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http://seekingalpha.com/article/347...ells-2-potential-shorts-2-to-buy?source=yahoo
Hospira Inc. is a specialty pharmaceutical and medication delivery company. It develops, manufactures and markets products that help improve the safety and productivity of patient care. It is a leading player in specialty injectable pharmaceuticals and the largest standalone player in generic injectables.
HSP's market share has seen a steady decline ever since it received the warning letter to its Clayton and Rocky Mount facilities by FDA. Further, its McPherson facility also received six Form 483 observations in Jan 2012. In a recent call the company management said that it has extended its scheduled shutdown of Rocky Mount plant by a few more weeks. There is no further clarity on the timelines of the potential resolution of its manufacturing issues. These issues are expected to hamper its production severely directly impacting its top line growth in 2012. Hospira's shares have risen 26% after hitting its 52-week lows in December. I don't see any further upside likely in the near term and believe that this is just a dead cat bounce. I expect the stock to resume its downward trajectory soon.
Hospira Inc. is a specialty pharmaceutical and medication delivery company. It develops, manufactures and markets products that help improve the safety and productivity of patient care. It is a leading player in specialty injectable pharmaceuticals and the largest standalone player in generic injectables.
HSP's market share has seen a steady decline ever since it received the warning letter to its Clayton and Rocky Mount facilities by FDA. Further, its McPherson facility also received six Form 483 observations in Jan 2012. In a recent call the company management said that it has extended its scheduled shutdown of Rocky Mount plant by a few more weeks. There is no further clarity on the timelines of the potential resolution of its manufacturing issues. These issues are expected to hamper its production severely directly impacting its top line growth in 2012. Hospira's shares have risen 26% after hitting its 52-week lows in December. I don't see any further upside likely in the near term and believe that this is just a dead cat bounce. I expect the stock to resume its downward trajectory soon.