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Apple, Allergan, Twitter: Doug Kass' Views

Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.

Allergan: My Latest 'Best Ideas' Long

Originally published Dec. 23 at 8:13 a.m. EDT

I have purchased a small long in Allergan (AGN) , and I am placing the stock on my Best Ideas List (at $194).

AGN has been part of an out-of-favor group that may continue to be out of favor. Nevertheless, the time to make long-term investments may be precisely at this time as a favorable reward vs. risk is lining up for the shares.

Here is the upside and downside potential I see for AGN:

  • Twelve-month upside $260 (+33%)
  • Twelve-month downside $175 (-10%)

AGN has a significant pipeline and a potentially important near-term catalyst:

  • The company and its partner, Ironwood Pharmaceuticals (IRWD) , have just announced good results from a Phase 2b trial that investigated delayed-release versions of Linzess. Well-tolerated with no adverse events, this holds large potential.
  • CR1 (ileum), in particular, could significantly improve on the strengths of Linzess. More than one third of the CR1 patients have...