Take a look at the chart below. It is a thing of beauty.
We began discussing DEPO on November 3rd, when DEPO was trading at about $5 per share. Since this time $DEPO has maintained its consistent rise, and today $DEPO hit a 52 week high and closed above $6.40, representing a 28% gain. The $5 Jan Calls that we purchased on 12/16 for $1.05 have increased in value by over 40%, trading today for $1.50. On December 16th we released our valuation report on DEPO, and we estimated a run-up price of around $6.80.
The PDUFA date for DEPO is 01/31/11 it is not showing any signs of slowing. Insiders and institutions hold 67% of the available shares for DEPO, creating a solid demand that influences price action. DEPO also holds over $76M in cash and has a burn rate of only $5M per quarter, minimizing the risk of dilution over the next month.
Disclosure: Long DEPO
