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Value Investor
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Cabot Undervalued Stocks Advisor Special Bulletin

One stock moves from Strong Buy to Hold, and another moves from Strong Buy to Buy

Today’s news: Morgan Stanley (MS) moves from Strong Buy to Hold; Supernus Pharmaceuticals (SUPN) moves from Strong Buy to Buy.

Morgan Stanley (MS) moves from Strong Buy to Hold today. I will likely sell soon, because 2019 earnings projections indicate moderate growth. I’m sure I can find a different financial stock with stronger earnings growth projections. In the meantime, financial stock price charts are all becoming more bullish right now. Hold.

Supernus Pharmaceuticals (SUPN) rose a tremendous amount after last week’s strong earnings report, to new all-time highs. The stock is likely to be volatile in the coming days, possibly bouncing down below 50. SUPN is an undervalued, small-cap aggressive growth stock. Analysts expect full-year EPS to grow 51.6% in 2018, and the P/E is 29.

Traders might want to sell, and then repurchase below 50. Shareholders who don’t like to trade should feel confident in Supernus’ strong earnings growth projections and bullish price chart. I don’t want to change the rating back and forth between Strong Buy and Hold, depending on the day’s price fluctuations, so I’m going to change it to Buy, and encourage you to consider adding more shares on any pullback to 50. Buy.