MARKET INSIGHT: Schering Plough Expanding Operating Margins
Email This Article
Print This Article
SubscribeMOST POPULAR ARTICLES
- Kaeppel's Corner: Twisted VIXter
- Closing Wrap-Up, July 29
- Morning Watch, July 30
- Market Trends: Platinum Probability Bands
- Economic Watchdog, July 29
- Midday Action: July 29
- Morning Watch, July 29
- Growth Stock Swing Option: July 28, 2010
- Closing Wrap-Up, July 30
- Real-World Trading: Using Calendar Spreads in Sideways Markets, VII
- Real-World Trading: Using Calendar Spreads in Sideways Markets, VII
- Kaeppel's Corner: Twisted VIXter
- Real-World Trading: Using Calendar Spreads in Sideways Markets, Part VI
- Real-World Trading: Using Calendar Spreads in Sideways Markets, Part V
- Fundamental Focus: Insuring Your Portfolio
- Trading Calendar Spreads with Options
- REAL-WORLD TRADING: Five-Minute Success Formula
- Midday Action: July 30
- AU Editorial: Money and Holidays
- Hot Shots, July 30: Straddling a Breakout Performance from Within
- Economic Watchdog, July 29
- Market Trends: Platinum Probability Bands
- Midday Action: July 29
- Growth Stock Swing Option: July 28, 2010
- AU Market Review: Market Action
- Midday Action: July 28
- Real-World Trading: Using Calendar Spreads in Sideways Markets, VII
SPONSORED LINKS
July 19, 2007
Schering-Plough Corporation (SGP) is a global science-based healthcare company with prescription, consumer and animal health products. Through internal research and collaborations with business partners, Schering-Plough discovers, develops, manufactures and markets advanced drug therapies. Schering-Plough has three segments: Prescription Pharmaceuticals, Consumer Health Care and Animal Health.
The Prescription Pharmaceuticals segment discovers, develops, manufactures and markets human pharmaceutical products. The Consumer Health Care segment develops, manufactures and markets over-the-counter, foot care and sun care products. The Animal Health segment discovers, develops, manufactures and markets animal health products. In April 2007, the company announced that PEGINTRON has been approved by the Chinese State Food and Drug Administration for the treatment of patients with chronic hepatitis B.
The Board of Directors of Schering-Plough Corporation recently declared a quarterly dividend of 6.5 cents per common share. Payment will be made on Aug. 28, 2007, to shareholders of record at the close of business on Aug. 3, 2007. As of March 31, 2007, there were 1,489,389,131 common shares outstanding.
The Board of Directors also declared a quarterly dividend of 75 cents per share on the 6 percent Mandatory Convertible Preferred Stock. Payment will be made on Sept. 14, 2007, to holders of record at the close of business on Sept. 4, 2007. As of March 31, 2007, there were 28,750,000 shares of Mandatory Convertible Preferred Stock outstanding.
The company is solid fundamentally as operating margins continue to expand and return on equity has been terrific. The latest earnings were strong, surpassing consensus estimates by a wide margin due to strong sales of cholesterol drugs and allergy treatments. Profits increased 55 percent to $543 million, or 36 cents a share, from $350 million, or 24 cents a share, in the year-ago period. Sales surged 17 percent compared to last year to $3.0 billion.
Technically, the stock is in an Elliot Wave-4 pattern projecting gains into the $38 per share area by late November. The stock has a liquid options market, making them a viable alternative. In addition, the company offers LEAPS that currently extend out to January of 2010 allowing the trader to construct strategies over the long-term.
Figure 1: Elliot Wave-4 Buy Pattern for Schering Plough
Happy Trading.
Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
Visit Jeff’s Forum
Listen to Jeff at www.ProfitStrategiesRadio.com
© Copyright 1995-2010 Optionetics. All rights reserved. This material is for personal use only. Republication and re-dissemination, including posting to newsgroups, is expressly prohibited without the prior written consent of Optionetics. Optionetics is a registered trademark of Optionetics, Inc.