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Pfizer Inc. Message Board

  • chrttwelve chrttwelve Apr 3, 2010 6:26 AM Flag

    Growing earnings like KO does

    KO grows earnings by price hikes exceeding costs, by population growth and by further expansion in international markets. New products don't play that much of a factor.

    This is pretty much how Pfizer will be growing its earnings post-Lipitor when patent expirations won't be much of a factor. The growth will come from price hikes, population growth and international expansion and these additive factors as well as others won't be diluted much by products going off of patent.

    KO grew earnings from 1998 to 2009 at a 7.2% clip and through 2014 it's expected to see 9.0% average annual compounded earnings growth.

    This essentially is Pfizer starting in 2014. KO, which never had a PE below 12 even at the crash low, currently has a 16 multiple and Value Line thinks that in 2013, a 21 multiple is warranted.

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    • The court will not strike down anything. The stupid voters will do nothing to vote out the same politicians that have been in place for years. All the politicians are power hungry and will implement a full govt controlled health care monstrocity now that they have their feet in the door.

    • When elected representatives don't heed the will of the people, they tend to get voted out.

      In addition, the Supreme Court figures to strike down the individual mandate and when that happens, there goes Obamacare.

    • One advantage that PFE has over KO is that Coke doesn't buy back its shares whereas under normal conditions, PFE buys back about 3% per year.

      Expect PFE starting in 2014 to be at least the 9% grower that KO is expected to be the next five years.

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