i see the offer to shareholders of pfizer to sell shares in exchange for zts shares at a 7% discount. Is this a good deal? i know mr. cramer likes zts as they will be increasing divi and already are the leader of the animal health indusry. any thoughts or opinions?
Its a horrible deal for shareholders and really shouldn`t be considered a spinoff of any kind. Majority of shareholders will reject this 75 spinoff and not get involved with this nonsense. Hopefully, PFE will wake up and realize they`ve been ill advised!
It's not possible to say whether this is "a good deal" without any knowledge of your financial situation and investment goals. But apart from that, my opinion is that ZTS is currently overpriced, given that its P/E is somewhere north of 30, and its dividend yield is less than 1%. Standard and Poors considers PFE the premier large pharma, giving it a BUY rating; they don't yet cover ZTS, but have commented favorably about it. PFE is an income stock with moderate growth potential. ZTS is a long term growth stock (currently overpriced). It's an apples to oranges comparison, but you shouldn't make your decision based on the 7% discount. PFE stands to benefit greatly from the retirement of the exchanged shares. If I had to cast a vote, I'd say that it's not a good deal. JMHO