RE:NEXT WEEK
They way this has been trading I am pretty cautious about making a prediction. I am definitely more interested in where this goes after earnings release. I see that there has been a lot of selling pressure at and just about $40 CDN. On CXRX there always seems to be an ask of 10 lots at that price. I am not sure if this is because shorts are trying to add to their short position, or keep it in that range while they try to cover. Either way, if it dips I will add, I first bought at 37, and then added while it was taken down to 25 and then on the way back up. I also added recently on the dip last week. If it goes under 39 again I will be tempted to add again despite being more heavily allocated in this one than I normally would be. To me this looks like as much of a screaming buy as I have ever seen. I see nothing of the clouds over the sector really impacting them long term. I am bullish on their acquisition. I think at current earnings they are grossly undervalued, but if you factor in the potential earnings growth coming out of the acquisition it is just gravy. What I am interested to see is the short interest update that comes out from NASDAQ after close on Nov 10. If it shows a large increase to Oct 31, I will be pretty certain of a pop after earnings. Regardless of what happens I think I will be happy to hang onto this for at least a year, or until it is priced properly given it's intrinsic value. GL!