Acorda Therapeutics, Inc. (ACOR): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Monday, May 13, 2013

At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
Acorda Therapeutics, Inc. ACOR Biotechnology 9.7 +36.19% $33.52

Why We Like The Stock:

Acorda Therapeutics Inc (ACOR) is our most compelling buy today due to the fact that it is a top- rated stock (in terms of earnings strength and company/industry performance) in our top rated industry, Biotechnology. Biotechnology has been on fire this year (SPDR Biotech ETF (XBI) since March), and while not all Biotech stocks act alike, there are certainly plenty of big gainers so far in 2013. Following weaker than expected EPS and Revs during its Q1 earnings announcement, ACOR dropped from ~$39 back down to its 50-day moving average at a pinch higher than $33.50. The good news is, the stock gracefully bottomed and based above the 50-day moving average and looks to be turning around. While a lackluster earnings announcement is usually not a good reason to pick up a stock, Biotechnology stocks primarily boom and bust along with the progress of their drugs in development, and are big momentum trades for the faster money types. We would take a shot at current prices with a buy of ACOR, mainly for its extremely high short-term upside back to its mid-April highs of $40.87. We like the calm basing pattern here, and would feel comfortable buying despite the recent downward plunge. However, we would give ACOR a very short leash, only holding while the stock remains above the 50-day moving average. Biotech is hot, and ACOR has room to run. As such, we feel it is today's most compelling buy.
We Would Be Buyers:

At the current price (~$34.30).

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Company Profile:

Acorda Therapeutics, Inc. (Acorda) is a commercial-stage biopharmaceutical company. The Company is engaged in the identification, development and commercialization of novel therapies that improve neurological function in people with multiple sclerosis (MS), spinal cord injury (SCI), and other disorders of the nervous system. Ampyra (dalfampridine) is an extended release tablet formulation of dalfampridine (4-aminopyridine, 4-AP). It also sells Zanaflex Capsules and Zanaflex tablets, which contain tizanidine hydrochloride, a short-acting drug for the management of spasticity. Ampyra is marketed as Fampyra outside the United States by Biogen Idec International GmbH (Biogen Idec). On February 6, 2012, the Company launched tizanidine hydrochloride capsules, an authorized generic version of Zanaflex Capsules under an agreement with Watson Pharma, Inc. In December 2012, the Company acquired Neuronex, Inc.

Stock Rating:

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.

Disclosure:

At the time of publication the editor and affiliated companies own the following positions: None

Note: Positions may be bought or sold while this publication is in circulation without notice.

  Acorda Therapeutics Inc - Last 3 Months

  Acorda Therapeutics Inc - Last 12 Months

  Acorda Therapeutics Inc - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

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The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: ACOR , XBI

David Moenning


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