Endo International (ENDP-Q)

A pharma with two-thirds of sales from generics. They're wrapped up in an opiod trial (that mostly involves JNJ). The stock has fallen off and if there is a negative judgement, Endo will get hit though JNJ will bear the brunt.

His model price is $44.72, which is a 300% upside. This stock is very high risk but it has been rising recently as he predicted it would. This stock, like Teva and Bausch Health, were part of the most undervalued sector of the market 9 months ago, have been rising, and probably have more to go.

(A Top Pick June 2/17 Down 45%.) He sees this is being dragged down by the generic drug selloff. When it was removed from the S&P500 index it was impacted negatively. It is also embroiled in the opioid crisis in the US. He likes the multiples and sees a model price of $24 – a potential 250% upside. He will buy more.

Moved their head office to Ireland, so it got kicked out of the S&P 500. The stock price has fallen from almost $100 to $13.57. His model price is $32.84, a 140% upside. (Analysts’ price target is $15.50.)

This is for the risk-takers. The stock was close to $70 a share within the last 18 months. Now it is around $13. The concern is that their business model has gone broke. They decided they wanted to acquire companies instead of spending a lot of money in the lab in R&D and not generating anything. They just reaffirmed guidance, and they should earn $4-$4.50. On a $13 stock, if they just earned half of that, it is one of your cheapest companies in the whole healthcare space. If we just get some stability in the outlook and know what is going to replace Obama care, this stock could easily double over the next 5 years.