Investment Thesis
Teva (TEVA) offers long-term patient investors a strong opportunity to participate in its growth potential without the hefty price tag. The reason being that two main issues are plaguing Teva - a slim pipeline of drugs and a heavy debt load on its balance sheet. If Teva had only one of these issues its shares would not trade this cheaply. Having both of the issues, investors are very understandably highly fearful.
Recent Developments
In my previous article on Teva, titled Value Trap, I wrote
I was previously bullish Teva while not being a shareholder. Now, I'm totally bearish but ended up being a shareholder. Which is ironic. Teva's Q3 2017 results were so much worse than I had been expecting. Well, not so much their results, but its guidance and management's total inability to understand and forecast their business.
Several commentators read the title of the article and drew conclusions about the article without having read the article. My animosity towards Teva had been largely due to its inability to forecast conservative cash flows.
