Taro Pharma update
Taro Pharma has been a superb pickup. The company recently reported its Q3 results and the numbers were monster numbers. The company was averaging around $31M in Operating Inc in Q1 and Q2, although in Q3 it showed a sweet $61M. The company’s cash balance is up $50M since Q2. The stock is up almost 50% since I bought my stake and it is almost as cheap as it was when I started buying. (Although in Q3 there was some currency benefit that Taro Pharma was lucky to get, but the growth is superb).
Today another large holder of Taro Pharma came out with a letter to the BOD. Permian Investment Partners wrote to the BOD stating that the Sun Pharma offer price of $24.50 (the stock is currently trading at $29) grossly undervalues the company. Permian is the hedge fund founded by Cara Goldenberg. In 2010, Cara wrote a letter to Warren Buffett and sent Buffett a list of investment ideas. Buffett was so impressed, he asked Cara to come dine w/ the great one.
The Taro story keeps getting interesting.