Recent Sell & Buy – January – TEVA, Ventas, Gilead Sciences

I bought a few shares of TEVA in August 2017. I thought that the market overreacted the announced goodwill impairment, and it has a good valuation. As I saw the revenue and EPS decline, and the large restructuring, I felt that I can not predict the profit of the company for the next few years and I closed my long position at $21.41. It brings me a small profit for this few months.

(Source: www.finviz.com)

I bought Ventas (VTR) shares at $56.19 which means 5.52% dividend yield for me. I think that VTR is a great company, which increased it's dividend in the last 7 years and has not decreased it in 2008-2009.

(Source: www.finviz.com)

As I have more money after selling my TEVA shares, I bought a few shares of Gilead Sciences (GILD) at $80.74 which gives me 2.86% dividend yield (after the recently announced dividend increase).

  (Source: www.finviz.com)

Full disclosure: Long VTR, GILD

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Recent Buy – TEVA - 2

A few days ago I wrote about my purchase of TEVA shares. The share price continued the falling, and I was thinking about the company's prospects. I think that the company's debt is managable on a long term horizont, but the short term financial ratios are not so good. That's why there are so many articles about the company's short term financial problems and the probability of bankrupcy. But I think that they can manage the short term problems and they will get large support from the Israeli Ministry of Economy.

I think that the black clouds will go away, but it needs long time. I bought a few more shares at $18.05. I know that it is a very risky investment, but I believe that the company worth more.

Full disclosure: Long TEVA.

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Recent Buy – TEVA

Teva Pharmaceutical Industries Limited (TEVA) is a pharmaceutical company. The Company is engaged in developing, producing and marketing generic medicines and a portfolio of specialty medicines.

Yesterday TEVA reported second quarter 2017 financial reports, lowered the 2017 business outlook and announced second quarter 2017 dividend of 8.5 cents, down 75% from 34 cents in the first quarter of 2017. Because of the negative news the share price of TEVA presented a huge decline, and it closed on $23.75 (-24.00%).

As I saw this decline of the share price, I decided to buy a few shares of TEVA and I successfully bought it at $23.97.

The company has 224.06 P/E ratio, but the forward P/E ratio is 5.05. TEVA has 0.76 Altman Z-Score, which means that it is in Distress Zone. The Debt/Equity ratio stands at 1.14, but most of them are long-term debt. (LT Debt/Equity: 1.08) I understand that the most of the investors don't like the dividend cut, but I think that the dividend cut will help the company to decrease the debt pile. I know that it is a very risky investment, but I believe that the company worth more.

Full disclosure: Long TEVA.

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