I'm leaning towards positive news. If the news were true, no reason to reiterate it. Company probably gonna defend the drug. Should be good for a pop to 40 at least I think.
Crap, Greenberg twitted Aetna is dropping support. Herb Greenberg ‏@herbgreenberg $AET confirms to Reuters (didn't return my inquiry yet) that it's dropping coverage on majority of Acthar's indications $QCOR
ANAHEIM, Calif., Sept.19, 2012 /PRNewswire/ -- Questcor Pharmaceuticals, Inc. (QCOR) today commented on information regarding an insurance policy bulletin issued with respect to the Company's primary product H.P. Acthar® Gel (repository corticotropin injection) ("Acthar"). The Company is continuing to review the Clinical Policy Bulletin related to Acthar from Aetna Inc. ("Aetna"). Currently, the Company does not believe that the bulletin represents a material change in insurance coverage for Acthar by Aetna. During 2012, Aetna has accounted for approximately 5% of the Company's shipped prescriptions for Acthar. Based on its current assessment of the Clinical Policy Bulletin, the Company does not believe that the bulletin will have a material impact on the Company's results of operations.
I really thought the companies statement would get the stock higher after the halt ... was surprised at lack of pop. I'm long Sept & Oct Put spreads - if it's under 40$ I'm good.
Me too. The fact that Aetna is no longer supporting the drug must have people worried others will follow suit. Stock price is all about future earnings potential. There was also a lawsuit in the news. Goddamn ambulance chasers. I guess no pop is better than staring at a loss.
What a scam this was today. 3 HALTS??? and the last one is for 45 minutes??? Gee maybe they should make traders jump through MORE hoops to trade. They got their due when it reopened. They could have easily denied the allegations in the am.
Bought some shares in my IRA account for a swing trade @25.69. Thinking we could retrace to around 35. But will take whatever initial bounce back. After hours, it's current @27.58.
Yeah it was unusual. I wouldn't have touched the stock if I knew that was gonna happen. After each halt, it felt like gambling. What are they gonna announce? Really not the way to trade.
Problem with these 20x revenue companies is they have alot of air that can get let out if anything bad happens. It was 20x revenues yesterday - only 9x now. Fidelity was already at 15.56% ownership (they cap at 15% usually), so they won't be buying more, and insiders had sold 2.5m shares in the past 2 years.