yes .. long term , but the Street is not thinking about long term ... good thing for retail investors,as they
will bid down the stock from time to time and yield entry/addition points .... i fear there is still another
leg down for PFE , probably for Merck too ... BMY appears to me , to be the most stable , pricewise , of the
big pharma's ...
i also think that a lot of the big money is still skeptical of the pharma sector ... which is good for us small
fry ... once health care and patent issues subside and the economy is recognized as having some
real steam .. the big money won't let you in ...
retail investors still have plenty of time to accumulate ... garce
Pfizer these days is a low single-digit annual earnings grower and even that growth is due strictly to stock buybacks. I consider it to be fairly valued here at over 13 times earnings. Compare that with something like AAPL, normally a 15% grower with an 11 multiple or BIDU which is normally a 25% grower with 1 17 multiple. Why would I now prefer Pfizer to stocks like those?
Why isn't Pfizer growing faster? Because it has very little pricing discretion; foreign governments call most of the shots regarding price. If the Spanish or Italian governments say that because of austerity they are going to reduce the reimbursements by 5% or whatever, what can Pfizer do about it? They can't do anything about it andy that's the main reason why earnings these days aren't going anywhere.
I was one of Pfizer's biggest bulls between 11/17/04 and 4/2/13 but I got out a month ago and I'm staying out. The easy money on this name has already been made. My franchise stock these days is BIDU, the dominant search engine in China.
While analysts queried execs about the oncology pipeline and had a question or two about a recent Merck diabetes alliance, the bulk of the conversation orbited two issues: when Pfizer is going to break up, and the company's European strategy for Xeljanz in the wake of CHMP's recent rejection of the RA drug.
With the exception of a late-call hedge by CFO Frank D'Amelio, who referred to the firm's future breakup picture as “a path—if we were to do it,” talk about dividing the company into innovative and value businesses was treated as a given. That included Read's comments that the company is all but divided externally. As he has said in the past, while the businesses are clearly delineated in the developed markets, the division is not so clear in emerging markets, where the two businesses are not so neatly divided.
Thank you for your reassuring and calm comment. You are right on the money with this one. Too bad these comment boards aren't filled with more like yourself. Why do these bone heads like adirtytoddler find the need to fire people up? GL to all PFE longs. Long term is very strong!
Sentiment: Strong Buy