- Shares of Endo International are down huge in this correction, paralleling moves in many biotech stocks, but unlike the smaller corrections in many of its generic and specialty pharmaceutical peers.
- Endo's fundamentals do not support its current share price, fueling bearish concerns that the stock is over-valued.
- Bulls are speculating that Endo's new CEO, Rajiv De Silva, will do an encore of his playbook at Valeant, during which shares were up six-fold in three-plus years.
- Guru funds have been aggressively buying Endo shares in the last three quarters since the new CEO took over, including in the latest quarter at prices averaging in high-$50s.
- Endo shares are trading near levels at which these leading funds considered them an attractive buy, and can be bought on dips to and below the 200-day moving average.