Investors often gravitate toward pharmaceutical stocks
due to the perception that the sector offers less volatility than other
sectors, but that has not been the case for H. Lundbeck (OTCPK:HLUYY)
(LUN.KO), and the shares have remained quite volatile as investors try
to figure out the confounding trends in both the legacy and growth
portfolios, not to mention the potential future contributions of the
pipeline.
While Lundbeck’s fourth quarter wasn’t
bad, management was cautious with guidance. Coupled with concerns that
too much of the recent earnings momentum has been driven by the legacy
portfolio, investors have once again sold the stock. Although I can’t
call Lundbeck a best-of-sector idea, and it is certainly not as
dependable as a company like Roche (OTCQX:RHHBY), I think there may be more value here than the shares currently reflect.
Read more here:
Lundbeck's Pullback Makes It Worth Considering Again
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