As I've written in the past, I think being a little reluctant to sell
out of a good position is far from the worst trait an investor could
have. To that end, while I saw less value left in the shares of Danish
drug company H. Lundbeck (OTCPK:HLUYY) (LUN.CO) than I would have liked back in August, I was hesitant to sell ahead of potential upside in the cost-cutting program.
Since
that last article, Lundbeck shares have logged solid double-digit
appreciation and outperformed most pharmaceutical peers. Moreover, the
company has provided some evidence that the cost-cutting efforts will
drive better profit improvements than the sell-side initially expected.
That said, the valuation argument is even harder to make now, and the
prime drivers of further outperformance are both risky and at least a
few months off.
Read more here:
Lundbeck Executing Where It Can, But The Biggest Drivers Are Risky
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