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) acquisitions,
(5) 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 2004
Ind Ave 3.0 5* 48 NA
Debt/ EPS Down Net Value Line
Equity ROE Since 2004 Margin Rating
Ind Ave 37 20 NA 16 NA
*many companies in TEVA industry do not pay a dividend
Chart
Note:
TEVA stock made good initial progress off its October 2008 low, quickly
surpassing the downtrend off its February 2008 high (straight red line) and the
November 2008 trading high (green line).
However, it remained in a long term trading range (blue lines). It is in an intermediate term uptrend (purple
lines) and a short term uptrend (brown line).
The wiggly red line is the 50 day moving average. The Aggressive Growth Portfolio owns a 75%
position in TEVA. The upper boundary of
its Buy Value Range is $36; the lower boundary of its Sell Half Range is $85.
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