Guys, seriously, put your thinking caps on.
Unless you are definitely certain the Teva portfolio is a real goldmine purchased on the cheap, MYX shares would be lucky to be traded at 50c next couple of years.
I'm no pharmacist, don't know much about the competitive edge those Teva IPs got against the world... but chances are it's something some very smart people know very well and want to offload because they are buying another opportunity that presents them much, much greater opportunities.
Given Mayne's track record of buying things that hasn't made investors much cash.. .and that track record goes back at least 8 years... should you really be putting your cash on the line betting that this time it'll be different? This time they'll just digest this acquisition, make the most of it and relax on the acquisition binge? This time they'll make serious return on that billion?
Again, unless you have specialised knowledge into the Teva portfolio, the ins and outs of generic and Mayne's market, competitors etc. etc. Don't risk it. This stock is not for the average armchair warrior sitting at their desk crunching the numbers. You'd need serious insight into the pharma industry, serious knowledge of MYX products and operations... then you might know something, see some future development that'll show Teva it was wrong to offload their portfolio... and yea, I know, Teva was "forced" to sell so it's gold they're giving up.
Do we really need to add up all the products and sales projection MYX gave to figure at the current price, it's still way overpriced?
Market price about $1.5B.
Its net profit [none that of EBITDA where taxes, interests, depreciation, amortisation aren't real business]... for FY17 is what? $50m? $60m?
At $1 a share that's PE of 25 to 30; at $2 a share that's PE of 50 to 60.
So even if MYX is a great business, the best that's ever been, it is still too expensive. Quality still come at a price.
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