Viewing Opinion | StockChase
stockchase picture

Compiling comments that experts make about stocks while on public TV.

2017-04-20

Opinion for Teva Pharmaceutical (TEVA-N)

Signal Price Bias Subject Owned
PARTIAL BUY $30.760 UNKNOWN DIVIDEND STOCKS AND MACRO STRATEGIES Unknown

A cheap, but troubled stock. It is the leading generics pharmaceutical provider globally. They overextended themselves a while ago, in trying to get into specialty Pharma areas, which has been a bit of a problem. Expected to generate a little over $5 in earnings next year, a 6X earnings multiple. The Pharma sector as a whole tends to be 3X, so this is very, very cheap. The dividend is over 4%. The negative is that the management team is in flux. Also, the Department of Justice now has an inquiry into price fixing potential by the generic providers. The balance sheet is incredibly levered at 4.8X EBITDA. This is worth taking a half position and then growing that out. If things start to normalize and they get the earnings they are projecting, it should really start seeing 20%, 30%, 40% growth from here.

Lorne Zeiler
Portfolio Manager & Wealth Advisor, TriDelta Financial

No Comments.


You must be logged in to comment.