Teva Pharmaceutical Industries Ltd (TEVA) has moved higher as of late, but there could definitely be trouble on the horizon for this company. That is because TEVA is now in overbought territory with an RSI value of 71.4. Furthermore, estimates for the Teva Pharmaceutical Industries Ltd have been coming down, pushing it to a Zacks Rank #4 (Sell). This suggests that investors may better off exiting this stock before it falls back to Earth.
Teva is going to lose patent protection on Capaxone early 2014 and that drug comprises a very high percentage of its overall earnings and revenue. Every time in the las three years it gets to the level of today, it drops back down to the $38 range and the market is in potential correction territory.
"Zacs Says" wow you really scare me ,we are near Halloween anyway. Zacks recommendation on ORAN was 5 when the stock was trading at 10 ,i half followed their sell recommendation and sold at around 12 .ORAN is currently lost in space and i made only half profits,because i followed those i.diots.
By the way you aare new at the board but we have been talking about Copaxone expiring patent since i used to celebrate my birthday by hitting a "PIÑATA" and that was long long ago. Better wait until october 31 to scare the board with the Copaxone BSht.
In the past I used to think Teva was one of the most undervalued stocks in the market. I purchased it three years ago on that basis. Ever since that purchase where quite a few analysts were saying positive things about the company, the market punished the stock because of Capaxone issues regarding patent protection. Since it makes us 40% of its profits, the market always reacted negatively even when Teva showed positive earnings. The stock was always stuck in the $38-$41 range with limited downside, but also limited upside. It remains in that condition today; however the one big difference is that the very thing the market worried about is about to happen. The loss of Capaxone patent protection. I agree about analysts and the comments below; but my own experience makes me leary of Teva until it can prove it has a replacement for Capaxone. The one unknown is if the other generic manufacturers can successfully copy Capaxone. It is too iffy; therefore, I sold my very heavy position at a substantial loss. I hope Teva finds a solution, but I will be watching it from the sidelines as there are better investments.
For every analyst who says something positive there will be one which comes out with something negative. I believe it was Bernstein who just came out and said the company was turning the corner and listed them with a $46.00 target.
That being said nobody knows how long it will take Teva to turn things around or how good or bad of a money maker Copaxone will be for the future. I will say this though the market has treated Teva as though Copaxone will generate nothing for the company, which is a farce. It is still and continues to be the drug of choice.
The 10% workforce cut announced the other day was something which should have been done a long time ago, not sure why it wasn't. I certainly was not surprised by it and while it will generate savings for the company what investors want to see is earnings and revenue growth. Levin has now put his management team in place, put cost reduction measures in place, the last part is to introduce new products to market. That is the toughest part. Even though I no longer retain a position I still wish everyone here the best! Good Luck Guys!