Amarin Corp Plc (AMRN)

[Crikker]

Mutual Funds

I know some folks in the mutual fund industry and I asked them to see what their portfolio managers thought of AMRN. Of the 2 I asked one is strictly large cap and didn’t know anything because it didn’t hit their radar yet. However, the other had bought an extremely small position in November and recently sold out. The logic they gave was mostly around the current valuation.

During the conversation I was struck by how much emphasis they were putting on current finances and not really looking at near future catalysts. IMO this reinforces some points Dan made previously about big money not feeling an urgency to buy right now. I suspect we are going to be stuck under $25/share for a while (barring b/o or hype about a buyout) until the company makes progress on their plans of expanding label, international expansion, SOC inclusion and increased insurance coverage and all of these items add to increased scripts, revenues, and profits.

However, once these goals are achieved and the scripts start exploding, the run from the $20s to the $90s will be breathtaking. The investment thesis then becomes quite easy- do you believe mgmt can deliver on the above mentioned items? If so sit back, be patient and enjoy the ride. Ignore the short term noise and price movement. If not then sell your shares or maybe trade the volatility. For me, I’m a believer and sitting tight for now.