Health Stock Short-Squeeze Opportunities
Mid-cap biotechnology company United Therapeutics (UTHR) develops products for patients with infectious and chronic diseases as well as cancer.
The company has seen quarterly sales grow 30% in the last year, and shareholders have been rewarded for their faith as shares gained 66.21% over that same period. But short-sellers continue to tug at United Therapeutics' share price, pushing the company's short ratio to 11 currently.
United Therapeutics benefits from thick margins -- 12.28% as of the company's third-quarter earnings release in late October -- as well as a history of successfully commercializing drugs, something that many micro- and small-cap biotechs are often lacking.
Two catalysts could give this stock a squeeze-induced pop in the next month: a health care conference and upcoming earnings release. On Jan. 11, United Therapeutics will be present at the 28th annual JPMorgan Healthcare Conference, an event that gives the company an opportunity to showcase its therapy pipeline to analysts and institutional investors. More significant is the company's yet-unscheduled fourth-quarter 2009 earnings release, which should be coming up within the next month.
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