Furiex Pharmaceuticals, Inc. (NASDAQ:FURX)

CAPS Rating: 2 out of 5

Recs

5
Player Avatar TMFDeej (99.46) Submitted: 8/17/2010 3:58:23 PM : Outperform Start Price: $10.25 FURX Score: +29.51

Interesting spin-off of PPDI with nearly as much cash on its balance sheet as its market cap.The theory here is that such a small spin-off of such a large company was likely unwanted by many large investors and hence sold, creating an undervalued security. Furthermore, like is the case with many spin-offs, significant insider ownership aligns management with shareholders.The company is burning cash, so this is far from a pure asset play.David Einhorn recently reported being long FURX in his latest quarterly report. That's what initially brought this company to my attention. I have since found out a great deal of information on the company by reading Farukh Farooqi's great write-up on it here:http://seekingalpha.com/article/220842-furiex-pharma-s-cash-will-likely-run-out-before-investors-feel-secure?source=yahooDeej

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