I sold my PFE shares yesterday at 29.5. The stock price was even a little higher today, max of 29.9. Long term, I still believe that PFE will do well. The CEO Ian Read is really trying his best to return value to the shareholders and in due time I think his efforts will pay off. I sold my shares because I am retired now and in my stage of life (over 70) I thought it was risky to keep a significant portion of my retirement portfolio in a single stock. If i were younger and still working I wouldn't hesitate to continue to invest in PFE. It's a great company and a great stock. Good luck to all of you!
The positive factor regarding Q2 earnings is the recent $10 billion stock buy-back which should boost EPS. The biggest concern is the sales revenue. Weak foreign currencies in countries where PFE does business and aggressive competition from the generic companies were the two primary reasons cited for missing the Q1 revenue target. Unfortunately those two issues still exist. I have also read some reports that the revenue obtained this year from the new BMY/PFE blood thinner drug, Eliquis, is lower than expected. Hopefully the Q2 sales revenue will not disappoint.
I think all serious PFE investors are anxious for the stock price to turn around and go up again. MRK and BMY are currently seeing the same softness in their stock's performance so it seems to be a sector issue. I personally believe that Ian Read is doing a reasonably god job as the PFE CEO in bringing value to the shareholders. Let's not forget and be appreciative of the run- up of the PFE stock from 19 to a high over 30 in April of this year in roughly a two year period. Read and his staff still are contending will the huge revenue hole that was left when Lipitor expired to the tune of $13B per year. That amount of revenue is not at all easy to replace. However PFE has some exciting drugs in its pipeline including a very promising cancer drug that achieved FDA breakthrough status not long ago. Although momentarily it seems to have fallen out of favor, PFE is still a strong company with solid fundamentals and as such I believe the stock price will eventually start going up again.
with investors. Lately it has been going down, down, down. The announcement of a $10 billion stock buyback didn't seem to have any effect. The stock has been downgraded by one analyst to 24. What else is left? An acquisition?
Over the last few weeks PFE has been mired in a very narrow trading range centered around 28. Lately its performance has been very predictable. If it goes up at the starting bell it generally loses its again in the afternoon and often ends up in the red at the closing been. Even the recent announcement of the $10 billion stock buy-back hasn't improved the momentum. This may be an ominous sign before the second quarter earnings report next month. The stock price hasn't yet recovered when it tanked after the dismal first quarter report numbers. None of us would like that repeated. The stock price was just a little over 31 on April 19. Do you think it will climb back to 30 this year?
looks tired and acts as if it is fully valued at 28. Perhaps it is. PFE many times increases during the morrning, gives up its gain in the afternoon, and goes in the red before the closing bell. Other pharmas such as BMY, MRK, LLY, and JNJ more times than not hold onto thier gains during the day. Today is a typical case when the market is up by triple digits and PFE is barely hanging on. This pattern is frustrating.
Why did PFE end up in the red today when other big pharmas such as MRK, BMY, JNJ, and LLY posted solid gains? I've noticed lately that PFE starts up well but languishes as the day goes by. It needs a strong dose of Viagra.