Teva Pharmaceutical Industries Ltd (TEVA)

[Scapes]

I agree with your comments that Teva appears to be a great buy and has huge potential upside. However, the stock is still continuing its consistent downward descent as it has been since December 2015 and it’s still unclear if we’re at or near the bottom. I project the $3-$5 range is more likely.

The path forward for Teva may not be rosy, following J&J’s penalty. Teva is reeling due to pricing pressure in the generic market as well as rising competition in the branded segment. Based on the current scenario, cash resources of Teva may prove to be insufficient to meet settlement costs or penalties. A concern is that they may follow the path of Purdue Pharma and declare bankruptcy. A decision related to the multidistrict litigation, due in October, should clear things up.