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Teva Pharmaceutical Industries Limited (TEVA)

NYSE - NYSE Delayed Price. Currency in USD
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9.48+0.34 (+3.72%)
At close: 4:00PM EDT
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  • R
    RAMI
    Back in time !

    On 28/08/2019 Purdue Pharma offers $10-12 billion to settle opioid claims:
    https://www.nbcnews.com/news/us-news/purdue-pharma-offers-10-12-billion-settle-opioid-claims-n1046526

    What happened on that day ?
    TEVA stock was down 10% as there were estimates that Purdue Pharma may end up paying much more:
    https://www.calcalistech.com/ctech/articles/0,7340,L-3769165,00.html

    What happened today ?
    Purdue Pharma has agreed to pay $8 billion:
    https://edition.cnn.com/2020/10/21/business/purdue-pharma-guilty-plea/index.html
    That means that the settlement is coming and TEVA may end up paying $15 billion in medications for 10 years (net cost=$1.5billion) as the company offered to pay back in October 2019.
  • R
    RAMI
    Market down, TEVA is up 3% .
    But with today's report it should jump 10% + ..

    Keep in mind the hearing in NY is on 26/10 so the next days are critical.
    Lets see if the stock can go to 12$ before earnings.
  • R
    RAMI
    On December 2007 TEVA was trading at 50$ with an annual revenue of $9B.
    On December 2009 TEVA was trading at 60$ with an annual revenue of $11B.

    Today TEVA is trading at 9$ with an annual revenue of $17B.
    Look at the numbers, it is a steal !
  • R
    RAMI
    Here are all the reasons why TEVA is about to fly:
    1. The company is earning lots of money and it will allow her to keep reducingits debt, which is already down from $40B (as of Jan 2018) to $23.9B net.
    Earlier this year CEO Schultz estimated debt will be cut for extra 50% by 2023.
    In that scenario, even without any growth, a price of 40$-50$ will stillreflect a low P/E ratio for the stock.
    2. The company has beat earnings for four quarters in a row (since Nov 2019).How many companies have done it during the past year? And still the companytrading for a ridiculous P/E ratio.
    3. On the last earnings report, during the conference call, Shultz was veryoptimistic about the continued sales growth in Europe, saying "we havenever earned so much money in Europe" and updated that they already seensignificant growth in July on both Ajovy and Austedo (especially Ajovy) and weall know the meaning of growth in these medications.  
    4. Teva has managed to stabilize the decline of Copaxone whose sales in thelast quarter totaled $238 millions while analysts expectations were $178Millions (34% above).
    5. Since last earnings and after being charged for price fixing, the stock fellfor almost 30%.
    I have been following this company for the last few years and it has lost tensof percent so many times due to this price fixing probe that If we had toevaluate all that declines in terms of market cap, it would end up for morethan $10B. Just in May 2019 when the case first published it declined from 15$to 8$ in less than one month ($17B market cap to $9B). The highest estimate Iever saw was for $1B and even that amount is already embodied at the stockprice.
    Analysts also estimate Taro will have to pay $1B fine to settle her lawsuitsand it ends up paying less than $400 millions.
    One last thing on this section, unlike other companies Teva didn't seek tocompromise on price fixing and people tend to forget it. Already in May Tevahas decided to stop the negotiation with the government.
    Schultz said more than once: "we did nothing wrong", "It's hardto admit to a crime you didn't commit",  so I agree there is still arisk but there is also a scenario in which Teva will prove her innocence or beable to get a much better deal at a later stage.
    6. Recently there were some updates regarding the opioid case : "Webelieve additional opioid manufacturers such as Endo International Plc (ENDP)and Teva Pharmaceutical Industries Ltd. (TEVA) will similarly be able to settlethe majority of their outstanding opioid litigation shortly.."
    Endp was up almost 100% for the last 30 days and 40% since it was published.
    7. In the short term there are some events that can push the stock above 14$(the critical resistance point), especially October's trials and Earningreports.
    8.  Based on 10 analysts offering 12 month price targets for Teva in thelast 3 months, the average price target is $12.60 .
    Just last week Teva earned another "Buy" Rating from Raymond Jameswith a 15$ price target (60% upside from the current levels), saying theapproval for generic versions of the HIV medications Truvada and Atripla willhelp Teva finish the year strong. 
    9. TEVA has already confirmed a $17B annual revenue.
    In the first half of the year total revenue was $8.23, revenue estimate for Q3is $4.08B, so it is very likely that TEVA will beat analyst expectations andmeet the annual forecast with a strong finish in the second half of the year.The company's management already noticed that customers were stockpilingproducts due to the COVID as they did in the first quarter.
    The current stock price is a steal so a good report may push the stock above14$ very quickly.

