I just think of this as an excellent buying opportunity.
There are some fools who will sell on a good earnings report base on the rule "buy into the bad news, sell into the good news".
The problem with that logic is LLY projections and pipeline warrent a $50 stock price instead of a $35 stock price. It will get there. Just look at AZN which traded around $30 a year ago. It dropped on great earnings but is now $48 with similar earnings. Likewise LLY by next year.
Oh please.... Use your head. The stock market is a look into the future. Nobody cares about LLY's "guidance" for the rest of '09. People care about SEVENTY PERCENT of their current sales going generic over the next few years after that ! Which raises the real question - can their current pipeline in development replace that? If you think yes, then you are most probably quite right with your strong buy signal. If not, well... you tell me...
Does this mean LLY is dead money for another four years? I doubt that. How many billions of dollars lly will make in the next four years? Plenty. If they are looking ahead, then should rice LLY according to their projected earning s for the next four years and for the possible announcement of new drugs instead of the other way around. These double standard evaluation by MM and analysts are unjustified.