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.


At June 24, 2005, Anonymous Anonymous 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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