I am in todayBeen watching this for a while. Thought it was overpriced by a bit at the 1.90 or 2.00 range I believe. I am sure someone will look back LOL! But now that the deal is done at 1.90, and the dilution has taken a toll I think I am in now. Reasons...
1) Cheap leading into 2017. I have about a 7x PE.
2) Brexit has taken a bite out of it, but I read an interesting article on the Brexit issue, and where the bookies on the street are placing their bets. A guy can use this as a real street consensus so to speak rather than the CNN prattle. Seeking Alpha btw.
3) Ultimately its drugs, and good stable drugs, that are used quietly and widely at that ie vaginal issues, 5 day bronchial treatments. And access to Europe with government stabilized pricing.
4) As always there is debt. I do not like it, but it has room for small aquisition, depending on how the numbers are crunched. It is all perception.
5) Suffered with the hammering of Concordia, Endo, VRX, et al yet really under the radar. Very good right now.
6) relatively large bid just came in at 1.60....I am in at 1.61 for a .75 positon. I only carry up to 10 in my portfolio at any one time. I am leaving room to avg down, with a 12 mnth horizon.
7) I think if this makes 2 pennies a share in the next release, we are looking at 2 bucks again. If it fails to meet this target due to currency issues then they have the rest of the year to straighten it out.
A bit aggressive maybe, but I think it makes for a good summer play, and if you believe in management you can put summer stink bids in, alongside high sell orders. We will see how it plays out.
GLTA
BWB