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That blurb about Gabelli was old news from Barron's 7/97....
Q: What's your third $10 stock?
Gabelli: IVAX Corp. There are 100-plus million shares. I went down to Florida and visited with them. [IVAX Chairman] Phil Frost terminated a deal with Bergen Brunswig, and the stock dropped to 7 or 8. They got hammered in the generic-drug business, lots of problems. But there is new management, not Phil. Phil remains the guiding light. They're refocusing. They're getting cash from the sale of a chemical business, so they're funding proprietary drugs. They are selling off--for $320 million, plus contingency payments of $80 million--a IV-solutions company called McGaw. Essentially, what I like is that they have wonderful R&D in proprietary drugs. They still have to sort out the generics. But if they make this work,you are going to make 50% on the stock, or more, in the next 12 months. It's a wonderful speculation at $10. The balance sheet, pro forma for the divestments, will look awfully good.
I wonder if Mario is still bullish? |
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