New Low Observer's  Instablog

New Low Observer
Send Message
As a contributor to the New Low Observer (, we intend to give new insights on a low risk approach to trading in dividend paying stocks for tax deferred accounts. The New Low Observer ( is not intended for... More
My blog:
New Low Observer
  • WCRX Up +50% Since Our December 2011 Watch List 0 comments
    Apr 30, 2012 12:58 PM | about stocks: WCRX

    As we've described many times in the past, seeking specific companies at a new low inherently implies that value attributes are far greater than when a stock is trading at a new high. This has been the case with a majority of stocks that appear on our watch list.

    We've demonstrated this in the watch list summary section of our April 27, 2012 Nasdaq 100 watch list. Furthermore, the recent acquisitions of Transatlantic Holdings (NYSE:TRH) and Cephalon (NASDAQ:CEPH) highlight our claim that quality companies invested in near the new low are the most likely candidates to be acquired by much larger companies. A perfect example is found with news from Warner Chilcott (NASDAQ:WCRX).

    Today it was announced that Warner Chilcott (WCRX) was going to put itself up for sale as a means to "…enhance shareholder value." On the news, Warner Chilcott's stock price rose as much as +20%. However, as a member of the Nasdaq 100 Index, Warner Chilcott appeared on our December 16, 2011 at $14.02, when the stock was within 8.68% of the 1-year low.


    On Friday, April 27, 2012, WCRX closed at a price of $18.79, which was already a gain of +34% above the December 16, 2011 watch list price. Now, with WCRX trading around $22 per share, we believe that the value component of WCRX has been eliminated and recommend that those who own the stock should consider selling the principal, at the very minimum.

    Stocks: WCRX
Back To New Low Observer's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.