Thoughts on Pfieth
The Fairholme Fund, one of my largest holdings, made Pfizer their largest single holding recently based on expectations that it would deploy its cash hoard in acquisitions. Well, Pfizer just entered a deal to buy Wyeth. Pfizer essentially bought a pipeline - Wyeth derives about a third of its revenue from biologics, which is probably going to be a hot growth area.
Others will wonder if there's another company they might have bought that will garner them better synergies. I think I'll trust Pfizer's judgment on this score. I'm more worried about whether they can execute a merger of this size - it's a big one.
Morningstar gives their take here: http://link.brightcove.com/services/link/bcpid1184614598/bctid8886065001