Despite the announced positive financials, it looks like Fresenius Kabi Pharma. Holding Inc (NASDAQ:APCVZ) stock froze around its 52-week low.
This Tuesday, APCVZ stock dropped to its 52-week low at $0.09 per share. This happened one day after the company announced its financial results for the second quarter and for the six months ended June 30.
APCVZ stock surged 8% on Wednesday. The volume traded was 8.3M, or five times the average for the company, but the possibility of downtrend reversal still does not look convincing.[BANNER]
One of the reasons is the fact that despite reported positive income from operations, the company still has big enough expenses from interest payments. In addition, the so called Intercompany interest expenses are also significant. They are related to APCVZ’s four interest rate swap agreements with Fresenius for an aggregate notional principal amount of $900 million.
