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Ron Sommer

 
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  • Teva Pharmaceutical Industries: What Others Are Not Seeing [View article]
    I have both owned owned TEVA shares and written about the company here on SA. I would not hold TEVA shares now waiting for a turnaround that may never happen. As an alternative, I suggest looking at TARO. I have a position in TARO.
    Nov 27, 2013. 09:39 AM | Likes Like |Link to Comment
  • A Long-Term View Of Cellcom Israel [View article]
    I watch Bezeq in relation to the other Israeli telecom companies.
    Oct 28, 2013. 02:34 PM | Likes Like |Link to Comment
  • Scripps Networks Revisited [View article]
    Hi Debbie,

    I think DISCA is a bit overvalued, perhaps by 8%-10%. The free cash flow yield is minuscule. I would also want a better cash return on invested capital. Overall, the company's free cash flow is not what I require for an investment.

    I am a big believe in free cash flow backing up whatever earnings a company reports. The accounting numbers are just management estimates and cash tells its own story.
    Oct 2, 2013. 07:32 PM | Likes Like |Link to Comment
  • Mazor Robotics And The Medical Revolution [View article]
    The other aspect to consider before more widespread use is the learning curve for the surgeons. It takes time before a critical mass is reached and the technology becomes accepted. This is a long-term play on a nascent technology.
    Sep 10, 2013. 12:54 PM | 1 Like Like |Link to Comment
  • Time To Get Out Of Universal Technical Institute [View article]
    Gary,

    I note that you reproduce a table that appeared in my recent article and that you provide an oblique link to my article. It would be appropriate, in my opinion, to attribute the table to the author.
    Jun 21, 2013. 07:38 AM | Likes Like |Link to Comment
  • The Post-Secondary Education Market [View article]
    robros,

    I understand your point of view and I find no fault in it. For myself, I do not invest in turnaround situations. Though the potential rewards are high, so is the risk. I do not have a great deal of faith in what management has to say nor do I focus much on the "story" behind the stock.

    You are right that the numbers tell a story for a particular moment in time. I invest based on those reported numbers and then follow them closely. If they fall out a zone that I have set - either too high or too low, I sell out. Sometimes for a loss but mostly at a profit.

    Different approaches are appropriate for each of us.
    Jun 5, 2013. 03:35 PM | Likes Like |Link to Comment
  • Dover Corporation - A Quantitative Analysis [View article]
    Not much interest in reading about DOV even with the recent announcements.
    Jun 1, 2013. 07:53 AM | Likes Like |Link to Comment
  • Teva Pharmaceuticals Is A Bitter Pill To Swallow [View article]
    My data comes from Thomson Reuters Research Inc. I used the following for my calculation:

    EV = MkVal (33,422.85) + LTD (11,712) + Preferred Shrs (0) + STD (3,006) - Cash (2,879) = 45,261.50

    EBITDA = Pretax Inc (1,819) + Interest (355) + D&A (1,708) = 3,527

    EV/EBITDA = 12.83
    Apr 30, 2013. 04:43 PM | Likes Like |Link to Comment
  • Israel - A Standout Among The OECD Economies [View article]
    Diamondblues,

    Your association of the diamond industry and alleged Israeli war crimes betrays your prejudices.
    Apr 20, 2013. 06:15 PM | 7 Likes Like |Link to Comment
  • Given Imaging Up For Grabs [View article]
    The following is from Globes:

    "Last week, Given Imaging, which has developed and sells the diagnostic PillCam endoscopic camera for the intestinal tract, filed its F-20 report with the US Securities and Exchange Commission (SEC), in which it disclosed Shamir's salary cost. His basic salary totaled $432,640 in 2012, and he received a cash bonus of $515,923. He also received 30,000 vested convertible units, which are currently worth about $500,000. Vested units are free capital compensation, in contrast to options or shares for which a realization fee has to be paid."

    "An examination by "Globes" found that since Shamir took up his post in April 2006, he has accumulated NIS 30 million in capital. While this amount is not large for a company of Given Imaging's size and accumulated over seven years, but when compared with the yield Shamir has generated for shareholders during his tenure, NIS 30 million might be an amount that ought to cause the company's directors to squirm."

    "The 30% drop in Given Imaging's share price during Shamir's seven-year tenure contrasts to Nasdaq's overall 39% gain."

    "The "Globes" investigation also found that Shamir has enjoyed consistent salary and bonus hikes during his tenure, as well as changes in the capital composition from stock option grants to vested stock grants. His starting salary in 2006 was $330,000, rising to $400,000 in 2007, and $416,000 in 2008. During the 2009 credit crisis, he gave up 10% of his salary, but this did not materially affect his circumstances. A year later, he won a 4% pay hike on his early full salary, not the reduced salary of 2009, to $432,640. His cumulative pay hike in 2006-10 was 31%. "

    This suggests to me the company is not shareholder friendly and that the CEO has enriched himself even as shareholders suffered.

    I do not follow Elron and have no opinion.
    Mar 23, 2013. 10:11 AM | Likes Like |Link to Comment
  • Creative Destruction And The Pharmaceutical Industry [View article]
    The same people who pay the bill now, i.e. either the consumer who will pay higher premiums to the insurance company or the taxpayer. The other option is not to invest in better medical care.
    Jan 6, 2013. 05:04 PM | 1 Like Like |Link to Comment
  • Creative Destruction And The Pharmaceutical Industry [View article]
    As I understand it, there is very tight integration between diagnostic testing to identify cell characteristics at the molecular level with the specific treatment. It would be the opposite of using a broad-spectrum antibiotic.

    The issue of drug trials is important. I assume there is enough commonality across the population to identify traits at the molecular level.
    Jan 6, 2013. 11:23 AM | Likes Like |Link to Comment
  • Teva Pharmaceutical: A Company In Transition [View article]
    The company's trailing earnings are $2.45 per share. With the restructuring costs, I do not see EPS expanding to $5+ per share. The press release included the following:

    " Non-GAAP earnings per share as projected for fiscal year 2013 excludes primarily the impact of acquisition, restructuring and other expenses, asset impairment charges, amortization of purchased intangible assets, legal settlements, and costs related to regulatory actions. We also exclude any tax benefits related to these expenses Most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Therefore, no reconciliation to GAAP amounts has been provided. Future amortization of intangibles is expected to be approximately $300 million per quarter. "
    Jan 6, 2013. 07:09 AM | Likes Like |Link to Comment
  • Teva Pharmaceutical: A Company In Transition [View article]
    I use industry-wide comparisons wither medians or averages to avoid the problems associated with cherry picking comparables.

    In my analysis, I could not find the drivers to justify higher EPS for 2013. Sales will be flat or down. Earnings from cost savings are ephemeral.

    My last point refers to my expectations for ROE, ROIC and CFROI. When I invest, I require higher returns than that offered by TEVA. If Levin succeeds, then these metrics will improve perhaps to the level I require.
    Dec 31, 2012. 08:13 AM | 1 Like Like |Link to Comment
  • Schweitzer-Mauduit: An Overlooked Small-Cap Gem [View article]
    I am also concerned with the share dilution and this would support your idea that management was enriching itself at the expense of shareholders. I am encouraged to see the net reduction of shares outstanding. The other reason this company's share price does not reflect the fundamentals, I think, has to do with its customer base. Tobacco industry companies are just not very popular. In the developed countries, fewer people are smoking. However, for better or worse, smoking is still a growth business in the less developed countries. SWM is a slow grower but very profitable. I look to management to return more capital to shareholders. As you know, I have a long position in SWM so I hope I am right.
    Dec 12, 2012. 08:38 AM | Likes Like |Link to Comment
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