Watson in the news today in CBS Marketwatch (basically a summary of a SmartMoney magazine article on WPI):
Chew on this smoker
By Jeff Clabaugh, CBS MarketWatch
Last Update: 9:48 AM ET Apr 12, 1999
WASHINGTON (CBS.MW) -- When your company's stock is added
to the S&P 500 index, there's always that big bounce. There are the index
fund managers who have to load up on it, and there are the momentum
investors who want to cash in on the "index effect." But a recent
SmartMoney Stock Update says Watson Pharmaceuticals (wpi: news,
msgs) deserves more than just a short-term boost from its newly found
clout. Just what is Watson? A generic drug maker that, among other
things, just won FDA approval for the first generic version of Nicorette
gum. SmartMoney says that's a $200 million market and a competitor's
product isn't expected for quite some time.
SmartMoney says Watson's stock, up 145 percent
since it named the company to its Best Investments
Of 1997 Portfolio, has taken some hits lately.
Investors were spooked by an FDA warning letter
regarding its manufacturing process and its last
earnings report that showed the company made
estimates but left some investors wondering about
revenue growth. SmartMoney says there's no
reason to worry about Watson. Its new product
pipeline is stronger than ever and analysts expect
Watson to grow earnings by at least 20 percent a
year. SmartMoney quotes a Bear Sterns analysts
as saying the company's earnings have never been
more balanced, consistent and predictable. And
another from Gruntal who thinks the company's
fundamentals are stronger and even more valuable
today than they have been in its recent successful
past. SmartMoney says even after the short-term
volatility Watson stock will experience from its
addition to the S&P 500 ($spx: news, msgs), there
is a good chance its shares will completely rebound
in the next six to 12 months with shares hitting $60 within that time frame.
See the full story. |
