1. LDVIC 62.95% vs S&P500 31.06% (diff. +31.89%)

3. DISCLOSURE

4. Investor Psychology :
The best investment analyst is going to be right two out of three times (TEMPLETON)

5. 1) Risk vs Uncertainty

6. FREE CASH FLOW

10. Teva:
MCAP: $24 billion
Share: $23.60 Net debt: ~$29.5 billion EV: ~$54 billion
FY 2018: FCF of $ billion
P/FCF: ~9X

12. Free Cash Flow Margin
Thoughts?

13. Problems
1) Debt of nearly $30 billion of net debt (6.2X leveraged); but aims to get below 4X by YE 2020
2) Industry headwinds
Consortiums (at least

14. Two qualitative strengths: Regulatory body (Pfizer) Legal team
Teva won a settlement against Allergan (AGN) of $700 million - which is a huge number. And it didn't even make a headline on its press release.

15. Competitors
Mylan (MYL) (~42% gross margin)
Perrigo (PRGO) (~39% gross margin)
Teva (53.4% gross margin,
but this will come down to 50%)

16. Upgraded Guidance:

17. Again Valuation:

18. Close to 50-70% upside (easily)
Again Valuation:
Fair Value:
- At a minimum $35 billion mcap
$40 per share
At least P/FCF of 14X
Close to 50-70% upside (easily)

19. Who else owns Teva?

20. Who else owns Teva?