SEPR - Sepracor
Entry Recommendation 2/23/2004:
In our situational portfolio, buy Sepracor (SEPR-$28.26) in front of its presentation on February 24th at 10:00 a.m. Sepracor just became a Type 1 Short Squeeze in our work with a Tech Rank of 70 and a Short Intensity Rank of 73 with a Short Ratio of 6.16 over the weekend. Shorts sellers have been adding to their position over the past few months and losing. Sepracor focuses on three areas: respiratory, urology and the central nervous system. On February 29th, Sepracor seeks approval for Estorra. This drug is used for insomnia. The largest drug in the insomnia market is Ambien which generated $1.65 billion in worldwide sales in 2003. A share of this market once approved could be positive for Sepracor who has yet to make a profit. In a sampling of biotech players, we found that most were surprised that shorts were beating against Sepracor. They thought this was not a great bet to be making. Sepracor will lose $1.95 for this year and $-.20 for next year. Revenues are significant at $461 million for this year and $675 million for next year. Several sellside firms that cover this biotech concern still could upgrade the stock as they currently have equal or underweight rankings for Sepracor.
Exit Recommendation 2/23/2004:
In our situational long portfolio, we are selling our long position in SEPR- Sepracor
at $42.01 for a 48.66% gain.
AAPL - Apple Computer
Entry Recommendation 10/13/2003:
Buy AAPL ($23.68) in front of its earnings on Wednesday as its short intensity level is 60%, and it is a Type 1 Short Squeeze. Earnings are due in 2 days. Positive numbers from Apple could cause a slew of upgrades, as currently there are 10 hold recommendations on AAPL.
Exit Recommendation 2/23/2004:
In our Situational Portfolio, we are selling our long position in AAPL - Apple Computer
at $27.74 for a 17.15% gain.
BVF - Biovail
Entry Recommendation 09/22/2003:
Short BVF ($41.30 ) in front of its presentation on Thursday at the UBS Global Life Sciences Conference on Thursday. Its short intensity is down to 15%, and it is a Type 4 Long Squeeze. Earnings are due in 36 days. This stock recently received a great deal of negative publicity in Barron's over its reimbursement program to doctors. Moreover, our friends at Jefferson Research Torpedo Watch rate this stock Strong Warnings with 9 of their 10 dimensions showing negative. Even Enron, Worldcom and Tyco did not score this low in their system before they faltered.
Exit Recommendation 12/15/2003:
In our situational short portfolio, we are covering our short position in BVF at $20.30 for a 50.85% gain.