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Byline: David Saito-Chung
Pharmaceutical Resources sprang out of a 1 1/2-year base in the week ended Jan. 19 this year and posted a nearly 400% gain to its Aug. 2 peak of 42.20. The stock has been basing for eight weeks and is 17% off its high.
In the first base just before its breakout, the stock had lots of volume on the weeks it gained and quiet trade on the down weeks. This time around, volume has been heavy in four of its five down weeks so far. Less turnover on future down weeks and an increase in up weeks on heavy volume would improve the quality of the base.
The company makes and distributes generic drugs through its subsidiary Par Pharmaceutical. It has 42 drugs on the market, according to a July 12 article in The New America. They include three formulations of Eli ...