    Just be patient. This stock could easily go up 300% in less than 3 years.
  • R
    RAMI
    Did you know that TEVA has invested $60 millions in "AMWELL" (symbol: AMWL) back in 2015 and that investment is now worth $379 millions ?
  • R
    RAMI
    TEVA has a profit of $3B a year (without growth). What does it mean?
    It means that within 7 years the company can reduce its debt to zero (if it would want that).
    And then what?
    Then the stock should trade around 70$. 
    No, it doesn't mean that the company's market cap has to go 7 times higher. 
    It only means that without debt the stock's current price today is 35$. 
    So why 70$ ? 
    Because without debt there will be no speculations, no shorts, no manipulation and without debt even 70$ still reflects a ridiculous P/E ratio for the stock.
    But the company's management doesn't care about the stock market, they only care about the company.
    They are doing only what is good for the company ! 
    The old management did what is good for the stock market and this is the reason why TEVA jumped 14% on the day it purchased "Actavis", what turns out to be one of its worst investments. 
    Kare Shultz doesn't go out with statements such as TILRAY CEO was saying it will be a $100B company and then it goes down to ZERO.  
    This is probably the best entry point in the last two years. 
    On 19 February the stock was trading at 13.45$ just because there was a report of a possible settlement and now it is trading at 9$ after three excellent reports and tons of good news and the settlement is coming!
    https://www.bloomberg.com/news/articles/2020-10-21/u-s-to-announce-settlement-with-purdue-over-opioid-marketing?srnd=markets-vp

    I won't be surprised if the stock will jump 100% in the next 30 days.
    Purdue Pharma LP has agreed to a settlement with the U.S. Justice Department to resolve federal probes of how it marketed OxyContin, the addictive painkiller blamed for helping to spark the opioid epidemic, according to a person familiar with the mat
    Purdue Pharma LP has agreed to a settlement with the U.S. Justice Department to resolve federal probes of how it marketed OxyContin, the addictive painkiller blamed for helping to spark the opioid epidemic, according to a person familiar with the mat
    www.bloomberg.com
  • E
    Eugene
    Cooperation with Amazon = sales and $12+ per share soon.
  • R
    RAMI
    Something is cooking.. look at  ENDP
    It's either the settlement or shorts covering their position.
  • u
    universe
    $TEVA did you notice today a great amount of TEVA institutional buying (although seems to be mostly algo driven) ...even though the market sold off and big name stocks went down in high single or double digits.. but Teva hardly went 1.5% down and came back up right away...the institutions seem to have drawn the line at around $9.25 and caught shorts with their pants down...the institutional buying and lack of supply took the stock back to $9.29 , less than 1% down for the day...even a small buy order like 50k order in a minute candle caused a big green candle spike...that tells us that Shorts are spending way more now to keep the price pushed down...and there are not enough sellers for the Shorts to buy back their $1Billion worth of shorted stock..the Short game has turned on the Shorts and they are trapped..
    now remember we have monthly options day this Friday...institutional bulls may very well push the price up trigger 6,000+ call options at 9, 9:50 and to 10 and that will crush Shorts..and may spike the stock to even $11+ in just a matter of a few sessions... BULLS its time, let's begin the upward journey tomorrow..!
    PS: TEVA PR dept I understand you are in the silence period just before the earnings, but wouldn't be a good idea to release your earning guidance when your long term investors need that visibility now more than ever in these crazy times...!!!
  • R
    RAMI
    ENDP is up 12%. It has to push TEVA up..
  • R
    RAMI
    Opioid maker Mallinckrodt files for bankruptcy.
    The company said it intends to use bankruptcy to "provide a fair, orderly, efficient and legally binding mechanism" that provides for an amended proposed opioid claims settlement and a financial restructuring that would settle its other legal woes.

