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  • Fundamentals And Technicals Continue To Support QCOR  2 comments
    Dec 19, 2012 12:59 PM | about stocks: MNK

    By Jake King

    Shares of Questcor Pharmaceuticals (NASDAQ:QCOR), despite a large short interest, have continued to perform well for shareholders and broke through several resistance levels this week to eclipse the $30 level on Wednesday. We noted at the beginning of December that shares could trade into the $30 range by year's-end, and investors are demonstrating that same confidence in QCOR. Two recent updates from the company - an accelerated dividend and expanding sales force, which is anticipated to grow by 30% - support our thesis that Acthar sales continue to grow and demonstrate management's confidence in the product's growth potential. We also noted in our last article that the QCOR short thesis has largely played out, as evidenced by the stock's quick rebound after a negative report in early December. Even flat growth for Acthar from levels in 3Q justifies a higher valuation for QCOR, and we've stated that based on fundamentals alone, the stock could move to the high-$30 or low-$40 range.

    Technicals in the near-term support a move higher as well, suggesting that investors should stay the course. With QCOR's recent break through of the $29.60 and $30.13 levels, the stock has room to run 10% up to $33.00, its next level of resistance. And with a run up through the $33.00 level, the 200-day SMA is the next level of resistance at $37.11. $35 would also represent a 50% retracement from the November 7, 2012 highs and the November 27 lows, indicating another level of resistance. Nevertheless, it looks as though the stock is going to take a run at the mid-$30 level, with shorts likely to cover positions as the year closes.

    Disclosure: I am long QCOR. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Additional disclosure: PropThink is a team of editors, analysts, and writers. This article was written by Jake King. We did not receive compensation for this article, and we have no business relationship with any company whose stock is mentioned in this article. Use of PropThink’s research is at your own risk. You should do your own research and due diligence before making any investment decision with respect to securities covered herein.You should assume that as of the publication date of any report or letter, PropThink, LLC and persons or entities with whom it has relation ships (collectively referred to as "PropThink") has a position in all stocks (and/or options of the stock) covered herein that is consistent with the position set forth in our research report. Following publication of any report or letter, PropThink intends to continue transacting in the securities covered herein, and we may be long, short, or neutral at any time hereafter regardless of our initial recommendation. To the best of our knowledge and belief, all information contained herein is accurate and reliable, and has been obtained from public sources we believe to be accurate and reliable, and not from company insiders or persons who have a relationship with company insiders. PropThink was not compensated to publish this article. Our full disclaimer is available at

    Stocks: MNK
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  • @pharmdca
    , contributor
    Comments (400) | Send Message
    Always appreciate your insights into QCOR story. Do you still expect the company to release script numbers in a week or so as was pointed out in your earlier article?
    20 Dec 2012, 12:37 AM Reply Like
  • PropThink
    , contributor
    Comments (60) | Send Message
    Author’s reply » It makes a lot of sense for QCOR to come out ahead of IMS data, which has been "unblocked" by Curascript. Certainly don't expect it, but it should not come as a surprise. Could be early in the new year as well.
    20 Dec 2012, 01:24 PM Reply Like
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