One reason why this stock trades at these valuations is absence of big stakes by mutual funds.....other small or mid caps have mutual funds in em. Mfs are long term and don't trade in and out like hedgies ( eg bluemountain
on what needs to be done will be sent soon...hoping minority are able to realize full value of their investment ....no reason why taro shd trade at 11X, when peer PRGO trades at 25X. Agila (niche generics) was offered ~20X and ackman values complex generics greater than 20X
i guess taro is up 28% (not 20% like i mentioned in prior post) in the last year. Compare it with nasdaq biotech index fund IBB up 40% in 260 days.
interesting. not aware the suits are still pending...its been more than a year. I hope something good comes out of it. IMHO (and also commonsense would say based on "offers") at least one or two minority nominee by a majority nominated board will lend credence to majority-nominated board.
1.they need only 48 patients for this trial
2. also for the primary outcome, it is Only 28 days.
wondering if they will be able to release any prelim data when they conduct the call in May ? anybody?
Ironically this is happening in the market where
1) IPOs are hot...many many egs including godaddy which is up 35%
2) Biotech n pharma stocks are heavily overvalued. Eg: Look at ANAC ..boasting $2.5b mcap with 1 commercial prod n no profits. CEMP trading $1.2b wo p3 data
3) M&A is hot and deal financing is easy to raise
makes me feel there is someother factor here at taro for it to make lows with its strong fundamentals and performance ?
What a mediocre investment it has been over a year in the biggest biotech bull market taro is up ~20%?
$750m cash accumulation over 4 years has not earned anything meaningful over the last 3 years. now ironically n sadly this gunpowder can be used against us.
here is a quote from almost a year ago from ontario newspaper
The province is contributing $7 million toward the $247 million project, which will increase Taro's plant capacity by 50 per cent and potentially double the number of products it brings to market. Integrating R&D into the manufacturing process will help the firm boost efficiently and stay competitive.
Through this project, Taro will anchor its facility in Ontario, keeping highly-skilled jobs in the province, reducing supply chain and transportation costs, and ensuring it remains a major life sciences manufacturer in North America.
my speculations (pure speculations and guess), it is possible that they are increasing capacity to supply to other markets
I also believe integrating RandD to manufacturing and increasing speed to market, could greatly increase Taro's competitive advantage.
example look at ANAC. does it deserve $2.5b market cap? 1 onychomycosis product inferior to novexatin (we will know novexatin topline data hopefully end of the year)
that is some good news.
This is getting ridiculous. $250-$300 stock trading at $140. Only 1 shareholder couldcould be very elated at this
As I have repeatedly highlighted they need to present this story in good light at investment conferences where market makers go like market peers prgo, mylan and actavis do
1.gsk opiate business
4. Merck derma 3 asset
7. 4% stake increase in taro achieved using taro share buyback
Taro's only purchase novexatin has still not moved to phase 2b nearly 1.5 years since its acquisition.
Arguably taro shareholder who has been the biggest beneficiary is sun and Mr. S.
Imo Tarprofitsprofits have kept sun stock high enough which they have usedprofitably in recent buyout of ranbaxy. Also taros cash bolsters suns balancesheet so it can take on debt and make acquisitions still be under leveraged
one should do benchmark of use of cash ($600m balance for 3 years) with market peers as well as sun and show it to our indie dirs
Agreed that independent directors lost their legitimacy when they took more than 8 months to evaluate an offer that should have been evaluated and trashed in an hours timetime.
I still hope 2 truly independent directors will be elected if dilip wants to improve corp governance. Dilip is on his way to be richest man on earth in 10 years. Ranbaxy is a huge asset bought for cheap bcoz of temporary distress