You stated that: "...the fear is earnings decline in the near term as some major drug comes off patent."
This is indeed true, but the market is punishing Teva for over 10 years now for this same problem, and besides, many other pharmaceutical companies are facing the EXACT same issue and their stocks' price is going steadily higher.
Teva's stock traded at the current prices about 12 years ago !!! Just look at the max-year-chart at Yahoo.
While the market is going higher almost daily for a long time now, Teva is getting closer and closer to its 52-week-low price.
Teva has been a miserable investment for a very long time now and failed to provide its long-term shareholders any return on their investments whatsoever ! A very poor investment indeed !!!
Phillip Frost – the Chairman of the Board of Teva – WHAT ARE YOU GOING TO DO ABOUT THIS !!!???
We are paying you much more than enough money and we deserve an answer from you.
Dont know if its been 10 years of negative sentiment over patent worry but certainly years and no doubt this is way over sold. thing is I finally understand that the market can be illogical for longer than one can imagine. so has teva seen its bottom for a long time perhaps but for now its really underperforming. starting to look interesting for sure, but one has to be prepared for a possible long wait for recovery and even new lows first. this is up against other investments with out such sentimetn issues and that doesnt help either. but yeah think its a value buy for a partial step in here. glta
still think this is a good sector to be in and if teva is following a similar pattern to pfe for the same patent fear/sentiment its going to rebound nicely at some point in time. the question has teva come very close to or hit bottom for now? value buy here and tentative buy for the patient investor/long time horizon investor.