Zeev's Turnips Patch-No Politics (ZEEV)

[Zeev Hed]

Generic competition is more a problem for big pharma, margins in the generic market are already relatively thin, and distribution channels become more important. TARO established these. They have a small pipe line of proprietary products, of course, since they are now less than a half billion in market cap, any minor success there could be big leverage. Look at what this thread is willing to pay for "dreams", DNDN cap $340 MM, GERN $600 MM, ELN north of four billion bucks, BCRX $350 MM and the list goes on. TARO still has profits, and sales in the range of $280 to $350 MM annually, getting close to a PS of 1. Their net book value (taking out intangibles is $10 per share, or $13 per share if you plug back in the "intangible" (presumably they have value, otherwise, the law requires taking a write off). So in the $13 to $15 area, I think that TARO may start and be viewed as a bargain. I have seen bargains getting bargainier, however.