James Hartje's  Instablog

James Hartje
Send Message
My name is James M. Hartje, I am current CEO of Stocks on Wall Street LLC.
My company:
Stocks on Wall Street LLC
My blog:
Stocks on Wall Street
  • Top Two Pharmaceutical Stocks to Invest In: VNDA & TEVA Set to Soar 0 comments
    May 18, 2011 7:23 AM | about stocks: TEVA, VNDA

    Read full article at: stocksonwallstreet.net/featured/top-two-...

    Pharmaceutical stocks have long been a bullish territory.  The problem with many of them is that they are solely dependent on whether or not their products will get FDA approval.  Below are three pharmaceutical stocks with high ceilings:

    Teva Pharmaceutical (NASDAQ: TEVA) is one of the leaders in generic pharmaceutical with a market cap of $42 billion. They make many of the branded drugs you see on the shelves in your local pharmacy or grocery store.  Unlike smaller companies, TEVA doesn’t have the problems with being dependent on one of their products gaining FDA approval.  Being such a large corporation they make such an array of products where they are able to push out the competition.  Many analysts predict that TEVA is so far ahead of the curve that many of their drugs won’t see substantial competition until at least 2014, maybe even later. TEVA has a strong book of business with a strong PEG Ratio of 0.89, a forward earnings multiple of 9.7, and a book value multiple of 2.1 all bullish indicators. Adding to this, TEVA pays out a dividend of 2% annually.  Wall Street is very favorable towards TEVA with 81% of analysts giving it a “Buy” rating.  I personally, believe TEVA has a large upside as I expect the stock to soar all the way to $80 a share, a total yield of 75.

    Vanda Pharmaceuticals (NASDAQ: VNDA) is a biotech company that does research for large pharmaceutical corporationsCurrently Vanda has two drugs with high ceilings, Fanapt, an anto-schizophrenia drug, which was approved by the FDAin May 2009.  Vanda’s strategy worked well with the drug only problem was they had to pay large royalties to their partner Novartis for the approval of the drug.  Adding to that VNDA also carries the drug, Tasimelteon, which is used for sleep and mood disorders, with potential applications for insomnia and depression.  Analysts are less optimistic about Tasimelteon’s potential than it is about Fanapt’s. Fanapt is very interesting as it is entering a heavily contested anti-psychotic drug market that could make it very profitable. Nevertheless, VNDA’s prescriptions continue to strengthen on a month-over-month basis adding to the companies overall long-term strength.  As a result, I expect VNDA to rise to $14 a share, a total yield of 85%.

    The two pharmaceutical plays above both have high ceilings, which make them risky plays.  If you are the conservative investor I would stay clear of both plays, if you are to invest TEVA is the more stable play whereas VNDA has the larger upside.

    Don’t be a stranger leave a comment below and let me know what you think or send them to my Twitter. Also remember to sign up for Stocks on Wall Street’s Monthly Newsletter.
    Stocks: TEVA, VNDA
Back To James Hartje's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Read my new article Featured on the Front Page of @SeekingAlpha http://seekingalpha.com/a/whd0 $BBG $CHK $EGN $PXD $XOM
    Jun 21, 2013
  • Still think airline stocks haven't performed well the past 2 years? Think again! $ALGT ⇧87% $BA ⇧20% $DAL ⇧105% $LUV ⇧37% $UAL ⇧61% = ⇧311%
    Feb 20, 2013
  • Still think airline stocks haven't performed well the past 2 years? Think again! ALGT ⇧87% BA ⇧20% DAL ⇧105% LUV ⇧37% UAL ⇧61% Total: ⇧311%
    Feb 20, 2013
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.