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Taro Pharmaceutical Industries Ltd. Message Board

  • moydegem moydegem Aug 26, 2013 11:21 AM Flag

    Comparison: Former Taro management VS. Current Taro Management.

    While former Taro management screwed up big time, they deserve credits when and where they did the right things for investors. Accordingly when current management screws up, they also deserve the discredit that is due...
    1. Former Taro Management started the turnaround in Taro, NOT current Taro’s Management, which only built on top of it. Taro’s price went from a low of ~$6.50 to $14.5 under former management and before current management took control.
    2. In the good years of the former management Taro’s share traded at P/E=33. Under current management Taro’s P/E=11. According to this criterion Taro is trading at a third of what it was traded in 2002-2003. There is no reason for this management to brag or to take credit for the performance of Taro’s share.
    3. Former Taro Management did not try to squeeze minority out with a low ball offer. Sun, with the approval of this board -including current nominees for reelection ( Biran&Avidov-Mor), tried twice to squeeze minority out (Remember Mr. Shanghvi declaring that at $38 Taro share is overvalued?)!
    All indications are that they will try again. Therefore, give me former taro management over “this” management any time.

    If and when Taro trades at P/E=33 I may consider voting for Sun-Taro nomination for external directors. Until then I consider Taro’s board a rubber stamp, serving Sun interest to the detriment of the minority interest and I am voting AGAINST Sun-Taro Nominees Biran&Avidov-Mor, and FOR Blue Mountain candidates Rosenfeld&Bradshevski.

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    • good comparison. Taro SP is lower then during a pick in Nov. 2003 to ~ $70 when EPS was $2.06 on sales of $315M ( EPS is ~40% of the today's and Sales less then 50% of the today's.) With similar metrics Taro would trade then for $160-170

      • 1 Reply to valery164
      • Correct. but that is not the only metrics to judge by. Even Today's margins are better. yet Taro's SP languish at $65 with a a PE=11, instead of being $160-$170, as you have suggested.
        But wait, for the last two years Sun-Taro is not doing enough to improve Taro's business even more. If Sun would have let Taro to develop its business we could have expected Taro's EPS of be $8 or mores, and by your own metric. Taro SP could have been even much higher - at $213-$240 .
        This Sun is very costy to Taro's minority!

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