Biovail Corporation is a specialty pharmaceutical company, engaged in the formulation, clinical testing, registration, manufacture, and commercialization of pharmaceutical products utilizing advanced drug-delivery technologies.
On July 20, 2007, Biovail received a non-approval letter from FDA for its new drug. After that, Biovail stock plunged more than 30%.
I think investor may over react to the news. Biovail still keep its outlook for 2007. Currently, Biovail pays quarterly dividend of $0.375 and some special dividend at the beginning of year. Comparing to its current price $17.60, the dividend yield is about 8%. Besides, the company has strong cash flow and low debt. It has diversified product pipeline. It is a good time to load more shares.
I loaded 100 share at $20.00 and another 100 share at $18.00. I would load more if the price drop again.
Sep. 01, 2009:
It proves that BVF.TO is not wrong investment. My average down process make me a big loss. It is a losing strategy. Never, never average down again.
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