Teva
Pharmaceutical Industries is an Israeli based global pharmaceutical company
that develops, manufactures and markets generic and proprietary branded drugs
and active pharmaceutical ingredients.
The company has grown profits and dividends at a 25%+ rate over the last
ten years earning a 14-20% return on equity.
The company was little impacted by the recent recession and should
continue to expand as a result of:
(1) plentiful
growth opportunities in generic drugs.
The company currently has 83 product applications pending before the
FDA,
(2) a
significant and growing branded pharmaceutical business,
(3) the company
has a very successful at resolving patent challenges which is a key part of
generic product selections and development strategy,
(4) it is pursuing
strategic relationships,
(5) a major
R&D effort in the biopharmaceutical and biogeneric markets.
(6) significant
cost reduction program.
Negatives:
(1) the
pharmaceutical industry is very competitive and the generic segment is highly
crowded,
(2) gaining
approval for drugs is becoming more difficult in an increasingly tough
regulatory environment,
(3) weak sales
in the EU.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio Since 2003
Debt/ EPS Down Net Value Line
Equity ROE Since 2003 Margin Rating
*many companies in TEVA
industry do not pay a dividend
Chart
Note:
TEVA stock has performed poorly since its
October 2008 low. While it has managed
to trade above the downtrend off its March 2008 high (red line), it is just
barely above it currently. Similarly, the
stock struggled several times with the November 2008 trading high (green line)
and today trades below that level. Long
term, the stock is in a trading range (straight blue lines). Intermediate term, it is a downtrend (purple
lines). The wiggly blue line is on
balance volume. The Aggressive Growth
Portfolio owns a 70% position in TEVA . The upper boundary of its Buy
Value Range Sell
Half Range
3/13
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