Corporate Webpages Warner Chilcott PLC
Warner Chilcott is an Irish pharmaceuticals manufacturer which
specializes in dermatology and women's healthcare including
birth control products. The latter is not out-of-synch with the
Catholic Church in Southern Ireland because the company's
facilities are based in Protestant Northern Ireland. The
company operates in five different tax jurisdictions. Recently
it applied for "redomestication" of its company to Ireland.
"PLC" stands for "public limited company" which is a type of
limited company whose shares may be sold to the public in the
UK, Ireland, or the Philippines. Yet the company has a
headquarters of sorts in New Jersey. Under this arrangement,
which frankly is somewhat confusing to us, it must and does meet
SEC reporting requirements, which is good as far as we're concerned.
The company was brought to our attention by Market Grader which
likes it. Unfortunately, this view is not shared by many other
popular rating organizations. It is in an industry group which
is currently weak and has lots of competition.
In 2000, Galen Holdings PLC qcquired Warner Chilcott and made it
a wholly-owned subsidiary. Then in 2004, Galen changed its name
to Warner Chilcott. In that year, the company was pursued by at
least three major bidders attempting to take it over. This
takeover appeared threatened by a large amount of "goodwill"
intangibles carried on Warner Chilcott's balance sheet. But it
did in fact receive a $3 billion bid from J.P. Moran-Chase and
Credit Suisse First Boston.
In 2006, Warner Chilcott filed an initial public offering which
did not go very well. Since then, the company has been
entangled in a number of patent, licensing, and other legal
disputes as well as some problems with some of its drugs
resulting in claims there.
The company itself drastically changed character when it
acquired Proctor and Gamble's prescription drug business for
$3.1 billion. Its prospects for growth were increased by this.
Institutions have been unloading the stock in significant
quantities, but insiders have been buying and analysts like the
stock very much. The company appears to have very good
corporate governance and executives are modestly compensated.
We did not notice poison pill tactics inteferring with the
company's takeover or acts which would not favor shareholder interests.
The company looks like a winner to us, and worth considering
both as a trading and as a buy and hold vehicle.
Our biggest concern is our lack of familiarity with many of its products.
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
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Warner Chilcott plc (WCRX ) Sector: Healthcare
Unit 19 Ardee Business Park Industry: Drug Manufacturers - Other
Hale Street Exchange: Nasdaq
Rockaway, NJ
Warner Chilcott Limited, a specialty pharmaceutical company, engages
in the development, manufacture, marketing, and sale of branded
prescription pharmaceutical products in women-Ęs healthcare and
dermatology segments primarily in the United States. The company
offers various women healthcare products, including LOESTRIN 24 FE
and FEMCON FE as oral contraceptives; FEMHRT 1/5 and .5/2.5 for oral
treatment of moderate to severe vasomotor symptoms and urogenital
symptoms associated with menopause; and ESTRACE cream to treat
vaginal and vulvar atrophy. It also offers various dermatology
products, such as TACLONEX and DOVONEX for the topical treatment of
psoriasis; and DORYX, an oral adjunctive therapy for severe acne. In
addition, its products under development include WC3016 and WC3026,
the Phase III clinical trial completed products for low-dose oral
contraceptive; WC2055, a Phase II clinical trials completed product
for the treatment of acne; WC3018, a Phase II clinical trials
product for the treatment of acne and other inflammatory skin
