Pfizer, Inc. (PFE)

Curious that the maker of Viagra cannot get its stock prices to rise despite buyback and insider buying and a hefty 6.5% dividend. I am no better than Warren Buffet so I don't feel bad proclaiming my ignorance as to the pipeline ( http://www.fool.com/investing/value/2008/05/19/buffett-proclaims-his-ignorance.aspx ). I do understand that this stock is cheap with cash on hand, less than 10 forward PE and nice dividend. So that is why I am a buyer. Besides, it is a magic formula large cap stock.

This one is more of a value/income pick, although I must admit that I'm somewhat befuddled by Mr. Market's decision to discount this company. As of this writing, the world's largest pharmaceutical company trades at a discount to the industry, despite its strong dividend, balance sheet, and ability to purchase new revenue streams with its FCF. Admittedly, there are several products which have expiring patents over the next couple of years, and this is likely the reason for the discount, however, Pfizer has a pipeline that should swell up after the lull, and as previously noted, can always purchase some distribution/sales rights. With the dividend yield around 4%, you're also getting paid nicely while waiting for Mr. Market to realize he's discounted one of his premium players.

Good entry point around $25 for a company with solid earnings and plenty of opportunity for future success. You can't wait for good news to profit off a drug stock. You have to buy on weakness assuming good news is forthcoming. I anticipate market-crushing by this stock from this point.

The drug companies can basically print money, and PFE has the most robust pipeline of any of the major companies in the industry. They also have the cash to acquire small biotech startups to capture the potential of breakthroughs that aren't discovered in-house. I think the threat of lawsuits has caused the market to overreact and depress the stock price beyond where it should be.

Growing earnings, good PE ratio, large cash reserves to use in case of trouble. Affected by the overall stock bubble, but overall the price follows their own performance fairly closely. Strong and generally favorable results that should result in rewards in the stock price.

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.

I am really curious to see where Pfizer is at in 5 years. I know their pipeline isn't that great, but they have enough cash on hand to acquire a pipeline... Especially if interest rates go up and make it difficult for companies to borrow. I am not going to budge from this call for 5 solid years...even if Pfizer goes for broke, I'm taking the full ride down to zero. Although, I think most would admit that such an event is far from probable.

‘Pfizer to cool off’. Pfizer is a global, research-based company dedicated to better health and greater access to healthcare for people and their valued animals. Its leading drug Lipitor for lower cholesterol is the largest selling drug in the world.

Impressive performance of the company has been hinged on the performance of its key drugs. In light of the fact that it’s leading drug Lipitor is facing competition in the US from generic pravastatin (Pravachol) since April 2006 and generic simvastatin (Zocor) since June 2006 and series of patent expiring in 2006 and 2007; the company was banking on the approval of its Phase III investigational drug Torcetrapib for lowering cholesterol which was deemed to be the replacement for block buster Lipitor after its expiry in 2010. However, the failure of ILLUMINATE study on Torcetrapib, has proved to be a huge setback for the billion dollar company, plummeting the share price by 15% in a day.

The danger of generic competition looms large on the company as nine of its products, comprising 31% of pharmaceutical revenues and 29% of total revenues for 2005, have been, or in the near term will be, affected by loss of US exclusivity. Its largest prescribed drug for the treatment of hypertension Norvasc and a leading drug for allergies
Zyrtec are set to go off patent in 2007. On the other hand, denial of preliminary injunction on the sale of recently approved Exubera would have come as a huge reprieve for the company. However, looking at the negative sentiment with the unexpected termination of clinical trial on investigational drug Torcetrapib, expected slowdown in Lipitor sales and upcoming patent expiries, the company is expected to underperform in 2007.

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Pharmaceutical industry has been hit with downward pressure from products coming off-patent for the last few years.

They are sitting on 20 billion dollars in cash in case things get tough in the upcoming year. This cash could easily be used to buy a bio-tech firm as well.

41 consecutive years of increased dividends. There is plenty of incentive to wait for the next blockbuster drug to come from Pfizer. Healthcare is a trend that will never end.

This is a good play keeping future trends in mind because the baby boomer generation is getting older and healthcare demand and demand for new drugs in general will only increase. It is also interesting to consider the positive impact on sales both Obama and Hillary’s universal healthcare plans will have when implemented.

Undervalued, Unpopular & excellent dividends.

I think this company will keep putting our a lot of products and they seem to be well run

It's taken me a few years but I've learned to LOVE watching Pfizer drop as I rack up shares in my DRiP account. I think all pharma and Pfizer along with it, will be outperforming the indices again in five years if not sooner.

PFE is poised for a string of disappointments as its value get further eroded by generic competition and loss of investor confidence. Short of a major merger, I see no bright future for PFE.

2006 was not a good year for Pfizer, but the company is far from struggling and there's every indication that a turnaround is on the horizon. Recent estimates have not met expectations, but PFE is still a very profitable company with a more than comfortable operating margin. In 2006, Pfizer posted $48.4B in total revenue with $13B in operating income. What's even more pleasing is the planned dividend increase in the first-quarter of 2007. That's 20 years of straight dividend hikes! Pfizer's an outstanding company currently on hard times. It happens. It's the nature of the industry. And it affords value investors an excellent buying opportunity.

Company is poised for a rebound. Still has solid financials, good pipeline of future products, and lots of cash cows that aren't going generic soon. New leadership will invigorate the company.

This organization pulled a potentialially valuable drug from the pipeline and has hurt their earnings potential. Furthermore, the money paid to the past President of Pfizer has caused a lot of folks to lose faith in the organization.

This drug giant has too many problems. It looks cheap now because of its huge dividend, but I wouldn't buy here.

Pfizer will benefit disproportionately from the secular trend that will drive pharma -- aging baby boomers. This stock under a 20 PE is bargain and still is there. Buy and hold for 2 years minimum.

Atrocious drug development and patent pipeline, no innovation, firing all of its own scientists and replacing them with sales reps for its old and moldy soon-to-be expired products. It is recklessly acquiring small biotechs to suck up the intellectual propertythen firing their best and brightest talent. Sure, it gives you a piddly dividend (look to something like ACAS if you want a great dividend with solid growth prospects), but not enough to keep up with inflation when this shaky house of cards folds to about $19.50 by September 2008.