Investment Q&A

Q: I still hold my Paladin PLB shares and wonder what you think of Endo's ENDP results. Is this good, bad, or neutral? Wondering why they guided lower for 2014 after the Paladin acquisition. Is it time to sell Paladin?

Endo Health beats by $0.04, misses on revs; guides FY14 EPS below consensus, revs in-line (ENDP) : Reports Q4 (Dec) earnings of $0.96 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus Estimate of $0.92; revenues fell 26.8% year/year to $548.9 mln vs the $620.71 mln consensus.

Q: I can't decide what to do with Paladin (PLB): every time I go to sell it, the stock moves up sharply. Furthermore, I get confusing news and analyst downgrades on Endo (ENDP). The long quote below (sorry) is a sample of what confuses me. Does the market think that Endo would be better off without NuPathe? Any clarification you can provide would be greatly appreciated. Thanks

"NuPathe (PATH) looked to start a bidding war between Endo Health Solutions (ENDP) and Teva Pharmaceutical Industries (TEVA). .... NuPathe, meanwhile, said that it's reviewing a $114 million buyout offer from Teva, topping Endo's $105 million bid, which NuPathe accepted last month. .... Last week, Cantor Fitzgerald downgraded Endo based largely on the NuPathe acquisition, saying that the upcoming launch of its migraine treatment Zecuity would likely face stiff competition."

Q: Hi Peter. You recommend holding Paladin labs for now.My initial question was sell or hold. Can you give me some insight into Endo Health. Great service you guys provide.
1 year subscriber will gladly renew. Thanks in advance. david