Bristol Myers Squibb (BMY)

One of his larger pharma weightings. This is a high quality stock, and is more attractively valued than it was 6 weeks ago, even 6 days ago. Pays an attractive dividend of over 3%. Well capitalized, but has had some challenges with its cancer drug Opdivo. However, that corner of their products is only about 5% of the demand for this class of drugs over time. About a 3^rd of a stocks’ value is the markets’ bet on the future product flow, and the best way to understand that is to dig in and look at the patents. Doing this, you are paying about half as much for the future product flow when buying this company versus the typical drug stocks.

It had a big disappointment with a phase 3 trial recently. They were always the shining drug stock. It is really hard. Three years out you would be happy you owed it.

There are a couple of issues with this. They had a very disappointing phase 3 trial on an oncology drug, which caused the stock to drop quite precipitously. Also, the big pharmas are anticipating the potential of a Clinton administration. Prior to the oncology testing results, this was trading close to 30X earnings, and is now in the low 20s, far, far too dear of a price to pay for their growth metrics of a traditional Pharma.

A very good, well-run, large cap pharma company. A lot of the big caps have been in the doldrums for the last 10 years, and then in the last 2 years, things have kind of picked up for a bunch of them. This one has probably been the best performer of the old-line pharmas. They have become the leader in the cancer treatment called immunotherapy, probably the most rapidly growing area of cancer. Their immunotherapy had a bad trial on another type of cancer, which threw up some caution signs. A super expensive company trading in the 20+ PE. Prefers other players in the area. He wouldn’t hold this one. (See Top Picks.)

Sold off a lot. They have a trial going on with a lung cancer drug. This is the drug that caused them to do so well. This is an expensive drug stock and he would prefer to own cheaper ones. These companies are hard to dissect and value. The European companies are cheaper.

(Market Call Minute) Hit technical resistance and it is too early to buy.

Had a huge disappointment on one of their drug trials. The business is all about the pipeline. Every major drug company is having trouble coming up with great new drug ideas. What they are doing is cutting back on R&D spending. Thinks this still has some downside. Would be looking at this after another 15% drop in the share price. The dividend is secure.

The epicentre of the strength of the pharmaceutical group. It is head and shoulders above their competition right now. Looks very, very attractive. Pays a very nice 2% dividend. They’ll likely grow their dividend close to 20% a year over the next 5 years.

Thinks their pipeline strength is pretty good, and he likes the dividend yield. The drug industry represents the best value out there. The dilemma this company is facing is that they are competing against the biotech field as well as the generic field. (See Top Picks.)

This is a large cap pharma/biotech. It has the best growth profile on the pharmaceutical companies, which is reflected in its earnings. Has a deep vein thrombosis drug that is going from $1 billion to $4 billion over the next couple of years. Also, has an immunotherapy drug which is capturing a lot of volume and a lot of interest in their pipeline. Trading at about 27X this year’s earnings, which goes down to 20X next year’s. The low $70s would be an attractive entry point.

This company is going so much faster than all of the major pharmaceutical companies, and should be trading at a substantial premium. They are well known for Eliquis, a heart and stroke drug, but are becoming very quickly the leader in immuno-ecology, which teaches your cells to turn on cancer cells to eradicate them. This market could be a $25-$50 billion market. Dividend yield of 2.08%.

Bristol-Myers (BMY-N) or Colgate (CL-N)? These are both very good companies and you are probably getting decent yields on both. The dividend growth is not high enough to be in his funds. Dividend yield of slightly over 2%.

With pharma hitting new highs and consumer staples doing as well as they are, you would think this one would not be doing so badly compared to the group. There are others with growth rates twice as good.

This is a fine company. A little bit pricey right now. All health care stocks on the drug side are pricey. Starting to do good job of fighting back against the generics but they are all looking pretty rich right now.

Seems like it is running out of a little bit of steam. The primary concern is that the stock is the most expensive in the large-cap pharmaceutical space. There has been some run off in their Liquis (?), blood thinner drug. Likes the business. You are paying up for it because the pipeline has more risk in it. This is a name that you can own. Feels they have decent pipeline and opportunities over the next several years.