hsh99's  Instablog

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I am an engineer, MBA (IT & finance) and have been investing in US and foreign stocks for more than 20 years. My main strategy is swing trade and call options.
  • Dummy's Case For Buying OPK 2 comments
    Jan 10, 2014 11:47 AM | about stocks: OPK

    Recently, Opko Health has come into my radar screen due to the heavy insider buying. CEO, Dr. Phillip Frost had been buying shares all along even at $10.9 recently. Now that the stock price has retraced to around $8.4 and hovering across 200 day moving average, this might prove to be a golden opportunity to buy some shares. After missing an opportunity to buy Tesla (NASDAQ:TSLA) shares in June 2013 at a slightly cheaper price than what CEO Elan Musk paid when he bought shares worth $100 million at $92.2, I have learnt my lesson. Valuation of TSLA was sky high and I was nervous in putting my money in it in spite of the bet by Musk. Since then the stock has rallied more than 50%.

    Here are few dummy's reasons that OPK is a buy at this point.

    1. OPK had a long run over the years indicating there is substantial value or potential in the business.

    2. OPK is near its 200 day moving average, which should prove to be a great opportunity to buy the stock now.

    3. CEO Dr. David Frost has a track record of being a successful entrepreneur in the past, similar to Elan Musk.

    4. Biotech stocks tend to go higher based on the speculation and potential of new drugs coming into the market. Opko being a conglomerate of biotechs, this could be a diversified bet.

    Disclosure: I am long OPK, .

    Stocks: OPK
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  • Growfast
    , contributor
    Comments (295) | Send Message
    One correction. Dr. Philip Frost is CEO of Opko. And, while your very general reasons are good themes on Opko, if you do some real due diligence behind those, you will be FAR more excited about where the stock price of Opko will be in 1 year, 2 years and 5 years.


    Look at the pipeline and phases. Look at the financials. Look at Frost's team, Opko investments, Opko partners. Between now and April/June time frame, could be some big changes in the stock price and momentum. And, this will only be the beginning.
    10 Jan 2014, 12:03 PM Reply Like
  • losbronces
    , contributor
    Comments (1010) | Send Message
    I bought into OPK based on reading a presentation by Lakewood Capital, a fund shorting the shares. IMO, the presentation was so poorly done that I bought in after the attack was initiated. This has worked for me before and I expect it to work in this case as well. Of course, I did some additional DD prior to buying shares, but Lakewood's presentation piqued my interest.
    10 Jan 2014, 12:36 PM Reply Like
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