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Questcor (QCOR -5.6%) adds to the big losses seen yesterday on account of a very critical Citron...

Questcor (QCOR -5.6%) adds to the big losses seen yesterday on account of a very critical Citron Research report, even as more analysts rush to the drug developer's defense. Jefferies declares Citron's complaints to be a re-hashing of old arguments, and thinks any generic alternatives to Questcor's Acthar would be both inferior and take years to commercialize. Oppenheimer presents a similar take.
Comments (6)
  • joesalcedo
    , contributor
    Comments (2) | Send Message
     
    Your reports are interesting, up to date, and compliments other reports.
    11 Jul 2012, 02:38 PM Reply Like
  • chuckf201
    , contributor
    Comments (16) | Send Message
     
    This report reiterates issues brought up and addressed several months ago. I question the timing of these reports with potential shorts on this stock. Currently there is a large position in shorts.
    11 Jul 2012, 04:37 PM Reply Like
  • jackinTO
    , contributor
    Comments (3) | Send Message
     
    I think the whole QCOR story is very disappointing for me - an investor - and for other investors like myself.
    The stock is recommended based on financial performance by various agencies such as FORD as a "strong buy".
    What Citron did was to investigate the reality. QCOR has a 94% profit margin and they use half the money to run and promote one time drug sales to small medical clinics. Big clinics think it a waste of time.
    Meanwhile according to Citron, management sold $120million in shares. Who is kidding who ?
    It is not a sustainable business model.
    I am out.I sold my 500 shares.
    12 Jul 2012, 05:20 PM Reply Like
  • jackinTO
    , contributor
    Comments (3) | Send Message
     
    I am a scientist with a doctoral degree from a world leading university and have 40 years of professional experience.
    12 Jul 2012, 05:20 PM Reply Like
  • chuckf201
    , contributor
    Comments (16) | Send Message
     
    JackinTO: Sorry you're out. I think there is more to this stock than a short-sellers report. Last week the announce the productization (sic) of this drug. Plus there is no competition.
    I will continue to buy on pull-backs at the support line providing volume is strong.
    Time will tell.
    12 Jul 2012, 08:25 PM Reply Like
  • jackinTO
    , contributor
    Comments (3) | Send Message
     
    Yes, time will tell.
    Who knows, maybe there is value in the drug!!!

     

    The point being made in the Citron report ( everyone please read if you are interested - I am just an average investor here) was that QCOR has not been able to establish a pattern of repeat business. It gets approximately 1.5 prescriptions from a single client - I assume doctor or small clinic as outlined by Citron.And each sale requires a huge investment of time and money .

     

    They have a 94% profit margin - according to Bloomberg - and about half is spent on operations and marketing.

     

    It does not appear to be sustainable business model. I paraphrase Citron who did detailed research and obtained documents filed with the government by QCOR. But a business with no repeat business cannot be sustained.
    13 Jul 2012, 03:13 PM Reply Like
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