Let me share some investment "advice" (sales pitch is a better description) from one of my brokerages I just received today as a matter of fact. And YES I actually read all the crap they send me. I like this stuff -- I have lots of time -- I'm actually pretty damn good at it too!
Listen to this drivel.... from a FEE BASED FIRM....
Focus List
Focus List Addition: Follow-on Report
• On December 17, we added Teva Pharmaceutical Industries (TEVA) to the Focus List with a Buy rating and $48 price target. Teva is based in Israel and is the world’s largest generic drug manufacturer. Consensus earnings estimates are $4.66 for 2014 and $4.64 in 2015. Our price target is based on 12x a worst-case earnings estimate of $4.00 per share for 2015.
• Teva is dealing with drug patent expirations, revenue concentration, an abrupt CEO resignation, Israeli tax issues, and a questionable growth trajectory.We believe current levels offer an attractive entry point for patient, contrarian investors.We believe Teva’s problems are well understood and that the stock should outperform once we pass the generitization of Copaxone―Teva’s largest drug at 60% of operating profits. Our $4.00 worst-case 2015 EPS estimate assumes a 60% loss of the Copaxone franchise while taking into account Teva’s ability to cut costs and restructure.
• Jeremy Levin recently resigned as CEO, due to what we believe was a board-level fight over his strategic plan. We feel that Chairman of the Board Philip Frost has been the de facto head of the company for some time and provides continuity. Mr. Frost is one of Teva’s top shareholders, and we feel his interests are aligned with those of other shareholders.
• The Copaxone patent expiration is a serious challenge for Teva and a risk to Street estimates. We believe that the bear case has been priced into the stock, and realistic worst-case earnings will be closer to $4.00 and any pullback in the stock will be short-lived. The extent of the threat to the Copaxone franchise should become clearer in May 2014, and clarity should alleviate pressure on valuation. We believe investors have already assumed the bear-case and we recommend positions be built as the company takes steps to reduce costs and reposition itself for future growth.
• Investment risks include revenue loss due to patent expirations, failure to get FDA approvals for new drugs, and other regulatory, operational and financial risks resulting from the global nature of Teva’s business.
Share price at time research report was published: $40.26 (1/02/2014 closing price); Share price at time Week in Review was published: $39.88 (1/03/2014 closing price)
So here's what I got out of reading this:
They are GUESSING that maybe the price will grow to a particular number... big whoop. I hope ALL of my stocks GROW -- if I didn't think they would -- I wouldn't have bought them!!
This is a drug company -- they a have SINGLE product which they are relying on for 60% of their sales!!! Which is about to EXPIRE.
TEVA is a CONTRARIAN investment -- that means that everyone else is WRONG and you're eventually going to be right -- because CONTRARIAN means you're betting against the grain! BETTING ='s GAMBLING. I'm betting everyone else is WRONG -- I'm going to buy low because nobody else wants the stuff --- and I'm hoping they're wrong and I'm right, and I'm going to be a winner. Ya know what? I think the same way when I'm buying a lottery ticket ---- the other 15 million people buying are suckers and my $2 ticket is the winner. So far - I haven't won. CRAP. Oh well.... maybe next time.
That last paragraph is legal mumbo jumbo telling you that when you follow the advice of this broker -- he might just be wrong -- BUT HEY! He told you it was risky so hold on to your hat sucker!
THIS IS THE KIND OF BULL CRAP YOU GET FOR YOUR 2% FEE..... I read it and toss 99% of it in the trash.
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