Recent Buy – TEVA $TEVA

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What’s up, everyone?

I’ve been extremely busy as it is a turnover season. Some great news

  1. The non-paying guy is out completely.
  2. I had the replacement for one of the empty units.
  3. Only 2 rooms left to fill

Some not so great news:

  1. There’s a guy that’s been sleeping in my building’s staircases area. So, I had to have the lock changed, gave everyone a new key
  2. We’ve been going on another mini vacation to the mountain. We did a 4 miles trail to see the longest cascade waterfall in the Eastern of the US. And I got stunk by a bee.
    • Surpisingly, the swelling was down almost immediately (4 hours). LOL 🙂 It hurt like …
    • But I’m okay now. I’m more than okay – my carpal tunnel pain on my nuckle, and my arthritis pain on my knee are both GONE!! ZIP! NIL! No pain even with the damping weather outside.
  3. I still have to clean up the room that they guy left a total mess. I’ll update the pictures whenever I have the time.

With that said, let’s get to the numbers.

I like said many time before, I don’t like buying pharmaceutical companies. But this one is totally unexpected, TEVA. It’s a generic company that’s been around for along time. It was paying a lot of dividends. Then, they bought a generic brand from Allegan for $40B. Over the past two years, the price of generic drugs are under some great pressure, driving its earning to $1.02/share, which is 5X the going price right now of $17-20. And oh golly, it sent Wallstreet to a selling frenzy.

I don’t believe in short selling. I just look at the numbers! They are making $1.02/share. Not per year! The earning is solid. Even if they are under some pricing scrutiny. But I don’t think the price can go any further down.

For that I sunk my dollars in and bought 90 shares. I’ll probably continue to average down once it goes below $16 per Morgan Stanley analyst.

That’s it, guys! Are you taking a plunger on a company that would cut dividend and high debts? LOL 🙂

Other risks including faster generic approval from the FDA. But TEVA now hold a bunch of great, important patent that I think they will continue to make money for a long long time. In the meanwhile, I’d just collect some dividend while they are recovering.

TEVA is down from $55 to $17. LOL 🙂 70% perhaps??!!

That’s it, guy! What have you been buying???

I get it that some big bloggers are holding out the cash – retireby40 and financialsamurai. LOL 🙂

 

GA

7 Comments

  1. Yes! I’m dipping my toe with TEVA. They already cut their dividend and with so much other negativity surrounding the stock it’s looking a lot more attractive. It’s all about risk reward and these days with the lower stock price the risk seems more limited.

    • I agreed. I didn’t see any $TEVA buy from dividend community as everybody is waiting on the sideline – which is understandable as the stock market has marched pass 21,000.

  2. That is a big bold position you just made. Seems like the reasons are all there. Nice to see you making more buys. You have been making more than me lately and that isn’t even your main focus haha. Hope your vacation was fun.

  3. “Are you taking a plunger on a company that would cut dividend and high debts?”

    Never, I’m not as brave as you are. 🙂

    Teva got too many problems and an unreliable dividend, besides like you I hate researching pharma companies. I think I’ve enough exposure in that sector already, don’t want to add this dog.

    Hope Teva works out for you.

    All the best,
    Mr. ATM

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