From Bill Nygren's letter to shareholders of the Oakmark Fund:
Schering Plough (SGP – $19)
We sold Schering Plough out of The Oakmark Fund two years ago. In those two years, most stocks are up significantly. SGP has surpassed our sales estimates and has also resolved their FDA compliance issues more quickly than expected. Despite that, the stock hasn’t moved. Johnson & Johnson’s recent purchase of Pfizer’s consumer products division suggests that even Schering’s least desirable businesses are worth a higher price-to-sales ratio than the stock’s current price. CEO Fred Hassan has a good track record in turnarounds, including his previous assignment at Pharmacia, which resulted in that company’s sale to Pfizer. Through either improved profitability as an independent company or through sale of the business to another pharmaceutical company, we believe Schering Plough under Hassan’s leadership is likely to generate good returns for shareholders.