Value investing is a cruel mistress. The pursuit of value often puts you in a position where you root against the companies you actually like, in hopes that a momentary market spaz-out lets you buy in to a good stock on the cheap.
But sometimes you can wait a really long time for a good company to stumble. Take the case of Teva Pharmaceuticals
And while fourth-quarter results weren't fabulous, they were good enough given the circumstances -- namely, not a whole lot in the way of major new launches. Sales were up 6%, operating income climbed almost 8%, and margins improved slightly. Copaxone, though, continues to shine -- sales rose a further 24%, making up nearly one-quarter of the total. This drug alone holds more than one-third of the share in the multiple sclerosis market.
Looking ahead, I see a few potential potholes that may bounce the stock temporarily into that happy place I call the Buy Zone. Pfizer
So as you might gather, I don't own Teva shares today, and I don't think the stock is exceptionally cheap, either. It's a great company (mid-teens ROIC) with a strong pipeline (49 potential first-to-file drugs with branded sales of $37 billion) in a great business. So rest assured that I'll be lurking in the weeds, hoping to get my next shot at this one.
For more decidedly non-generic Takes on generics:
Biogen Idec is a Motley Fool Stock Advisor recommendation, and Pfizer is a Motley Fool Inside Value pick. The Inside Value team is always bent on finding great values for its subscribers. Take a free trial today.
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).