conditions; LEO 80-185 for psoriasis of the scalp; and LEO 80-190, a
Phase III clinical trial product for the treatment of psoriasis.
Further, the company-Ęs products under development comprise TD1414, a
Phase II clinical trial product for skin infections; WC3027 for the
treatment of inflammatory skin conditions; WC3035 for the treatment
of acne and rosacea; and WC3036 and WC3043 for the treatment of
erectile dysfunction. Warner Chilcott-Ęs principal customers include
wholesale pharmaceutical distributors, and retail drug and grocery
store chains. It has license and supply agreement with LEO Pharma
A/S. The company was founded in 1968 and is headquartered in
Rockaway, New Jersey.
Last Trade: 22.92 52-Week Range: 24.45 - 9.24
Trade Date: 11-12 Avg. Volume: 1,868,510 Shares
Index Membership: Nasdaq 100 Employees: 1,115
Corporate Governance:
EPS: 0.10 Dividend Amount: $ 0.00 Yield: 0.00%
Ex-Dividend Date: N/A Mkt Cap: $ 5,760,000K
Payout Ratio: 0.00%
Last Split Factor (new for old): N/A Split Date: N/A
Key Statistics:
Enterprise Value: $ 6,400,000K Revenue (ttm) : $ 971,230K
Gross Profit: $ 739,340K
Earnings before Income Tax, Depreciation and Amortization: $ 536,010K
Enterprise Value/Revenue (ttm): 6.59 Revenue per Share: $ 3.88
Enterprise Value/EBITDA (ttm): 11.95 Qtrly Rev Growth (y to y): 7.10%
P/E Ratio (fwd projected): 7.28 P/E Ratio (current): 241.26
P/E Growth Ratio (5 yr expected): 0.92 Operating Margin: 30.09%
Price/Sales Ratio: 6.00 Profit Margin: 2.45%
Price/Book Value: 3.97 Book Value: $ 5.83/sh.
Return on Assets: 6.71% Net Income Avl to Common: $ 23,780K
Return on Equity: 1.65% Diluted Earnings/Share: $ 0.10
Qrtly Earnings Growth (yoy): 66.90%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 138,190K Operating Cash Flow:$ 423,020K
Total Debt: $ 859,830K Lvgd Free Cash Flow:$ 324,920K
Total Debt/Equity: 0.00
Total Cash/Share: $ 0.55
Current Ratio: 1.96
Share Statistics: Stock Price History:
Shares Outstanding: 251,320K Stk 52-Week Change: 69.28%
Float: 128,470K S&P 500 52-Wk Chng: 19.31%
Sh. Short % of Float: 3.20% 50-Day Moving Avg: 22.41
Short Ratio: 4.00 200-Day Moving Avg: 16.77
% Held by Institutions: 93.00% Beta: 0.91
% Held by Insiders: 2.83%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Sep-09 Dec-09 Dec-09 Dec-10
Average Earnings Estimate 0.41 0.69 1.93 3.15
Average Revenue Estimate 255M 411M 1,130M 2,980M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 0.000 EPS Growth (Qrtly YoY): 0.634
PEG Ratio (ttm, 5 yr expected): 0.030 P/E Ratio (ttm): 0.000
Revenue Growth (Qrtly YoY): 0.043
Annual Income Statements: All numbers in thousands)
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Total Revenue 938,125 899,561 754,457
Cost of Revenue 198,785 185,990 151,750
Gross Profit 739,340 713,571 602,707
Operating Expenses:
Research & Development 49,956 54,510 26,818
Selling, General & Administrative 192,650 265,822 253,937
Non-Recurring Expenses 163,316 0 0
Other Operating Expenses 223,913 228,330 253,425
Total Operating Expenses 629,835 0 0
Operating Income or Loss 109,505 164,909 68,527
Income from Continuing Operations:
Total Other Income/Expenses Net 1,293 4,806 -21,509
Earnings Before Interest & Taxes 110,798 169,715 47,018
Interest Expense 94,409 122,424 211,675
Income Before Taxes 16,389 47,291 -164,657
Income Tax Expense 24,746 18,416 -11,147
Minority Interest 0 0 0
Net Income from Continuing Op.s -8,357 28,875 -153,510
Non-recurring Events:
Discontinued Operations 0 0 0
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income -8,357 28,875 -153,510
Preferred Stock & Other Adjustmnts 0 0 -65,112
Net Income Avail To Common Shares -8,357 28,875 -218,622
Quarterly Income Statements: All numbers in thousands)
Period Ending 30-Jun-09 31-Mar-09 31-Dec-08 30-Sep-08
Total Revenue 250,816 245,989 242,487 231,939
Cost of Revenue 46,962 48,750 53,193 46,810
Gross Profit 203,854 197,239 189,294 185,129
Operating Expenses:
Research & Development 11,945 23,872 15,233 9,997
Selling, General & Adminis. 53,022 46,766 44,401 45,925
Non-Recurring Expenses 0 0 163,316 0
Other Operating Expenses 56,992 56,993 59,083 59,080
Total Operating Expenses 0 0 282,033 0
Operating Income or Loss 81,895 69,608 -92,739 70,127
Income from Continuing Operations:
Total Other Income/Expenses Net 14 65 181 317
Earnings Before Int. & Taxes 81,909 69,673 -92,558 70,444
Interest Expense 15,215 18,082 21,066 23,939
Income Before Taxes 66,694 51,591 -113,624 46,505
Income Tax Expense 10,671 8,255 2,048 6,416
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 56,023 43,336 -115,672 40,089
Non-recurring Events:
Discontinued Operations 0 0 0 0
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 56,023 43,336 -115,672 40,089
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 56,023 43,336 -115,672 40,089
Annual Balance Sheets: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Current Assets:
Cash & Cash Equivalents 35,906 30,776 84,464
Short Term Investments 0 0 0
Net Receivables 143,334 105,304 106,065
Inventory 57,776 54,031 66,376
Other Current Assets 15,528 26,205 38,900
Total Current Assets 252,544 216,316 295,805
Long-Term Investments 0 0 0
Property, Plant & Equipt 60,908 57,453 46,035
Goodwill 1,250,324 1,250,324 1,241,452
Intangible Assets 993,798 1,329,427 1,533,757
Accumulated Amortization 0 0 0
Other Assets 21,351 31,454 45,496
Deferred Long Term Asset Charges 0 0 0
Total Assets 2,578,925 2,884,974 3,162,545
Current Liabilities:
Accounts Payable 162,801 113,539 159,195
Short/Current Long Term Debt 5,977 8,284 11,790
Other Current Liabilities 0 100,706 0
Total Current Liabilities 168,778 222,529 170,985
Long Term Debt 956,580 1,191,955 1,538,960
Other Liabilities 16,780 27,781 10,951
Deferred LT Liability Charges 86,867 88,289 113,417
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 1,229,005 1,530,554 1,834,313
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 2,508 2,506 2,506
Retained Earnings -689,836 -681,479 -710,156
Treasury Stock -6,352 -6,330 -6,330
Capital Surplus 2,055,521 2,047,164 2,040,877
Other Stockholder Equity -11,921 -7,441 1,335
Total Stockholder Equity 1,349,920 1,354,420 1,328,232
Net Tangible Assets -894,202 -1,225,331 -1,446,977
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending 30-Jun-09 31-Mar-09 31-Dec-08 30-Sep-08
Current Assets:
Cash & Cash Equivalents 138,190 30,308 35,906 13,233
Short Term Investments 0 0 0 0
Net Receivables 98,428 82,793 143,334 84,368
Inventory 61,728 61,478 57,776 52,846
Other Current Assets 86,498 76,994 15,528 60,287
Total Current Assets 384,844 251,573 252,544 210,734
Long-Term Investments 0 0 0 0
Property, Plant & Equipt 77,725 63,357 60,908 58,040
Goodwill 1,250,324 1,250,324 1,250,324 1,250,324
Intangible Assets 885,613 939,705 993,798 1,213,297
Accumulated Amortization 0 0 0 0
Other Assets 17,603 18,797 21,351 23,763
Deferred LT Asset Charges 132,649 0 0 106,841
Total Assets 2,616,109 2,523,756 2,578,925 2,756,158
Current Liabilities:
Accounts Payable 58,906 164,191 162,801 36,918
Current Portion LT Debt 4,935 4,935 5,977 6,609
Other Current Liabilities 0 0 0 0
Total Current Liabilities 196,490 169,126 168,778 150,368
Long Term Debt 854,895 856,128 956,580 1,027,600
Other Liabilities 103,830 100,842 16,780 108,720
Deferred LT Liab. Charges 0 0 86,867 0
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 1,155,215 1,126,096 1,229,005 1,286,688
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 2,513 2,508 2,508 2,508
Retained Earnings -590,477 -646,500 -689,836 -574,164
Treasury Stock -6,352 -6,352 -6,352 -6,352
Capital Surplus 2,061,478 2,058,153 2,055,521 2,053,714
Other Stockholder Equity -6,268 -10,149 -11,921 -6,236
