Winter is approaching fast, but Questcor Pharmaceuticals (UNKNOWN:QCOR.DL) bears don't appear to be going into hibernation any time soon. Recent concerns sparked by a clinical policy bulletin at Aetna have some investors worried that the good times are nearly over for the company's lead drug Acthar. To make matters worse, the company's marketing practices are also under investigation by the U.S. government.
While investors should take stock of such concerns, it's also important to understand the bullish side of the story. I took a look at both ends of the argument in my new premium report on Questcor, providing three reasons to buy and three reasons to sell the stock. Here's a look at three reasons investors should think about buying the stock.
- The company has focused on expanding Acthar's use in both new and existing indications, which should help to support paid prescription growth going forward while also providing some (albeit slim) diversification benefits.
- The company has exhibited a strong amount of operating leverage, consistently growing revenue at a much faster rate than expenses, leading to expanded profit margins.
- With a newly initiated dividend, Questcor provides investors with a healthy degree of current income (the stock yields more than 3%) to go along with a strong growth profile.
I hope you enjoyed this sneak peek at our brand-new premium research report on Questcor. To see three reasons to sell -- as well as an in-depth view of the company and a full year of analyst updates -- claim a copy today by clicking here now.
Fool contributor Keith Speights has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.