Shire Pharmctcl(SHP): time to expect recovery?

Riz

Experienced member
1,266 5
SHP been bouncing last couple days on 2 bottom and off a flat base, breaking a few resistance levels on the way up, on relatively higher volumes, with RSI triple bottoming around 10 level and sharply ticking up to hit 30, stochastics breaking through 20 line below which they were stuck almost all April, and as Williams de Broe upgraded its stance to 'buy' from 'hold' believing the SHP is undervalued in comparison to the sector...

Up +20 today to 522...

Worth to watch long-bias by the look...

Riz

(No financial advice intended)
 

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Riz

Experienced member
1,266 5
Up +71 to 580...

SHP shares surged today after reporting a 34 per cent rise in first-quarter earnings per share and saying that it may see some earnings growth in 2002.

Riz
 

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Bill G

Member
92 2
Yes it looks promising up 2.16% n the first half hour's trading.
There are some glitches in an otherwise good report.

Subject: Broker recommentations
Company: Shire Pharmaceuticals Group PLC
Date: Wed 1st May 2002 14:23:00
Country: United Kingdom
Industry: Health care

STOCKWATCH Shire Pharmaceuticals jumps higher after Q1 numbers please

LONDON (AFX) - Shares in Shire Pharmaceuticals Group PLC jumped higher in
early afternoon trade, extending earlier gains following the release of stronger
than expected Q1 results and a slightly brighter outlook statement from the blue
chip firm, which had issued an earnings growth alert at the time of its full
year numbers in February, dealers said.
At 2.16 pm, Shire's shares topped the FTSE 100 leaders board with a 35 pence
advance to 544, just below their session peak at 545 touched following the
results announcement.
At the same time, the FTSE 100 index was 12.3 points lower at 5,153.3.
Earlier this afternoon, Shire reported pretax profit of 77.5 mln usd in the
first quarter, up 40 pct from the year earlier's 55.4 mln.
The company repeated its warning given at the year end that higher costs and
new competition will hit growth, but it held out "the prospect of some earnings
growth" this year.
Growth was driven by dramatic revenue gains from the growth of the group's
Adderall Attention Deficit Hyperactivity Disorder (ADHD) franchise following the
launch last year of the new Adderall XR once-a-day formula.
But the group reiterated its gloomy forecasts from the year end that
earnings growth this year will be hit by the double impact of higher new product
launch spending, and the effects of new generic competition for traditional
Adderall.
In its quick initial reaction, 'house' broker Merrill Lynch pointed out with
the reassurance given by the company's new outlook, it is raising its revenue
growth forecast for Shire to 13 pct from 8,
However, Merrill has said the associated rise in projected sales, general
and administration costs, and R&D spending limited the scope for an EPS upgrade.
The broker, therefore, said its 2002 fully diluted EPS forecast of 30.3
pence, flat on 2001, remains unchanged, although it continues to forecast 2003
EPS growth of 17 pct to 35.4 pence.
Merrill pointed out that, in its view, Shire has reported an encouraging sta
rt to what is expected to be a tough year given the introduction of generic
Adderall.
The broker said it sees the Q1 results and associated comfort given on the
full year outcome as an important step forward for investor sentiment.
Merrill added that on its forecasts Shire's shares trade at 1.0 times long
term growth, where, in its view, a more appropriate valuation, in line with the
Specialty peer group would be 1.3 times, which implies a share price of around
700 pence for Shire.
The broker reiterated its 'buy' rating on the stock.
jmh/kl
NNN
 

Riz

Experienced member
1,266 5
Up again +44 (7.6%) to 624, turned out to be a nobrainer this one...let's see where it settles from here on for further comments

Riz
 

nobrainer

Active member
112 2
Nice call riz on SHP........have to say I bought as soon as results were out and sold eventually at 614.Its likely due a bit of consolidation so I'm out of it for now.There will hopefully be news in June regarding US approval for their drug so I expect to go long before that in anticipation.
By the way , have gone long iii, on the back of this EZJ/GO news.Ought to benefit the share price on consideration of what a great deal iii did when buying GO from BAY.
Good Luck, hope trading is going well.
 

Riz

Experienced member
1,266 5
Thanks NB and glad you were also on board when it jumped... trading going very well thanks, been a long while since I started to trade only intraday and rarely holding o/n...nice to see you around again

Riz
 

Riz

Experienced member
1,266 5
Up again +7.5 to 635.5, forming a nice hammer on the daily chart, the conso has broken up...it was -ve most of the session though, upmove probably helped by the over optimistic US sentiment, as this break not supported by higher volumes, caution required, still SHP keeps recovering thats the point...

Riz
 

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