That's saying a lot.
Schering-Plough has been sheared, falling from around $60 a share three years ago. Sales of allergy drug Claritin have evaporated, and the pipeline is considered "fair" at best.
And if Hassan -- who led Pharmacia's turnaround into a $60 billion sale to Pfizer
Value trap or not, Hassan deserves an "A" for buying the stock. For all the reasons a person could have for selling a stock, there's only one reason to buy -- a belief in the long-term viability of the company (as Hassan stated). As importantly, the purchase is also a sign of leadership.
The company, however, gets a "D" for hyping the event. We haves questioned the information flow from the company, including news of the dividend cut, the recent $1.75 billion debt offering, and the company's discussion of an SEC investigation. Was it really necessary to devote an entire press release to an insider purchase?
After all, you don't see companies issuing press releases advertising insider sales.
Regardless, Hassan's purchase is worthy of applause. Of course, cheering is one thing; investors should take a good look at Zeke Ashton and Paul Jaber's recent commentaries before following Hassan's lead.