Teva Pharmaceutical (TEVA)

Frustrated with this stock. Just lost a very large patent case and it is going to cost them a lot of money. This is one of the biggest generic drug manufacturers on the planet with operations in well over 100 countries. Keep thinking it should do better. Trading at a very low PE multiple of around 8X. He’ll watch it for another quarter or two but by the end of 2013, if the market doesn’t like it any better, he may have to say goodbye.

(since June 5, 2012 up 4.31%) This is the largest manufacturer of generic pharmaceuticals in the world. It pays a dividend and makes money still. He still owns it.

(Market Call Minute) Go more senior.

Likes generics. Feels you will get a much lower entry point for the stock because the company has a branded drug Copaxone for MS, which is constantly scrutinized by the Street and they have very low expectations of it. Strategy had really lacked. Street is now getting comfortable with the new strategy where they are focusing on non-North American generics, which is really where the market is growing and they are moving away from the branded portfolios.

Earnings growth has been disappointing over the past couple of years but right now it is trading at 7X earnings and he thinks it is going to earn over $5 a share. Just recently boosted its dividend so now has a dividend over 3%. Strong pipeline and a sizable exposure to many blockbuster drugs.

(Market Call Minute) Biggest product is an MS drug with lots of competition.

Generic as well as some branded drugs. This is probably what has been hurting the stock to a certain extent in that their most valuable drug will expire in 2015 and this represents 50% of their margins. Long-term, great but lots of competition.

(Top Pick Jan 16/12, Down 12.39%)

Generics space. He would look to something like a Watson (WPI-N).

New CEO, disappointing earnings, but market breathed a sigh of relief. Huge free cash flow. There is no reason why it should not be trading at the same multiple as other pharmas. It’s all about dividends. Lots of competition on generic side.

Doesn’t know particularly well. Generic business makes economic sense. Around the world there will be more desire to use generics. Not on his radar screen because metrics aren’t particularly compelling.

One of the largest manufacturers of generic drugs globally. Thought their last quarter was pretty strong. Not sure why the market doesn't like the stock better. With the Cdn$ around par, it is a good opportunity to Buy. Inexpensive.