Quick Win by the Algorithm: New VP leads to 47.37% Increase in PTX

Quick Win by the Algorithm

On January 6, 2017, the I Know First algorithm had predicted a bullish forecast for Pernix Therapeutics (PTX). PTX had a signal of 85.45 and a predictability of 0.18. In accordance with the algorithm, the company reported long-position capital gains of 47.37%, experiencing a quick win by the algorithm.
Quick Win by the Algorithm

Founded in 1996, Pernix Therapeutics (PTX) is one of the fastest growing pharmaceutical companies in the U.S. They specialize in acquiring, developing, and commercializing prescription drugs. Underdeveloped areas of therapeutics, neurology, psychiatry, the central nervous system and others are also being pursued and expanded by the company. With the help of third-party sales teams, its subsidiaries, and its own sales force, Pernix Therapeutics markets its products to retail drug stores, wholesalers, grocery store pharmacies, physicians and more.

Quick Win by the Algorithm

The pharmaceutical company was not performing well at the start of 2016. When new CEO John Sedor was brought in, he was able to revive the slumping sales and stock price. Mr. Sedor has a history of upgrading biotechnology companies and preparing them for a buyout. After Pernix’s enhancements and reconstruction, stock prices gained more than 50%. Revenues increased from $36 million in the second quarter of 2016 to $41.5 million, while gross profit came in at $30.6 million. Pernix Therapeutics also announced the appointment of Senior Vice President, Ken Piña, on January 6, 2017. Mr. Piña, similar to Mr Sedor, is known for managing offers and seeing acquisition processes which gives us a hint into the possibility of a buyout. If a buyout were to take place, stock prices of Pernix Therapeutics would increase as a result of the arbitrage opportunity formed between investment price and current share price.

 

This bullish forecast on PTX was sent to current I Know First subscribers on January 6th, 2017.

 Before making any trading decisions, consult the latest forecast as the algorithm constantly updates predictions daily. While the algorithm can be used for intra-day trading the predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.