Greetings!
It's not often that opportunities this good present themselves, and I'm glad I acted this morning. See, I've been eyeing QTRN as a great long-term hold for awhile now, and I very easily could have purchased this stock on Wednesday at $35. It seemed like a huge buy at that level. Then, with the news ... I expected an over-reaction, and boy-oh-boy did we get one! To all those that have seen huge paper losses, my deepest condolences -- I've been on that end before. To those that bought today, looking for a quick buck, you'll get it, and good for you!
However, I'm holding onto this one. I've studied the reasons for the upcoming earnings shortfalls and it seems to me that these sort of things should be expected in this business -- and the earnings the company will put out over the next few quarters are not exactly poor!
In the longer time horizon, QTRN still looks like a Pharma 500 pound gorilla. Outsourcing of research will continue to be a popular alternative, and QTRN is dominating, and will continue to dominate, this niche market. It's a very profitable market. This is also a sector that has already been beaten down. As we head into a potential market slowdown -- not a recession, just a slowdown -- we're going to see Pharma become a hot sector again, with people trading their techstocks with EPS's in the red for companies like QTRN that make good money and will continue to make good money in a slower economy. Over the even-longer time horizon, the population is aging and therefore relying on more and more pharmaceuticals. I believe QTRN will continue to make major acquisitions and become a monster of a corporation. My friends that are in this industry have told me that they expect QTRN to continue to make sound strategic acquisitions to obtain and grow a dominant world market position.
I look forward to discussing QTRN with other investors on this thread for a long, long time.
The Fiend |
