ENDP trade for 10/21 – 10/29/2015

Posted By JM on Oct 29, 2015 | 0 comments

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.


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