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Biotech / Medical : Teva Pharmaceuticals
TEVA 20.03-1.1%Oct 30 3:59 PM EDT

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To: Lance Bredvold who wrote (339)2/19/2025 1:34:55 PM
From: Lance Bredvold   of 340
 
As sometimes happens, I feel brilliant on TEVA. Unfortunately, like a doofus on several other stocks I've taken a risk with. At the moment the price has retreated to around $17 and I have $19 calls out till June. Price has been up to nearly $23 and the big question becomes whether I want to buy back those calls while they are cheap. Why did the stock decline so dramatically? The Gaza strip is demolished and there's fighting on both the West Bank and the Lebanese border. But as a multinational I don't think that's the cause. Trump is back threatening tariffs and that is probably a part of the retreat. Also there are threats of negotiated prices for Medicare/Medicaid drugs in the important US market. Capaxone is losing sales every quarter but new drugs are coming along. Sales seem to have bottomed at about $16B. Also net margin at about 18%.

I think I'd be wise to get out of those calls now while I have a pretty good gain in them. Last week would have been better of course, since the price is now up to $17.25 and reached a low of $16.10 then. I'm on a motel router where I don't enter my accounts, but will be home this weekend and can hopefully remember to place an order then. Only a couple hours of open market on Monday before I have to leave again, so will want to catch it then if lucky.
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