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For full disclosure, I own a large amount of AKRX and have and doing very well with it.
In fact, this mornings big drop in stock price does wonders for my covered calls.
Akron (NASDAQ:AKRX) late Friday said it would have to restate its 2014 financials, estimating that it overstated revenue and pre-tax income from continuing operations by $20 million to $35 million. Akron shares fell 14.4% to 47.28 in after-hours action.
Akron said the "errors related to the understatementments of rebates and other sales allowances," mostly from companies and products acquired last year. The drugmaker also named Terry Allison to its board of directors and its audit committee.
Akron also reaffirmed its 2015 guidance of EPS of $1.88-$1.98.
Back on March 17, Akorn said its Q2 revenue was overstated by $8.9 million and EPS by 5 cents largely due to its Hi-Tech Pharmacal buy. But the stock rose 9.8% the following day on relief that the estimated restatement at the time wasn't worse.
Akorn shares closed down 1.2% at 55.24 on Friday after reversing from a record intraday high of 57.10.
This morning AKRX is down $8.00 (13.79%) to $47.25
(11:20 am UPDATE: Down >20% at $43.85; and I just bought more.)
For a company with annual revenues of almost 600M, restating up to 35M less and reaffirming its 2015 guidance, isn't this an overreaction?
I think so.
Always conduct your due diligence and trade smart;
-Adam
Old Hippy & Mortgage Pro
In fact, this mornings big drop in stock price does wonders for my covered calls.
Akron (NASDAQ:AKRX) late Friday said it would have to restate its 2014 financials, estimating that it overstated revenue and pre-tax income from continuing operations by $20 million to $35 million. Akron shares fell 14.4% to 47.28 in after-hours action.
Akron said the "errors related to the understatementments of rebates and other sales allowances," mostly from companies and products acquired last year. The drugmaker also named Terry Allison to its board of directors and its audit committee.
Akron also reaffirmed its 2015 guidance of EPS of $1.88-$1.98.
Back on March 17, Akorn said its Q2 revenue was overstated by $8.9 million and EPS by 5 cents largely due to its Hi-Tech Pharmacal buy. But the stock rose 9.8% the following day on relief that the estimated restatement at the time wasn't worse.
Akorn shares closed down 1.2% at 55.24 on Friday after reversing from a record intraday high of 57.10.
This morning AKRX is down $8.00 (13.79%) to $47.25
(11:20 am UPDATE: Down >20% at $43.85; and I just bought more.)
For a company with annual revenues of almost 600M, restating up to 35M less and reaffirming its 2015 guidance, isn't this an overreaction?
I think so.
Always conduct your due diligence and trade smart;
-Adam
Old Hippy & Mortgage Pro