The biotech sector was being further trashed by Hillary Clinton drug pricing comments as well as more general weakness in the sector caused by technical selling and broken support levels. $ENDP (Endo International), a generic drug manufacturer, took it on the chin the past few months as it fell from a 52wk high of $96 to $46. After a quick look at the balance sheet and cash flow, we felt $ENDP was way oversold fundamentally and thought that it should rebound sharply off the lows. Everything biotech related was falling, even the high quality names like $ENDP. The company was also a prime take-out candidate for big cap generic drug companies. This gave us confidence to hold $ENDP as a long swing trade as well as for us to 'man up' and hold a much larger sized position of around $350,000. Usually our average swing position size runs around $100,000.
We bought $ENDP stock as low as $49.81 and sold the position into strength as high as $65.12, in only 7 trading days! Our reward was a gigantic profit of $44,740! Our chatroom members praised us on this trade as tons of money went into their pockets as well as they followed our live trade alerts.
