$MNK A Buy On 56% Of The Float Short

Jan 16, 2020

MNK is up 40% this week after positive comments from the company's CFO. With a massive short position in the stock, we think this rally has further room to run.

The stock started rallying this week after Chief Financial Officer Bryan Reasons said at the J.P. Morgan Health Care Conference on Monday that the company could pay off its potential 2020 debt maturities, which is a "slightly over" $600 million, in cash. And regarding the dispute with the government over pricing for Acthar, he implied that he was optimistic regarding a favorable outcome, so there was no need to rush to settle. "Right now, we felt like the hearing went really well and we feel good about it," Reasons said, according to a transcript provided by FactSet. "So, we don't feel it's in our best interest to actually initiate the settlements." And regarding the opioid litigations, Chief Executive Mark Trudeau said he was "hopeful" that a resolution can be reached "sooner rather than later." The stock has more than doubled (up 110%) over the past three months, but is still way down 83% off its 52 week high of $27.33 a share.

As always, use protective stops and trade with caution.

Good luck to all!

Jan 21, 2020

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Subscribers up 35% in 3 trading sessions on MNK short squeeze