*BREAKOUT SOON *…. Questcor, Symbol: QCOR

By xiexgp@gmail.com, February 17, 2013

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

Just wanted to let the group here know of a Biotech that has been on my radar for the past few months. It is over sold, Float is about 58 million shares with a short interest about 46% of float or 25 million shares. Recently, as per SEC filings, institutional investors have been making large accumulations. Technical indicators are showing many Bullish indications, as well. I will put it out there, that I believe over the next week it could break through $30 resistance causing covering of short interest which may push it over $31.50 causing a mass covering and a gap fill up to $50. Could be a great play. Do your DD and let me know. Time is short since it has already started to make it’s move. I expect this Tuesday may have huge move and then continue to rise into earnings on the 26th. Cash and cash equivalents were released on 1/8/2013 in a SEC filing for year end, which included a statement that they believe they have again hit record scripts. Doing some calculations leads me to believe that they will smash earnings and continue the streak of 5 consecutive quarter that they have surprised. They pay a dividend of .20 which amounts to 2.8%, have no debt, and rev over 480 million, with a 39% GM, free cash flow of about 180 million TTM. If you are unfamiliar with Questcor, QCOR, they were subject to a Citron attack stating that Aetna was eliminating the reimbursement of the drug Acthar from their plans, that other insurance providers will follow suit. That has been farther from the truth and recently over the last few weeks many Health Providers have issued policies fully covering Acthar with Doctor review. In any case, the company has had record scripts last quarter and could have record scripts announced on the 26th. Untimely, after the attack, the US FDA District of Eastern Pennsylvania Attorney announced an investigation into marketing practice of Questcor . It is an uncertain if anything at all will come of the investigations but no charges have been filed. Matter of fact, there has been some recent Supreme court rulings barring the FDA from charging individuals working for Biotech companies with promoting off label uses. It was deem to violation their 1st amendment rights. The short thesis, at this point, has been ruined by these announcements as well as the Script growth. Investor sentiment is high and even the positive articles are showing up, which has not happened since the attack, supporting the company as being undervalued and due to rise. Any thoughts as to best play this stock?

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7 Comments on " *BREAKOUT SOON *…. Questcor, Symbol: QCOR"

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tanglewood
Irregular
170
February 19, 2013 1:44 pm

I just bought some QCOR at $30.15. I realize there is a big risk here so I invested, err I mean gambled, accordingly. They really just have one drug and I am not sure if there is anything in the pipeline. I use MSN Money to check things out; their Financial Highlights tab shows quarterly revenue and earnings for the past three years and the Key Ratios tab shows lots of stuff.
http://investing.money.msn.com/investments/financial-results/?symbol=qcor
I checked out the company website and their management team looks strong on paper.
http://www.questcor.com/

flyinkel
Irregular
15
February 25, 2013 11:23 am

President and CEO sold 100K shares worth 1.2 Million recently (60K/DEC12 and 40K 19 FEB13). If he was expecting a little price pop would have thought he would have waited to reap it. http://www.gurufocus.com/InsiderBuy.php?symbol=QCOR
Maybe good LT, but ST, dunno.

flyinkel
Irregular
15
February 25, 2013 12:58 pm

1st response worded poorly-19FEB13 shares worth 1.2M, DEC12 shares worth 1.8M, roughly

flyinkel
Irregular
15
February 26, 2013 11:06 am

Cramer talking about QCOR 25FEB13 (more short squeeze info) http://www.stockpickr.com/5-stocks-set-soar-bullish-earnings.html-44?puc=yahoo&cm_ven=YAHOO

flyinkel
Irregular
15
February 26, 2013 8:36 pm

QCOR after hrs “short and distort”. Big boys need the price down to cover. Liking this one better all the time. Staying long.

flyinkel
Irregular
15
May 8, 2014 11:42 pm

Anybody else still with QCOR? Thinking its about topping time on this one.

arch1
Irregular
4357
May 9, 2014 12:35 am

I think you are correct.

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