Stocks making new lows tend to continue to make new lows despite company's doing everything in their power to reverse the trend. Sometimes nothing they can do will induce investors to come back into the shares. In the current environment where biotech stocks are expected to be under pressure until after the election, these companies are carrying an extra weight in the form of uncertainty.
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ENDP - Endo Intl Plc - Company Description
Endo develops, manufactures and distributes pharmaceutical products and devices worldwide. The market well known brands including Percocet, Lidoderm, Voltaren and a wide range of pain medications and testosterone replacement therapies.
Shares have declined from $96 last April to $28 today. The acceleration of the decline over the last several weeks has been in reaction to some generic competitors expected to receive approvals from the FDA soon.
The company also lowered guidance at the Barclay's Healthcare Conference on March 15th. The company lowered guidance to revenue of $928-$972 million for Q1 and analysts were expecting $1.03 billion. Earnings guidance was $1.02 to $1.08 and analysts were expecting $1.19.
Endo is also under pressure as a result of the Valeant Pharmaceutical disaster and the overall decline in the biotech sector.
Earnings are May 9th.
Shares have flat lined at the $28.50 level for more than a week and I believe we are about to see another leg lower. Today was the lowest close since January 2013.
Buy May $25 put, currently $2.05, initial stop loss $32.50.