Interesting stock -- 80% to 100% trailing growth rates in EPS and revenues, but selling at only a 42 P/E (trailing 4 Q's). I've been watching it the last 5 or 7 weeks. Wish I'd picked up a few shares earlier in the month when it was 30+. A 9.5% pop on the good earnings report a week ago, but little follow-thru -- OK, none at all. A bit peculiar on account of it not exactly being a small-cap stock, and being in the general pharm sector (which has done well), and with little exposure to Asia.
So I bought a few shares yesterday on the pull-back to 34. (Sold another $34 stock to buy it, and naturally that other one was +4 1/4 today, while we were only +1/2. Ouch. Hate that when that happens...)
Anyway, RXSD looks like it could have quite a lot of potential, especially if it can break through the overhead resistance in the 36 to 38 area (the Feb - March highs). From there it could have quite a nice run higher. Fairly low downside risk, IMO.
Besides something like a Viagra, I've figured out what the company needs: a presence on the I-Net. Then it could trade at P/E's several times its EPS growth rate -- like in the hundreds. Wouldn't that be nice?
Quiet board so I thought I'd ramble a little...
ChrisMeister |
