Thursday, June 23, 2005

Nibbled On Some Sepracor

I decided to put some cash back to work today and picked up some Sepracor (SEPR). I've been following Sepracor on and off for several years, it's a local company. Looks like they have finally turned the corner with their potential blockbuster insomnia drug, Lunesta. The safest time to invest in a drug company is after FDA approval with a couple of quarters of sales. I'm not too crazy about their pipeline - looks a bit weak to me, but their earning projections look very good. They should earn about $1.00 in 2006 and $2.40 in 2007. The stock is not cheap, it's trading on 2007 earnings, so if there's any disappointment on Lunesta sales - down it goes...

I still have some cash left... Looking at some more conservative plays in the big pharmas.

2 Comments:

At June 24, 2005, Anonymous tershania said...

Looking from the chart, it looks like the stock is in a trading pattern. Personally, I would've bought it at around $56. Good luck with the stock!

I recently sold my holdings in YHOO and made a 18% gain on it since I thought the market might turn downwards and I was right. I'm keeping my money on the sidelines for a better entry point.

 
At June 24, 2005, Blogger Money Turtle said...

Thanks! It's only a small position at this point (just to get my feet wet). I agree, it's got alot of support around the $55-$56 and I would definitely add to my position if it fell to that range.

 

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