Lannett Company (LCI) Deep Value and Heavily Shorted
Lannett Company has been providing high-quality, affordable generic pharmaceutical products for over 75 years. The stock has big institutional investors including JP Morgan; roughly 85% is held by institutional investors. Per Finviz the stock trades at .4 price to sales ratio and a forward PE of 28, EPS growth of 15% over the next 5 years. Charles Schwab ranks it a B.
According to Finviz the float is only 32 million. Even better the short ratio is 9.55. For those not familiar, the short ratio is the number of shares short divided by average volume. Also referred to days to cover meaning that it would take 9.5 days of volume for shorts to fully cover. There is also options open interest building around the $4 and $5 strikes.
For those who like technicals you can see that the chart has just made a double bottom formation. The low was roughly $4 and the high in February was $10.
Roth did reduce the price target today from $7.5 to $7, but this still means roughly 37% upside from here if this price target is achieved.
I went long today and plan to keep loading. Do your own due diligence but this seems like a great investment to me ( short and long term).
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June 10, 2021 at 05:24PM