Well, TEVA's low today was 15.58, so I guess I was right, specially with all these bullishness, it is still in the red. I wouldn't base an option play on my notion of these stock converging. I don't know the answer to your question, maybe someone else can chime in...
Up 17% this A.M. on a restructuring plan. Teva's New CEO to Cut 25% of Jobs to Rescue Ailing Drugmaker By Yaacov Benmeleh December 14, 2017, 7:13 AM EST Updated on December 14, 2017, 7:45 AM EST Schultz aims to cut costs by $3 billion by end of 2019 Dividend payments, staff bonuses to also be suspended Teva Pharmaceutical Industries Ltd. announced some of the most sweeping job cuts in the drug industry, eliminating 14,000 positions globally as new Chief Executive Officer Kare Schultz seeks to stabilize a company suffering from ill-timed acquisitions and rising competition for its copycat medicines. The goal is to reduce expenses by $3 billion by the end of 2019, the company said in a statement on Thursday. The drugmaker will also close a number of research facilities and factories. The workforce could shrink further as the world’s largest manufacturer of generic medicines considers more divestments, it said. The stock jumped in New York. Kare Schultz Source: Teva Pharmaceutical Industries Ltd. The moves highlight the severity of the challenges facing Schultz, a turnaround specialist who is the drugmaker’s sixth CEO in five years. He shook up the management team within days of joining last month, but now the 56-year-old Dane must move swiftly to prop up a company whose debt has ballooned to more than twice its market value. “We are taking immediate and decisive actions to reduce our cost base across our global business and become a more efficient and profitable company,” said Schultz. The stock, which last month hit a 17-year low, climbed 6.8 percent in early U.S. trading to $16.77. Shares of Teva were suspended from trading in Israel ahead of the announcement. Earlier in the day, they fell 0.5 percent to 55.60 shekels, taking the decline for this year to 60 percent. The company is working with advisory firm Evercore Inc. to review options for outstanding debt that include shrinking a revolving credit facility and extending the repayment period for some loans, according to people familiar with the matter. Teva may also seek to reset some debt covenants and extend bond maturities, said the people, asking not to be identified because the deliberations are private. Teva, an acquisitive company by tradition, paid $40.5 billion last year to beef up its copycat medicines business and bolster growth. The deal proved to be ill-timed when profit margins for knockoff drugs in the U.S. began rapidly shrinking. Compounding the problem is the loss of its monopoly on Copaxone, the blockbuster multiple sclerosis injection that at one point generated half of Teva’s profits. The company, whose expenses will total $16.1 billion this year, said most of the cost reduction will take place in 2018. Teva will also record a restructuring charge of at least $700 million. Schultz plans to lay out next year’s financial guidance in February, and present a longer-term plan later in 2018. Employees won’t get annual bonuses this year as the financial results are “significantly below” its yearly projections, the drugmaker said. “These are decisions I don’t take lightly but they are necessary to secure Teva’s future,” Schultz said. “Today’s announcement is about positioning Teva for a sustainable future which we will achieve with our talented people.”
Looks like Warren Buffett added shares. And as soon CNBC covered it after-hours.... up it went (goes). $21.20 Thing is, that info was out there for all to see today....long before CNBC broadcast it. Thats easy money... Took me awhile to find the source... but here it is for future reference. https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001067983&owner=include&count=40 *****Note the RSS feed.***** Now all of you Elite Traders can monitor Buffet (or Pershing or whoever) as fast as a Bloomberg Terminal and beat CNBC to the trade. .... you're welcome.
The generic market is highly crowded and Teva faces competition from players like Mylan, Dr. Reddy’s, and Sandoz among others. Competition is fierce as generic companies strive to be the first to launch a generic version once a brand product loses exclusivity so that they can capture significant market share. Once additional generic companies enter the market, market share, revenues and gross profit typically decline.
That little 30 cents up got sold off really quickly. I think some big seller is using the upticks for getting ride of his position.