The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For instance the Teva Pharmaceutical Industries Limited (NYSE:TEVA) share price is 127% higher than it was three years ago. How nice for those who held the stock! Unfortunately, though, the stock has dropped 3.2% over a week.
While this past week has detracted from the company’s three-year return, let’s look at the recent trends of the underlying business and see if the gains have been in alignment.
Because Teva Pharmaceutical Industries made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn’t make profits, we’d…
