Female Health (FHCO)

(Top Pick Mar 1/16, Down 27.50%) He sold it. They merged with VERU-Q. They are pouring money into research and have to get all these approvals. The CEO does not have a good track record. He took a loss. The revenues came way down and they are having trouble making money.

They make female condoms. They were the leader in the world last year. They have done a merger with a technology company, with Aspen Pharma, and he hates the merger as Aspen has zero revenue. Their management ran a previous company into the ground. FHCO-Q have no debt but the revenues got cut in half the last quarter. He is looking for when he should get out.

A worldwide leader in female contraceptives. The problem is that they are a one product company and management is in their 80s. This would be a good fit with a larger company. They have money in the bank and no debt, and are constantly profitable. Doing a deal with Aston Park pharmaceuticals, a company with a number of products in the pipeline, but none them have revenues. He is hoping the deal doesn’t go through.

The #1 maker of female contraceptives. Brazilian government owes them about $15 million (or $50 million?), and there is some question as to whether they will be paid which is one of the reasons for the stock dropping off. Zero debt and a leader in their field. They are in a lot of countries and it is now covered by Obama care in the US. Pretty soon people will be able to buy the condoms online through Walmart. Something that has boosted the stock lately has been the Zika virus.