    Great news for TEVA .
  • E
    Eugene
    Shorts starting to sell that’s why it goes down now. Buy opportunity now.
  • E
    EZDUBL
    "We believe additional opioid manufacturers such as Endo International Plc (ENDP) and Teva Pharmaceutical Industries Ltd. (TEVA) will similarly be able to settle the majority of their outstanding opioid litigation shortly thereafter, using the distribution platform created by the opioid distributor and Johnson & Johnson settlement. We believe a settlement is likely because states and local government officials have lowered their ask and are in need of both a political win and additional funding for government programs in the wake of the COVID-19 pandemic. Additionally, we believe delays in near-term opioid jury trials and a weakening macroeconomic environment limits plaintiffs’ negotiating leverage and willingness to maximize potential settlement dollars of opioid distributor and manufacturer defendants.

    Chain Pharmacy Opioid Litigation: We believe opioid plaintiffs have become more confident in their ability to extract a large settlement from the chain pharmacies, further accelerating their interest in finalizing opioid distributor and manufacturer settlements and freeing legal resources to concentrate on the chain pharmacy litigation. Plaintiffs believe chain pharmacies face liabilities as both a distributor of opioids to their own pharmacies and as pharmacy operators under the federal Controlled Substances Act (CSA), as well as state laws and regulations. We expect additional lawsuits will be filed against the four major chain pharmacies—Walgreens, CVS, Rite Aid, and Walmart—in addition to certain regional chains, depending on the jurisdiction.".............https://capstonedc.com/case-studies/opioid-litigation-walgreens-cvs-rite-aid-walmart-face-30-35b-in-liability-as-plaintiff-focus-shifts-distributor-settlement-likely-in-202
  • R
    RAMI
    Since last earnings and after being charged for price fixing, the stock fell for almost 30%.
    I have been following this company for the last few years and it has lost tens of percent so many times due to this price fixing probe that If we had to evaluate all that declines in terms of market cap, it would end up for more than $10B. Just on May 2019 when the case first published it declined from 15$ to 8$ in less than one month ($17B market cap to $9B). The highest estimate I ever saw was for $1B and even that amount is already embodied at the stock price. Analysts also estimate Taro will have to pay $1B fine to settle her lawsuits and it ends up paying only $400 millions.
    Unlike other companies Teva didn't seek to compromise on price fixing and people tend to forget it. Already in May Teva has decided to stop the negotiation with the government. Schultz said more than once: "we did nothing wrong", "It's hard to admit to a crime you didn't commit",  so I agree there is still a risk but there is also a scenario in which Teva will prove her innocence or be able to get a much better deal at a later stage.
  • u
    universe
    Shorts increased their $ shorted amount and volume yesterday to 42.6% of all stock traded..today the Shorts seem to continue digging their hole even deeper..now the spring is ready to push back up..Shorts will be buying in hoards to cover their positions...any news on the stimulus or CoVID vaccine / therapeutic will uplift the stock to $10+ immediately..this company has a record amount of stock shorted at this time, a small trigger and...rocket ride up..just a bit of patience my friends!!!
  • E
    EZDUBL
    look at ENDP(yes I own that and TEVA)..they just acquired a company, stock up(again)...would they do this without a settlement coming?...
  • E
    EZDUBL
    Statement on Opioid Resolution | Johnson & Johnson
    www.jnj.com
  • u
    universe
    $TEVA...today's market values innovation IP , growth strategy and thought leadership much more than the traditional financials etc.. $TEVA PR Dept -- please make a statement on what are you doing on CoVID...your supply chains and production capabilities for mass producing essential CoVID vaccines and therapeutics..make a statement on your recent innovations and FDA wins.. even big name companies like JnJ, Goldman Sachs and JPMorgan Chases of the world get indicted and they pay fines, and move on.. no one is perfect. you save so many lives, you are doing great work...TEVA you are a trun around story, please start educating investors about your great company ...wake up PR Dept and ...yes TEVA Board and CEO should bring in new talent if the existing folks are not bringing in Tesla type innovative and bold mindset !!!!
    Teva it's time to lead...
    PS: Bulls thanks for the good action today...let's continue!