KG ---------------- Watch this stock carefully.
It may look boring and weak now, but I think things are very close to turning around. Once techs slow down a bit, money will look for values and this is a world-class company.
Why has the stock been weak, coming down 15 points or 34% recently? I called I/R to find out. They are perplexed because everything is going very well. Of course, they were hit by a silly rumor recently from a March, 2000 filing (yes, from the year 2000) about some officers setting up a trust who said they would sell a small percentage of their personal KG holdings each quarter, for diversification sake. They were trying to be very open about it, (unlike CEO's like Bill Gates who sells millions of shares unexpectedly). BTW- their shares being sold amounts to only about one half of one day's trading volume every 90 days. The other rumor was about their Altace drug coming of patent prior to 2007/2008 but no truth to that at all.
EARNINGS AND GUIDANCE --- superb! (see below)
RECENT STOCK PRICE: $45
FIRST SIGN OF A BOTTOM: "Strong Buy" upgrade today.
King Pharmaceuticals Reports Fourth Quarter 2001 Net Earnings Growth Of 35 Percent to $74.1 Million, Diluted EPS of 31 Cents (Up 29 Percent), Excluding Special Charges
BRISTOL, Tenn., Feb. 19 /PRNewswire-FirstCall/ -- King Pharmaceuticals, Inc. (NYSE: KG - news) announced today that net earnings equaled $74.1 million for the fourth quarter ending December 31, 2001, up 35% from $54.9 million in the fourth quarter of 2000, excluding special charges. For the year ending December 31, 2001, net earnings totaled $240.4 million, a 46% increase over net earnings of $164.4 million for the prior year, excluding special charges.
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