Tuesday Update: MSFT & ADMP


MSFT took a hit today, dropping over at 2% mid-session ahead of earnings due out tomorrow. Today's price decline may be more a reaction to deteriorating China-US trade talks than anticipation of disappointing earnings. The portfolio is holding the MSFT March $105 put as per Jan 16th rollover advice, up 75% in just over a week. An exit or partial exit here makes sense in front to both trade and earnings news events that could go either way. If you are trading the 35/75 Trade Management strategy, the puts have already exceeded the +35% exit trigger. 

Pending Trades: AMD (Sell): We will revisit post-earnings, which are reported after the close today. 

Adamis Pharmaceuticals (ADMP) 

Disclosure: I've been buying this speciality biopharmaceutical company's shares in my managed accounts since January 4th at $2.41. I bought some more today at $3.20. The stock could have a lot more to go on the upside. Here is a partial list of their products:

(1) SYMJEPI: FDA approved low cost alternative for EpiPen (Epinephrine injection for allergic reactions), via a distribution partnership with Novartis; launched Jan 16, 2019.

(2) Pre-filled injection of Naloxone for opioid overdose - NDA filed Dec 31, 2018.

(3) Sublingual (fast acting) Tadalafil: Erectile Dysfunction - NDA filed Dec 28, 2018. 

(4) Two Specialty Inhalers for Asthma/COPD - Phases 2 & 3. 

At current pricing the company has a market cap of only $150M which seems very low for as far along as they are in sizable markets addressed by all of their products. In addition, they already having a working relationship with Novartis, a $200B Pharmaceutical. I would normally save a recommendation like this for a Weekend Update, but it was up 10% just yesterday, so it may be starting a run here. Even if not, this company is in the right markets at the right time.

Company website.