Teva Pharmaceutical (Nasdaq: TEVA), the No. 1 generic-drug maker, takes advantage of governments', insurers', and employers' desire to rein in some of the rising costs of health care by offering cheaper alternatives to many prescription drugs. It also takes advantage of another opportunity, which I'll get to in a moment.
Biz Facts about TEVA
Market capitalization
$48.8 billion
Industry
Pharmaceuticals
Revenue (TTM)
$14.8 billion
Earnings (TTM)
$2.5 billion
Dividend yield
1.4%
No. of generic drugs, end of 2009
>400 in U.S., with >200 awaiting approval
>150 in EU, with >240 awaiting approval
With the large number of generic drugs it sells in the U.S., Teva filled some 599 million prescriptions last year, roughly 22% of the generic prescriptions written. I expect that number and market share to grow as Teva continues to acquire smaller players -- it wrapped up Barr Pharmaceuticals last year -- and as more big-selling drugs come off patent.
Thursday, September 9, 2010
Sunday, April 18, 2010
Potential buying opportunity. UPS
UPS came out the end of last week and said "its first quarter earnings per share would be much higher than it had expected and raised its outlook for the year". I know what your saying. "yea so what?" Well thats not the only thing that is blowing up my skirt.
In the past 3 months, 4 analyst's have come out and given UPS an upgrade to either buy or outperform. Also if you look at UPS's competiton Fedex (FDX) they are dominating them. UPS has better operating margins and makes much more money. Practically $15 billion more. The biggest selling point to me is the fact that there has been "significant acceleration" in international shipping with daily volumes up 18% in the quarter compared with a year ago. This is huge and will be huge for UPS and it's business.
One drawback is that the company is a little overvalued. With a PEG ratio of over 2.6 and a P/E of 31.83 its not a buy and hold but rather a get in and get out.
Take a look and let me know.
In the past 3 months, 4 analyst's have come out and given UPS an upgrade to either buy or outperform. Also if you look at UPS's competiton Fedex (FDX) they are dominating them. UPS has better operating margins and makes much more money. Practically $15 billion more. The biggest selling point to me is the fact that there has been "significant acceleration" in international shipping with daily volumes up 18% in the quarter compared with a year ago. This is huge and will be huge for UPS and it's business.
One drawback is that the company is a little overvalued. With a PEG ratio of over 2.6 and a P/E of 31.83 its not a buy and hold but rather a get in and get out.
Take a look and let me know.
Research tip of the week! PEG Ratio
Research tip of the week
PEG and im not talking about some peg board. PEG ratio is a stock's price/earnings ratio divided by its year-over-year earnings growth rate. In general, the lower the PEG, the better the value, because the investor would be paying less for each unit of earnings growth.
so what does all this crap mean? Basically all it means is the lower the number the more undervalued a stock is. When Im doing my research, I look for a PEG ration of between .5 to 1.5 but especialy between .5 and 1.0. This is means that if you were to purchase shares of stock in company x you will be getting them at a fair if not below fair value. Thats all for now. Happy hunting!
PEG and im not talking about some peg board. PEG ratio is a stock's price/earnings ratio divided by its year-over-year earnings growth rate. In general, the lower the PEG, the better the value, because the investor would be paying less for each unit of earnings growth.
so what does all this crap mean? Basically all it means is the lower the number the more undervalued a stock is. When Im doing my research, I look for a PEG ration of between .5 to 1.5 but especialy between .5 and 1.0. This is means that if you were to purchase shares of stock in company x you will be getting them at a fair if not below fair value. Thats all for now. Happy hunting!
Saturday, April 17, 2010
Friday, April 16, 2010
Profit from the Goldman Sachs Scandal!
The markets were hit with a bomb today when it was announced that Goldman Sachs(GS) was being charged with fraud from the SEC. Many people are running scared from the financial sector but you can do the opposite and make a bundle of cash. Many people feel that Goldman is the first of many to be hit by the SEC. Among others are Merril Lynch and Citigroup. The financial industry is probably looking to continue on the downside, so how do you make money? Puts baby. If you own long positions in the banking industry I would by puts in companies like Citigroup, Goldman Sachs or Credit Suisse. You may also want to look into defensive stocks like Target or Proctor and Gamble who should benefit from this fallout.
Puts are very risky so make sure to consult a professional if you are unsure.
Puts are very risky so make sure to consult a professional if you are unsure.
Tuesday, April 13, 2010
Intel 1Q profit nearly quadruples from a year ago!
Intel Corp. said Tuesday its net income in the first quarter nearly quadrupled over last year and reflected an overall bump in spending on technology by companies. The results sent Intel shares higher.
