facilities are not that
liquidable as you know ...
White History Month
What Watson wants is the product line. Amoung wich is
INFED, FERLICETT and PENECILLIAN G.
There are of
course other products manufactured by SCHEIN not
currently produced by Watson, but the list is rather
lengthy. The inclusion of this product line to Watsons
existing [line] will make them very strong on wall street.
You seem to be quite knowledgable in the drug
stock area. I assume you own WPI stock..if so, why not
go to work for them to solve their problems ? You
seem to have all the answers.
FYI: As a
shareholder, I personally am satisfied with WPI.
facilities are not that liquidable as you know;
if salvagable, they need to correct any outstanding
problems immediately. with the inclusion of schein, Watson
will have its hands full of problems. money should be
spent wisely in correcting its troubles as opposed to
taking on more of them.
the street is really
losing interest in this company. if it intends to be a
premire generics company they need to be at least
respectibly competent in manufacturing. otherwise it is a
dud. Too many plants, too much outsourcing and corona
in the middle of its core regulatory problems. So
your point about consolidation might be a good one.
Officer take ma way:
After the Schein deal is
closed, Watson won't have any more cash to play around
with unless they sell off the little remaining Andrx
stock they now have
White History Month
They could also liquidate assets that are not that
profitable. I can think of at least two facilities that I
would shut down if I were them.
In answer to your message that you said it might
be fraud in accounting. We talked to
Morgan Walke about the message you
posted and we were
told he was not going to waste any time and energy
reading it and hoped
we would do the same. He said it
was just a
stupid claim and trying to short the
Why not call the office in San Francisco and
the facts and what else they have to say.
Yesterday WPI stock fell $688 million (7
times 96.6 million shares) on annoucement that
is acquiring SHP for an apparent $666 million (20
3/16 market close times 33 million
shares. In fact,
market is saying SHP should
be paying WPI $33 million
to be acquired.
It is usual for an acquireor
to sell off for
part or all of the premium paid.
case the premium is $111 million (3 3/8
rise in SHP stock times 33 million shares) or 1 1/8
per WPI share. Howerver WPI fell by 7 1/8 or or over
6 times that amount.
Rather than saying that
SHP is worthless,
perhaps the market is saying
that WPI needs
to be revalued downward for either
such a dumb acquisition or acknowledging that
prospects are limited.
Another interpretation may be
that the market
is wrong and over reacted.
The market is wrong, or at least the market that
you follow is wrong.
Schein has many
opportunities for Watson to advance itself. They carry Two name
brand products in Iron Injection that no one else
manufactures or carries; and the profit margin on these
products is quite high. Especially for
Further Schein and Watson carry very little duplicate
products, meaning that Watson can practically double it's
Finally, Schein has east coast
distribution and overseas sales, which Watson currently needs.
Thanks for putting the numbers together. I'm
amazed that this stock which was doing so well and
seeminhly pretty well thought of was trampled yesterday.
Probably defensive players in the issue (admittedly like
myself) found it not to be.
Were the earnings
growth numbers recently reported all fantacy? Is this
SHP company really so worthless to WPI.? Generic
drugs sound like a good idea, but they arn't, or this
company really doesn't have the goods.??
questions - really surprised.
The problem with the merger is the exchange for
cash for Schein. Brokers are sensing that Schein
holders are a bit worrisome about Watson's stock price
stability this year----so cash in lieu of Watson stock is
much better. Schein must have looked at the books and
were not happy with Watson's assumptions and poor
outlook with the corona production capabilities.