Hospira (HSP), the leader in generic injectable drugs, recently encountered a setback with the FDA that lead to a closure of one of its primary manufacturing facilities, but the company should be able to recover with its strong leadership, says J. Jeffrey Auxier, President and CEO of Auxier Asset Management, LLC.
“They’ve got a strong, experienced operator in CEO Michael Ball who came from Allergan (AGN) in 2011. We think the odds are high that the problems will be solved and the recovery highs will be well worth the wait,” Auxier said.
Auxier uses HSP as an example of the type of stock he likes to get in early on for the double or triple play, because though the stock was crushed into the high $20s, Hospira‘s problem is fixable.
“In today’s world, a somewhat invisible but lethal risk is the loss of purchasing power. Again, it is imperative to work harder to aim for the double or triple play on all our investments, and we need to get adequately compensated for the risk,” Auxier said.
TiVo (TIVO) and Viacom (VIA), Currently Trading at Low Valuations, are Expected to Overcome Hurdles
November 15, 2012
Oil Prices Expected to Overcome Short-Term Hiccups
July 18, 2011
Tyson Foods, Inc. (TSN) Developing Integrated Production in China to Overcome Food Safety Concerns
April 30, 2014
Johnson & Johnson (JNJ) to See Pharmaceutical Growth and Consumer Business Recovery in 2014
March 14, 2014
Apartment REITs UDR (UDR), Home Properties (HME) and Aimco (AIV) See Improving Fundamentals and Attractive Valuations
October 23, 2012