Sell Mallinckrodt Shares Ahead of the Crash

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Sell Mallinckrodt Shares Ahead of the Crash. Vieira Urges Investors to Sell Mallinckrodt. The biotech stock bubble is still alive! Sell everything ahead of the collapse

Sell Mallinckrodt Shares Ahead of the Crash. Vieira Urges Investors to Sell Mallinckrodt. The biotech stock bubble is still alive! Sell everything ahead of the collapse. Vieira quadrupled short positions on biotech stocks.

stock market lIVE.TV has no doubts – sell Mallinckrodt at the top, investors will be able to buy back Mallinckrodt at much lower prices.

Vieira sold short Mallinckrodt (MNK) on the day he bailing out of his long position using short covering on Wall Street upgrades.

Mallinckrodt plc MNK reported adjusted earnings of $2.01 per share in the second quarter of fiscal 2016 (ended Mar 25, 2016), beating the Zacks Consensus Estimate of $1.72. Earnings also increased from the year-ago figure of $1.70.

Net sales in the quarter came in at $918 million, up 12.1% and well below Vieira’s estimates $974 million.

The company reports results under three segments – Specialty Brands, Specialty Generics and Nuclear Imaging. In Nov 2015, the company sold its contrast media and delivery systems (CMDS) business to Guerbet S.A. Following the sale, the Global Medical Imaging segment was renamed Nuclear Imaging.

Sales at the Specialty Brands segment were $535 million, compared with $334.3 million in the year-ago quarter. The increase in net sales was primarily driven by the inclusion of Inomax and Therakos, which generated combined sales of $165.7 million. Acthar sales came in at $248.4 million, up from $228 million a year ago. Ofirmev sales jumped 4.4% year over year to $71.1 million.

Specialty Generics generated sales of $264.4 million, down 27.1% due to lower sales in various product categories as a result of increased competition.

Raises Guidance

Management has lifted its outlook for fiscal 2016 earnings yet again. The company now expects adjusted earnings per share in the range of $8.15–$8.50, up from the previous projection of $7.85 to $8.30.

Our Take

Mallinckrodt’s second-quarter fiscal 2016 results were not impressive, with the company missing both top- and bottom-line estimates on the back of poor performance at the Specialty Brands segment. The company’s acquire-to-invest policy might be yielding results, as both Inomax and Therakos reported some demand, along with incremental volume growth of Ofirmev. Consequently, the company raised its annual guidance yet again, encouraged by a mild first half. Recent acquisitions may provide accretion to earnings in fiscal 2016.

stock market LIVE.TV cut Mallinckrodt (MNK) share price target to $54

Nikolay

Nikolay

Professional investor and entrepreneur. Engineer and mathematician. Passionate for the Big Bang and poetry.

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