Not so. Cramer was very clear that OPK was (is) a very speculative investment. CNBC doesn't seem to exercise any real control over what he says. He has been touting OPK, on and off, for a few years, but he's often wishy-washy about it. He likes to play two sides of everything so he can always come back later and say he was right. It's a game he plays to keep his ratings up (and to keep CNBC from booting him off.) I don't watch him anymore because of his constant vacillations. Also, I can't stand people who talk fast, and loud, and wave their arms around. He's a showman, a clown, a buffoon. Occasionally, he (really his writers) come up with a decent recommendation of sorts, but he makes it impossible to really keep score. I strongly believe that Gene Marcial, who writes for Forbes, has a much better record than Cramer. Marcial used to write a weekly column called Inside Wall Street for Businessweek Magazine before Bloomberg bought it. You won't see him on CNBC, but he's extremely well connected and comes up with some spectacular picks. He's not always right, but his record is good. BTW, Marcial also wrote about OPK right after the PFE announcement, and his timing was perfect. He caught it right before the recent big move, so you'd have been in for the move without having to wait several years as with Cramer.
Does Opko make an anti-nausea drug? Some of the messages here are making me seriously nauseous. I never saw a message board with more cry-babies. The stock has a straight run from $8.18 in mid-December to a high of $15.23 in two-and-a-half months, and you're all in a panic because it backs off to $14.63??????? What the tuck is wrong with you people??? You're all crazy.
I've said again and again that it's a waste of time and oxygen to obsess over every little up or down tick. I recommend taking a strong laxative and enjoying the result instead of driving your blood pressure through the roof. OPK has a 14-handle instead of a 15-handle that it had a few days ago. Big deal! Stocks just don't go straight up or down without some side-steps along the way. If you're going to panic at every little jiggle, you'll never make any money. You'll just shorten your life from the stress. RELAX! If you want to panic and run for the hills, go ahead. I assure you that you'll feel a whole lot worse when you see the next big surge up to $20, but you'll be happy for the immediate term. Only total novices and cry-babies get anxious about these small corrections, but I suspect we have a lot of those people in OPK. For those poor souls, I recommend a good mutual fund like the Primecap Odyssey Growth Fund. It's no-load and has a very reasonable management fee and is loaded with biotechs. Past performance has been excellent, and it's highly tax-efficient. If that's too risky for you, just buy VTI. Let someone else do the worrying so you can get on with your life. Stress has been proven to shorten life expectancy substantially, so avoid it.
My strategy has been to put in open buy orders in well under the market, and then just leave them alone. The units sometimes trade pretty wildly thereby giving you the opportunity to pick up bargains when you least expect them.
Earnings are due out after the close today (2/27). Conf call Monday (3/2) at 8:30 AM EST. I still expect negative earnings (aka loss), but hopefully might be smaller.
OPK is still what I view as a "development stage" company, so losses are to be expected.
A pullback in the stock price would be healthy. I'd definitely be inclined to use the opportunity to buy more. I hate to chase anything that has gone up as much and as fast as OPK has, but I have to take into consideration that the number of available shares keeps shrinking due to heavy insider and institutional buying.
In July, 1987, I bought 200 shares of a relatively small biotech at $27 ($5400.) By 2000, my original 200 shares had become 9600 shares after multiple splits that were worth around $760,000. The current annual dividend is now many times what I paid for the stock in the first place. I get more than my original investment back every quarter. It's probably too much to expect the same from OPK, but - what the heck? - anything's possible.
Farryman (above) says $295, not #$%$295. I was going with what he said about the cost in Spain. But, you're right about the currency differential, although the spread has narrowed substantially from a few years ago. I can remember buying Euros in 2000 at about $0.82U.S. Those days are long gone. I bought $20,000 (on two trips) worth and finally used them up last year. (I go to Europe almost every year.)
All medical costs are lower in Europe. That's just the way life works. If the test costs $395 here and $295 in Espania, it probably costs less than a Big Mac in India.
The slide in oil today was blamed on a big supply glut, but I have a feeling it's only temporary rather than another big move down in price. Refiners usually make the changeover from heating fuel to gasoline around now, and that means a shutdown of refineries. During that time, they stop buying crude, so the supplies build up. Once the refineries start up again, the price will bounce back. That makes this a good time to be buying pipelines. The unit prices moves in sympathy with crude, but there's no real short-term connection. Gasoline and heating oil have been moving up in price because they're both in short supply due to the shutdowns. The refiners are happy to get more for product already in inventory and be able to buy crude more cheaply while they're shut down. Buy the dip.... you'll be happy you did.
I had a talk with my doctor today about this, and he said the big profits will come rolling in only after they get Medicare and Insurance approval for the tests. That's crucial. It's imperative for Opko to get over the insurance hurdle in order for this to really take off. If they can convince Medicare that it will save them money, they'll jump on it. He said Medicare doesn't give a hoot about quality of care, just cost savings. Given that, he said the company would be a huge winner if and when they get over the insurance problems. Personally, I'd gladly pay $400, $500, $600, or whatever they want to avoid another biopsy. If you haven't experienced the pain of 20 needles jabbing into your prostate through your rectal wall, you just don't know what real pain is. The pain plus the possibility of infection, bleeding and all sorts of other problems, makes me more than willing to pay anything to avoid it again. I'd recommend a prostate biopsy as a means of getting terrorists to give up information rather than water boarding, sleep deprivation, cold, heat, stress positions or anything else. 5 or 6 jabs with that needle would be enough to get most of them to start singing like canaries. I was ready to sign over my life's savings if the doctor would just stop. 4KScore is the main reason I own OPK.
Cramer is a total idiot. A professional tout. A buffoon. A worthless #$%$ POS. He switches sides on every stock he ever recommended so often it's impossible to know from one minute to the next what his position really is. He continually obfuscates so he can always go back and say he was right. The last time I heard him, OPK was in the $8s, and he was very luke warm and said "hold." He said he was "sticking with it, for now." If you took that as a definite sell signal, you'd have missed the whole of the recent move. Pay no attention to him if you want to ever make any money. He has a very short term effect on stock prices in either direction, so just ignore him. I can guarantee that Dr. Frost doesn't care one bit about Cramer, and you shouldn't either.
There's no way to know that. I strongly suspect that the OPK shorts are fully hedged. They may even be more than 100% hedged, meaning they are making more money on their calls than they're losing on their shorts. If they were stupid enough to be naked short, they'd have been out a long time ago.
I've said here several times that a squeeze is not a certainty by any means. Don't hold your breath waiting for it. Better NOT to have a squeeze than to have it all at once. These shorts are hedged up the whazoo. Short covering is a one-time event that will quickly fade away. Buying by serious, long-term investors is a whole lot better if you want to see a sustained advance. The shorts are covered by calls that offset any rise in the stock price. They can hold out for as long as their calls.