Barchart.coms Chart of the Day - Watson Pharmaceuticals (WPI)
The "Chart of the Day" is Watson Pharmaceuticals (WPI), which showed up on Tuesday's Barchart "NYSE 12-month high" list. WPI rallied up to a 10-3/4 year high Tuesday of $68.29 and finished the day up +4.2%. WPI now has its sights set on the all-time high of $71.50 posted back in Sep 2000. Trendspotter (tm) has been long WPI for the past 2-1/2 months at a price of $54.81 as WPI has been in a steady uptrend for the past 2-1/2 years. On Tuesday, the U.S. District Court in Delaware ruled in favor of WPI against Endo Pharmaceutical, which is trying to defend the patents on its Lidoderm pain patch. WPI is hoping to market its own generic version of Lidoderm and the court's ruling today could hurt Endo's position as the companies prepare to go to trial in February. Jefferies & Co. analyst Corey Davis said the judge found that the disputed patent covered only one of a group of ingredients, as Watson had argued, while Endo argued the patent covered one or more ingredients. Davis said that if Watson's generic is approved, it will probably not reach the market until mid-2013 at the earliest. Watson Pharmaceuticals, with a market cap of $8.304 billion is a pharmaceutical company primarily engaged in the development, production, marketing and distribution of both branded and off-patent pharmaceutical products. The company's branded pharmaceutical business operates primarily in three specialty areas: Dermatology, Women's Health and General Products. The company's products include therapeutic and preventive agents generally sold by prescription or over-the-counter for the treatment of human diseases and disorders.
How we found the Chart of the Day:
We found the "Chart of the Day" by scanning the Barchart "New Highs/Lows" page. Then we clicked on the entry for NYSE 12-month highs. A new 12-month high is a popular sign of upside momentum. Then we applied a "Custom View" heading with the Barchart Opinion ranking as one of the columns. we then sorted the list by the Barchart Opinion ranking in order to find the stocks with the highest Opinion.
Barchart's Opinion trading systems are mostly a Buy and Barchart's daily Trendspotter(tm) trading system is a "Buy." Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.
- Trendspotter: Buy
- Short-Term Indicators: 100% Buy
- Medium-Term Indicators: 100% Buy
- Long-Term Indicators: 100% Buy
- Overall Average 100% Buy
Barchart links for further information:
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Trader's Cheat Sheet™
Chart of the Day Archive
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