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A research-based, pharmaceutical Company which discovers, develops, manufactures and markets prescription medicines for humans and animals.
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hp52ca (81.98) Submitted: 11/20/07 4:18 PM : Start Price: $24.12 PFE Score: 3.51
My small investment club has owned this stock for 4-1/2 years ... an IRR (internal rate of return - meaning annual) of about -5% (that's MINUS 5%) even with reinvested dividends. Maybe it will recover - it has a great financial strength, etc. - but it's been dead money for us for nigh on five years. With 20+ analysts following it, and over the past year or so with a large number of downgrades to "neutral" at best, and with a projected 5-year EPS growth estimate of 5%-6%, where will it go? Perhaps it will get a currency kicker from overseas sales, not sure, but what would make the company a 5% grower (in spite of the 5% dividend), or 10% ... ??? At best, I see no hurry to hold this stock - it's not going anywhere; at worst, I see it as a drag on any portfolio that is interested in more than a 5% dividend. Bottom line: There are much better alternatives.
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breaktrack (91.59) Submitted: 11/23/07 9:39 PM
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great food for thought!
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equalfuture (22.97) Submitted: 4/10/08 5:11 AM
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I absolutely understand and respect someone selling this stock in 2004, 2005, . The options during those years were many, real estate stocks were jumping, emerging markets and many more. Unfortunately, we are no longer in those years or markets, today in 2007, 2008 and probably 2009 this stock is more of a wait, and enjoy the dividends. Collect the dividends and ride out the recession in style. Banks like Bear Stearns, Oil stocks like Superior and others segments of the economy like Money Gram, Office Depot, Sprint, are potential time bombs.I beleive in being alive to fight another day, as these days are like going into battle with pea shooter againt an army tank, the army tank being a recession, tightening credit markets, lower consumer spending, on a worldwide basis.
awallejr (< 20) Submitted: 6/06/08 11:12 PM
I love dividends, but that is no longer a rallying cry for holding this stock. It has been dying for years, for a reason. It is totally mismanaged and the CEO simply has to be fired. There simply is no other explanation. If it's yield is all that attracts you while every year it depreciates in value, well you might as well just buy a bond. There are also plenty of other stocks that pay even higher dividends that actually have a chance of even growing. Until this company wakes up, fires it's CEO, starts putting its cash to good use by making acquisitions, this stock should just be avoided.
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