AKRX BUY (AKORN INC)Hi there. Price is forming a big reversal pattern to change its direction. Also is close to 0 value which is a very good sign.
Watch strong price action at the current price for buy.
AKRX
AKRX Island bottomAKRX can be observed as detrended from its major trendline formed. However this may be recovered with the formation of an island bottom just below the trendline, potentially pushing the price back up into the buy zone. Islands are very predictable chart patterns of reversals in bullish markets (23/24) according to ‘Encyclopedia of chart patterns’.
AKRX - DAILY CHART Hi, today we are going to talk about the Akorn and its current landscape.
Akorn is poised to receive increasing attention from the market as relevant events are taking place. The American generic pharmaceuticals manufacturer has been crushed after analysts had called out the possibility of the company fill for bankruptcy. Akorn hasn't managed to generate much profit, as shown in the following metrics: Net Margin (-53.60%), Operating Margin (-19.37), and Gross Margin (+27.74). A negative confluence that turns Akorn in a hard case to defend.
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Bullish On AKRX - Possible Bounce HighAkorn, Inc. engages in the development, manufacture, and marketing of generic and prescription pharmaceuticals, and animal and consumer health products. It operates through the Prescription Pharmaceuticals and Consumer Health business segments. The Prescription Pharmaceuticals segment manufactures and markets generic and branded prescription pharmaceuticals including ophthalmic, injectable, oral liquids, topical, inhalants, and nasal sprays. The Consumer Health segment offers branded and private-label animal health; and over-the-counter products. The company was founded in 1971 and is headquartered in Lake Forest, IL.
SHORT INTEREST
13.42M 08/15/19
P/E Current
-0.84
P/E Ratio (with extraordinary items)
-0.71
Average Recommendation: OVERWEIGHT
Average Target Price: 6.30
AKRX - VOL ahead of judges decisionThis company has issues. It's association with John Kapoor doesn't help matters. Anytime now, the judge should deliver his decision regarding the merger drama. Based on price and chat, many are expecting the verdict to favor AKRX. Who knows. The possible verdict outcome could be merger proceeds at original terms, proceeds at a reduced price, or Fresenius is allowed to walk away. If it proceeds based on original terms, the stock should shoot up to ~$32-33. If Fresenius is able to walk away, the stock price will drop.
All the drama has caused options IV% to sky rocket to over 200%. (Historical is less than 50%). I sold a $10/$5 put spread. The only outcome that would put my position in jeopardy is if the ruling is totally in Fresenius favor and they are able to walk away. I think that is the least likely outcome, but still a possibility. That is the reason for utilizing a spread versus naked put.
AKRX Bullish SwingtradeNot sure if this one will retest the 100 EMA again or not. If so, it's a good entry point. plenty of room between the 2R target and the next major resistance level. Also able to put the 10, 20, 50, and 100 EMA's between the entry and stop. I'll be looking for a slight pause when we hit the 200 EMA but it should break through.
Potential $AKRX LongTHE IDEA
AKRX is testing levels last touched in February. The potential to break higher exists if the market overall also continues higher from where it is trading today.
THE TRIGGER
If AKRX is able to trade above 52.78 with above average volume the day it does this could be good confirmation of buying pressure and a trigger to get long. The idea is to hold this for an intermediate time frame play to the upside beyond 55.86 (last hit in February).
Fundamentally, AKRX is in solid shape and acting as foundation for a good strong move upward if buying pressure confirms.
Long AKRX (Akorn Inc) Short PKD (Parker Drilling Company) SpreadThe Long/Short Equity spread of AKRX/PKD has just broken out to a new high and finished Friday's trading session at the high of 12.82.
Akorn Inc (pharmaceuticals) has reported consistently good earnings with an EPS change of 80% in the last quarter and also an annual ROE (Return on Equity) of 27.1%. It trades at a slightly higher P/E ratio of 48 which has been justified so far by the continued increase in EPS, with the next results due in March 2015.
Parker Drilling is one of many oil sector stocks which is now trading at a 52 week low with poor EPS results and an outlook to match. Trading at only $3, one may ask how much lower it can go although there is no sign of let up on the price of oil just yet and so oil sector stocks will continue to match accordingly.
It is just as easy to substitute this stock for many others in the same sector, such as OAS for example.
