Pfizer, Inc. (PFE)

drugs is being sold

Pfizer has several new product emerging which should boost their profits.

Who doesn't like money? Pfizer has lots of it and knows how to spend it well. R&D and buying out drug developers will always pay off in the long run.

I have been fooled before by this one but I believe 2008 is it for Pfizer.

Spits cash out like it is the goverment. Product line solid and cash producing. Dividend large at yield of 7.5%. Strong balance sheet. Will continue to develope new drug!

Pfizer faces the problem of patent expiration on 2 of it's blockbuster drugs, especially Lipitor. This negativity is compounded by the fact that the drug meant to replace the revenue stream of Lipitor failed to make it through the Phase II trials. Indeed a blow for Pfizer. Considering this backdrop I am not surprised to see a shakeup in senior management.

Nevertheless, Pfizer is a top dog. It is a great company by all means and does not deserve such a pessimistic valuation. It has a fantastic history of paying dividents as well as a rock solid balance sheet. It also is far more efficient moving drugs from Phase II testing to clinical acceptance (increase of 70%)---ironically the most promising block buster replacement did not make it though---and the pipeline is as good as ever.

From a valuation standpoint the company now trades at 12 times free cash flow---which is too low for a company of such calibre. 20 times cash flow would be a much fairer figure. Some models suggest that even without any sales of Lipitor at all a fair value of Pfizer would be pegged around 20$ - 22$. At 25$ a pop I would be a buyer here. Lipitor sales are not going to stop just because it is going generic in 2012. At current price levels combined with negative sentiment Pfizer can be an extraordinary opportunity. A 4.8% annual dividend yield sweetens the wait.

Pfizer currently trades at almost 50% off it's all time high. However, it's earnings have doubled since. The price of this security did hardly make any move over a substantial number of years which creates additional negativity (disgust). Looking at the lofty valuations of small cap companies (who may have benefited immensely from leveraged buyouts and the private equity boom), it is quite conceivable that money may move into the more conservative havens of large cap companies who at large look rather undervalued at present.

Large dividend (6.5%), large cashpile. P/E less then 10 (excluding cashpile).

Short term pipeline issues are more than counterbalanced with their medium and longer term pipeine.

Ditto for shorter term revenue concerns. Get to enjoy a large divi cheque as you wait for their pipleine to come to market.

Also industry leading distribution, so when they get a new drug (either through their pipeline or JV or outright purchase), large distriubtion channel means they maximise their future returns from it!

Pfizer is a major drug manufacturer employing over 86,000. While this stock is rated by analysts as simply a 'hold', there linger several competitors, whose stock price is driven up on mere speculation while PFE has been sitting there with it's yield increasing.
It's almost tempting to take a 0% interest 'till Jan credit card, and buy some PFE stock... just for the really decent dividend.

Same as others P/E cpmpared to sector. Generic problem will bite at it but they have $$$$'s to turn it round. Will be stable for a year or two then fly

Will buy new portfoios

solid management and lots of cash. Macro economics of health care are good.

Undervalued and market leader

big farma a bit undervalued, look for it to outpace the S&P this year

mgt will do some shareholder friendly things

STABILLITY

This is a small dog with teeth. PFE is a 150 year-old company with plenty of cash to reinvent themselves many times over. The yield is fat and margins high. Patience will be rewarded!

I once was security and best believe some sergents gave me the scoop!

this weeks meeting will generate a buy signal for year end trading

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