Pfizer, Inc. (NYSE:PFE)

Acquisition of Wyeth should add some nice features to the portfolio... Apart from drugs nutritionals may find a good bump if there is a post-recession baby boom and simultanously the original baby boomers start consuming more of their calories in liquid and pill form.

DRUGGGGGS!!!!

DotD

Great

Pfizer is a company that I have invested in and followed since the times of the TMF Rule Maker portfolio. Admittedly, I did buy it while it was a market darling (which tended to happen with most Rule Maker picks under late 1990s market conditions). Even with dividends (which I now kind of wish I hadn't reinvested), this has been one of my longest-running losers. However, it has been below my fair value estimates for all of this time, and does have a fat yield, and so I can't bring myself to sell it. Either I fundamentally misunderstand this company, or the management team doesn't inspire enough market confidence to bring it to fair value. The big mystery at present is how pharmaceuticals will fare in the current environment of health care reformism. Pfizer has proven adept at getting out ahead of regulation programs (for instance, introducing customer discount programs on its most-used drugs before the Medicare drug program was introduced) which enables them to shape their own regulations.

For a history lesson TMF-style, head over to:
http://www.fool.com/portfolios/rulemaker/rulemakerintroduction.htm
There's still a lot of nice educational material available there, still highly relevant and possibly even more profitable under current market conditions. I think that series is a good example of TMF's past focus (which I think they've lost somewhat) on education and the feeling of a community working together. (Aww, look at me getting all wistful over a website.)
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As of July 10, 2009, part of the Morningstar Wide Moat Focus index, which tracks the 20 wide-moat firms wide the lowest price-to-fair value ratio. Firms are selected from 174 companies defined as "wide-moat" by Morningstar.

Fair value estimate is listed as $26.
http://news.morningstar.com/articlenet/article.aspx?id=298017

I sometimes wonder how it is that a pharmaceutical stock classifiies as a wide-moat. Yes, they have patent protection, but you know there are many competitors developing new drugs in the same class and the moat will last only as long as the patents (or the tricks that they can use to extend the life of those patents). Maybe "temporary-moat" would be a better term for firms that rely on patent protection for their competitive advantage.

powerful pharmaceutical

I just laid on a bunch of shorts and closed most of my longs. Adding some defensive names here as I think we go down starting tomorrow (now that window dressing is done). I could be wrong but I think the next shoe is about to drop ... it might be employment data or commercial real estate ... don't know.

Dogs of the Dow member

Strong name, strong cash reserve, strong acquisition of Wyeth, strong R&D capability

I have owned this stock for 5+ years. It has been a dismal performer and I believe it will continue to do so. They have been behind the curve on new blockbuster drugs and don't seem to have the ability to get their R&D back to the forefront of pharma development.

Love the fundamentals, and love the dividend even more.

HEALTH /MEDICINE IS THE NEW LEADER OF THE BULL THIS BULL MARKET!

This stock was chosen as part of a group of stocks based upon criteria which focused heavily on dividend yield, cash flow, and balance sheet information.

PEG = -4.58

Look for PFE to be at $16-19 a share in the next year.

Pfizer is a well-established large pharmaceutical firm w/ a low PE ratio and a low debt to equity ratio. Although the revenue has been decreased with the economic recession, it is bound to be back w/ government initiatives in healthcare industry. Also, with the purchase of Wyeth, it will become an even more dominant player in prescription drug industry. I say this is an excellent value stock!

Right now this stock is a steal. Look at their investor relations, read the info, this stock has been beat up so bad, it will have nice gains and over time should outperform the S&P :)

Slow growth but still a market share leader selling at reasonable price.

I think pharmas will do well, this has been recently been beaten down recently and I believe they are in for a good comeback.