Since last Thursday, Ayalim Mutual Funds Ltd. has been taking a substantial long position on Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA). The purchase continued yesterday, and will apparently continue further in the coming days. The stock purchase is being carried out in small volumes during trading hours so as not to affect the share price.
Ayalim CEO Kobi Segev considered one of the most aggressive and sophisticated investment managers in the Israeli market, told "Globes" yesterday that the share price was very cheap, taking a long-term view. "The time when panic over Teva is at its height is the time to build a position as far as we are concerned," he said.
According to Segev's analysis, in the worst case of an acquisition, merger or break-up of the company at scrap value, the stock is worth $25. Segev is building a position at around $17 per share, meaning that in Ayalim's worst-case scenario there is upside of nearly 50%.
Ayalim manages assets worth NIS 10 billion, and in the first five months of this year it raised some NIS 914 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 10, 2017
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