Total Stockholder Equity 1,460,894 1,397,660 1,349,920 1,469,470
Net Tangible Assets -675,043 -792,369 -894,202 -994,151
Annual Cash Flow: All Numbers in Thousands
Period Ending 31-Dec-08 31-Dec-07 31-Dec-06
Net Income -8,357 43,336 -153,510
Operating Activites:
Depreciation 244,668 252,393 316,946
Adjustments to Net Income 169,666 -22,591 1,821
Changes in Accounts Recv'bls -11,702 1,852 -22,914
Changes in Liabilities -62,518 66,676 15,370
Changes in Inventories -18,475 12,345 -34,978
Changes in Other Op'ing Actv's 0 0 0
Total Cash Flow fr Operations 313,282 339,550 122,735
Investing Activities:
Capital Expenditures -20,314 -18,798 -15,420
Investments 0 0 0
Other Cash Flows fr Investing -51,600 -24,000 -267,336
Total Cash Flows fr Investing -71,914 -42,798 -282,756
Financing Acitivies:
Dividends Paid 0 0 0
Sale or Purchase of Stock -22 0 672,188
Net Borrowings -236,569 -350,511 -438,750
Other Cash Flows fr Financing 353 71 -455
Total Cash Flows fr Financing -236,238 -350,440 232,983
Effect of Exchange Rate Change 0 0 0
Change in Cash & Cash Equiv.s 5,130 -53,688 72,962
Quarterly Cash Flow: All Numbers in Thousands
Period Ending 30-Jun-09 31-Mar-09 31-Dec-08 30-Sep-08
Net Income 56,023 43,336 -115,672 40,089
Operating Activites:
Depreciation 61,597 62,585 63,869 64,765
Adjustments to Net Income 3,330 2,632 163,546 2,115
Changes in Accounts Recv'bls -19,913 3,882 -4,209 -3,182
Changes in Liabilities 24,954 -1,517 15,234 -21,180
Changes in Inventories -250 -3,702 -19,660 7,433
Changes in Other Oper'g Acts -1,226 -1,857 0 0
Total Cash Flow f Operations 124,515 105,359 103,108 90,040
Investing Activities:
Capital Expenditures -12,485 -6,548 -6,986 -3,315
Investments 0 0 0 0
Other Cash Flows fr Investing -2,900 -2,900 -2,900 -2,900
Total Cash Flows fr Investing -15,385 -9,448 -9,886 -6,215
Financing Acitivies:
Dividends Paid 0 0 0 0
Sale or Purchase of Stock 0 0 -22 0
Net Borrowings -1,233 -101,494 -70,539 -91,888
Other Cash Flows fr Financing -15 -15 12 86
Total Cash Flows fr Financing 0 0 0 0
Effect of Exchange Rate Chg 0 0 0 0
Change in Cash & Cash Equiv. 107,882 -5,598 22,673 -7,977
WCRX Warner Chilcott plc [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 0.1161 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 0.7600 Forward P/E Ratio < 28? 3.0000
Sales Tests:
Price/Sales Ratio < 2.3? 0.3833 Inventory/Sales < 5%? 0.8119
Sales < $1 billion? 1.0660 Operating Margin < 7.5%? 0.2493
Balance Sheet Tests:
Debt/Equity < 0.40? 1.0000 Long-Term Debt Service: 1.4112
LTD Being Reduced? 3.0000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.9795 Working Capital >= 1.5? 1.0211
Leverage Ratio < 20%? 0.6090 Debt / Assets < 1? 2.6960
Quick Ratio > 1? 1.2042 Inventory Turnover > 1? 0.5061
Shares Out Decreasing? 1.8000 Market Cap.> 1.5 Billion? 0.2604
Profit Margin > 7.5%? 0.3267
Income Tests:
Dividend Yield > 2.0%? 0.0000 EPS Annual Growth > 10%? 0.0000
Enterprise Value/Revenue: 3.0000 EPS 5-yr Growth > 20%? 0.0000
Enterprise Value/EBITDA: 1.7067 EPS Growth Consistent? 1.8000
EPS Qrtly Growth > 10%? 3.0000 Collection < 45 days? 0.8069
Rev. Qtrly Growth > 15%? 1.0650 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 0.0000 Borrowing Int. Rate< 6%? 0.9915
Stock Performance Tests:
Volatility > 25%? 3.0000 % Held by Insiders < 5%? 1.7668
Beta > 1.25? 0.7280 % Held by Institut. < 50? 0.5376
50 Da MA > 200 Da MA? 0.7382 % Held by Institut. > 30? 3.0000
52-Wk Change vs. S&P 500: 1.2874 Short Ratio > 5? 0.8000
Price/Book Value < 3? 0.0300 Short % of Float > 20? 0.1600
Return on Assets > 17%? 0.3947 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 1.3019 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 1.2662
Cash Flow / Assets >.10? 1.2420
WCRX Warner Chilcott plc Overall Zenith Index: 1.2624
Financial Statements |
Financial Ratios |

. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |

Intrinsic Value |
Intrinsic Value by Discounted Cash Flow Method:

Intrinsic Value |
Intrinsic Value by Projected Earnings Growth Method:

Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.

Projected Earnings |


Research Reports |
Analysts' Opinions |




Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.

Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for Warner Chilcott:
Symbol? WCRX
Total Months Available: 38
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
15.07 9.24 13.64 9.33 24.45 12.73
RANGE = 24.45 TO 9.24 Close = 22.18
CHANNEL = 13.64 TO 12.73 Degree = 1
Volatility = 4.10% Index = 0
Intraday Chart |
20 Days:
1 Day:
The following table details which MACD signals on the preceding chart are best taken. Originally, this was set up for a two-day span, but ten days gives a better sample. Unfortunately, with the 10-day span, the colored lines on the histogram are much harder to read. Both spans are shown above. Red turning into green on the histogram is a buy and green turning into red is a sell, but with the following conditions. The share price must have moved at least 0.2% away from the previous signal price in order to avoid whipsawing. More importantly, the +/- magnitude of the MACD (the blue line, which crosses the red line at signal time) must be greater than the minimum required magnitude indicated below. Otherwise, the signal is ignored. WCRX Minimum Magnitude MACD for Action = ± 0.0650 Ticker Day Time Hist. MACD Sig Line Act Price Profit WCRX 30 07:13 -0.0054 0.0810 0.0864 S 22.63 0.00 WCRX 30 10:04 0.0007 -0.0655 -0.0662 B 22.25 1.67 WCRX 02 05:00 -0.0172 -0.0213 -0.0040 22.15 3.77 WCRX 02 06:46 -0.0036 0.0929 0.0965 S 22.52 3.77 WCRX 03 05:00 0.0639 0.0983 0.0344 23.75 8.74 WCRX 09 06:52 0.0092 -0.2720 -0.2812 B 21.85 8.74 WCRX 10 06:30 0.0196 -0.0064 -0.0260 22.45 9.52 WCRX 11 06:58 -0.0008 0.0805 0.0813 S 22.97 9.52 WCRX 11 06:59 0.0024 0.0844 0.0820 B 23.05 9.17 WCRX 11 07:00 -0.0015 0.0801 0.0816 S 22.97 8.82 WCRX 11 08:19 0.0006 -0.0783 -0.0789 B 22.72 9.91 WCRX 11 08:32 0.0139 -0.0301 -0.0439 22.77 10.13
Stock Fetcher |
Point & Figure Chart |

Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
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Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | - 1 |
| Bond Issue | - 1 |
| Zenith Index | + 1 |
| GAAP vs. non-GAAP Earnings < 1% | + 1 |
| Cash Flow | + 1 |
| Ratios | + 1 |
| Market Grader | + 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | 0 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | + 1 |
| Executive Perquisites | + 1 |
| Insider Activity | + 1 |
| Institutional Activity | - 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | + 1 |
| Standard & Poor's | + 1 |
| Moving Average | - 1 |
| Stock Fetcher | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | - 1 |
| Marketspace Chart | - 1 |
| Time Series Chart | - 1 |
| Neural Network | - 1 |
| Stock Options | + 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 8 |
Place 1,320 shares of Warner Chilcott PLC (WCRX) on the Active List.