Out Fox The $treet

Appaloosa and Senator sent letter to company requesting corporate changes that are rearview mirror leaning. The activists are right that a more focused and nimble company is needed to achieve better results. The company already has a plan that needs focus and any disruption from activists could be a negative on the existing plan for higher EPS targets in 2019/2020. Allergan  ( AGN ) is down 50% from all-time highs back in 2015 so understandably activists are agitating for changes. The time to make those moves was a few years back while now the biopharma needs to execute on the initiatives already set forward by the CEO. Read the full article on Seeking Alpha.  Disclosure: Long AGN. Please review the disclaimer page for more details. 

Allergan recently missed Q3 estimates that should mostly be ignored. The growth pharma has a huge capital return plan that overrides current earnings weakness. The net payout yield will push into one of the top yields in the current market. Allergan  (NYSE: AGN ) hit our radar screen due to the combination of two key signals: plunging stock price and massive capital return plans. The market typically runs away from a stock at the wrong time and these contrary positions can signal the market has the situation wrong. The stock closed last week around multi-year lows of $195. With politicians increasingly attacking drug pricing and the costs in the healthcare system, are the capital return plans enough to consider buying the massive dips in Allergan from a high near $340 back in 2015. Read the full article on Seeking Alpha.  Disclosure: No position. Please review the disclaimer page for more details.