NYSE:PFE

Pfizer Inc (PFE)

30.03
-0.39 (1.28%)
as of Oct 23, 2026, 8:00:00 pm Market Closed.
585 watching
0
HOLD
All of the big pharma have been very disappointing. Now yielding over 7% but doesn't think the dividend is in jeopardy as the cash flow is amazingly strong. Won't be a great investment for another year or so.
DON'T BUY
Not cheap enough for him yet. He would have to go over the financial statements. There are a lot of companies in this area that may be of interest in the next few years.
TOP PICK
Model price has been decreasing over the last 9 months, but not all that much. Thinks it will go down to $15.75 but he sees in setting up as a huge rally in healthcare related stocks in Q4 or Q1 of 09. Has an 86% positive differential.
DON'T BUY
Pharmaceutical industry in the US has been a disappointment for 2 or 3 years. There is concern about the new drug pipeline. Also a large number of blockbuster drugs are coming off patent for many companies. Also increased competition from generic companies. At 7.2%, the market is telling you it does not believe the dividend is safe.
DON'T BUY
Its problem, along with many of the health care companies in the US, is the pipeline. Lipitor, which is a large portion of their revenues, comes off patent next year. Have lots of cash flow but haven't been able to take advantage to develop anything. Would buy Novo-Nordisk (NVO-N) instead.
DON'T BUY
From his perspective, it has absolutely technically broken down. Looks like almost everything is going against it. Also, it is likely Democrats will come to power and won't be helpful to the drug companies.
SELL
6.73% dividend. Doesn't see a lot of prospects in their pipeline. Some of their big money makers are in a lot of jeopardy from competition. If you like pharmaceuticals, consider moving into Johnson & Johnson (JNJ-N).
SELL
Product portfolio continues to undergo greater competition from generics. New products are declining. Still haven't turned the corner. Generics such as Teva Pharmaceutical (TEVA-Q) would be more attractive.
DON'T BUY
Candidates in the presidential race have not been positive on pharmaceutical companies. The problem with this company however is the lack of a pipeline. Most of the earnings are coming from some products that are going to go off patent in the next couple of years. Has become more and more expensive to generate new drugs. The dividend could be a potential trap and could be lowered.
HOLD
6.5% dividend yield. Cash flows are very strong.
DON'T BUY
Recently sold his holdings. A lot of their pipeline is going into generic distribution, which will take a lot of revenue off the top line. Feels the 6% dividend is probably safe.
PAST TOP PICK
(A Top Pick May 18/07. Down 23%.) Have not proven to be defensive. Most of the major drug companies have more of their larger drugs coming off patent shortly. At this point, downside risk looks pretty limited. 6% plus yield. A Hold.
PAST TOP PICK
(A Top Pick May 2/07. Down 20%.) Still in his Top 10. His model price is $34.72, a 74% positive differential.
DON'T BUY
The trouble he has with the big pharmaceuticals is that they are having a terribly hard time reinventing themselves. They all have good yields. The FDA right now is turning the taps off. It is harder and harder to get approval. Would be very cautious on this sector. The one exception is Johnson & Johnson (JNJ-N), which seems to have a better approach than their peers.
BUY
This has not been a good experience over the last year. Stock has come off pretty sharply. All of the drugs are coming off patent for the big pharmaceuticals. Trading at under 10X earnings and is still earning 35% on its equity and yielding over 6%.
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