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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?

To: quidditch who wrote (7294)	1/16/2004 2:15:05 PM
From: jayhawk969	Respond to of 10280

Add this commentary to what may be impacting SEPR today. Schaeffer's Option Activity Watch Features Harley-Davidson, King Pharmaceuticals, Sepracor CINCINNATI--(BUSINESS WIRE)--Jan. 16, 2004-- -----. 3. Another pharmaceutical name to make our list today is Sepracor (Nasdaq:SEPR). According to Hoovers, SEPR develops and commercializes new, patented forms of existing drugs by purging them of nonessential molecules. This often reduces side effects, provides new uses, and improves safety, performance, and dosage. Sentiment toward the security seems to be split down the middle. Options players continue to favor the company, with its SOIR lower than 71 percent of those taken over the past year. What's more, the stock's February 25 call added more than 6,500 contracts on Thursday. Meanwhile, short sellers have built up their positions, with the number of SEPR shares sold short soaring 75 percent in December to 7.9 million. At more than three times the equity's average daily trading volume, it is likely the security could enjoy a covering rally. The brokerage firms following the stock are also skeptical, with four of the 10 covering analysts rating it a "hold" and two rating it a "strong sell." Turning to the stock's technical performance, it appears that SEPR is attempting to pull back above support at its 10-week and 20-week moving averages after breaking below these trendlines in October. From a long-term perspective, the security is bouncing off support at its 10-month moving average. SEPR is also due to report earnings next week (on January 22). The Street is currently looking for a loss of 69 cents per share, which is significantly short of its loss of 53 cents per share for the same period a year ago. While this isn't exactly encouraging, traders should keep in mind that SEPR has surpassed the consensus estimate for the past five quarters by an average of 39 percent. A positive report next week and a continuation of the stock's rally could force short sellers to unwind their bearish bets. Click the following link to see the Weekly Chart of SEPR since September 2002 with 10-Week and 20-Week Moving Averages: schaeffersresearch.com .