By Jonathan Yates

In a recent Forbes column talking about investment classics - starting with books and ending with stocks, money manager Ken Fisher lauded Teva Pharmaceuticals (TEVA) along with other promising stocks such as Mattel (MAT) and Applied Materials (AMAT).

There is no denying the appeal of Israel-based Teva to emerging market growth, value and income investors.

According to Fisher, Teva is now "the biggest generic drug maker, spanning 60 nations with 17 R&D centers. With low cost and strong emerging markets presence, expect low double-digit sales growth. It's cheap at 14 times earnings with a 2.3% dividend yield."

Demographics are also on the side of Teva. As the consumer class in emerging markets expands, the demand for generic drugs will increase dramatically.

The dividend of Teva stock, now around 2.50%, should appeal to emerging market income investors given the average yield for a stock on the S&P 500

When a company whose stock has been challenged comes out and lowers guidance both on a revenue and earnings basis, and the stock goes up on the news, investors should clue in. This usually means that the bad news or worse is fully priced into the stock and quite often marks the bottom for the equity. Teva Pharmaceuticals (TEVA) is the company in question and given its low valuation, it is an ideal time to start to bottom fish in these beaten down shares.

Revised guidance highlights from TEVA:

The company now expects revenue of between $20B and $21B, down from previous guidance of $22B for FY2012.

Teva also expects earnings to be in the range of $5.30 to $5.40 a share for the fiscal year, down from previous guidance of $5.48 to $5.68 a share.

It expects Copaxone sales to tally $3.8B for year and it might divest non-core

Q1 2012 Earnings Results Conference

May 23, 2012 10:00 am ET

Executives

Haim Romano - CEO

Ziv Leitman - CFO

Gideon Koch - Manager, Revenues-Finance Department

Analysts

Gilad Alper - Excellence Nessuah Investment House

Michael Klahr - Citigroup

David Kaplan – Barclays Capital

Presentation

Operator

Welcome to the Partner Communications Company First Quarter 2012 Results Conference Call. All participants are at present in listen-only mode. (Operator Instructions) Following management’s formal presentation, instructions will be given for the question-and-answer session. As a reminder, this conference is being recorded May 23, 2012.

I would now like to turn over the call to Mr. Gideon Koch. Mr. Koch, please begin.

Gideon Koch

Thank you, and thank you to all our listeners for joining us on this conference call to discuss Partner Communications results for the first quarter of 2012.

With me on the call today is Haim Romano,

Teva Pharmaceuticals (TEVA) has seen its stock make two significant moves away from the S&P 500 over the past six months. In January, the stock took a big jump ahead of the general market move, stayed steady in the higher register (the jump came from the low end of a 40-43 range to the high end of a 43-46 range, about 11%). Then in mid-May the stock plunged back below 40, a two-week dive that sees Teva's share price at 38.9 entering the Monday, May 21 trading week.

(Source: TDAmeritrade: bold green line represents TEVA, black line represents S&P 500 Index)

(Click to enlarge)

Each of those moves was in part supported or fueled by the general market rise and fall; January saw the continuance of a 6-month bull-run, while last week was the worst of the year. The negative move also included an ex-dividend date, which tacked on $.2614

If you are new to this series of article I recommend that you take the time to read at least the first article in this series which explains the strategy in detail. If you are interested in how we got to this point with Teva or other quality companies used please refer to my concentrator blog which contains links to all the previous articles in the series.

I'd like to begin with a little summary information about how the strategy is doing overall before I get into the details about Teva (TEVA). After eight months we have collected 12.2 percent of our initial portfolio of $150,000 from selling puts. The total amount collected is $18,354. We have paid a total of $584.50 in commissions and fees, including the recent exercise fee on the put transaction to purchase Teva shares. That results in a total return

This past week, Teva Pharmaceutical Industries (TEVA) announced first quarter 2012 results. Headlines decried the results as "disappointing." Analyst reactions to this quarterly report and subsequent downgrades reflect nothing less than analyst myopia. There was some fixation on what is characterized as weak Copaxone sales and softness in European sales. What did the analysts have to complain about?

