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Exiting PDLI position

February 21, 2012

We purchased a position in PDL Biopharma just over one year ago when quarterly results temporarily depressed the share price. At the price purchased, the shares were yielding over 12%. Now, one year later, the price has rebounded about 30%. Thus our annual return on this investment is over 40%. The outlook for the company is still cloudy as revenue from current royalty rights begin to expire in 2014. We think it is unlikely that we can achieve the same rate of return for the coming year and are thus selling before Thursday’s earnings release.


From → Positions Closed

  1. Great website. Any update on the GCVRZ CVR’s? Thanks

    • Per my prior post on GCVRZ I am no longer following the CVRs because I don’t have any particular insight into the outcome of the drug trials. Thus with no ‘edge’ over other investors I view the CVRs as pure speculation for me, and I try to stay away from speculation. That is not to say that others more knowledgable about the drugs involved don’t have insight. It’s just that I try to enter positions only when I have an identifiable ‘edge’.

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