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Pfizer Inc. Message Board

hotpanera2 9 posts  |  Last Activity: Apr 1, 2015 4:42 AM Member since: Dec 17, 2002
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  • Reply to

    annual report

    by freshbread4u Mar 31, 2015 11:51 AM
    hotpanera2 hotpanera2 Apr 1, 2015 4:42 AM Flag

    JM20,

    I disagree. The company does not spin. Whether it is because they are more honest than most managements, are afraid of being sued, or whatever, "cautiously optimistic" is the most you ever get from them. Explaining high inventory on the last day of Q4 as being the result of an expected increase in sales over the next three months, which would end two days after they filed that statement, would never have been said if Q1 would be reported in a few weeks as having been anything but very good. You can take it to the bank that the high inventory was not due to sales weakness. Amnf is in an expansion mode with new products, new equipment and new customers. I expect to see more evidence of this when Q1 is reported and the higher inventory will be understood as having been necessary in light of increased sales which actually occurred in Q1.

  • Reply to

    annual report

    by freshbread4u Mar 31, 2015 11:51 AM
    hotpanera2 hotpanera2 Mar 31, 2015 12:33 PM Flag

    From p.44:

    "Inventory levels on December 31, 2014, 2013, and 2012, were $2,792,436, $2,106,600,
    and $2,090,693, respectively. Inventories increased annually due to timing and also to
    support the Company’s expected increase in sales activities in the subsequent quarter
    after the respective year end.

    They would not have said this if the excess inventory represented stuff that they couldn't sell. I agree with Freshbread; this is a positive.

    As for the balance sheet, the most relevant comparison of cash, CDs, etc. is year over year. Otherwise, seasonal changes affect the comparison. Y.O.Y. 4.082K compared to 3,047K is an increase of 34%. That is terrific. They are planning capital expenditures of about 400K more than last year for new equipment and expansion which could delay a dividend increase but bode well for future growth. But it will happen this year IMHO and things are going extremely well.

  • Reply to

    loads of cash

    by hb17050 Mar 24, 2015 1:52 PM
    hotpanera2 hotpanera2 Mar 30, 2015 1:57 PM Flag

    Here is the key portion of a Forbes article:
    "According to the terms of the deal, the current shareholders of Heinz will hold a 51% stake in the newly formed company. These shareholders include 3G Capital and Berkshire Hathaway. The remainder will go to the current shareholders of Kraft. To sweeten the deal for Kraft’s shareholders, they have been provided a one-time cash dividend of $16.50 per share"

    Logically, unless Buffett and 3G took Kraft private, which they did not, the Kraft shareholders have to hold a stake in the public company. Heinz is being merged into Kraft with the Kraft shareholders having 49% after the deal and the 3G/Buffett shareholders 51%.

  • Reply to

    loads of cash

    by hb17050 Mar 24, 2015 1:52 PM
    hotpanera2 hotpanera2 Mar 30, 2015 1:08 PM Flag

    Unless I missed something, Kraft Heinz will be a public company immediately after the deal is completed and the special dividend paid to the Kraft shareholders. Heinz, in effect, is going public using the vehicle of the Kraft stock which will remain a public company under the name Kraft Heinz.

    I also own BGS and share your sentiment. It would also be fine if BGS were bought out at a decent premium, as Pf almost was by Hillshire before Tsn bought Hillshire.,

  • Reply to

    Advantages of buying at all time high ask price?

    by wrb335 Mar 20, 2015 10:02 AM
    hotpanera2 hotpanera2 Mar 22, 2015 3:58 PM Flag

    You either didn't read or didn't understand wrb335's post to which I responded. He has a fundamentally different view on how an acquisition price is set than I have. That issue is worth discussing. Your response conflates that important issue with a straw man: painting the tape. Nobody here has expressed the view that such conduct affects a takeover price. The reason people presumably paint the tape is because their results for the day will look a little better if they have a large amnf holding as a % of their portfolio and amnf closes .01 or ,02 higher. Some may also believe that the closing price has some effect on the close next day.

  • Reply to

    Advantages of buying at all time high ask price?

    by wrb335 Mar 20, 2015 10:02 AM
    hotpanera2 hotpanera2 Mar 21, 2015 9:30 AM Flag

    The price of a deal is typically a function of the stock's price for 10-20 trading days ahead of a deal being announced (or the point that serious rumors are out there). The vast majority of friendly deals are done at a premium of around 20% in my experience, though the premium certainly varies and could end up much higher if there is a second interested party. Occasionally, there are special circumstances where a deal is done below the share price (a "take-under") , but that only happens when the seller is desperate such as where it needs capital and can't otherwise get it. That is not an issue here. Once in a blue moon, a bid is made substantially higher than the current price, but that is rare, again in my experience. I don't have stats on any of this, just 3 decades of watching.

    So the bottom line IMHO is that it does matter whether the stock is at 2, 2.25 or 2.50 when a deal is being considered. The downside of a too high stock price is that a suitor who would otherwise be interested, loses interest because the valuation, including a premium, is too high compared to how it evaluates the fundamentals. For me, Amnf is not overvalued for a potential suitor because of the 20% EPS growth rate with a reasonable PE, potential savings in distribution and brokerage charges after a deal and the potential for a geographic expansion by a buyer willing to invest more in the business.

  • Reply to

    another all time-high close

    by lurker271 Mar 12, 2015 2:36 AM
    hotpanera2 hotpanera2 Mar 19, 2015 6:48 PM Flag

    At 2:48 P.M., 1000 shares traded at 2.18.

  • Reply to

    Payout ratios

    by bellbell63 Mar 1, 2015 10:57 AM
    hotpanera2 hotpanera2 Mar 3, 2015 2:14 PM Flag

    You wrote:

    " But wouldn't anyone the BOD hires have to pretty much agree with their current philosophy?"

    I don't assume that the current philosophy, to the extent it exists, is inflexible. If a new CEO came in he or she would presumably have some plans for change which I have no reason to believe the BOD would not give full consideration to. For example, if the new CEO had a plan to slowly increase the geographic reach of the bulk of the distribution and provided a prudent plan for effectuating it without undue risk, my guess, without knowing the board members, is that the proposal would be carefully considered and very likely implemented.. That's how BODs and new CEOs typically operate. Presumably, before any new CEO were hired, he would have a good idea as to whether the Board is definitely looking to sell the company, is definitely opposed to doing so (except at a very unlikely to be obtainable price), or is open to the idea at attractive terms. On such a key issue there would have to be a meeting of the minds before the CEO signed on.. On other matters, just as the company has evolved since Bill Armanino's death to add products, move into international markets, etc., I would expect further evolution under a new CEO who would presumably review all of the company's operations and have some new or different ideas. for the Board to consider.

  • Reply to

    Payout ratios

    by bellbell63 Mar 1, 2015 10:57 AM
    hotpanera2 hotpanera2 Mar 1, 2015 6:41 PM Flag

    While the payout ratio is certainly an important metric, to the extent that the cash on the balance sheet grows, which it has been doing significantly, that is another potential source for an increased dividend or special dividend. It will be interesting to see the balance sheet which should come out shortly as part of the financial filing.

    Until recently, I thought that there was no significant chance for either an increase or special this quarter. However, if Q1 is really as strong as the earning Press Release would indicate -- and has continued to be strong since the earnings release -- I can see either an increase in the regular dividend to .02 or a special of .015-.02 on the theory that they were thinking about doing it last quarter and conservatively waited to confirm that the business remained strong which has now occurred.

PFE
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