Friday, July 20, 2007

Questcor Pharmaceuticals

Questcor Pharmaceuticals is an AMEX listed security that has been trading in a range between $0.41 and $1.89 over the past year. With 69,041,280 shares outstanding, a recent price of $0.43 gives a total market capitalization of $28,997,337. While there are certainly larger companies, Questcor Pharmaceuticals has definitely earned its place in the pack. Last year, Questcor Pharmaceuticals created $-0.18 in earnings for every share outstanding.

Questcor Pharmaceuticals is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, Questcor Pharmaceuticals is unlikely to be an interesting value proposition.

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