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With the potential this share has to rise quickly I think investors will be wary of taking their profits. More than likely they will be looking to add to their holding at the best opportunity. I can see this nudging the all time highs in the next few months.
Thinking about it, the shares have come back very strongly after being shorted down to around £8. Buyers at that ridiculously low level will now be very happy to take profits, and it looks like they did in a big way on Friday. I'd now expect a bit of a rebound, then a more gentle upward trend, albeit with wild daily swings.
That's easy to answer: a great trading update. As for today's even sharper reversal, God only knows! This share is all over the place....
Why the sharp rise today??
The only way to reach Colchis was to sail through the Symplegades (Clashing Rocks), huge rock cliffs that came together and crushed anything that traveled between them. Phineas told Jason to release a dove when they approached these islands, and if the dove made it through, to row with all their might. If the dove was crushed, he was doomed to fail. Jason released the dove as advised, which made it through, losing only a few tail feathers. Seeing this, they rowed strongly and made it through with minor damage at the extreme stern of the ship. From that time on, the clashing rocks were forever joined leaving free passage for others to pass.
sold today and banked a tidy 16%, so thank you Mr Hikma, or rather Mr Market )
The risk to wait for the additional 4% far outstrips the reward and today Christmas came early for me, never look a profit in the eye, take it!
S8
amazing, I buy in and the thing dont move!
Hopefully a better week next week.
S8
Although rather suspicious about the huge drop and huge rise, todays price was just too tempting to ignore. hence I have purchased a modest tranche and will see which way the wind blows from here.
I doubt the market could repeat such a drop as previous, as it would surely arouse more suspicion if it did.
Looking for 20% by Xmas, good luck to all.
S8
The bulls attempt to get in toay was shot down by the bears..
Looks like further to fall to me
I am gonna sit and wait
For a defensive, Hikma's c8% drop today seemed overdone - Glaxo was down just 2% - so I topped up.
Maybe Hikma holders are being particularly cautious after the pain of the last 12 months, which is still very fresh in the memory.
Fine.
"There was a setback when the asthma treatment was rejected by the FDA and so the period of uncertainty was swiftly latched on to by short sellers".
Sorry Fantom, I dont buy that analogy, as from my basic research to date the rejected asthma treatment which you refer to was not even priced in to the Hikma share price, so that explanation holds little weight with me.
As for the generic guidance side of things, again that does not wash for me as from what I see a small drop in anticipated forward guidance does not equate to a 70% (2.5B) drop in value of a company such as Hikma. If that were the case then why would the stock gain 160% in 5 months? did I miss the RNS that said the asthma drug was approved, or the RNS that said the injectables guidance was in fact wrong and its now some 500% more than anticipated?
IMHO something far more sinister went on here, quite what I do not know but judging by the analysts double downgrades from Barclays and Jefferies when this stock was trading low 800s, and saying that the price was going lower, for it to then suddenly turn around and gain 160% in a few short months to top 2000p just recently, to me that price was artificially pushed lower for a reason, a reason that is not clear to me at this current time but hopefully soon I will be able to connect the dots and find out the truth behind it.
Having a fairly good idea of the market machinations, it would be interesting and somewhat revealing to find out if there were any large positions exposed to this stock by way of options calls or spread bets.
Another oddity here is that I have been carrying out some research on stocks that have had crazy swings on no apparent news, and have found a correlation between the stocks in question and also certain hedge funds taking out short positions on those stocks preceeding and during a stocks decline.
For this reason I am most certainly going to refrain from investing here until I satistfy myself that nothing untoward went on here, although at present the stocks huge drop followed by an even bigger rise is IMO highly suspicious to say the least.
S8
My understanding is the generic side of the company, which reaped the greater proportion of profit than branded or injectables, gave poor forward guidance to the market. There was a setback when the asthma treatment was rejected by the FDA and so the period of uncertainty was swiftly latched on to by short sellers. Getting Olly on board has been seen as a big plus!
Thank you Dar for your kind shared research regarding figures, however it was not that I was questioning.
My question was, why did the share price go from 2300 to 800 in less than a year and then from 800 back to over 2000 in less than 5 months. It basically lost 70% on from what I can see as no reason, then again it surged from that price some 160% and again from what I can see no apparent reason.
These swings are usually found in pharma companies when a companies main drug pipe line fails or a study patient dies and the massive 160% rise is usually associated with massive news on a breakthrough drug being passed by the FDA, neither of these events occured yet the stock moved some 230% in just over a year which for a stable company such as Hikma is rather odd to say the least, to be honest the move to me is very suspicious and I am surprised that the FCA did not look into this huge price movement on nothing.
Im holding back investing on this one for now until I am satisfied that something untoward has not gone on.
S8
Hi Sister8,
I have provided some key figures from the interim account posted August 2018 and they infer a very good year ending 31.12.2018, HIK sit in my portfolio for some time and I have no reason to sell. as you say a stable pharma. I was glad to see the level of debt was reduced. IMO that could be an issue.
ATB
DAR
Group revenue of $989 million, up 11% and in constant currency up 10%1
· Operating profit of $174 million, up 54%
· Core2 Group operating profit of $214 million, up 22% and up 23% in constant currency
· Core basic earnings per share of 61.4 cents, up 35% and up 38% in constant currency
· Basic earnings per share of 44.0 cents, up 53% and up 57% in constant currency
· Cashflow from operations of $185 million
· Net debt reduced to $501 million (31 Dec 2017: $546 million) and healthy leverage ratios maintained
· Interim dividend of 12 cents per share, up from 11 cents per share
· Guidance raised for Injectables and Generics businesses and reiterated for Branded business
Hello everybody.
I am looking for a reasonably low risk stable pharma to add to my modest portfolio.
Of my current limited research, Hikma seems to tick that box, however, there are a few questions. I cannot fathom why the share price went from 2300 to 800 in less than a year and then from 800 back to over 2000 in less than 5 months.
I have looked back through the RNSs and cannot see any share consolidation or placing so am baffled as to why a fairly stable pharma such as Hikma could have lost over 70% in one year for no apparent reason and then gain almost 160% in less than six months, again for no apparent reason.
The volitilty equates to some 230% of price fluctuations on an otherwise stable decently run company and to the likes which I have never witnessed on any other pharma company, unless of course there were an absolutely dire drug failure or multiple deaths in one of its drug trials. Again, neither of which seems to be the case here.
In fact the rise from 800 actually started after the company reporting a huge loss in their trading update back in March this year, which came to some 800m....hopefully someone can shed some light on this and allay my fears on investing in Hikma or not.
Thanks in advance.
S8
Interesting to see heavyweight buying after the close. The pull back following the recent surge has been kept in a tight range which bodes well for further gains.
Anyone know what the difference is of the two tickers? Both are Hikma.
HKMPF is up 2%
HKMPY is up 26% ($10).
US stock up 26% overnight. Any news?
It is bad when you have bought in at 2100, so guess depends on your holding :-)
don't be greedy , it is not bad from £9 to £20 in six months.
breached earlier today! Shame we didn't sustain this rise but pleased that we're still moving up.
Just sold at 19.60, glad I waited and didn't panic sell but I've got a decent 4 figure profit so happy days, if it drops back a little on Friday I may re-enter.
FTSE 100 here we come
breached. Not sure where to put my target but i'd bag at £24.Gla holders