Wednesday, July 25, 2012

Waiting for the numbers

I found today's price action in several holdings disappointing, including Spectrum Pharmaceuticals, which is my largest position.  Despite a widely noted article this morning detailing very robust sales data for June (which I can't independently confirm), the stock closed almost unchanged.  I'll simply wait for actual earnings numbers next week, to confirm the true earnings power of the company at the purportedly elevated revenue levels.  If the actual numbers are anywhere close to what is speculated, the company would seem to be very undervalued.  My long call position doesn't expire for almost four months, so I'll get two more earnings reports before the calls expire.