Allergan (AGN) is down about 30% Y/Y. The S&P 500 (SPY) has grown 14% over that time frame. If AGN cannot grow amid central bank stimulus and GOP tax cuts then when can it grow? That window of opportunity may have closed, assuming the Fed is sincere about removing the punch bowl for financial markets. Others think AGN is undervalued. Hedge fund manager David Tepper sent a sternly worded letter to Allergan requesting that management make additional changes to its board of directors, and calling its plan to sell its women’s health and antibiotic units a “half-hearted” attempt to spur the stock.
Famed activist investor Carl Icahn reportedly took a small stake in the drug maker earlier this month.
— NY Business Journal (@NYBizJournal) June 9, 2018
Interest from both Tepper and Icahn helped spike AGN by 8% over the past month. However, Allergan’s growth is dead; according to Shocking The Street AGN’s sum-of-the parts is $85 or 50% overvalued. Read more: