Recent trading over the past several weeks has been providing the underpinning for a minimum stock price of about $30/sh.
The FRX pipeline is full with new products projected for a 2010 and beyond, thus current sales revenue growth (now stuck at 6% per annum) should get a jump start, and therefore, I expect a breakout within the next three to six months.
Also, FRX is well positioned with generic and branded products and is one of the rare drug companies with a vertical retail business model.
Financials are great, NET margin of 18%, no debt.
I would expect that the market will drive a stock price of $45/sh by March (and $52.50 by December 2010).
I own the stock.
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December 4, 2009
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