Exiting the TEVA Prescription
TEVA Pharmaceutical Industries Limited develops, manufactures, and sells pharmaceutical products worldwide. It offers generic pharmaceutical products in various dosage forms. The company was founded in 1901 and is headquartered in Petach Tikva, Israel.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'TEVA'" symbolprices="42" div_align="right"]
Nearly one year ago we signaled a low valuation in TEVA at $42.00 on May 10, 2012 because of their track record of growing earnings. Our original published target was $52.00.
This week, TEVA announced earnings that clearly put the long trend of growing earnings into doubt. We are therefore exiting the position at a loss and will wait for evidence that the trend resumes before we re-enter.
We did accumulate $.88 in dividends over the period that helped cushion the blow somewhat. Our total return on this trade was negative at -7.9%.
In addition, a break in earnings of this type is uncharacteristic of a TOP 25 Purple Chip, therefore we are moving it from the TOP 25 to the regular list of Purple Chips.
EXIT TEVA AT $USD 37.80 (TEVA-US, $USD 37.80)
