27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Martin Shkreli thinks Jazz Pharmaceuticals plc (NASDAQ: JAZZ) is wildly undervalued.
Shkreli, who appeared on Monday's edition of PreMarket Prep, said even though the the Irish biotech's stock has "been pummeled" in recent months, "if you run the numbers, it actually looks like it could be worth double the stock price."
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Shkreli likes Jazz in part because of their 2013 acquisition of Gentium, which he said he tried to buy for "something like $150 million." Jazz ended up paying $1 billion. That, along with their xyrem drug, makes him think Jazz could be worth between $15-20 billion, instead of the $7 billion it's worth now.
"It's extremely well managed," he said. "These are the smartest guys in the business I think. Just a fantastic company at a good price."
On the other side, Shkreli said he's looked at shorting Mast Therapeutics Inc (NYSE: MSTX). It is a penny stock, which can make it a little tricky to short, but from a valuation standpoint Shkreli thinks it's "worthless".
"This is a company thats probably, I would say, worthless, thats gonna drop 90% or more in the next few weeks."
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Though he singled out Mast specifically, Skhreli noted that there are other companies out there just like it.
"This happens in biotech. Theres at least 10-20 of these a year where you just have a drug that never should have been developed, by a management team that doesn't know what they're doing. The company doesn't have any cash, and they're just praying to hit the lotto and unfortunately they wont. That's kind of what I think is going to happen to Mast."
"I love shorting stocks like this," he said.
The following headlines appeared in theBenzinga Pro platform as Shkreli was talking.
Listen to the full interview with Shkreli below. PreMarket Prep is a daily trading ideas show that focuses on technical analysis and actionable short term trades. You can listen to the show live every morning from 8-9 ET here, or catch the podcast here.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.