Skip to main content

Pharmacists: Robots are already able to dispense drugs, if not the expert advice of a pharmacist.

Thinkstock Images

Hi Lou,

I enjoy your column, and value your advice.

Could you comment on Questcor Pharma.

Story continues below advertisement



Hey John,

Thanks for the assignment and your support. Both are very much appreciated!

Questcor Pharmaceuticals Inc. is a one trick pony stock. Most of its revenue is derived from the sale of Acthar gel which is used to treat nearly twenty conditions including multiple sclerosis and infant spasms. The stock took a hit last fall as the company's promotional activities were put under review and there were reports that a major insurance company had revised its thoughts on Acthar. The stock has been in recovery mode doubling the 52-week low of $17.25 it hit in September of 2012.

A review of the charts will indicate if the aggressive bounce off the lows have more to give.

The three-year chart has one outstanding feature that is very noticeable. The advance off the September lows appears to have formed an ascending triangle which suggests that there is more to this up move. Also of note is the resistance that has formed at $35.00 and after that $40.00 is the next barrier that has to be overcome. Also visible on the chart are the buy signals that were generated by the MACD and the RSI in October of 2012 as buyers took control of the market.

Story continues below advertisement

The six-month chart provides a close-up of the nascent start of a golden cross. The MACD and the RSI both signalled a move higher in April as the stock tested support at $27.00 generating a 26.5 per cent return in less than a month. A nice get for those who acted on the opportunity. If you like the QCOR story you want to keep in mind that it has one horse in the race. Anything happens to Acthar happens to shareholders worse. Currently the MACD and the RSI are indicating that buyers a still accumulating this stock. But that doesn't meant the situation can't change at any moment.

Make it a profitable day and happy capitalism!

Have your own question for Lou? Send it to

Report an error
About the Author
Lou Schizas

Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality - and a true believer in the happiness-inspiring powers of capitalism. More


The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