Big Pharma is dead money..Besides, MRK is much much better than the "boring monolithic" PFE.
Undoubtedly, PFE will get back to $17.00-$17.25, its usual boring comatose price action..
Now, as for your uneducated Europe comment - Here is the fact, in case you want to be informed (which I doubt) -
Due to the severe austerity programs in the EU
the countries are going to force Big Pharma to lower their prices by 20%..Given this fact along with currency problems, export issues, patent cliffs, generics, - Does all this sound like you really want to be in this sector ?
Pfe is losing ground because the index is tanking. Whether it's because of the Euro, a fear of China slowing down, European contagion or anything else, Pfe will fall when the index falls, in the absence of significant Pfe news, which there is none.
Trying to attribute the fall to the Euro, and then dismissing its importance, is burying your head in the sand.
When will you quit making lame excuses with no relation to reality.
In fact, PFE is doing fairly well compared to other Dow components. As usual, it is far & away the worst pharma performer, but many index peers are down more than 3%.
You should count your lucky stars PFE isn't down more. It's giving you time to get out while the getting is still good.
Pfizer is essentially moving in lockstep with the euro. It was only a few days ago that commentators were talking about how wonderful it was that there was this trillion-dollar bailout for the PIIGS countries.
Now people are worried about why it was so much when previously the worry was that the European Union would do to little?
This is pretty silly stuff and even if PFE falls a little short in the earnings department in 2010, currency translations are absolutely the lowest quality earnings - it's not like low prescriptions or drugs being taken off the market, etc.
Anyone looking at punk earnings growth this year because of negative currency translations and somehow concluding that PFE's earnings growth is practically nonexistent is simply out to lunch.
This should be used as an opportunity to add to existing positions instead of panicking out in fear.
this is as low as it has been this year. I don't recognize the fat-fingered stuff that supposedly took it down to $15.85 for a nanosecond on some ECN. It did legitimately sell for about $16.20 a week ago but that was it.
Pfizer no more sold at $15.85 than PG sold at $39.
We have an excellent price comparison for PFE and one that is recent in time. In the meltdown that happened early last year, culminating in early March, PFE hit a price of @ 11.5 (if memory serves) The S&P was priced (mid-600's) for an event that simply did not happen: the meltdown of the private sector (banking, retail, manufacturing, service). PFE itself had just halved its dividend and was just starting the process of acquiring Wyeth; both strong negatives.
Now, PFE has raised its dividend, earnings are, at least, stable, and the stock is not sitting substantially above that low.
I don't see PFE as a screaming buy or a sell but more of a safe haven stock. I don't see the yield climbing much above 5% and that would put a floor in @ 14.5 mark.