| Healthy outlook for Pfizer (PFE) |
| Tuesday, December 15, 2009 |
|
"Like many of its peers, Pfizer faces massive patent losses on key drugs in coming years. Most notably, Lipitor, which is the largest selling anti-cholesterol drug in the world, loses U.S. patent exclusivity in 2011. "But the addition of Wyeth's drug portfolio, coupled with an estimated $4 billion in merger synergies, should help Pfizer offset this loss. "And Pfizer's current share price already reflects the major risks faced by the company. Trading at only 8x estimated 2010 earnings, Pfizer's valuation is among the lowest in the entire pharmaceuticals universe. "The company's generous 3.6% dividend yield should also provide support for the stock, especially if 2010 turns out to be a listless, sideways-trending market. "Finally, much has been made about the possible effects of healthcare reform on the business of companies like Pfizer. In my view, there's little doubt that reform will pressure drug prices lower over the long term. "At the same time, reform will likely be a net positive for the industry, as million of currently underinsured Americans gain coverage. Plus, nearly 60% of Pfizer's revenues come from international operations, which will be unaffected by the U.S. reform debate." |
Sign up now for our free Daily Newsletter
| Dividend Still Don't Lie |
Dividends Don't Lie -- by IQ Trends founder Geraldine Weiss -- is one of the all-time great investment books. Now, editor Kelley Wright is following up this classic with Dividend Still Don't Lie, which can be ordered at a significant discount. |
| Keith Fitz-Gerald: Fiscal Hangover |
Get a $10 discount on Keith's new book on global investing -- Fiscal Hangover. Click here. |
| Red, White & Bold |
Global expert Carl Delfeld's new book -- Red, White & Bold -- is now available. |
| Expert's guide to China |
Check out Becoming Your Own China Stock Guru, a new book by China expert Jim Trippon -- editor of The China Stock Digest. To order the book, click here. |
| Guide to seasonal trading |
Sy Harding has published Beat the Market the Easy Way -- an in-depth review of seasonal market patterns and their application to long-term timing. |