I’ve been extremely busy as it is a turnover season. Some great news
- The non-paying guy is out completely.
- I had the replacement for one of the empty units.
- Only 2 rooms left to fill
Some not so great news:
- 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
- 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.
- 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 🙂