NYSE:TEVA

Teva Pharmaceutical (TEVA)

39.41
-0.80 (1.99%)
as of Oct 23, 2026, 8:00:00 pm Market Closed.
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DON'T BUY
Had great growth over the last number of years. The big news was their outbidding Valeant (VRX-T) for Cephalon (CEPH-Q). Didn’t have to pay up much for this. This should keep growth going for them. He is not big on pharmaceuticals and sees no need to chase it at this price.
DON'T BUY
Buying Cephalon (CEPH-Q), which diversifies their revenue source from their branded drugs. Have a very successful branded drug for treating multiple cirrhosis but there is potential competition coming in the next couple of years. Trading at a very low multiple, below 10X. She prefers more diversified health care names.
COMMENT
Very big in the generic market. First class company. 1.5% yield. Would prefer Johnson & Johnson (JNJ-N).
BUY
Largest generic pharmaceutical company globally. Having a lot of trouble getting around $50. Great company and is not expensive. Earnings will come in around $5, trading at 10X earnings. Has a terrific outlook.
BUY
Most of their drugs are generic. #1 drug is a blockbuster for MS but competition came out with a drug that had good results. Only trades at 10X earnings and has fast growth. Missed its last quarter giving an opportunity to buy at a 20% discount. With an 8 to 12 month time horizon you should do well.
DON'T BUY
Generic drugs. Has had great success over time taking drugs that are coming off patent and reformulating them. Have had a couple of hiccups in the last year or so in getting new drugs approved. Have a couple of non-generic drugs that are now being challenged by generics. Have missed a couple of estimates in a row. Prefers Perrigo (PRGO-Q).
TOP PICK
Forth quarter earnings and guidance were not what the analysts were looking for and the stock dropped. Thinks they will earn about $5/share in 2011. Significant free cash flow, double digit growth, best pipeline of any of the generic manufacturers. Very, very shareholder friendly. 25% discount to its piers.
COMMENT
Sold half his position when it was higher. Really 2 companies. Biggest part is generics. They are the biggest manufacturer globally. A lot of patented drugs will become invalid and they will grow because of it. They are also a pharmaceutical because they have a few drugs. One of them is an MS drug and a large part of their profits. It too is possibly coming up for generic competition, which has held the stock back but this is an opportunity. Probably won’t go any where for a little while. (See Top Picks.)
BUY
Loves the generic drug theme, which is a theme that will continue over the next couple of years as governments continue to cut health care coasts. Good growth.
BUY
Generic pharmaceutical company out of Israel and is the best in that market. Well run. If you have a long-term view, you should own this one.
COMMENT
Could be some major strengths in generic drugs going forward.
PAST TOP PICK
(A Top Pick Nov 26/09. Down 3.11%.) Still likes.
HOLD
Has owned for quite some time. Likes outlook for generic drug companies. They also have some of the their own drugs. There are competing drugs coming out and could be so-so for them. He sold half a couple of months ago. Likes health care in general: valuations are low and dividends are growing and there will be more demand for health-care in the US.
TOP PICK
World leader in generic drug manufacturing. Significant operations in Europe and the US. Made a couple of good acquisitions. Will benefit when other companies drugs come off patent.
BUY
One of the world's largest generic drug manufacturers. 25% global market share. Expect they can consistently grow earnings in the 10%-12% range. His target would be $55.
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