Background
With the collapse in Teva (TEVA) stock and other generics last week, I have reviewed my articles and find that the last time I commented on it and the generic industry was over a year ago. Before commenting on the values inherent in today's lower prices for generics, here are the first two bullet points from my May 11, 2016, Seeking Alpha article, Generic Stocks Down; Are They Good Buys? Focus On Teva:
- Generic stocks have been hit lately.
- Based on industry comments, the industry may have entered a down cycle for pricing of the commodity products it markets.
That is already interesting. Generic stocks were already down enough to comment on 15 months ago. Teva was $53 then, now under $21.
In the summary, I began by saying that "This is one of those periods and sectors where I do have a firm view."
That view was, so far, correct, as I continued:
