by Ian Harvey
February 07, 2019
Array Biopharma Inc (NASDAQ: ARRY)
Array Biopharma shares are doing well after reporting better-than-expected second-quarter fiscal 2019 results on Feb. 5, and rising nearly 11% on the day. And “Cut-to-the-Chase Members” gained potential profits of 168% with a call option.
The company -- with several drugs in its development pipeline -- posted a loss for the period ended Dec. 31, of 5 cents a share. The loss was narrower than the Consensus Estimate of 16 cents and its loss the same quarter the previous year of 17 cents.
Quarterly revenue shot up to $82.5 million, compared with about $42 million the same quarter a year prior.
GREED CAN BE THE UNDOING OF A GOOD PROFIT!
PATIENCE PAYS OFF!
YOU NEED TO BE IN TO PROFIT!
The Details Presented Previously……..
Array Biopharma Inc (NASDAQ: ARRY), a biopharmaceutical company, focusing on the discovery, development, and commercialization of small molecule drugs to treat patients with cancer and other diseases in North America, Europe, and the Asia Pacific, loss has lessened since it announced a -US$147.3m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$134.2m, as it approaches breakeven.
ARRY is bordering on breakeven, according to the 9 Biotechs analysts. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$169m in 2021. ARRY is therefore projected to breakeven around 3 years from now. In order to meet this breakeven date, the rate at which ARRY must grow year-on-year to meet this date, is on an average annual growth rate of 73%, which signals high confidence from analysts.
And to show the analyst confidence Cantor Fitzgerald yesterday initiated coverage on Array Biopharma with an "overweight" rating and $30 price target -- representing a premium of 76% to Monday's close at $17.07. The brokerage firm said Array's "lead asset, Mektovi+Braftovi, still appears underappreciated by investors," and the combination "has a best-in-class profile and is well-positioned commercially."
Array Biopharma shares gapped higher on January 7, as analysts waxed optimistic on the impact of the Eli Lilly (LLY) acquisition of Loxo Oncology (LOXO). Since then, ARRY has been consolidating its gains atop the $17 level, and was last seen 0.3% higher at $17.12. And the security has rallied 36% since its October 11’s low of $12.56.
** OPTION TRADE: Buy ARRY MAR 15 2019 18.000 CALL at approximately $1.30
The Result So Far………
After reporting fiscal second-quarter financials that were better than hoped, Array BioPharma saw its shares surge 11.3% on Tuesday.
Thanks largely to research and development expenses, total costs also were up in the quarter, to around $93 million, pulling losses from operations down to around $10.8 million for the year, according to the company.
Array BioPharma has said in the past that it thinks its Mektovi and Braftovi cancer drugs target indications could be worth $1 billion. And while sales remain a long way from the billion-dollar mark, the company's latest financial results suggest sales could eclipse the nine-figure threshold in 2019.
The two drugs, which are used to treat metastatic melanoma in patients with a BRAF mutation, delivered net product sales of $22.7 million last quarter, up 62% quarter over quarter. Along with a $40 million milestone paid by Loxo Oncology (NASDAQ: LOXO) and reimbursement revenue from Novartis (NYSE: NVS) as part of research collaboration deals, total revenue clocked in at $82.5 million, which was about $30 million higher than industry watchers were anticipating.
The move came on solid volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company, as the stock is now trading above the volatile price range of $16.82 to $19.20 of the past one-month time frame.
So, for “Cut-to-the-Chase Members”, who
managed to execute this trade recommended by Stock Options Made Easy, and then
exit Tuesday; a potential profit of 168% was to be made.
Entering the option trade at a cost of $1.30 or less; and the price of the option reaching as high as $3.49; a tidy profit was made. Therefore, one options contract would provide a profit of $219.00.
ANOTHER WIN FOR THE WEEK!
AS ALWAYS THE DECISION IS YOURS!
As you would have by now realized, some of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but it is obvious that it did not apply in this case. However, during earnings season this strategy of predicting earnings has been very profitable.
Sometimes it is our approach to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use – such as found with the “Earnings Predictions Program”. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been exceptional.
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!
Strategies to Consider……
When To Exit A Trade Based On Earnings?.....Read Article
"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.……continue reading this article……
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