…. Now he’s hooked on the QUACK.

Anyway, someone I trade with spotted this beautiful chart yesterday I thought I would share with you. The company is Lannet, $LCI and the chart is beautiful. They make and manufacture prescription drugs which in America we hold near and dear to our hearts. They produce them in capsule, tablet and oral liquid form in case your teeth are already wiped out from your chronic meth addiction. What’s not to like about these guys?

Before the open, and before most of you had popped your first amphetamines of the day, I was chatting with my friend (who was popping amphetamines) over email and shared this chart:

To which he replied:

Beta: 2.18 / TTM P/E: 5.67

High beta trading at a low P/E multiple… usually a good combination for a risk on market.

As for fundamentals, last two earnings reports have been disappointing but EPS Trends are starting to stabilize. When you consider the book value and huge discount the stock is trading at, gives you a level of downside protection. If they can hit Q3 earnings, we’ll be off to the races. In my opinion, too early to go long the stock but perfect for a long-term out of the money call.

Timely. Was up 10% on the day before a pullback towards the middle of this wedge. Don’t buy $LCI up, but keep it on your radar for a breakout above trend resistance.

OC