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Biotech / Medical : Teva Pharmaceuticals -- Ignore unavailable to you. Want to Upgrade?

To: Dana Breite who wrote (108)	11/11/1997 4:03:00 PM
From: Uncle Mikey	Read Replies (3) \| Respond to of 340

Encouraging? Who said encouraging? This idiot seems to be able to find a dark spot in an overall fantastic report.... Teva Pharmaceutical (TEVIY) 46 7/8 +3/16: NatWest Securities downgraded issue to "hold" from "buy" on concerns that release of the company's multiple sclerosis drug Copaxone will be delayed..... (from briefing.com) Let me see if I understand this pea brain's concern...Earnings are up roughly 50% without much of a contribution from COXOPANE, therfore.... future earnings might only continue to rise 50% (for a company selling at 15X next year's earnings) UNTIL Coxopane kicks in, then growth will (maybe) be acceptable. If Merck was selling for the same PE in relation to it's growth rate and next year's earnings it would be going for $31 a share. In the meanwhile we would be better to go out and buy some other pharmaceutical company with more typical industry earnings growth of 15% or less and selling at 25X earnings, as most of them are. These other companies do not have as much potential and therefor the risk of disappointment is less likely, disappointment being normal for these other companies. Does anyone know if there is a general requirement in the financial community that prospective analysts be shortsighted idiots, or are shortsighted idiots just drawn to the profession. (I apologize to any shortsighted idiots reading this - no offense intended - I know that you are not all analysts, and I was not implying that you are.)