Normally when a company has a new product or has another company who wants to buy out, its stock goes up. It's not the case of Perrigo. Do you think a change of CEO and a lower earnings makes a well established company such as Perrigo goes down from more than 205 to 95? The answer is NO.
So, the only explanation is this is a Wall Street scam to push the price down as far as possible then they can buy cheap shares. When they finish buying they will raise price or sell to Mylan with a huge profit.
I'm thinking it's more so PFE than MYL. I think MYL has to wait until they can approach PRGO again due to the last hostile takeover attempt. But regardless who, PRGO has always been a takeover target. PRGO knows that, and that is the reason they tried buying ENDP earlier in the year. ENDP is also a takeover target now with their depressed stock price. MYL is currently buying another company so I don't see them trying for PRGO right now.
Sentiment: Strong Buy
I think PRGO is going to get bought out soon. With Papa out of the way and stock price depressed I don't see many opposing it. See PRGO with a big bull's eye. Someone like the likes of PFE coming in and getting PRGO cheap. PFE can then keep PRGO separate and spin off their generics version into PRGO and gain an Irish tax basis. This will allow PFE to still split and get a lower tax rate at the same time. It's no secret that PFE was interested in PRGO before and that they are interested in lowering their tax rate. Looks to be the bio M&A is picking up.
Valeant and Perrigo combined would have way too much debt. Could deal with MYL, but the deal might have to be mostly for MYL stock. They have a fair amount of debt too, but nothing compared to VRX's $31 billion.
Kel................holding MYL and PRGO
Take profit as soon as it hits $99.71.The target is valid for next one week
This prediction is based on TinoIQ A11 - Overbought Oversold IQ algorithm
Probability of trade success calculated is : 99.64%.
TINO's machine learning predictive analytic algorithms analyzes thousands of stocks everyday and performs billions of calculations on last 25 years of data to predict only the best stocks for trade.
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in 2020 Perrigo isn't a big and strong manufacturer as a standalone company
Perrigo will be acquired or there will be some merger very soon
pharma M&A is booming and the current slump supercharges
Valeant's stock price will be $65 sooner than soon IMO. At that point it's merger of equals. Perrigo wants a great CEO and it lost the great one, would get Papa back. Perrigo does not want Valeant to compete in the same products and product categories, that's for sure. Valeant would rather not start from zero and grow slowly. Increasing competition would hurt Perrigo. On the other hand, Perrigo has to become bigger, stronger, lower cost manufacturer of generic drugs. Otherwise Perrigo loses in the long run. Basically Papa leads Valeant to compete in the same products and product categories Perrigo is in currently, that will hurt, and Perrigo will be left with a too small to compete, higher cost generics unit. Hardly a great outlook, that's why the stock price has fallen off the cliff.
Tel Aiviv (TASE) has been closed for the Passover Holidays since EOD April 27th and it is probably just an "adjustment" to share price trading in the US which was active and open.