Charles St, Baltimore, MD InvestorPlace contributor Mark R. The way it worked was, Merck shareholders received one-tenth of a share of Organon common stock for every Merck common share that they owned as of the close of business on May Traders showed some love for Organon, but only very briefly.
Frankly, I expected much more from investors. That should have been the event of the year for pharmaceutical investors! Sometimes the quantitative assessments speak louder than the qualitative ones. Even from a pure profit angle, there are plenty of reasons to pay attention to this sector. One of these is the implantable contraceptive Nexplanon, which can prevent pregnancy for up to three years. So Organon can be profitable for its investors as it executes on its vision in a niche market that deserves significantly greater attention.
Until then, the stock will remain a hidden gem. On the date of publication, David Moadel did not have either directly or indirectly any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.
Stocks to Sell. These lockdowns continued, particularly outside of the U. Thus, the will provide an easy comparison for Organon in subsequent years. That potential reality could become apparent to retail investors in early , when the company could begin issuing guidance, and the smart money may start selling the shares meaningfully ahead of that time.
In addition to the huge revenue drop that off-patent medications experience initially following the loss of their patents, their sales in subsequent years tend to increase rather slowly, flatten or even drop , and their profit margins are usually low. Organon has said that it would look to make acquisitions. Given that data, I believe it may be very difficult for Organon to make any deals that will move the needle for it and for OGN stock within the next two or three years.
Patient investors who already own the stock could hold onto their shares in the hope that the company is able to meaningfully accelerate its growth in three or four years. But I think there are many pharmaceutical stocks that are much more attractive than OGN stock for both growth and value investors. On the date of publication, Larry Ramer did not have either directly or indirectly any positions in the securities mentioned in this article. Larry has conducted research and written articles on U.
Among his highly successful contrarian picks have been solar stocks, Roku, and Snap. You can reach him on StockTwits at larryramer. Larry began writing columns for InvestorPlace in Stocks to Sell. Market Insight, Financial Articles.
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