Q: The Israeli drug company.

A: Yes. Teva sells more pills than anybody; they just happen to be lower-priced pills. They passed Pfizer [PFE] several years ago in the U.S. market for the number of prescriptions sold. On next year's earnings, the stock sells at maybe an 11.5 multiple, several points cheaper than the market. As I try to figure out who is going to win in health care, the large generic-drug companies like Teva seem capable of doing the big distribution job that will be needed. They are hard-wired with the retailers and with the prescription-by-mail guys and with everybody else. It's a scale business, and they've got the scale.

Health care reform

health care

Demographic trend

They produce over 300 generic drugs and with the health care reform in America....look out for huge gains.

Terranova said he was impressed with Amgen (AMGN) and Teva Pharma (TEVA).

good company

He said the best way to play lower cost drugs is through Teva Pharmaceuticals (TEVA).

healthcare

aging population - move toward generic drugs

Generic market is not bad at all

Actually a one product company

so much potential