Matt Kacur
Teva Pharmaceutical
TEVA-N
COMMENT
Jan 06, 2017
His data is telling him that this is a tremendous company. ROC for years and years has been 12% or higher. In the last few years, it has been in the 20% range. However, it has not done so great in the last year or so. He would say that this is an opportunity. There are probably some issues in the pipeline that you would want to work through and understand a little better, and that is not his forte.
They went from an in incredibly well managed drug company and then management decided to develop their own drugs and make mistakes. It is difficult to unwind these problems. Turning around a company like this will be difficult because of the debt. This is a highly speculative stock.
Generic brand companies like Teva have struggled in the last 5 years has they competed with each others. Pfizer is in the process of buying one of their competitors and the Pfizer stock dropped 5$ on the announcement. Doesn't own Teva, purchased United Heatlth recently. You can hold but it's not a name he would hold due to the risk and they have no value added.
It's time to get back in. They all went crazy and then slid on sympathy when valiant went bust. There is tremendous value here. His model price is $21.26 or 63% upside. They presented earnings and the balance sheet looks great.
Tends to avoid companies with a ton of debt. Management missteps, and investors are paying for those. In the depths of a tough turnaround. He'd rather own a VTRS, where the debt is manageable, balance sheet's in better shape, with a better growth trajectory.
He's put the white flag up on this one. It's about macro interest rates, currency moves. Don't waste your time with these story stocks. His model price is $18.80, and it could have all the fundamentals, but the macro waves swamp the boat. Go with the big names.
Has owned company for a long period of time in the past.
Previous reasons for owning stock not present anymore.
Waiting to see if new drugs are invented/patented.
His data is telling him that this is a tremendous company. ROC for years and years has been 12% or higher. In the last few years, it has been in the 20% range. However, it has not done so great in the last year or so. He would say that this is an opportunity. There are probably some issues in the pipeline that you would want to work through and understand a little better, and that is not his forte.