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QCOR returns 35 percent in 2 weeks

Questor Pharmaceuticals (QCOR) was announced 2 weeks ago as a Way Undervalued stock.  During that 2 week period, the stock has since gone up 35%.

 

On March 27th, the Way Undervalued analysis showed the following for Questor Pharmaceuticals:

Ticker

P/E Ratio Used

Closing Price on 3/27/14

2014 Value Estimate

2015 Value Estimate

2014 Value Discount

2015 Value Discount

Company Name
QCOR 17.8 62.96 126.02 140.09 100% 123% Questor Pharmaceuticals

 

As of today, the Way Undervalued analysis has changed significantly:

Ticker

P/E Ratio Used

Closing Price on 4/9/14

2014 Value Estimate

2015 Value Estimate

2014 Value Discount

2015 Value Discount

Company Name
QCOR 17.8 85.16 125.49 138.31 47% 62% Questor Pharmaceuticals

 

Expected earnings have gone down slightly, but the main change is that QCOR now trades at 85.16 per share.
Questor now shows a 2014 Value Discount of 47%, down from 100%.  This means QCOR has lost its Way Undervalued status.  After rising 35%, Questor's 2014 Value Discount is well below the 100% threshold to be considered Way Undervalued.  It's also dropped slightly below the 50% threshold to be considered Undervalued.

Most of QCOR's steep rise in price seems to be attributed to QCOR being bought by Mallinckrodt (MNK).  Apparently, Mallinckrodt thought this company was worth much more than it was trading 2 weeks ago, and I agree with them.

Could QCOR continue to go up?  Yes, but if you purchased it based on being Way Undervalued and earned 35% on your investment in a 2 week period, you might want to take some or all of that and lock in your gain.  35% would be a nice annual gain.  You could sit on the sidelines with that money and wait for a bloody day (or week or month) in the stock market while you choose your next investment.  Maybe you'd be interested in another one of the Way Undervalued stock picks?