· Profit rose 13% on higher sales

· Sales rose 25%

Teva is the world's largest generic drug manufacturer by sales and is expanding into the branded proprietary drug market. To build out its branded product line, Teva recently purchased Cephalon (CEPH) for $6.5 billion. The company is also in the midst of a leadership change. Shlomo Yanai left the CEO position as of May 9th and was replaced by Jeremy Levin, a respected industry veteran coming out of Bristol-Myers Squibb (BMY).

One reason for the gloomy reaction to Teva's first quarter

Q1 2012 Earnings Call

May 09, 2012 8:30 am ET

Executives

Kevin Mannix - Director of Investor Relations - Teva North America

Shlomo Yanai - Chief Executive Officer and President

Eyal Desheh - Chief Financial Officer

Jeremy Levin -

William S. Marth - Chief Executive Officer of Teva Americas and President of Teva Americas

Robert Koremans -

Michael Hayden -

Analysts

Christopher Schott - JP Morgan Chase & Co, Research Division

Aaron Gal - Sanford C. Bernstein & Co., LLC., Research Division

Traver A. Davis - Piper Jaffray Companies, Research Division

Corey B. Davis - Jefferies & Company, Inc., Research Division

David G. Buck - The Buckingham Research Group Incorporated

Gregory B. Gilbert - BofA Merrill Lynch, Research Division

Limor Gruber - Psagot Investment House Ltd., Research Division

Frank H. Pinkerton - SunTrust Robinson Humphrey, Inc., Research Division

Elliot Wilbur - Needham & Company, LLC,

Q1 2012 Earnings Call

May 9, 2012 8:30 a.m. ET

Executives

Marty Cohen - Vice President, Investor Relations

Zeevi Bregman - President and Chief Executive Officer

Dafna Gruber - Chief Financial Officer

Eran Liron - Corporate Vice President, Business Development

Analysts

Shaul Eyal - Oppenheimer & Co.

Shyam Patil - Raymond James

Paul Coster - JPMorgan

Daniel Meron - RBC Capital Markets

Michael Kim - Imperial Capital

Presentation

Operator

Welcome to the NICE Systems Conference Call discussing First Quarter 2012 Results and thank you all for holding. All participants are at present in a listen-only mode. Following management’s formal presentation, instructions will be given for the question-and-answer session. As a reminder, this conference is being recorded, May 9, 2012.

I would now like to turn this call over to Mr. Marty Cohen, VP, Investor Relations. Please go ahead.

Marty Cohen

Thank you, operator. With me on the

There's no question that Teva Pharmaceuticals (TEVA) rewarded long-term investors with years and years of growth as it became the world's largest generic drug manufacturer. The biopharma world has changed, though, and so has Teva. Now branded companies like Novartis (NVS) and Sanofi (SNY) are in generics, and generic companies like Teva are in branded drugs. And just for good measure, a few outliers like Endo Pharmaceuticals (ENDP) add devices to the mix, while others like Abbott (ABT) and Covidien (COV) look to split and spin-off their drug businesses.

What's the point? Well, mostly that Teva probably has to start thinking more and more like Big Pharma if they want to continue to grow the business. It's hard to imagine that there's much buying left to do in the generic space (apart, perhaps, from a few select deals in specific markets), but there's plenty that the company could do in

An increasingly dark tone is starting to settle on the market. Slowing domestic job growth including Friday's anemic jobs report and two critical elections in Europe over the weekend should make for an interesting Monday. I think it is time to get defensive for a while until we get better domestic economic signals and/or some progress in Europe. One stock I like for turbulent times is Teva Pharmaceuticals (TEVA).

