Par Pharmaceutical Companies, Inc. (PRX, NYSE), incorporated in 1978 as Par Pharmaceutical, Inc., is a Delaware holding company that, principally through its wholly owned subsidiary, Par Pharmaceutical, Inc. is in the business of developing, manufacturing and distributing generic and branded drugs in the United States. … Most companies are seeing their revenues and profits shrink in this environment, so when I see a company that has been able to double its revenue over the past year, that certainly grabs my attention. PRX’s revenue nearly doubled to $295 million from $149 million one year earlier. Earnings also surged to $26 million. PRX’s revenue included $161 million in sales of generic Toprol-XL, or metoprolol (the brand version is Lopressor), which is used to treat angina, high-blood pressure, and heart failure. Par Pharma has recently won regulatory approval to sell its tramadol product, a generic version of the painkiller Ultram. According to my numbers, PRX should be selling in the low $50s over the next three to five years. It is currently trading around the mid $20s; so PRX has large upside potential. Place a sell stop at 25% below your entry price. As the stock rises, continue to raise your stop so that you are trailing the Friday close by 25%.

Dennis Slothower
Stealth Stocks