Questcor (QCOR) Jumps Higher, Jefferies Says Allegations Much Ado About Nothing
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Price: $93.60 --0%
Rating Summary:
5 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
5 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Last week's blowup Questcor Pharmaceuticals (NASDAQ: QCOR) is stronger this morning after analysts at Jefferies defended the stock amid developments on the pending negative TheStreetSweeper report.
The firm said StreetSweeper's dialogue with QCOR reveals its report "may possess very little nuggets for QCOR bears and this latest controversy will wane soon."
"It seems StreetSweeper preliminary attacks against QCOR last Wednesday may have very little substance given the line of questioning that occurred between StSweeper and QCOR on Jan 16," analyst Biren Amin said. "The questions appear generated from an entity that has not conducted an extensive investigation nor is familiar with QCOR's business model or regulations that guide the pharmaceutical industry. QCOR bears appear to have been waiting for the day when a whistleblower would come forward to report the company's marketing practices. However, StSweeper in its conversations with QCOR did not raise any specific examples of improper marketing practices."
They also note that investor curiousity should be raised by the fact that not only was StreetSweeper short 80K shares even prior to issuing its first report but that it covered 42K shares within a day. "If the unpublished allegations were serious, we would not expect the blog to cover half its position." Going further the firm said they may expect an SEC investigation of StreetSweeper on a "short and distort."
Shares of QCOR are trading up 6.9 percent to $39 in pre-open trading Tuesday.
For an analyst ratings summary and ratings history on Questcor Pharmaceuticals click here. For more ratings news on Questcor Pharmaceuticals click here.
The firm said StreetSweeper's dialogue with QCOR reveals its report "may possess very little nuggets for QCOR bears and this latest controversy will wane soon."
"It seems StreetSweeper preliminary attacks against QCOR last Wednesday may have very little substance given the line of questioning that occurred between StSweeper and QCOR on Jan 16," analyst Biren Amin said. "The questions appear generated from an entity that has not conducted an extensive investigation nor is familiar with QCOR's business model or regulations that guide the pharmaceutical industry. QCOR bears appear to have been waiting for the day when a whistleblower would come forward to report the company's marketing practices. However, StSweeper in its conversations with QCOR did not raise any specific examples of improper marketing practices."
They also note that investor curiousity should be raised by the fact that not only was StreetSweeper short 80K shares even prior to issuing its first report but that it covered 42K shares within a day. "If the unpublished allegations were serious, we would not expect the blog to cover half its position." Going further the firm said they may expect an SEC investigation of StreetSweeper on a "short and distort."
Shares of QCOR are trading up 6.9 percent to $39 in pre-open trading Tuesday.
For an analyst ratings summary and ratings history on Questcor Pharmaceuticals click here. For more ratings news on Questcor Pharmaceuticals click here.
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