$heff's $tation of $tocks & $olid DD

[Investor100]

QCOR:$QCOR to rise on blowout earnings Wed

Originally posted by RRU2S

QCOR’s upcoming earnings report is Wednesday, Feb. 22, and will show their TTM EPS saw a 40.5% increase (from 0.83 to 1.17). This increase is pretty much fact, as a 2/16/12 8K filing presented a pre-release of information showing net income (before taxes) will be in the range of $41M to $43M. Based on that data and the expected tax rate, the quarter ending 12/31/11 should yield an EPS of 0.44 (= 42/33.7 x 0.35).

The 40.5% TTM EPS change represents a big chart play, especially after a StreetSweeper report back in January allowed shorts to drop QCOR’s PPS by 19%. However, the rather weak StreetSweeper report was effectively refuted in a rebuttal issued by QCOR. Note QCOR earnings are expected to rise throughout 2012, which is attributable to effective marketing of their approved drug for several conditions. QCOR has lots of cash, and should do well in 2012.

Backup info:

Period___________________12/10____3/11____6/11____9/11_____12/11
Diluted EPS________________0.10____0.17____0.21_____0.35_____0.44--(projected)
Net.Inc.B4_tax______________10.9___16.6____20.4_____33.7______42--(projected)
Net.Inc.after.Tx_____________6.42___11.2_____13.87____22.85____28.48--(projected)
ratio income B4/after tax____________________1.4704___1.4747___1.4747--(projected)
Sharecount________________65.39___65.37___65.46____66.02____66.02--(projected)
N.I./(EPS x Sh.Ct)___________0.9813__1.0099__1.0093___0.9889___0.9889--(projected)

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QCOR:$QCOR huge institutional ownership, small retail float

92.9% institutional ownership (59M out of 64M sharecount):


http://www.nasdaq.com/symbol/qcor/institutional-holdings

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QCOR:$QCOR 54% upside 12 mo. PPS target

54% upside (12 month analyst price target consensus $51.50 vs. current $33.56)

http://www.nasdaq.com/symbol/qcor/analyst-research

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QCOR:$QCOR Strong Buy: 7/7 Analysts

Rated strong buy from 7 out of 7 analysts:

http://www.nasdaq.com/symbol/qcor/recommendations

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QCOR:$QCOR 17% of float Short Interest

Latest Short Interest: 10.6M (17% of float or 233% of retail interest (non-institutional ownership)

http://www.nasdaq.com/symbol/qcor/short-interest

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QCOR:$QCOR $214M cash, buyback record, debt free

Cash flow positive ($214M cash/short term investments) and debt free:

Source: 8K filed 2/16/12

15M share buybacks completed, 4.3M additional share repurchases authorized

Source: 8K filed 2/16/12

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QCOR:$QCOR effective rebuttal to StreetSweeper report

Link to QCOR’s professional and effective rebuttal of a weak StreetSweeper short-selling report:

http://www.streetinsider.com/Corporate+News/Questcor+%28QCOR%29+Issues+Response+to+StreetSweeper+ReportAllegations/7084149.html

Soon after this rebuttal was issued, StreetSweeper's short position decreased substantially; evidently they covered when they saw the preliminary news of QCOR's upcoming blowout earnings report. However, not all shorts have covered, based on NASDAQ latest daily short interest.

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Investor 100