It will take a closing low next year that's all of 90 cents higher than the 2007 closing low of $22.30. Is that too much to ask when earnings will be rising by about 10% and dividends will be at least 7% higher?
If a price as low as $23.20 is seen at next year's trough, the nearly-infallible 25% PFE Minimum Closing Range Theory which has failed all of one time in the last quarter century (1988 when the range was 23.6%) would indicate a breaching of $29 resistance and when that happens, TA and momentum types will send Pfizer's stock to $31 within weeks.
I'm very much a chalk player - I go with the odds. I like something that has worked for 19 consecutive years and 25 of the last 26 going back to 1982.
Happy Baskin-Robbins number in 2008, Pfizer stock. That will mean a cool quarter million each in profits for me and the two other accounts that I'm looking after.
Read the recent PFE news headline that came out today entitled 'No Easy Fix for Pfizer'. I offer you two excerpts from that article. The first excerpt is: 'Management gurus say Pfizer is experiencing similar problems to those faced by all Big Pharma companies, but on a grander scale due to its size. The most prominent issue is how to make R&D more productive to offset the damage done when key products lose patent protection'.
The second excerpt from this article is: 'Pfizer has had trouble finding products to pick up the slack, instead producing expensive, headline grabbing disappointments'. (ala Torcetrapib and Exeubera)
So the authors agree with me and others on the PFE board who have commented to you that the big issue facing Pfizer is essentially its dysfunctional R&D division and what should be done to make it more productive. And ,no, I didn't write this article.