Possible catalysts for TEVA:
 

• Consensus earnings estimates for FY2012 and FY2013 have ticked up over the last two months.
• The company reports earnings on Wednesday. Estimates for the quarter have come down a few cents over the past three months. This should make it easier for the company to best consensus estimates, which it has done the last three earnings reports.
• Teva and Mylan (MYL) recently settle a dispute around the drug Nuvigil and Teva also won a preliminary court victory

With Jeremy Levin now CEO of Teva Pharmaceuticals (TEVA), investors can expect more acquisitions for the biotech giant. In this article, I will run you through a DCF model on Teva and then triangulate the result with a review of the fundamentals against Novartis (NVS) and Merck & Co (MRK). I find Teva substantially undervalued even under low growth assumptions.

First, let's begin with an assumption about the top-line. Teva finished FY2011 with $18.3B in revenue, which represented a 13.6% gain off of the preceding year. I conservatively model 8.5% per annum growth over the next half decade or so. While I believe the company will yield around 200 basis points more, I factor this input into the model for the sake of proving my point.

Moving onto the cost-side of the equation, there are several items to consider: operating expenses, capital expenditures, and taxes. I model cost of goods

We've tried selling puts only once before on TEVA Pharmaceutical (TEVA) and the contract expired worthless, but we did collect the premiums on the put we sold. But that is part of the strategy: earn cash returns of at least 8 percent per year (preferably 10-12%) until we get the stocks at discounts to the current market price. In this article I will start by reviewing the results of what we have done thus far with this excellent company's stock and then I will provide my most current recommendation based upon the closing quotes on Wednesday, April 26, 2012. Generally articles are published within 24 hours of submission so the recommendations in my articles should still be close to what is available in the market at the time of publication. I try to always use closing prices because that reduces the opportunity to "cherry pick"

Since the nation's establishment in 1948, Israel has existed in a perpetual state of conflict. There is little doubt that these conflicts have had a negative impact on the country's stability and relations. The BBC World Service Country Poll states that 49% of the more than 28,000 interviewed held a negative view on Israel's influence in the world.

This small nation has, however, experienced astonishing economic growth. Israel is the 40th largest economy in the world, with a GDP of around US$245 billion (putting it ahead of Portugal and Ireland, and just behind Malaysia and Singapore). This is a nation second only to the United States in terms of venture capital funds, with the highest rate of start-up businesses per capita and also the highest ratio of university degrees to population anywhere in the world.

To learn more about the opportunities in Israel, I spoke to Michael Freedman, Executive Director

By Eric Dutram

The nation of Israel has been under the microscope over the past few months as tensions continue to build between the country and Iran. Many analysts believe that Israel will not tolerate Iran possessing a nuclear weapon and that the small country will move to bomb Iranian facilities in short order.

While speculation over a skirmish between the two heated rivals continues to build and scare off some investors, the fact remains that only words have been exchanged so far. In essence, some are beginning to wonder if a more peaceful solution can be reached or if Israel can somehow learn to live with a nuclear armed Iran at its doorstep.

Although both situations seem unlikely, analysts must also remember the political trends that could heavily impact the developments in the region as well. Israel is scheduled to hold elections in October 2013 while the U.S. has

After reaching all-time highs in early 2010, Teva Pharma (TEVA) has struggled, falling to below $40 a share for the first time since 2007 before rebounding to its current level of $45. However, it seems like the market is underestimating the growth of the generic market and Teva's standing is one of the big dominant players in the industry. Furthermore, the two of the valuation metrics are suggesting that the stock is undervalued. Analysts suggest that the stock has upside of 17%, but considering Teva has a market cap of nearly $40 billion, this is some decent upside in the stock. Below is an in depth look at the valuation metrics and stock chart.

Valuation: Teva Pharma's trailing 5 year valuation metrics suggest that the stock is undervalued as all of the metrics are below their respective 5 year averages. Teva Pharma's current P/B ratio is 1.8 and it has