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GirlsUnder30 (98.21)

POZN for a headache

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January 05, 2014 – Comments (4) | RELATED TICKERS: POZN , MO , MON

This blog usually contains a fairly dim view of the stocks many people injudiciously fawn over but today, I’m going to be a cheerleader for a stock with homely financials, no friends in their industry and a brilliant product that genuinely serves humanity. This may not impress people who hold stocks like Altria and Monsatan…er…Monsanto but for those do-gooders like me, who enjoy exposing corporations that really do make the world better, reading this should make your day. For those of you who don’t know, Pozen (POZN) is a little pharmaceutical company that figured out how to make high dosage aspirin easier on the human body. It directly competes with the established blood thinners in effectiveness and has far fewer negative long term effects. By all sensible and financially disinterested accounts, it should be the treatment of choice for ALL patients with circulatory issues. Not only have clinical trials proven its effectiveness and safety but it is also incredibly cheap to make. You would think, given the skyrocketing cost of health care, hospitals would be adopting this treatment immediately but for those understanding the close relationship of the FDA and ‘big pharma’, this lack of success is not surprising. POZN can price these aspirin derivative treatments like a public service and still make a wonderful return but in the process, some of the big pharma products would be displaced and ugly losses would eventually show up on their income statements. Big pharma will pull every lever and tweak any nose they can to prevent this from happening. Sadly this strategy has worked for about two years now and because of this, thousands of patients with heart and other circulatory blockage issues were prevented from using this economical alternative resulting in billions in profit for the entrenched healthcare interests and billions burdened upon the taxpayer. I never wanted a company to succeed as badly as I want this one to. From the CEO on down, they are the epitome of what a good corporate citizen should be and yet, they continue to struggle. This company is the poster child of what is wrong with America and if you buy it, know that you are buying a David sticking a finger in the eyes of a metaphorical Goliath but this time, the outcome might be different than in the book.

4 Comments – Post Your Own

#1) On January 06, 2014 at 12:24 PM, drgroup (69.24) wrote:

Great New Years heads up...

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#2) On January 06, 2014 at 1:04 PM, Mary953 (74.46) wrote:

After this post, http://caps.fool.com/Blogs/can-pozn-become-a-10-bagger/887061, I bought POZN and put it into my CAPS portfolio.  At this point, there is a 78% gain since Nov 11.  (This, by the way, is a great use of CAPS.  Forget about who is where in the rankings, and focus on it as a watch list for stocks that you are interested in!)  I wish I had figured out just how well POZN would do.  I would have pushed more funds that way.  As it is, this is the only pure gamble in my portfolio.  I second your thoughts, as  a senior who knows LOTS of people who need this as well as for mercenary reasons.  ;)

(Girls Under 30?  So you would have to more than double your age to get to where I am, huh?  Yeah, trust me, this company has a HUGE market with baby boomers and it will get bigger.  Just come to my gym sometime and watch us elders lifting weights.  60, 70, 80 - they are all just numbers if you take care of yourself.  But something with the power of an NSAID without the ulcer would be wonderful!) 

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#3) On January 06, 2014 at 5:32 PM, Stockllama10 (65.49) wrote:

Better yet, a 15%-or-so drop in the past week makes it sort of cheap, because it just went ex-dividend. It actually has a pretty good P/B value for its industry at 3.4, but it's really early for Pozen.

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#4) On January 15, 2014 at 1:03 PM, GirlsUnder30 (98.21) wrote:

Stockllama
Well, yeah, it did go ex-dividend but that means the stock should have corrected down by the $1.75 that is no longer in the company so I don't know if I would characterize it as cheap today but it does have enormous earnings potential if the FDA plays fair.

Mary953
Most of us will get to where you are today but not alot of us will have the lifestyle to allow it. I keep telling my friends to think about the future but they insist on a bleak outlook. When I hear elders talk of their past aspirations, opportunities and achievements and then compare them to mine and my peers, it seems that America has become a much narrower place for success. Sadly, it is now more similar to the rest of the world than the unique beacon it once was.

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