Among other things, Intel got a lift from sales of new chips for computer servers -- the kind of purchase that many companies delayed in the recession. And Intel's chief financial officer, Stacy Smith, said in an interview that demand for processors for higher-end laptops was stronger than expected as corporations upgraded their workers' computers.
Among other things, Intel got a lift from sales of new chips for computer servers -- the kind of purchase that many companies delayed in the recession. And Intel's chief financial officer, Stacy Smith, said in an interview that demand for processors for higher-end laptops was stronger than expected as corporations upgraded their workers' computers.
Stock Pick of the week! 4/13/10
Target Corporation (TGT)
Company operates over 1700 stores. Great financials. Better margins than Wal-Mart. Just implemented a recycling program to help the environment and attract more customers. Expanding food department to offer fresh vegetables and meat.
Oracles consensus: Strong buy up to 62
Company operates over 1700 stores. Great financials. Better margins than Wal-Mart. Just implemented a recycling program to help the environment and attract more customers. Expanding food department to offer fresh vegetables and meat.
Oracles consensus: Strong buy up to 62
Monday, March 29, 2010
Stock Market Oracle pick of the week!
Western Digital Corporation (WDC)
This stock is a great undervalued buy.
Western Digital Corporation engages in the design, development, manufacture, and sale of hard drives worldwide. The company's hard drives are used in desktop computers, notebook computers, enterprise storage, workstations, video surveillance equipment, networking products, digital video recorders, satellite and cable set-top boxes, and external storage appliances. Western Digital Corporation sells its products to original equipment manufacturers and original design manufacturers for inclusion in computer systems or subsystems, distributors, resellers, and retailers. It has a collaboration agreement with NEC Electronics Corp. to promote the SuperSpeed Universal Serial Bus 3.0 standard, an interface to be used in a range of electronic devices, including personal computers (PC), PC peripherals, and digital appliances.
Entry point: $40.00 or below
Exit point: $50.00
time frame: 3-4 months
This stock is a great undervalued buy.
Western Digital Corporation engages in the design, development, manufacture, and sale of hard drives worldwide. The company's hard drives are used in desktop computers, notebook computers, enterprise storage, workstations, video surveillance equipment, networking products, digital video recorders, satellite and cable set-top boxes, and external storage appliances. Western Digital Corporation sells its products to original equipment manufacturers and original design manufacturers for inclusion in computer systems or subsystems, distributors, resellers, and retailers. It has a collaboration agreement with NEC Electronics Corp. to promote the SuperSpeed Universal Serial Bus 3.0 standard, an interface to be used in a range of electronic devices, including personal computers (PC), PC peripherals, and digital appliances.
Entry point: $40.00 or below
Exit point: $50.00
time frame: 3-4 months
Kellogg (k) downgraded march 29th 2010
Kellogg was downgraded today by BMO Capital Markets from outperform to market perform. The stock price was slightly up .10 to 53.86
Thursday, March 25, 2010
Nike (NKE)
Sentiment: Bullish
Great company. Awesome product mix. Third quarter profit more than doubled. Cramer came out and set a $100 price target. Sick balance sheet. Almost no debt. HSBC came out today and upgraded from neutral to overweight. 3 upgrades in the past 3 months.
Background:
Nike, Inc. designs, develops, and markets footwear, apparel, equipment, and accessory products worldwide. The company offers various categories of shoes, including running, training, basketball, soccer, sport-inspired urban shoes, and kids’ shoes. It also provides shoes for aquatic activities, baseball, football, cheerleading, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and various athletic and recreational uses. In addition, the company offers sports-inspired lifestyle apparel, athletic bags, and accessory items. Further, it provides a line of performance equipment, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protective equipment, golf clubs, and various equipments designed for sports activities under the NIKE brand name, as well as markets apparel with licensed college and professional team and league logos. Additionally, it offers licenses to produce and sell NIKE brand swimwear, children’s apparel, training equipment, eyewear, electronic devices, and golf accessories. The company also markets its products under the brand names of Converse, Chuck Taylor, All Star, One Star, Umbro, Jack Purcell, Cole Haan, Bragano, and Hurley. It sells its products to retail accounts through stores, independent distributors, and licensees, as well as through its Website, nikestore.com. As of May 31, 2009, Nike, Inc. operated 338 retail stores in the United States and 336 retail stores internationally. The company was founded in 1964 and is headquartered in Beaverton, Oregon.
Buy anywhere below 75. Look to sell around 85. Take the money and run!
Great company. Awesome product mix. Third quarter profit more than doubled. Cramer came out and set a $100 price target. Sick balance sheet. Almost no debt. HSBC came out today and upgraded from neutral to overweight. 3 upgrades in the past 3 months.
