Rogue Investor

Rogue Investing Report Issue 4

ROGUE INVESTING REPORT
Take control of your financial future!
Issue #4: June 10, 2002
Publisher: Mind Like Water, Inc.
http://www.rogueinvestor.com
newsletter@rogueinvestor.com

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Table of Contents
1. Feature Article: Maintaining Your Investing Sanity
2. Company Profile: Teva Pharmaceuticals (TEVA)
3. Tip of the Month
4. Questions and Answers

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Feature Article: Maintaining Your Investing Sanity
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The media is full of financial gloom and doom these days. At times like these, the best medicine is often patience. No matter what anyone tells you, the stock market is not predictable over the short term. What has proven to be successful is to maintain ownership in a diversified group of quality companies through thick and thin. Many great companies are now selling at bargain prices. That is the irony of the stock market. When stock prices are high, everyone thinks it is time to invest. Conversely, when stock prices are cheap no one wants to invest. The stock market is the only place in the world where everyone despairs when a sale in announced.

One of my favorite quotes from Benjamin Graham emphasizes what is really important in investing: "An investor's worst enemy is not the stock market but oneself." Here's another equally good quote from Warren Buffett: "The only value of stock forecasters is to make fortune tellers look good." These are valuable pieces of advice from two men who have seen more bear markets than just about anyone. Save some money, invest some of it, and enjoy your life. With a little patience things will work out.

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Company Profile: Teva Pharmaceuticals (TEVA)
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There has been a lot of hubbub in the news lately about the high cost of pharmaceutical drugs. Congress has even been talking about cracking down on drug makers that drag their feet when a drug comes off patent. Underneath all this chatter, a great investment is brewing. While large drug makers are reeling from shrinking profits and government watchdogs, generic drug manufacturers are starting to excel. Once a boring investment, these companies have some huge advantages. First, they make generic versions of drugs that have already been created, tested and utilized in the marketplace for years. This reduces research and development costs, increases the chance for Food and Drug Administration approval, and often minimizes the risk of lawsuits and failed products. Generic drug makers also have a captive audience waiting when they start selling a new product. They would not be manufacturing the product in the first place if it was not already a popular, profitable drug. At the top of the generic drug heap is Teva Pharmaceutical. Teva's profits have been rising rapidly over the past few years, and the company recently had some favorable court decisions that will add more profits down the line. Teva Pharmaceutical is projected to grow its earnings at 25 percent over the next 5 years; and with a current price to earnings ratio (P/E) of 25, the stock looks cheap.

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Tip of the Month
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One company's folly is often another company's fortune.

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Questions and Answers
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Last month I asked: What are some of the best, free, online sources for investment information? The Internet has blown the doors off what was available to investors in the past. My favorite, free, online site for investment information is MSN (http://www.msn.com). This site contains an incredible amount of financial information about any publicly traded company. It also offers an investing screener that you can download for free to do your own, customized stock analysis. Other web sites that deserve honorable mention include the following:

   1) Standard & Poors: good information on the largest companies in America (http://www.standardandpoors.com)

  2) Fortune: lists the best companies to work for in America, often the sign of a great investment (http://www.fortune.com)

   3) Morningstar: for mutual funds (http://www.morningstar.com).

Next month's question: Are emerging market funds too risky for the average investor?

If you have an investing question, email me at: rogue_report@rogueinvestor.com/?subject=monthly_question.

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Disclaimer: There are no guarantees in investing. I make no assurances regarding the investment information presented in the Rogue Investing Report.

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