I promised to keep you updated on my stock market transactions and I will continue to do so. However, I am short on time these days, so unfortunately going forward I will not always be able to review the detailed thought process used at arriving at the various buy and sell decisions, as I have done in the past. With that in mind, I would like to report the following purchases:
12/31/07: I purchased Noven Pharmaceuticals Inc (NOVN) at $13.98.Trading within 10% of its 52 week low reached in October, this company is one of the best deals on the pharmacy block. It has the smallest patch on the market, great business deals with the big pharma boys, tentative FDA approval of Stavzor – drug for treatment of bipolar disorder and a nice and profitable business. The Stavzor approval just happened and the stock price didn't budge. Last quarter's numbers looked dismal at first glance, but it was due to non-recurring charges associated with an acquisition, while the core business grew. This time results will shine.
1/2/08: A good many stocks went on sale on this first trading day of the New Year and it was a great day to go shopping. I picked up China Fund Inc. (CHN) once again at $35.51. Now that it is trading at a 16%+ discount to its net asset value, I feel comfortable owning it once again. You may recall that I liquidated my position in this ETF less than a month ago at $51.35 prior to it going ex-div and distributing $12.12 / share in cash and common stock, so I am getting in about 10% lower now.
1/2/08: I purchased King Pharmaceuticals Inc (KG) at $10.12. That's less than ½ the price it was trading last summer and less than 5% over its low for last year. This company is great at extending life of drugs that near their patent expirations and squeezing extra profit from them. They do very little R&D, instead preferring to buy rights & patents for established drugs, repackage them, market and sell, sell, sell! Current stock valuation assumes worst case scenario of the company loosing patent protection prematurely on all 3 of it's current top profit contributing drugs and no replacement revenues. This is a highly improbable scenario and it is far more likely that KG will continue to turn in great results and be trading 40% higher within a year.
Disclosure: Author holds positions in the above mentioned securities
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This article has 1 comment:
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Jean-Guy Clement
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1 Comment
Jan 11 10:59 PM