimum of 300 milion in vpak sales per quarter just to cover expenses for Enta and other milestones are not likely at this point. This has not been good in several ways, 1) ABBV slashed price in a price war that hurt Enta 2) their price war did not accomplish any additional sales thus hurting Enta 3) how much is a company that has negative cash flow worth? when it has not other ponies making money at this point? I am not trying to be negative just factual I think the market now for Enta is in a watch and show me attitude and that comes from a Missourian.
you are correct I mixed up the numbers as I have been out since mid 40s, it was 10% on 1/3 of sales or near 3% as you stated.
that is why you buy, oil is up and this has not responded yet but it will, they will have enough cash flow to pay down debt another 100milliion this year and they have good enough hedges to pay down an additional 100 million or more next year as production will continue up and their production costs are below $20 per barrel. by the time 2017 arrrives they will be hedged again as you say prices are rising and Saudia arabia is silent. They are allowing prices to rally. Look at the oil charts. Once the price of oil breaks through 70 for Jan 2-017 you will see this begin to move upward They have lots of room for internal growth and costs are down..
I own 42k shares and my biggest thought is will it fill the gap at 21 to 24 if earnings are bad this quarter. Contrary to the uberbulls, i am long term bullish but have seen what a poor report can do to this stock (or any stock) as you only have to look back to last year on this one when it went to 9. My fears are that this quarter will be less than expected due to the merger costs and the PBMs causing a sell off. We have already seen some topping action the last month and I feel the big boys are covering and expect the same. This is not saying that a year from now it wont be above 40 but near term we could see low 20s again.
PS i used to be in this stock at 11 and sold out at 11.50 when I realize what was really going on and would never buy this again Now it is below 8
anyone suggesting a buyback doesnt really understand this stock, the people running this company only make money by selling shares and making more deals, they will never buyback stock and you will never see NAV increase to any major degree. It is like saying I wish my bank would quit making loans and quit taking deposits. It is the most stupid comment for an owner of this stock to make. What you are doing when you buy this stock is loaning your money for a high risk return and hoping you dont lose your principle. You really need to research this company and when you do you will sell and never look back
receipt of funds and account reporting are different, for accounting procedures they may report it quarterly but according to documentation on the deal with ABBV, they get paid annually.
mike , I own a substantial position in HZNP but I keep looking at the numbers on the HPTX merger and I really dont see how they will be accretive without doubleing the prices on their two drugs. They are only making 2% earnings on the value of the stock price and we are paying more than that for the moneyI jwe are borrowing. The biggest plus is getting two more drugs in the portfolio that are orphan drugs and improving sales. I just have a hard time seeing the accretion during this year.
add to that a dividend and buying 10% of their stock back and another drug company with all that cash