TEVA

Earnings Roundup for the Week Ended Sunday, April 19, Covering Companies Across the Board

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By Callum Turcan Let’s take a look at several earnings reports across numerous industries in this article as the ongoing coronavirus (‘COVID-19’) pandemic forces the global economy to a crawl. Please note that as these reports primarily cover the first quarter of calendar year 2020, the impact of the pandemic has yet to be truly reflected in corporate earnings. That said, these reports still provide an important glimpse into what to expect going forward and how companies are responding to the pandemic. By ticker in alphabetical order: BBBY, CPSS, ISRG, LAKE, MRTN, OFLX, SCHW, TSM Bed Bath & Beyond Inc (BBBY) Shares of BBBY shot up on April 16 after reporting fourth quarter and full-year results for its fiscal 2019 … Read more

Update: COVID-19 Vaccine Race

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Image Source: Johnson & Johnson – Second Quarter of Fiscal 2020 IR Earnings Presentation By Callum Turcan The ongoing coronavirus (‘COVID-19’) pandemic has devasted the global economy (though things are starting to improve) and has fundamentally altered daily human life. According to a draft report from the World Health Organization (‘WHO’), there were 29 COVID-19 vaccine candidates undergoing clinical trials as of August 13 along with 138 other candidates undergoing preclinical evaluation. It is a race against the clock. Unfortunately, as of this writing on August 18, there have been ~170,000 COVID-19-related deaths in the US alone according to data from the US Centers for Disease Control and Prevention (‘CDC’). We are optimistic that one of the many “shots on … Read more

How to Think About Corporate Tax Reform

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Nelson: The 16 Most Important Steps To Understand The Stock Market

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A previous version of this article appeared on our website July 21, 2013. Refreshed and updated throughout, as of July 2018. By Brian Nelson, CFA After earning my MBA at the University of Chicago Booth School of Business and training stock and credit analysts from large organizations over the past decade or so, I have heard just about every question (though I admit I am still surprised by many things and remain a very humble student of the markets). I’ve also spent years perfecting the discounted cash flow process for large research organizations such as Morningstar and studied under one of the most famed aggressive growth investors of all time, Richard Driehaus. My knowledge runs the gamut from value through … Read more

Efficacy of the Dividend Cushion Ratio

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A version of this article was originally published September 2019. The Dividend Cushion ratio is one of the most powerful financial tools an income or dividend growth investor can use in conjunction with qualitative dividend analysis. The ratio is one-of-a-kind in that it is both free-cash-flow based and forward looking. Since its creation in 2012, the Dividend Cushion ratio has forewarned readers of approximately 50 dividend cuts. We estimate its efficacy at ~90%. By Valuentum Analysts  Key Takeaways: The Dividend Cushion ratio is a helpful tool to use to cushion your dividend growth or income portfolio against potential dividend cuts. The ratio also helps to assess the growth potential of a company’s dividend, above and beyond current expectations of payout … Read more

S&P 500 Poised to Make New Highs…Again?

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The equity markets have welcomed a strong earnings season thus far, but valuation risk and tail uncertainties remain, not the least of which is the possibility of failed tax reform in the US. By Brian Nelson, CFA Money is cheap, and investors are partying like its 1999 all over again. The latest move on the trading vehicle for the S&P 500, the SPDR S&P 500 ETF (SPY) is yet again approaching new highs. We like the ongoing momentum in the stock market, something that we outlined in our “shocking” predictions for 2017, but we continue to reiterate our cautious stance, not only with respect to underlying valuations but also as it relates to the possibility of failed tax reform in … Read more

Generic Pharmaceuticals: Patent Expiration and Low Global Utilization Rates Create Opportunities

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Key Takeaways: ·       The generic pharmaceutical industry will benefit from a patent expiry “mountain” in 2015. ·       Penetration and utilization rates of generics vary considerably by country. Japan, Italy, Spain, France, and Australia are most likely to see the greatest increases in generic penetration rates. ·       We expect further M&A activity in Japan, as global players seek to gain a generics stronghold in this under-penetrated, yet burgeoning pharmaceutical market. ·       Emerging market growth will offer significant opportunities for firms levered to Latin America and South Africa. ·       The potential for biosimilars remains a key catalyst for the group. ·       Ideas o       Teva Pharma (TEVA) is our favorite idea in the generics space thanks primarily to its upside valuation potential and global position. We’re particularly big fans … Read more

Best Idea Vertex Pharma Is an Intriguing Biotech Play

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Image Shown: A snapshot of Vertex Pharmaceuticals Inc’s approved therapeutic offerings and its drug pipeline. Image Source: Vertex Pharmaceuticals Inc – January 2021 IR Presentation By Callum Turcan On January 12, we tweaked the Best Ideas Newsletter portfolio (link here) and added Vertex Pharmaceuticals Inc (VRTX) to the portfolio to gain exposure to a top tier biopharmaceutical company with powerful growth catalysts, a pristine balance sheet, a stellar cash flow profile, and exposure to next-generation treatments (gene therapies) through a strategic partnership that we will cover later on. The top end of our fair value estimate range for Vertex sits at $321 per share. Commercial Portfolio Overview Vertex’s commercialized therapeutics portfolio is heavily weighted towards treating cystic fibrosis (‘CF’) across … Read more

Stop Thinking Chronologically and Start Thinking Psychologically

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Image Source: Kenzie Saunders Let’s cover three important investing prompts. By Brian Nelson, CFA The Psychology of the Markets “The stock market is a discount mechanism of future expectations. Period. Sometimes prices are rational and based soundly on reasonable future fundamental expectations and sometimes they’re not.” – Brian Nelson, CFA Stop thinking chronologically, and start thinking psychologically. Many investors believe that they can just buy any old stock that pays a growing dividend and hold it for decades, and that’s long-term investing. Selection bias aside, this has worked in the past for many an investor. There are hundreds of examples of this. But I think it is incredibly important for you to understand how to think about the long term, … Read more