Cramer's Pick: actavis

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Anonymous

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With Actavis reporting earnings on Tuesday, Cramer advocates "reading the earnings release, listening to the conference call, and then, if your own homework confirms Leon Cooperman's thesis, putting the stock on your radar and waiting for an attractive point of entry. This is a long-term story, and with the broad market under pressure, I think you can afford to wait," Cramer said.
 








yeah - and why is he saying buy after earnings and not highlighting the stock earlier? The stock will rise after earnings and the pro's will take profits. Hedge funds are all over this.
 








While Pfizer shelved plans in May to buy the U.K. company in a record-setting transaction, its plan B could be an even larger target, $118 billion GlaxoSmithKline Plc, according to Berenberg Bank. A takeover of London-based Glaxo, which has gotten about 8 percent cheaper in the past two weeks, would give Pfizer a lung-drug business and more vaccines. Another possibility, Irish-domiciled Actavis Plc (ACT) at $57 billion, would offer a pipeline of new products and generic medicines. Either one may allow the New York-based company to move its headquarters abroad and lower its tax rate.
 
















Pfizer is not going to move on this in the short term. Walgreens is walking away from inversion. Pfe is looking at other alternatives. I would expect act to wain as the institutions hold or pull back their positions. If act can clear integration challenges and prove sales targets, improve execution in BD then pfe can place a higher valuation on the portfolio and could reeval.
 








I don't claim to know the answer here, but wouldn't both parties benefit from a deal before the integration is complete? PFE shareholders get a lower takeout price and ACT gets a bump sooner. I don't think PFE would be interested in how well this roll up is integrated, just the products and the tax break.
 








Cramer was a curse to the old FRX stock. He wouldn't jump on he bandwagon early last decade and missed most of a 1000% run over 7 years. Then once he did endorse the stock it crashed from the high 70's to the mid 20's. Now he endorses ACT and the stock drops $8 today. History repeating itself? Thanks, Jim!
 








Anonymous said:
Pfizer is not going to move on this in the short term. Walgreens is walking away from inversion. Pfe is looking at other alternatives. I would expect act to wain as the institutions hold or pull back their positions. If act can clear integration challenges and prove sales targets, improve execution in BD then pfe can place a higher valuation on the portfolio and could reeval.
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Correct , ACT stock is dead in the water with no more inversion deals , now they have to deliver on earnings and beat expectations or $150 value is in on the horizon before Xmas
 








Anonymous said:
Cramer was a curse to the old FRX stock. He wouldn't jump on he bandwagon early last decade and missed most of a 1000% run over 7 years. Then once he did endorse the stock it crashed from the high 70's to the mid 20's. Now he endorses ACT and the stock drops $8 today. History repeating itself? Thanks, Jim!
Click to expand...

check out the fda drug shortage page and guess which drug was finally reported to be in shortage on 8/6/14???? take 1 guess. wonder why stock dropped today…...
 
























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