GlaxoSmithKline PLC

GSK-N

Likes Johnson & Johnson (JNJ-N) and Merck & Co. (MRK-N) a little better but he likes the whole space. People are negative on pharmaceuticals because of a perception that the Obama administration is hostile to pharmaceuticals/healthcare in general. There is truth in that but the stock has gotten too cheap relative to its earnings. Some things are coming off patent but they have decent stuff in the pipeline. (See Top Picks.)

Sold his holdings in January/08 because he could see a shift in the way that big pharma runs its business. Very nice dividend and he doesn't think it will be a problem in the short term but he doesn't see the prospects for long-term growth.

Likes the pharmaceuticals. This is one that he would favour investing in. They have defensive characteristics. This would be a 5 year or so hold.

(A Top Pick Mar 20/07. Down 10%.) Had a couple of problems with major drugs and doesn’t see this being resolved yet. Sold his holdings.

UK-based international big pharmaceutical. Has drugs coming off of patent. 5.5% dividend should be safe.

He is not a player in the pharmaceutical industry. As soon as somebody comes up with a big drug, it instantly gets cloned by generics. Even FDA approved drugs are having adverse effects.

Have had some difficulties so there has been a sell off. Great depth in their management team. Reasonable pipeline.

Their patent expires this year. Are being evaluated, will probably sell. Recommends Johnson & Johnson instead. JNJ-N

A volatile uptrend. The five year chart shows a "double top" has broken below the valley between the double top, which is a signal to sell.

Growth in revenue, earnings, cash flow and earnings per share shall not better than its peers. Stable of products is very, very good. Good dividend.

Likes the pharmaceutical sector. The whole pharmaceutical area is cheap. Has a good pipeline. Pays a good dividend. Cheap. Well run.

A lot of trouble with these companies is having access to new products. They are so large now they have to continually feed the pipeline at an accelerated rate by acquiring at higher prices.

(A Top Pick May 8/06. Down 4%.) Pays at 3.5% dividend.

Have increased the products in their pipeline. AA credit. 3.5% yield. Good long-term outlook.

5% dividend. The European pharmaceuticals have been in better shape generally than their US counterparts, so they are probably a better value story than this one. They’re looking to acquire to help their drug pipeline.