Background:
Nike, Inc. designs, develops, and markets footwear, apparel, equipment, and accessory products worldwide. The company offers various categories of shoes, including running, training, basketball, soccer, sport-inspired urban shoes, and kids’ shoes. It also provides shoes for aquatic activities, baseball, football, cheerleading, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and various athletic and recreational uses. In addition, the company offers sports-inspired lifestyle apparel, athletic bags, and accessory items. Further, it provides a line of performance equipment, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protective equipment, golf clubs, and various equipments designed for sports activities under the NIKE brand name, as well as markets apparel with licensed college and professional team and league logos. Additionally, it offers licenses to produce and sell NIKE brand swimwear, children’s apparel, training equipment, eyewear, electronic devices, and golf accessories. The company also markets its products under the brand names of Converse, Chuck Taylor, All Star, One Star, Umbro, Jack Purcell, Cole Haan, Bragano, and Hurley. It sells its products to retail accounts through stores, independent distributors, and licensees, as well as through its Website, nikestore.com. As of May 31, 2009, Nike, Inc. operated 338 retail stores in the United States and 336 retail stores internationally. The company was founded in 1964 and is headquartered in Beaverton, Oregon.
Buy anywhere below 75. Look to sell around 85. Take the money and run!
Hi Tech Pharmacal Co. Inc. (HITK)
Sentiment: Bullish
Awesome small cap company. Undervalued compared to it's peers. Great blance sheet. Low p/e. Consistently beats estimates.
Background:
Hi-Tech Pharmacal Co., Inc. develops, manufactures, markets, and sells generic, prescription, over-the-counter (OTC), and nutritional products in liquid and semisolid dosage forms in the United States. It produces a range of products for various disease states, including asthma, bronchial disorders, dermatological disorders, allergies, pain, stomach, oral care, neurological disorders, glaucoma, and other conditions. The company’s generic pharmaceutical products include oral solutions and suspensions, topical creams and ointments, and nasal sprays. Hi-Tech Pharmacal Co. also manufactures and sells liquid ophthalmic, otic, and inhalation products, as well as cough and cold products and prescription vitamins. It markets a line of branded products that include OTC, nutritional lines, and prescription products primarily for people with diabetes. The company’s product line comprises Diabetic Tussin for the treatment of cough; Zostrix for pain relief; DiabetiDerm, a dermatological and footcare product line; Multibetic, a multivitamin product; DiabetiSweet, a sugar substitute; Nasal Ease for allergy relief; and Mag-Ox line of magnesium nutritional supplements. It offers its products to chain drug stores, drug wholesalers, managed care purchasing organizations, certain Federal government agencies, generic distributors, mass merchandisers, and mail-order pharmacies. The company was founded in 1982 and is based in Amityville, New York.
Look for stock to move to 30 within 3 months
Awesome small cap company. Undervalued compared to it's peers. Great blance sheet. Low p/e. Consistently beats estimates.
Background:
Hi-Tech Pharmacal Co., Inc. develops, manufactures, markets, and sells generic, prescription, over-the-counter (OTC), and nutritional products in liquid and semisolid dosage forms in the United States. It produces a range of products for various disease states, including asthma, bronchial disorders, dermatological disorders, allergies, pain, stomach, oral care, neurological disorders, glaucoma, and other conditions. The company’s generic pharmaceutical products include oral solutions and suspensions, topical creams and ointments, and nasal sprays. Hi-Tech Pharmacal Co. also manufactures and sells liquid ophthalmic, otic, and inhalation products, as well as cough and cold products and prescription vitamins. It markets a line of branded products that include OTC, nutritional lines, and prescription products primarily for people with diabetes. The company’s product line comprises Diabetic Tussin for the treatment of cough; Zostrix for pain relief; DiabetiDerm, a dermatological and footcare product line; Multibetic, a multivitamin product; DiabetiSweet, a sugar substitute; Nasal Ease for allergy relief; and Mag-Ox line of magnesium nutritional supplements. It offers its products to chain drug stores, drug wholesalers, managed care purchasing organizations, certain Federal government agencies, generic distributors, mass merchandisers, and mail-order pharmacies. The company was founded in 1982 and is based in Amityville, New York.
Look for stock to move to 30 within 3 months
Bullish report
Noble Energy (NE)
Sentiment: Bullish
Solid balance sheet. Trading around 10% below 52 week high. Low P/E and PEG. Decent margins and ability to pay debtors. Solid company.
Sentiment: Bullish
Solid balance sheet. Trading around 10% below 52 week high. Low P/E and PEG. Decent margins and ability to pay debtors. Solid company.
Wednesday, February 3, 2010
Intro
Welcome to my blog! I am looking to use this blog to help others de-mystify the world of investing. I will be posting weekly stock picks as well as education and analysis of the market.
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