Re : TARO,
Taro - The bargain that beckoned?
Brandes Investment Partners is one of the largest asset management companies in the US with $120 billion in assets under management. Founded in 1974, its approach is to make value-based investments only. From time to time, it publishes its "100 year Vision" and it is renowned for its success in acquiring assets when they are at a weak juncture and then supporting them on the road back to success. The website “Guru Focus” lists Taro Pharmaceutical Industries Ltd. (Pink Sheets: TAROF.PK) in its bargains page as one such possible bargain. Since at the end of February, one of Brandes' funds has picked up 2.96 million Taro shares on the open market at $9.10 each.
As Brandes' reputation speaks for itself, Guru Focus wonders whether it would be worth buying Taro at $7 a share. I find difficult to believe that Brandes' managers did not make a few inquiries before investing $28 million in Taro shares, and anyone familiar with Taro and its management would have been wary of investing such a sum at that price. I actually have an explanation for their decision - they probably invested under the their "100 year philosophy," because the company's management will eventually be replaced at some point, won't it?
Published by Globes [online], Israel business news - www.globes.co.il - on April 25, 2007
