No. of Recommendations: 8
Surely there is a bottom down there somewhere. I don't know where it is.
Have a look at a longer term chart...today's price is almost precisely where it was 5 years ago, which is almost precisely the moment before the GLP1 market exploded. It would appear that the market has concluded that they ultimately gained net nothing from the whole affair, despite book value per share being up by a factor of 3-4 from all the retained earnings. You'd think they'd be able to find *some* way to make a buck in future from all those additional assets, no?
I have no position, and no hope of knowing what they're really worth, but I share the thought that it might be cheap enough to cover a fair bit of uncertainty about the future. For whatever it's worth (not much) most analysts seem to think the next couple of years of revenue and profits will settle in only about 8% below the figures of the last couple of years. That won't do much for the share price, but would be a forward P/E of around 10-11, probably enough to keep one from going broke.
If I played this one, I'd probably do repeated at-the-money cash backed puts. That frequently turns into a pleasant annual return when a stock price is flattish/range bound but value supported.
Jim
