A reply to "JP Morgan says. . . ."

Another opinion, here.

JP Morgan has about $798 million of "skin in the SGP game". It was a co-lead underwriter of the September 2007 Euro note offering for SGP.

Underwriter 2010 Notes 2014 Notes

J.P. Morgan € 100,000,000 € 300,000,000

Page S-38 of this link:

http://www.sec.gov/Archives/edgar/data/3...

At yesterday's spot rate, the 400 million euros are about $626 million. It also was an underwriter for $61 million of the SGP stock, and $111 million of the SGP converts, in August 2008:

SGP common stock:

J.P. Morgan Securities Inc. 2,233,125 shares

LINK (On Page S-22):

http://www.sec.gov/Archives/edgar/data/3...

SGP 6% converts:

J.P. Morgan Securities Inc. 444,375 shares

LINK:

http://www.sec.gov/Archives/edgar/data/3...

I'd think twice about J.P. Morgan's independence -- people here are quick to criticize Dr. Harlan Krumholz for perceived conflicts of interest, as an expert witness (re Vioxx, against Merck). I doubt he has $800 million "at stake" on SGP -- but perhpas Credit Suisse, and J.P. Morgan each do. Their clients have a combined $1.6 billion of SGP's "egg on their faces". That bears repeating.

Also, consider this article, as independent:

Schering's Plowing

". . . .Schering, if you missed it, was all but sat on and misshapen by recent events. If nothing else, reasonable minds can agree on this: Its future is not under its control. The drugmaker pulls in more than half its profit from drugs it markets with another company -- Merck(MRK - Cramer's Take - Stockpickr) -- and all other things being equal, this puts a portion of its fate out of its control.

The partnership means everything to Schering and, proportionally, not nearly as much to the larger Merck. Now add to the mix all the troubling implications a panel of cardiologists created when it said generics were just as good as the Schering-Merck name brands, which should only be used as a last resort, and you have an out-of-control near disaster on your hands. . . ."

Full Article Link:

http://www.thestreet.com/_yahoo/newsanal...

Cheers!

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Original Post:

3-Apr-08 07:39 pm

JP Morgan says the stock is trading at a value that discounts Vytorin at a 100% clip. Did set there price target to $20 from $28.They stated the base company is worth between 13 and $14.

eom

Posted by: jontdavis

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