Jeff Miller’s New Arc Investments recently bought into ENDP, and it was loud about it too. New Arc’s Aggressive Stock Program seeks high returns and home run potential. ENDP’s momentum came upon New Arc’s radar and the firm thinks the stock has more room to run:
Athena: This week I bought Endo Pharmaceuticals (ENDP).
BH: Now this is a trade with some strong price momentum behind it over the last several weeks, especially after settling the claims against it regarding testosterone replacement therapy. It also has a history of beating revenue and earnings expectations, and it announces again in the next few weeks.
Athena: Yes, I’m a momentum trader. However, my typical holding period is about 17 weeks.
BH: Even though Endo’s established products have declined over the last year due mainly to the withdrawal of OPANA ER, the specialty products are growing (driven by XIAFLEX and SUPPRELIN LA). Who names these things by the way? Anyway, here’s a look at the Fast Graph, as well.
Due to the rapid rise in the stock and high profile names piling in, ENDP is bound to move higher. By the time its Q2 earnings call arrives (August 8th) the stock could rise by double-digits again. We could be watching the next market darling in the making.